In most cases the business will have a processes and procedures in place to handle this type of scenario. In my experience most managers, normally call the customers manager as well. In all my years of working, I have only had this happened a handful of times and normally there is a logical explanation: fraud, customer had a check bound from someone, used wrong checks from a closed account, stop payment, and also just not enough funds in the bank.

The interviewer wants to know how you handle uncomfortable customer situations. Show the interviewer that, despite the position you're in being awkward, you can stay calm, cool and respectful while following company procedures. Keep in mind that most customers have great intentions, and odds are, they just made a mistake.

"In my current role, we have processes and procedures in place to handle this type of scenario. In my case, I will call the customer directly and be casual about it, on the first call. In all my years of working, I have only had this happened a handful of times, and typically there is a logical explanation like the customer had a check bounce from someone, used the wrong check from a closed account, or their credit card expired, and they were unaware. When you are friendly with customers, they will always find a way to repair the situation as soon as possible."