Do banks report information about bounced business checks to the credit bureau?

The short answer is, no, banks do not report information about dishonoured or 'bounced' cheques to credit bureaus such as Experian, Equifax and Transunion. Consequently a bounced cheque will not be reported on your credit file, and will not effect your credit score directly.

However! Banks do have the option to report bounced cheque activity to a company called ChexSystems who are a credit reporting agency who are able to provide reports on people who have mishandled their banking privileges, including bounced cheques and unathorised overdraft borrowing.

If you are reported to ChexSystems, you will remain on their database for five years, and may find it difficult to open a new bank account.

Also, if you have a bounced cheque that you do not repay, your bank is well within it's rights to turn the amount over to a collection agency, which will have an adverse affect on your credit rating.