I always go (and suggest to others) for the "bounced payment" (and it has never happened in my life). But banks really love overdrafts. It is a major source of income. I prefer to get an angry email and throw a freebie and sort this out than having the bank ripping me off. This way I show my counterpart that "hey mistakes happen here is your money and let me buy you dinner to show you that we are good", than having to the other person getting paid and me ebfing paying 5x that dinner cost.

Overdraft is a loan. Would you get a loan with insane interest rate and fees just to get a payment go through? Not me.