NASHVILLE, Tenn. -- The poor economy appears to be causing an upswing in the amount of bad checks being written to businesses.

Video: Businesses See Spike In Bad Checks

Sonny Kumar said when he bought his convenience store on Dickerson Road, he decided to allow his customers pay with checks. However, three months later, he said this decision has hurt his business.

"In the last week of May, I had 16 bad checks (written to the store)," said Kumar.

The same thing is happening to his brother's store in Lebanon. Customers have given the store so many bad checks, that Benny Kumar posts them on a wall at the store to show proof of the problem.

In the past two months, Benny Kumar said his business has lost $600 to $700 from worthless checks.

Sonny Kumar finally decided to stop accepting checks all together.

Grocery stores said they also have seen a spike in the number of worthless checks.

Papa Johns Pizza said that it received so many bad checks last month that it no longer takes them at four of its Nashville stores.

Most major banks said they can't recall when they've seen so many bounced checks.

Bank of America recently raised its insufficient fund fee from $20 to $25 for the first bounced check. The fee is $35 if a bank customer bounces more than one.

Washington Mutual bank raised its bounced check fee from $32 to $34.

The Kumar brothers said they are considering raising the prices to make up for the loss they've incurred.

"We have to pay the bank, plus whatever we've given away for free," said Sonny Kumar.

More businesses are subscribing to services that verify that bank customers have money in your account before the check is accepted.

Many banks warn that it is much harder these days to float a bad check until payday since they can now clear a check within a few hours.