Can a merchant demand NSF Sevice Fees?

OK, I was careless and a check for under $4 bounced in WI.

The merchant turned it over to a collection agency, which now demands an extra $25 service fee.

Can a merchant or his agent demand and enforce collection of any arbitrary, extra service fee? I see different amounts posted in different stores these days.

Just curious.

[racer72]

You can be charged up to $250. The amount depends upon the merchant. Consider yourself lucky, you are getting off easy.