Returned payments and overdrafts will both get you a fee from your bank, but there's a key difference between the two: overdrafts are honored by your bank and put you in the negative, but returned payments are not honored and will not put you in the negative (but their fee might!).
If Dave processes a payment that gets returned, not only is the balance unpaid, our payment processor gets charged a fee, that they then charge to Dave. If Dave tries to process too many payments that get returned, our processor could stop processing transactions altogether. Yikes!
Dave can still advance your pay even if you have a few returned transactions in your account history. We look for a low ratio of returned payments in comparison to how many days of transactions you have, to ensure the safety of us auto-collecting.
If it's your bank account is not eligible for an advance right now, then you may be able to make it eligible by continuing to use the account while avoiding future returned payments.