Non-Sufficient Funds - NSF
An acronym used in the banking industry to signify that there are "non-sufficient funds" in an account in order to honor a check drawn on that account. Colloquially, this is known as a "bounced check" or "bad check".
Banks normally charge a fee to the account holder for an NSF check. Depending on the bank's judgment, it may choose to honor the check, leaving the account holder with a deficit balance, or it may choose to refuse payment and return the check to the depositor.
The fees charged by many banks in instances of NSF checks are generally contentious among consumers. Consumer advocates allege that since overdraft fees are usually a fixed amount, a customer may, in effect, be paying extraordinarily high interest rates for relatively small deficits in their accounts.
Bank customers should seek to avoid these fees by keeping an extra amount of cash in their checking accounts so that they do not overdraft their accounts accidentally. In addition, customers should carefully monitor the use of checks, debit cards and automated charges, which are common causes of overdrafts.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
non-sufficient funds check — check written from an account lacking sufficient funds to cover it … English contemporary dictionary
Non-invasive intracranial pressure measurement methods — Increased intracranial pressure (ICP) is one of the major causes of secondary brain ischemia that accompanies a variety of pathological conditions, most notably, traumatic brain injury (TBI), stroke, and intracranial hemorrhages. However, aside… … Wikipedia
Non-conforming loan — A non conforming loan is a loan that fails to meet bank criteria for funding. Reasons include the loan amount is higher than the conforming loan limit (for mortgage loans), lack of sufficient credit, the unorthodox nature of the use of funds, or… … Wikipedia
insufficient funds — /ˌɪnsəfɪʃ(ə)nt fʌndz/ noun US same as non sufficient funds … Dictionary of banking and finance
Electronic funds transfer — or EFT refers to the computer based systems used to perform financial transactions electronically.The term is used for a number of different concepts: * Cardholder initiated transactions, where a cardholder makes use of a payment card * Direct… … Wikipedia
Check kiting — is the illegal act of taking advantage of the float to make use of non existent funds in a checking or other bank account; it is a form of check fraud. It is commonly defined as intentionally writing a check for a value greater than the account… … Wikipedia
Overdraft — I warn you, Sir! The discourtesy of this bank is beyond all limits. One word more and I I withdraw my overdraft! Cartoon from Punch Magazine Vol. 152, June 27, 1917 An overdraft occurs when money is withdrawn from a bank account and the… … Wikipedia
Cheque fraud — Cheque fraud/check fraud refers to a category of criminal acts that involve making the unlawful use of cheques in order to illegally acquire or borrow funds that do not exist within the account balance or account holder s legal ownership. Most… … Wikipedia
Advance-fee fraud — African sting An advance fee fraud is a confidence trick in which the target is persuaded to advance sums of money in the hope of realizing a significantly larger gain. Among the variations on this type of scam are the Nigerian Letter (also… … Wikipedia
Bank fraud — is the use of fraudulent means to obtain money, assets, or other property owned or held by a financial institution. In many instances, bank fraud is a criminal offense. While the specific elements of a particular banking fraud law vary between… … Wikipedia
ChexSystems — is an eFunds check verification service and consumer credit reporting agency like Experian, Equifax and TransUnion. While most credit reporting agencies broker data about how a consumer handles credit relationships, ChexSystems provides data… … Wikipedia