Non-Sufficient Funds - NSF
- 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 — (NSF) is a term used in the banking industry to indicate that a demand for payment (a cheque) cannot be honored because insufficient funds are available in the account on which the instrument was drawn. In simplified terms, a cheque has been… … Wikipedia
non-sufficient funds — /nɒn səˌfɪʃənt fʌndz/ noun US not enough money in a bank account to pay a cheque drawn on that account. Abbreviation NSF. Also called insufficient funds, not sufficient funds … Dictionary of banking and finance
not sufficient funds — /ˌnɒt səˌfɪʃ(ə)nt fʌndz/ noun US same as non sufficient funds. abbreviation NSF … Dictionary of banking and finance
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nsf — UK US (also insufficient funds) ► BANKING, FINANCE WRITTEN ABBREVIATION for non sufficient funds: used to show that an account does not have enough money in it to pay a cheque that has been written, a direct debit (= regular payment), etc … Financial and business terms
NSF — (Non Sufficient Funds) adj. not paid due to a lack of money, defaulted due to lack of funds (about a check) … English contemporary dictionary
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NSF — abbreviation not sufficient funds or non sufficient funds … Dictionary of banking and finance
Insufficient Funds — Occurs when an account cannot provide adequate funds to satisfy the demand of a payment. Also referred to as non sufficient funds , or NSF . Insufficient funds occur when someone tries to purchase an item using a check or debit card without… … Investment dictionary
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