Returned or Nonsufficient (NSF) Payments (2024)

FAQs

What does NSF non-sufficient funds mean? ›

What are Non-Sufficient Funds? Non-sufficient funds, or insufficient funds, is a banking term used to indicate that the checking account does not have sufficient balance to cover a transaction or payment. Colloquially, NSF checks are also called “bounced” or “dishonored” checks.

When you write a check and there's not enough funds in your account when it's presented, this is considered non-sufficient funds (NSF). When a check is returned due to NSF, it's returned to the payee that deposited the check, at their bank. This allows them to redeposit the check at a later time, if available.

A returned item fee, also known as a nonsufficient funds (NSF) fee, is the fee your financial institution charges when it declines or returns a transaction because of insufficient funds. The average fee ranges from $27 to $40 per returned item.

Key Takeaways. A checking account is said to have “non-sufficient funds” (NSF), or "insufficient funds” when it lacks the money needed to cover transactions. The acronym NSF also references the fee a customer is charged for presenting a check or payment that cannot be covered by the balance in the account.

An NSF fee itself doesn't affect your credit score, but not having enough money in your account can mean missing a payment, which does.

There are several reasons why a debit card may be declined even if you have money in your account. Common reasons include travel and reaching your daily purchase limit. Stay on top of your cards and consider using budgeting apps to help avoid debit card denial.

Can NSF fees be waived? Yes, your bank or credit union may waive or refund an NSF charge from your account if it was an honest mistake and you request it be removed. There's no guarantee the bank charge will be reversed, but it doesn't hurt to ask.

"NSF" stands for "Not Sufficient Funds".

When a cheque is returned by the bank with this mark, it means that the account holder did not have enough funds in their account to cover the amount of the cheque.

Transaction allowed to clear? The bank covers a transaction that overdraws an account, and a fee is assessed. The customer is expected to pay back the fee as well as the money loaned from the bank.

How long does it take for a payment to be returned for insufficient funds? ›

Most banks will report insufficient funds within 2-3 business days which is after funds debit and before the are deposited into the attached deposit account.

If you submit a payment for tuition and fees that is returned by your bank for nonpayment, the payment will be reversed and you will incur an Returned Payment fee.

Key Takeaways. A returned payment fee is a charge incurred when a consumer bounces a payment. Payments may be returned because of insufficient funds in a consumer's account, closed accounts, or frozen accounts. Banks and other financial institutions charge their consumers returned payment fees.

The "insufficient funds" error

In other words, what you are trying to buy costs more than what you have in your bank account. Solution: Refill the funds on your bank account in order to fix this error.

Generally, a bank may attempt to deposit the check two or three times when there are insufficient funds in your account. However, there are no laws that determine how many times a check may be resubmitted, and there is no guarantee that the check will be resubmitted at all.

Can NSF fees be waived? Yes, your bank or credit union may waive or refund an NSF charge from your account if it was an honest mistake and you request it be removed. There's no guarantee the bank charge will be reversed, but it doesn't hurt to ask.

Generally, a bank may attempt to deposit the check two or three times when there are insufficient funds in your account. However, there are no laws that determine how many times a check may be resubmitted, and there is no guarantee that the check will be resubmitted at all.

Generally, an overdraft occurs when there is not enough money in your account to pay for a transaction, but we pay (or cover) the transaction anyway. An NSF transaction is slightly different. In an NSF transaction, we do not cover the transaction.