In other words, a customer wrote a check for an amount larger than the balance of their checking account. Terms Similar to NSF CheckĪn NSF check is also known as a bad check, bounced check, or dishonored check. What is an NSF check Sometimes called bounced or bad checks, NSF (non-sufficient funds) checks cannot be cashed due to insufficient funds in the payor’s account. NSF was founded in 1944 as the National Sanitation Foundation to help standardize sanitation and food safety at a time when the United States had no national sanitation standards. Another option is to always maintain excess funds in a checking account, though this approach reduces your ability to earn interest on invested funds. Doing so makes it less likely that any checks will be issued for amounts that are not currently present in a bank account. Someone issuing checks can avoid an NSF check by conducting ongoing check reconciliations. In this latter case, the entity cashing the check will not be charged a processing fee by its bank, since the funds have cleared. An alternative situation is that the bank of the entity issuing the check will honor the check, and then charge an overdraft fee to the check issuer. The entity issuing an NSF check will certainly be charged a fee by its bank. The entity attempting to cash an NSF check may be charged a processing fee by its bank. NSF, by the way, stands for National Sanitation Foundation. NSF is an acronym for "not sufficient funds." NSF Check Fees This situation may also arise when a bank account has been closed. An NSF check is a check that was not honored by the bank of the entity issuing the check, on the grounds that the entity's bank account does not contain sufficient funds.
0 kommentar(er)
