Insufficient Funds

Definition

  • When there are not enough funds in a bank account to cover a pre-authorized payment, cheque, or draft made on the account. Also known as non-sufficient funds (NSF).

Synonyms
bad cheque, non-sufficient funds, cold cheque, bounced cheque, dishonoured cheque, rubber cheque

Acronyms
ISF

Related Terms and Acronyms

  • Cheque (CK) Acronym,
    • A written order for payment of a certain amount of money.
    Bank account transaction code.
  • Cheque Clearing Definition,
    • When you write a cheque to a person or a company, the cheque is typically cashed when deposited into a bank account. Your chequing account is then debited for the amount of the cheque and the cheque is said to have "cleared."
  • Debit Definition,
    • Another name for withdrawal of funds from your account.
  • Debit Card (DC) Acronym, Important,
    • A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
  • Drawn Against Insufficient Funds (DAIF)Acronym,
    • Float Definition,
      • The amount of time the bank takes to clear or reject a cheque for payment
      • The time at which funds are debited from the issuer's account.
    • NSF Definition,
      • NSF means Non-sufficient Funds.
    • NSF Cheque Definition,
      • If a cheque is returned for this reason, it means that there was not enough money in your bank account to cover the amount of the cheque. There is a fee to you if this situation occurs.
    • Overdraft (DR) Acronym,
      • The amount that a cheque exceeds the available balance in the payor's account; also insufficient funds.
      Bank account transaction code.
    • Overdraft Minimum Amount Definition,
      • Minimum amount that will be transferred to the accountholder's account if a potential non-sufficient funds (NSF) situation occurs.
    • Overdraft Protection Definition,
      • A service that allows a chequing account to be linked to another savings or line of credit to provide protection against insufficient funds or overdrafts.
    • Payee Definition,
      • The name of the person to whom the money in a cheque is to go.
    • Payor Definition,
      • One who makes a payment to another party.
    • Pre-authorized Payments Definition,
      • A way to set up a monthly payment to be automatically paid from a bank account.
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