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