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2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Non Sufficient Funds? Wrong! If the Non Sufficient Funds is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Non Sufficient Funds then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
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8. Security - check for the yellow padlock on the Non Sufficient Funds site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Non Sufficient Funds, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Non Sufficient Funds, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
In the US banking industry, the term
"non-sufficient funds" (NSF) is used 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 check has been presented for clearance, but the amount written on the check exceeds the available balance in the account. It is often colloquially referred to as a
bad check, a
"bounced" check, or a
rubber check. Businesses frequently use the term
dishonored check.
Consequences of writing a bad check
When a bad check is written, the following consequences may occur:
- The check writer may be charged a fee by his/her own financial institution. This fee may vary, depending on the bank's policies.
- If paying the item puts the account holder in arrears by a relatively small amount, the bank may choose to honor the check. When this occurs, the account will remain overdrawn, and the fees charged by the bank will place an extra burden on the account until a sufficient deposit is made.
- If the paying of the item would place the account quite deep in the hole, the bank will likely choose not to honor the check. The item will be returned to the depositor's bank, and ultimately to the depositor. The amount of the check, plus a small fee will be debited from the depositor's account. The depositor then may choose to re-submit the check, hoping it'll clear on a second attempt, or else proceed immediately with collection activities.
- The recipient may choose not to accept checks in the future from the writer, or may suspend the check-writer's privileges until the check-writer has made good on the debt.
- The recipient may choose to report the writer to a database like Shared Check Authorization Network (SCAN) or ChexSystems. This may lead to other merchants in the future refusing to accept checks from the writer or a joint account holder, or the writer having trouble obtaining a checking account at another bank for several years.
Reasons for bad checks
Bad checks are written for a variety of reasons. These may include:
- Personal lacking of organizational skills - The writer of the check does a poor job at balancing his/her checkbook or keeping good track of funds contained in the account.
- Lack of Communication - In a joint checking account, the parties do not consistently share information about checks written, leading one to believe that funds spent by the other are present.
- Slow clearing of deposits - The writer of the check deposits a sum of money and later writes a check for a smaller amount. Although the checkbook balances, a bad check may result if the check clears faster than the deposit.
- Unexpected electronic withdrawals - at some point in the past, possibly years ago, the accountholder authorized electronic withdrawals by a business. If the business makes a large withdrawal without warning the accountholder, it may leave insufficient funds to cover a check that was previously written.
- Bank reordering of transactions - The account holder writes a small check for which there are sufficient funds in his or her account. Later, the account holder makes a large withdrawal that overdraws the account (either accidentally or intentionally). The bank reorders the transactions and processes the large withdrawal first, leaving insufficient funds to cover the check.
- Playing the Float - The account holder writes a check while insufficient funds are present in the account, but believing s/he will be able to deposit sufficient funds before the check clears (known as beat the bank). Though most people who engage in this practice are generally honest and do not have fraudulent intentions, this behavior is also exhibited by those committing the serious offense of check kiting.
- Intentional Fraud - The account holder knowingly writes a check for an amount not contained within the account, absent of the expectation of receiving such funds prior to the clearing of the check, or in the case of problem gambling, the expectation is contingent upon winning. This practice is known as "Check kiting." One of the most famous paper hangers of all time was Frank Abagnale.
- Temporary Hold - Some funds in the account have been placed on hold by the bank. These may include deposits that must be given time to clear, or after certain debit card transactions, for which a greater amount is put on hold. The account holder believes these funds are available, and as a result, checks may be dishonored, of NSF penalties may be charged.
- Bank Error - Sometimes a bank employee misreads the handwritten amount on a check, so an amount much larger than the writer intended to write the check for will actually be removed from the account. On other occasions, a computer glitch could be responsible for a check not clearing.
- Victimization - The account, unbeknownst to its holder, has been robbed or cleaned out by a thief, and the balance is therefore less than what s/he believes it to be. This could occur as the result of check forgery, demand-draft or debit-card fraud, theft associated with a rigged ATM machine, or phishing.
Collection on bad checks
When a bad check is negotiated, the recipient of the check may choose to take action against the writer. The action that is taken may be
Civil law (common law) or criminal law, depending on the amount of the check and the laws in the jurisdiction where the check is written.
In many jurisdictions, a Bad Check Restitution Program exists that allows recipients of bad checks to collect the funds from the local
district attorney office, regardless of the amount. An agency run by the district attorney will pursue the writer of the check by attempting to collect the funds in exchange for avoiding
criminal prosecution. The check writer will be responsible to cover the amount of the check, plus all fees to which the recipient is legally entitled, plus a program fee. The writer will also be required to take a course designed to improve check writing habits. These programs are controversial and in recent years, have come under fire in lawsuits.
Prevention
Steps that can be taken to reduce the likelihood of a bad check include:
- Carrying a higher balance in the checking account
- Better balancing techniques
- Overdraft Protection - This may be in the form of a link to a savings account for which funds will be automatically transferred, a credit card, or a line of credit designed specially for this purpose.
Criticism
With consumer interest rates at, historically, an all time low, many banks have moved from a community investment based profit model to a customer fee based profit model. Many banks do not utilize a readily accessible technology that verifies available funds before accepting a debit or check charge. If a charge exceeds the available funds, most banks prefer to charge a fee that typically exceeds 10000% of the cost of simply denying the charge. This markup has recently caught the attention of consumer advocates and regulators alike.
See also
External links
- National Check Fraud Center. Explains the laws pertaining to bad checks in all 50 states.
- Ten tips to avoiding a bad check
In the US banking industry, the term
"non-sufficient funds" (NSF) is used 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 check has been presented for clearance, but the amount written on the check exceeds the available balance in the account. It is often colloquially referred to as a
bad check, a
"bounced" check, or a
rubber check. Businesses frequently use the term
dishonored check.
Consequences of writing a bad check
When a bad check is written, the following consequences may occur:
- The check writer may be charged a fee by his/her own financial institution. This fee may vary, depending on the bank's policies.
- If paying the item puts the account holder in arrears by a relatively small amount, the bank may choose to honor the check. When this occurs, the account will remain overdrawn, and the fees charged by the bank will place an extra burden on the account until a sufficient deposit is made.
- If the paying of the item would place the account quite deep in the hole, the bank will likely choose not to honor the check. The item will be returned to the depositor's bank, and ultimately to the depositor. The amount of the check, plus a small fee will be debited from the depositor's account. The depositor then may choose to re-submit the check, hoping it'll clear on a second attempt, or else proceed immediately with collection activities.
- The recipient may choose not to accept checks in the future from the writer, or may suspend the check-writer's privileges until the check-writer has made good on the debt.
- The recipient may choose to report the writer to a database like Shared Check Authorization Network (SCAN) or ChexSystems. This may lead to other merchants in the future refusing to accept checks from the writer or a joint account holder, or the writer having trouble obtaining a checking account at another bank for several years.
Reasons for bad checks
Bad checks are written for a variety of reasons. These may include:
- Personal lacking of organizational skills - The writer of the check does a poor job at balancing his/her checkbook or keeping good track of funds contained in the account.
- Lack of Communication - In a joint checking account, the parties do not consistently share information about checks written, leading one to believe that funds spent by the other are present.
- Slow clearing of deposits - The writer of the check deposits a sum of money and later writes a check for a smaller amount. Although the checkbook balances, a bad check may result if the check clears faster than the deposit.
- Unexpected electronic withdrawals - at some point in the past, possibly years ago, the accountholder authorized electronic withdrawals by a business. If the business makes a large withdrawal without warning the accountholder, it may leave insufficient funds to cover a check that was previously written.
- Bank reordering of transactions - The account holder writes a small check for which there are sufficient funds in his or her account. Later, the account holder makes a large withdrawal that overdraws the account (either accidentally or intentionally). The bank reorders the transactions and processes the large withdrawal first, leaving insufficient funds to cover the check.
- Playing the Float - The account holder writes a check while insufficient funds are present in the account, but believing s/he will be able to deposit sufficient funds before the check clears (known as beat the bank). Though most people who engage in this practice are generally honest and do not have fraudulent intentions, this behavior is also exhibited by those committing the serious offense of check kiting.
- Intentional Fraud - The account holder knowingly writes a check for an amount not contained within the account, absent of the expectation of receiving such funds prior to the clearing of the check, or in the case of problem gambling, the expectation is contingent upon winning. This practice is known as "Check kiting." One of the most famous paper hangers of all time was Frank Abagnale.
- Temporary Hold - Some funds in the account have been placed on hold by the bank. These may include deposits that must be given time to clear, or after certain debit card transactions, for which a greater amount is put on hold. The account holder believes these funds are available, and as a result, checks may be dishonored, of NSF penalties may be charged.
- Bank Error - Sometimes a bank employee misreads the handwritten amount on a check, so an amount much larger than the writer intended to write the check for will actually be removed from the account. On other occasions, a computer glitch could be responsible for a check not clearing.
- Victimization - The account, unbeknownst to its holder, has been robbed or cleaned out by a thief, and the balance is therefore less than what s/he believes it to be. This could occur as the result of check forgery, demand-draft or debit-card fraud, theft associated with a rigged ATM machine, or phishing.
Collection on bad checks
When a bad check is negotiated, the recipient of the check may choose to take action against the writer. The action that is taken may be
Civil law (common law) or
criminal law, depending on the amount of the check and the laws in the jurisdiction where the check is written.
In many jurisdictions, a Bad Check Restitution Program exists that allows recipients of bad checks to collect the funds from the local district attorney office, regardless of the amount. An agency run by the district attorney will pursue the writer of the check by attempting to collect the funds in exchange for avoiding criminal prosecution. The check writer will be responsible to cover the amount of the check, plus all fees to which the recipient is legally entitled, plus a program fee. The writer will also be required to take a course designed to improve check writing habits. These programs are controversial and in recent years, have come under fire in lawsuits.
Prevention
Steps that can be taken to reduce the likelihood of a bad check include:
- Carrying a higher balance in the checking account
- Better balancing techniques
- Overdraft Protection - This may be in the form of a link to a savings account for which funds will be automatically transferred, a credit card, or a line of credit designed specially for this purpose.
Criticism
With consumer interest rates at, historically, an all time low, many banks have moved from a community investment based profit model to a customer fee based profit model. Many banks do not utilize a readily accessible technology that verifies available funds before accepting a debit or check charge. If a charge exceeds the available funds, most banks prefer to charge a fee that typically exceeds 10000% of the cost of simply denying the charge. This markup has recently caught the attention of consumer advocates and regulators alike.
See also
External links
- National Check Fraud Center. Explains the laws pertaining to bad checks in all 50 states.
- Ten tips to avoiding a bad check
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Non-sufficient funds - Wikipedia, the free encyclopedia
Non-sufficient funds" (NSF) is a term used in the banking industry to indicate that a demand for payment (a check) cannot be honored because insufficient funds are available in the ...
Non-sufficient funds legal definition of Non-sufficient funds. Non ...
Ask a Lawyer. Ask a Lawyer. Question Country: United States of America State: Florida I have recently found out that a check I wrote over a year ago bounced and never got paid and ...
Non-sufficient funds financial definition of Non-sufficient funds. Non ...
Bounced Check. A check that can not be processed because the writer has insufficient funds. Also known as a rubber check. Notes: Most bounced checks are subject to a penalty fees.
sufficient synonym | Thesaurus.com
non sufficient funds ... Main Entry: sufficient: Part of Speech: adjective: Definition: Being what is needed ...
sufficient definition |Dictionary.com
non sufficient funds ... adjective . 1. adequate for the purpose; enough: sufficient proof; sufficient ...
NSF
Acronym Finder: NSF stands for Non Sufficient Funds ... Suggest new definition. This definition appears very rarely and is found in the following Acronym Finder categories:
CBA - Lehigh Valley - Non-sufficient Funds
Our NSF Service and Cost Savings : Enhance your image as a leader in state-of- the art technology! Provide additional services for your business customers, while achieving cost ...
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Our Automated System : Collects more of your NSF checks faster Reduces your collection costs down to zero Uses sophisticated account monitoring between ...
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