Non-Sufficient Funds (NSF) Definition

Non-sufficient funds (NSF) describe an account status that contains less money than the amount the account holder is trying to withdraw from it.

Non-Sufficient Funds (NSF) Extended Definition
When a payment is attempted with a total greater than the balance of an account, banks declare that non-sufficient funds are present. The transaction cannot be completed because there is not enough money in the account being withdrawn from. In addition, bank fees are issued to the account holder.

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Last Updated By

Christan Neff | Apr 17, 2023