Non-sufficient Funds

Non-sufficient funds (NSF) is a term used in the banking industry 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 cheque has been presented for clearance, but the amount written on the cheque exceeds the available balance in the account. An NSF cheque is often referred to as a bad cheque or dishonored cheque, or more colloquially, a bounced cheque, cold cheque, rubber cheque, returned item, or hot check.