What is it?
An acronym used in the banking industry to signify that there are not enough funds in an account in order to honor a cheque drawn on that account. Colloquially, this is known as a ‘bounced cheque’ or a ‘bad cheque’.
Why is it important?
Banks normally charge a fee to the account holder for an NSF cheque. Depending on the bank’s judgement, it may choose to honour the cheque, leaving the account holder with a deficit balance, or it may choose to refuse payment and return the cheque to the depositor.
At Carleton University, all cheques forwarded for deposit that are subsequently returned by the bank will be charged back to the revenue account to which they were deposited. Additionally, an NSF fee of $30.75 will be applied (subject to change) by the Cash Office (a unit of Financial Services within the Business Office).
Where do I find more information?
For more information, please contact Cash and Banking.