What does NSF check mean?

• A. Checks returned by the bank because the drawer's account does not have enough funds
• B. Checks that have been canceled
• C. Not present in the checkbook
• D. Deposited but not yet credited

Answer: (A)

NSF stands for non-sufficient funds. It describes a check that cannot be paid because the drawer’s account doesn’t have enough money to cover the amount. When such a check is presented, the bank refuses payment and returns it unpaid, often with a fee and the NSF designation. This is different from a canceled check (which has been processed), a check not present in the checkbook, or a deposit that has been deposited but not yet credited.