An insufficient funds fee (sometimes referred to as a non-sufficient funds fee or NSF fee) can occur when you don’t have enough money in your checking (spending) account to cover the entire transaction. Most financial institutions will reject the transaction and charge a fee. Stanford FCU will reject the transaction, but we won’t charge a fee.
Anuncollected funds fee can occur when there are pending credits to your account (like a deposited check that has yet to clear), and you try to make a purchase for more than your available balance. Although there are funds on deposit, a transaction may be declined because the purchase would overdraw the account. Since the check has not cleared, a financial institution cannot guarantee those funds.
As a best practice, always use your available balance as a guide for writing checks, withdrawing cash and making purchases. You can monitor your available balances through Digital Banking.
There are options available to protect you from an overdrawn account. Learn more about ouroverdraft protection options.
Need access to your accounts on the go?
Handle all your personal banking in one convenient and secure place, and deposit checks with a click of your smartphone. Just download the Stanford FCU mobile app from the App Store or Google Play, then follow the prompts.
FAQs
Insufficient funds are when you do not have enough funds or money in your account to cover a transaction. Uncollected funds are when you do not have enough available funds in your account because a hold has been placed on some or all of the funds or money in your account.
What is the uncollected fund fee? ›
An uncollected funds fee can occur when there are pending credits to your account (like a deposited check that has yet to clear), and you try to make a purchase for more than your available balance.
What is the difference between an overdraft fee and a non-sufficient funds fee? ›
Generally, an overdraft occurs when there is not enough money in your account to pay for a transaction, but we pay (or cover) the transaction anyway. An NSF transaction is slightly different. In an NSF transaction, we do not cover the transaction.
What does "insufficient funds" mean? ›
Non-sufficient funds, or insufficient funds, is a banking term used to indicate that the checking account does not have sufficient balance to cover a transaction or payment. Having a non-sufficient funds situation can lead to penalties, a bad impact on one's credit score, and a criminal liability.
What is the reason code for uncollected funds? ›
R09 Uncollected Funds
Sufficient book or ledger balance exists to satisfy the dollar value of the transaction, but the dollar value of transactions in the process of collection (i.e., uncollected checks) brings the available and/or cash reserve balance below the dollar value of the debit entry.
What does "uncollectible funds" mean? ›
Accounts uncollectible are receivables, loans, or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor's bankruptcy, an inability to find the debtor, fraud on the part of the debtor, or lack of proper documentation to prove that debt exists.
What is the reason for uncollected funds returning? ›
This occurs when the account balance is not enough to cover the payment. Another reason could be that the account has been closed, making it impossible to collect the funds. Additionally, incorrect account information, such as an invalid account number or routing number, can also lead to uncollected funds.
Why is my bank saying insufficient funds when I have money? ›
1. If you have recently funded your account, it's possible that the funds did not fully clear into the account when you attempted to make a payment. 2. If you are using overdraft or credit facilities on your account.
How much is an insufficient funds fee? ›
Overdraft fees occur when you don't have enough money in your account to cover your transactions. The cost for overdraft fees varies by bank, but they may cost around $35 per transaction.
Can I get an insufficient funds fee back? ›
If you contact your bank within a day and have an acceptable reason, the fee may be refunded. If you're unable to get a refund, fix your account and see if your bank offers overdraft protection.
Consumers can use the following account management tips to prevent overdraft fees:
- Use direct deposit for your paycheck. ...
- Keep track of your balance and transactions and don't forget about automatic payments. ...
- Keep a "pad" or cushion of money in your checking account just to be safe.
Can you get NSF fees reversed? ›
Yes, your bank or credit union may waive or refund an NSF charge from your account if it was an honest mistake and you request it be removed. There's no guarantee the bank charge will be reversed, but it doesn't hurt to ask.
What is an uncollected funds fee? ›
A check written against an account with uncollected funds that bounces normally results in an uncollected funds charge. This charge is also called a UCF fee and it is usually the same as the bank's non-sufficient funds (NSF) fee. As of 2023, some banks charged NSF and UCF fees that ranged from $30 to $40.
Why did I get an overdraft fee when not overdrawn? ›
Automatic payments to credit cards, utilities or other businesses can also trigger overdraft fees. Your bank will automatically deduct this fee from your checking account, much as it does with regular account maintenance fees.
Why do banks charge an insufficient funds fee? ›
An NSF fee is commonly charged by banks when an account lacks the funds needed to cover a transaction, and the bank doesn't allow the transaction to go through. The result may be in the form of bounced checks or denied electronic bill payments.
What does uncollected funds on a check mean? ›
What Are Uncollected Funds? The term "uncollected funds" refers to a portion of a check deposit that remains unavailable to the accountholder who made the deposit until the bank verifies that the funds associated with the deposit have been received by the depositor's bank.
What does drawn on uncollected funds mean? ›
Drawn on uncollected funds means that a payment or cheque was issued from an account that does not have enough funds to cover the amount. This can result in the transaction being returned or rejected due to insufficient available funds. What do uncollected funds mean on a returned cheque?
What are examples of insufficient funds? ›
Example. If you have a checking account with a balance of $100 and you try to make a purchase for $150 at a store, the transaction will likely be declined because you have insufficient funds in your account to cover the purchase.
What is the difference between NSF and insufficient funds? ›
Both relate to insufficient funds and can trigger fees. Banks charge NSF fees when they return presented payments without payment, like a check, and overdraft fees when they accept and pay the checks that overdraw checking accounts.