NSF (Non-Sufficient Funds)
Definition
A payment that fails because the payer's account lacks the funds to cover it. The payee does not receive the money and both parties may incur fees; the transaction must be re-recorded as unpaid.
Related Terms in Banking & Payments
Bank Float
The gap between when a payment is recorded and when the funds actually clear and become available. Float affects how a business reads its real, usable cash position.
Positive Pay
A bank fraud-prevention service that matches cheques presented for payment against a list the company provides, flagging any that do not match before they are honoured.
Plaid
A financial technology company that connects applications to bank accounts. HelloBooks uses Plaid to provide live bank feeds from 11,000+ US financial institutions for automatic transaction import and categorization.
Stripe Connect
Stripe's platform for marketplace and SaaS payments. HelloBooks uses Stripe Connect to enable invoice payment links — customers click "Pay Now" and pay via credit card, with funds going directly to the business's Stripe account.
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