What Is a NSF Check?

As a leading payment processor for multiple industries, Global Client Solutions works with primarily debt settlement clients to develop efficient account management solutions. Some benefits of using Global Client Solutions include a decreased overall servicing cost, certainty of receiving settlement funds, and a reduced NSF, or not sufficient funds, rate.

1. What Is a NSF Check? Global Client Solutions

2. Introduction As a leading payment processor for multiple industries, Global Client Solutions works with primarily debt settlement clients to develop efficient account management solutions. Some benefits of using Global Client Solutions include a decreased overall servicing cost, certainty of receiving settlement funds, and a reduced NSF, or not sufficient funds, rate.  An NSF check is defined as a form of payment that was not honored by a banking system due to the fact that the entity issuing the check did not have sufficient funds in its account or had closed the bank account.

3. NSF Check A NSF check also is referred to as a bounced check, dishonored check, or a bad check.  When an entity entitled to payment receives a bad check, some ways to collect the funds include first approaching the check issuer with a notice that the check was returned and the payment is past due. If that doesn’t work, notifying the debtor that a third party (an accredited debt collection agency) will become involved if the debt is not reconciled usually works. However, if the debtor does not respond after several various attempts at communication, legal action may be required.