What an NSF or insufficient funds fee means

The words on the line

The CFPB says an NSF or non-sufficient funds fee may occur when a check or an electronic authorization is not paid because the account lacks funds. It calls that a returned or bounced check. The same glossary says an overdraft is when you do not have enough money but the bank pays the transaction anyway. You can overdraw through checks, ATM transactions, debit card purchases, automatic bill payments, and electronic or in person withdrawals. If the bank paid the item, look for an overdraft fee. If the bank sent it back, look for NSF or returned item.

In Canada, the Financial Consumer Agency of Canada describes the same event: the account cannot cover a transaction such as a cheque or a pre-authorized debit. The limits FCAC states for federally regulated banks, including the cap, the once in 2 business days rule, and the shortfall under $10, are on what a Canadian NSF fee is. This page does not replace that one. The dollar each named Canadian bank prints is on Canada NSF fees by bank.

A US returned payment, including banks that print no fee for an item they return, is on returned deposit and returned item fees in the US. How to read the words RETURNED CHECK next to a fee is on returned check fees. Use the page that matches the words on your line.

Canada and the US are not the same fee schedule

A Canadian personal deposit account at a federally regulated bank follows the FCAC rules linked above. A business account is outside that cap, which the Canadian NSF page states. A provincial credit union that is not federally regulated follows its own regulator. Do not copy a US bank's overdraft number onto a Canadian statement, and do not copy the Canadian cap onto a US statement.

In the US, whether the bank may charge an overdraft fee on an ATM withdrawal or a one time debit card purchase depends on whether you agreed to that service. That consent rule is Regulation E, explained on how to ask about an overdraft fee. Checks and ACH debits are not the same opt in. An NSF fee for a returned ACH item can still appear when the bank does not pay the item. Nacha's label for a fee on an insufficient funds return is RETURN FEE, described on the returned check page.

Monthly account fees are a different line. US monthly checking amounts are on monthly checking account fees by bank. Canadian monthly chequing amounts are on monthly chequing account fees by bank. An NSF fee is charged for an event. It is not the package price.

What to ask

Write the date, the exact description, the fee, and the payment that failed. Call the number on the statement. Ask whether the item was returned or paid, and ask the bank to review the fee or remove it. How to ask your bank to refund a fee is the short script. The bank can say no.

On a Canadian personal account, the questions on the Canadian NSF page are the useful ones: whether the institution is federally regulated, whether another NSF fee was charged in the previous 2 business days, and whether the shortfall was under $10. On a US account, ask which fee schedule line matches the amount, and whether you had opted in to debit card overdraft if the fee is an overdraft rather than a return.

Waiver pages for a monthly fee are not the same request, but they are the right next step if the account is also charging a monthly plan you want reviewed. Start from US bank fees or Canadian bank fees, which link the waiver for each named bank.

Upload the statement on Expenvo. The PDF stays on your device. Expenvo lists the lines so you can match a short name to a date and an amount. It does not call the bank, and it does not dispute a charge.

Questions

What does NSF stand for?

Non-sufficient funds. The CFPB says it is a fee when a check or electronic authorization is not paid because the account does not have the money. It is also called a returned or bounced check.

Is NSF the same as overdraft?

No. An overdraft means the bank paid the item anyway. NSF means the item was not paid. The fee names on the statement follow that split, but banks do not all use the same label.

Where is the dollar amount?

On your statement. Named Canadian amounts are on the Canada NSF fees by bank page. Named US returned item amounts are on the US returned item page. This page does not invent a typical fee.

Can I ask the bank to remove it?

Yes. Ask with the date and the amount. The bank can say no. The refund page has a short example of what to say.

Sources

• CFPB: bank account key terms
• FCAC: chequing accounts

Related guides

• What a Canadian NSF fee is
• Canada NSF fees by bank
• How to ask about an overdraft fee