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Explanation of Some of the Terms Used With Nutra Merchant Account Banking

This article deals with a few terms that are commonly used in the banking sector.

Not Sufficient Funds (NSF):

The terms Insufficient Funds and Not Sufficient Funds mean the same. The term refers to a situation in which a cheque came for clearance into the bank and could not be processed as there is not enough cash for funding the check.

In such a situation, the account holder can deposit the check again. However, if on the check, “Do Not Redeposit” is stamped, this will not be possible.

Uncollected Funds Hold or UCF

This term refers to the items which are sent back as a result of the non- availability of funds in the bank account. But this will be detected early and will not be cleared yet. This can happen if a person deposits $1000 to your account but the money has not been cleared. If the money is deposited on Monday, the clearing will take place on Tuesday or Wednesday. So on Wednesday, the check will not be cleared. If this happens, it is possible to redeposit the item.

Stop Payment

The terms “Stop Payment Check”, ‘Check Stop’, “Stop Pay” and “Stop Payment Item” are similar to the term “Stop Payment”. This term will be sealed on a check or draft sometimes when they are returned to you. The presence of either of these terms on the check or draft means that the account holder has revoked his authorization and you are not able to deposit the item again.

Closed Account

This is sometimes mentioned as Account Closed. If the item deposited is returned with either of these terms on it, then this implies the termination of the account by the account holder. They cannot be cleared as the account has been closed. You have only one alternative in this case and that is to collect a check from another person and deposit it.

Unable to Locate Account or UTL

This term refers to the situation when the bank is unable to find the concerned account that is associated with the provided information. This happens mostly with check through phone or with a check draft. There are chances of giving the wrong information to the bank. If this happens, the clearing will not take place and the information will be sent back.

Frozen Account or Blocked Account:

As the term implies, the concerned account will be frozen by the bank. There are many reasons that lead to the freezing or closing of an account, like wage garnishment, court order, divorce judgement or IRS tax alien. It is not possible to re-deposit such items. The term will be sealed on the item if it cannot be processed.

Post Dated Check:

This will contain a future date. Before the date, the clearing of the check is not possible. It can be processed after or on the date. This can be re-deposited also.

Expired or Stale Dated check:

These two terms refer to those checks that have been deposited after the expiry date. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.