For Treasury and Treasury Trust accounts, when notified by the bank that an adjustment has been posted to the state's bank account, OST will prepare a Cash Receipt Journal Summary (A8), in the name of the agency that initially deposited the returned item. OST will record the adjustment in Account 01P, "Suspense Account," adjusting GL Codes 4310 "Current Treasury Cash Activity (OST Only)" and 7110 "Receipts In-Process." OST will send the agency a copy of the Cash Receipt Journal Summary along with the NSF check, deposited item returned, or Deposit Adjustment Notice. The deposit adjustment current document number will start with "ADJ." Show The agency is to record the deposit adjustment or returned check: Using the Cash Receipts Journal Summary (A8) prepared by OST, clear receipts in process in Account 01P and establish a receivable for the amount of the returned item. Refer to Subsection 85.24.50 for an illustrative entry. Clear the receivable in Account 01P by a journal entry adjusting the GL Code where the amount was originally recorded in the agency's operating account. This is normally revenue, but may be expenditure recovery or receivable liquidation. If a revenue, use either Revenue Source Code 0940 “Deposit Adjustments and Returned Checks” or the revenue source code used on the initial deposit. OST will clear Account 01P with the journal entry reflecting the adjustment. Refer to Subsection 85.24.50 for an illustrative entry. At fiscal year end, reclassify any residual balance in Revenue Source Code 0940 to the appropriate asset, liability, revenue or expenditure/expense GL code. Deposit subsequent collection of amounts for which a journal entry adjustment was posted with a Cash Receipt Journal Summary (A8). Refer to Subsection 85.24.60 for an illustrative entry. If you have a checking account, you might have to deal with an overdraft fee. An overdraft occurs when you don’t have enough money in your account to cover a transaction, and the bank or credit union pays for it anyway. Transactions include ATM withdrawals and debit card purchases as well as checks and ACH payments (such as online bill payments). Many banks and credit unions offer overdraft programs, and these can vary by institution. Generally, if you overdraw your checking account by a check or ACH, your bank or credit union’s overdraft program will pay for the transaction and charge you a fee. By allowing your account balance to fall below $0, your bank or credit union will also effectively take the repayment right out of your next deposit. At most institutions, the overdraft fee is a fixed amount regardless of the transaction amount, and you can incur several overdraft fees in a single day. Overdraft fees work a little differently for debit cards. Your bank or credit union cannot charge you fees for overdrafts on ATM and most debit card transactions unless you have agreed (“opted in”) to these fees. If you choose to opt in to debit card and ATM overdraft, you are usually allowed to make ATM withdrawals and debit card purchases even if you do not have enough funds at the time of the transaction. However, you will generally incur fees on transactions that settle against a negative balance later. If you have not opted in to ATM and debit card overdraft, debit card purchases and ATM withdrawals will generally be declined if your account doesn’t have enough funds at the time you attempt the transaction. If you have not opted in, you will still be able to make ATM withdrawals and debit card purchases when you have enough funds at the time you attempt your transaction, and you will not incur an overdraft fee regardless of whether you have the funds to cover the transaction in your account when the transaction later settles. Since opted-in consumers allow their bank or credit union to charge them fees in the event of an ATM or debit card overdraft, they generally pay more in overdraft fees than consumers who do not opt in. For example, in 2014 the CFPB reported that opted-in accounts are three times as likely to have more than 10 overdrafts per year as accounts that are not opted in. The CFPB also found that opted-in accounts have seven times as many overdraft fees as accounts that are not opted in. Take a closer look at how consumers are impacted by opting in to checking account overdraft. Whether or not you opt in, you may still be charged fees for overdrafts on checks or ACH transactions. Still, deciding whether or not to opt in can be one of the most important decisions you make that affects the cost of your checking account. Here are six steps you can take to reduce or eliminate overdraft fees:
Questions about overdraft fees or checking accounts?Check out Ask CFPB, our database of common financial questions and answers. Submit a complaintIf you have a problem with overdraft fees or any other financial products, you can submit a complaint online or by calling (855)411-2372 What happens if you write a check and there is no money in the account?If you write a check and there isn't enough in your account to cover it, it will be returned to the person or entity who tried to deposit it. This is known as bouncing a check. Bounced checks are also called rubber checks, and the technical finance term for this situation is called non-sufficient funds, or NSF.
What is it called when you write a check for more money than you have in your account?Overdraft fees are incurred when you spend more money than you have available in your bank account, and banks typically charge around $35 per instance, meaning that you can be charged multiple overdraft fees in a single day.
What is drawn against insufficient funds?Insufficient Funds Fees
An insufficient funds fee is charged by the bank as a penalty when a payment presented by check is refused due to insufficient funds. In the U.S., the fee is from $27 to $35 conventionally.
What is an NSF fee quizlet?NSF Fee. An overdraft fee assessed when you spend more than you have in your account and don't have an overdraft protection. Bank Reconciliation.
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