Non-sufficient funds and overdraft are two different things, although they are both related to a deficiency of funds and can bring about fees. If a transaction is declined due to insufficient funds it is considered an NSF fee. Also, having insufficient funds to cover transactions can lead to outgoing cheques bouncing, which could impact vendor relationships, since they can’t rely on you to make payments on schedule. If the transaction is covered by your financial institution, it may charge you with an overdraft fee.
