Accounting

Returned payment (NSF)

A rent payment that bounces because of insufficient funds, a closed account or a reversal, and is taken back off the ledger.

When a check or electronic payment is returned, the payment is reversed on the resident ledger, the balance becomes due again, and a returned-payment fee may be charged where the lease and local law allow.

After repeated returns, many managers require certified funds or block electronic payments for a period. Returns can arrive days after the payment posted, so a paid-in-full resident can become delinquent after the fact.

See it on a sample company