Uncollected funds

Uncollected funds are checks deposited with the payee's bank that have not yet been paid by the bank on which the checks were drawn. This amount is of interest to the payee, since the cash is unavailable for use until the funds have been collected by the payee's bank.

It is possible that the payer's bank account does not contain sufficient cash to pay for a presented check. If so, the uncollected funds amount transitions to a not sufficient funds (NSF) transaction, for which the payee receives no cash.