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When there isn’t enough money in your account and you haven’t arranged the appropriate credit, then the cheque or other item (such as a Pre-authorized Debit) will be returned unpaid and a NSF charge will be applied to your account. You can avoid these charges by ensuring your account has enough funds to cover any payments you’ll be making.
If you have pre-authorized payments set up on your No Fee Chequing Account or Personal Line of Credit, the merchant may present the same payment item multiple times. If you have insufficient funds, this can result in multiple NSF charges to your account. If you set up your pre-authorized payments on your Visa instead, and there are insufficient funds, the transaction will simply be declined with no additional charges to you.