Which type of check cannot be cashed due to lack of funds?

The type of check that cannot be cashed due to lack of funds is the NSF check, which stands for "Non-Sufficient Funds." When a check is written, there must be enough money in the check writer's account to cover the amount. If the funds are insufficient at the time the check is presented for payment, the bank will not honor the check, and it will be returned to the recipient, typically marked as NSF. This situation occurs because the account holder does not have enough money in their account to fulfill the transaction.

While other types of checks mentioned can have different implications, they do not specifically pertain to the transaction being rejected solely for lack of funds. Cancelled checks are already processed and cannot be cashed again. Dishonored checks refer to checks that have been refused for various reasons, which could include NSF but also encompass other issues. Postdated checks are checks that are dated for a future date, and may not be cashable until that date arrives regardless of funds currently in the account. Therefore, NSF checks specifically highlight the situation where payment is denied due to insufficient funds, making it the correct answer.