Handbook of Business Procedures

5.6. SALES AND SERVICES RETURNED PAYMENTS

A. Introduction

Paper checks, electronic checks, and electronic fund transfers are all valid methods of payment to The University of Texas at Austin. The following guidelines apply to all checks and electronic payments:

• Must be drawn on U.S. banks in U.S. dollars
• Subject to returned-check processing if returned by the bank for any reason

B. Returned Checks

When a check or electronic payment is returned to the university for any reason, a service charge and a late charge, if applicable, are assessed. A notification letter is sent to the individual when the payment is returned. If payment is not received, a second notification letter is sent 10 days later.  The individual has 10 days from the date of each notice to make full payment by cash, credit card, cashier's check, or money order. Failure to comply will result in the university’s refusal to accept personal checks from the individual in the future.

The university will not accept a check from an individual who:

• previously wrote a bad check and was not responsive to requests for payment.
• habitually writes bad checks, even though restitution is made promptly.

Once an individual is barred from writing a personal check, the bar remains in place for a minimum of one year. After the year has passed, if the individual has no bars, the restriction will be removed.

If the individual’s account balance is outstanding after numerous attempts by the university to collect, the department’s account to which the income was originally recorded will be debited. Alternatively, the account may be referred to the Travis County District Attorney’s office for collection following their procedures.

C. Resources

For more information, email Returned Check Services at returnedchecks@austin.utexas.edu.

Part 5. Sales of Goods and Services - Table of Contents