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University Bursar - What is the Returned Check Policy?

The University will charge a $25.00 fee for each check, electronic or paper, returned by the financial institution for any reason and will refuse to accept any checks made after two returned checks, regardless of any reason by the financial institution.

Payments made by check or electronic transaction that are returned for non-sufficient funds (NSF) are subject to penalties and must be repaid. In addition, students who present an NSF payment in order to release their financial hold to register, may have their registration cancelled. In this case, the financial hold for any registration activity will not be released until all funds have cleared.

Common reasons for returned payments include:
  • No Account/Unable to Locate. Typically this means the account number structure is invalid and the financial institution cannot find any account with that number in its records.  The payer should contact their financial institution for the correct information to use for ACH transactions.  This may occur because the payer entered the number on their debit card, instead of their bank account number.   
  • NSF/Insufficient Funds. At the time the check was presented to the account holder's financial institution, there were not enough funds in the account.
  • Stop Payment. The account holder, the person who originally wrote the check or authorized the draft, has revoked their authorization.
  • Closed Account. The account holder's bank account that was associated with the check is closed.
  • Frozen Account/Blocked Account. The bank was required to lock or freeze the account. 
For more information on the returned check policy, please see section VII Returned Payment and Failed Payment Agreements of the Financial Responsibility Agreement.

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Keywords:payments, charge, NSF, financial, hold, register, registration, e-checks, student, account university bursar paymybill   Doc ID:91075
Owner:Kathy K.Group:University of Illinois System
Created:2019-04-16 09:57 CSTUpdated:2021-10-11 13:44 CST
Sites:University of Illinois System
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