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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 bank for any reason and will refuse to accept any checks made after two returned checks, regardless of any reason by the bank.

Payments made by check or electronic transaction that are returned for non-sufficient funds (NSF) are subject to penalties and must be repaid within 5 days of notification. In addition, students who present an NSF payment in order to release their financial hold to register, may have their registration for all future terms 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 bank cannot find any account with that number in its records.  Other reasons could be the addition or absence of leading zeros in an account number.  In this instance, the payer should contact their financial institution for the correct information to use for ACH transactions.  In many instances, this occurs 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 bank, there were not enough funds in the account to pay the check.
  • 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. Reasons this can occur include: a divorce judgment, IRS tax lien, wage garnishment, court order, or other legal reasons.
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 10:57 CDTUpdated:2020-05-26 10:38 CDT
Sites:University of Illinois System
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