Returned Payments Procedures

For Faculty and Staff

Returned payments

A returned payment occurs when a check, electronic check (ACH), credit card payment, or other bank‑draft payment submitted to the university cannot be processed by the bank or credit card company. Common reasons include insufficient funds, incorrect account information, closed accounts, stop‑payment orders, or chargebacks.

When a payment is returned, the original amount becomes immediately due again, along with a returned payment fee.

Returned payment fee

A returned payment fee of $30 is assessed for each returned item. This fee is added to the account at the time the university receives notice from the bank or credit card company.

How to resolve a returned payment

A returned payment must be resolved within 10 calendar days of the date on the university’s notification.

  • Accepted payment methods for resolving returned items
  • Cash
  • Cashier’s check
  • Money order
  • Debit card

Personal checks and electronic checks may not be used to resolve a returned payment.

Student accounts: holds

If a returned payment is not resolved within the required timeframe:

  • A hold may be placed on the student account
  • Registration, graduation processing, and other services may be restricted
  • The account may be referred to Collections in accordance with university receivables procedures

If a returned payment was used to clear a prior hold, the hold may be reinstated.

Departmental deposits

If a check deposited by a university department is returned:

  • The amount of the returned item will be charged back to the depositing department’s FOAP
  • The department will be notified and is responsible for contacting the payer if follow‑up is needed

Repeated returned payments

The university may restrict future payment methods for individuals who:

  • Have multiple returned payments
  • Fail to respond to notices
  • Use returned payments to clear holds or deadlines
  • Demonstrate a pattern of payment issues

If you receive a returned payment notice

  • Review the notice for the amount due and deadline
  • Pay the balance using an approved method
  • Contact Student Business Services at sbs@sfasu.edu if you believe the return was made in error
  • Keep your contact information updated to ensure you receive all notices

Reference: UTS 166 Cash Management and Cash Handling Policy