Returned Check Procedures

The following procedures only apply to checks received for non-tuition payments. This includes payments received for goods or services, reduction to expense, or overpayments.

Sales and Receivables receives daily statement from the bank listing all returned checks. A certified copy of each check is included.

Sales and Receivables charges the account listed on the endorsement to expense code 6312 through iPayments for all campus 02 accounts except SOFC accounts which are charged using a journal entry. Sales and Receivables writes the reference number on the certified copy of the check and mails it to the department contact.

The department that deposited the check is responsible for collecting repayment of the returned check and an additional returned check fee. This fee is currently set at $30.00 by the State of Texas Legislature. See Business and Commerce Code, Title 1: Uniform Commercial Code, Chapter 3: Negotiable Instruments, Subchapter A: General Provisions and Definitions, Sec. 3.506: Processing Fee by Holder of Payment Device.

  • The department may opt to redeposit the check a second time prior to contacting the payer using iPayments and expense code 6312. If this expense code is not available in iPayments, please send an email to requesting it to be added to the appropriate account.
  • Please refer to Fair Debt Collections Practices Act. For example collection letters, please contact Sales and Receivables.
  • Please do not accept another check as repayment of the initial returned check. Ask for a Cashier's Check, Money Order, or Cash.
  • If the returned check amount including the returned check fee amount is equal to or more than $100.00 and has not been collected within 120 days of receipt of the returned check notice, the payer will be placed on State Hold.
  • The department may also opt to prosecute the payer through the County Attorney's office for checks $1.00 to $1,499.00 (979-361-4300) or through the District Attorney's office for checks $1,500.00 or greater (979-361-4320).

In all cases, including checks received for tuition payments, if the returned check is from a TAMU System employee, Sales and Receivables is obligated to contact the employee's direct supervisor or other applicable management for assistance in recovering funds. Employees are subject to being placed on State Hold as well as having the returned check amount plus return check fee reported as income.