NOTICE: In conjunction with ConnectCarolina go-live, the Finance Policies and Procedures Manual, along with the previous manual, is undergoing changes. These sites will be updated to reflect changes in business processes due to the new system. If you are seeking information related to ConnectCarolina and do not find it in these policies, please email for more information.
Policies and Procedures

Policy 502 – Returned Payments

July 1, 1999
Last Updated
November 16, 2015
Last Reviewed
November 16, 2015
Responsible University Officer
Director of Student Accounts
Responsible Unit
Office of Student Accounts and Univ. Receivables

Policy Statement

It is the responsibility of each department or school to pursue collection of funds pertaining to returned payments. Departments must follow collections guidelines articulated by the Office of the State Controller.

The Office of Student Accounts and University Receivables (SAUR) receives notice from the bank when items are returned due to insufficient funds or other reasons. Returned payments may not be redeposited. SAUR purchases the item(s) from the bank then submits a journal entry back to the chartfield string which originally received credit when the payment was deposited, and forwards the item(s) to that department for collection. The department approver(s) are responsible for approving the journal entry in a timely manner.

A processing fee, not to exceed $25, may be charged and collected for a payment on which payment has been refused by the payor bank because of insufficient funds or because the drawer did not have an account at that bank. If a collection agency collects or seeks to collect on behalf of a State agency such processing fee, the processing fee must be separately stated on the collection notice.

Departments must deposit the returned payment fees collected into the fund that provides the majority of the support for the following:

  • The position responsible for collecting the fee.
  • Other expenses incurred in collecting the fee.

Reason for Policy

This policy provides guidance to departments when payments previously deposited are returned by the bank. The Office of the State Controller provides guidance regarding the collection of receivables. Further, this policy specifically conforms with those guidelines set forth by the Office of the State Controller and N.C. Gen. Stat. 25-3-506 dealing with the collection of processing fees for returned payments.



Special Situations




Additional Information

Frequently Asked Questions


Related Data

For detailed information about student payment options visit:


Payments Student Accts. and Univ. Recv. - Cashier's Office 919-962-1368
Departmental Funding Student Accts. and Univ. Recv. - Student Accounts 919-843-0169


November 12, 2015: Updated terminology on charges and processes on returned payments.
July 25, 2011: Wording and title changed to reflect ACH returns.
July 18, 2011
September 4, 2009
June 24, 2005