Accounting Services Section (ACT)
Effective Date: 01/01/1999
Last Modified Date: 06/21/1999
A processing fee, not to exceed twenty-five dollars ($25.00), may be charged and collected for checks 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 at the time the consumer presented the check to the person, a sign:
- was conspicuously posted on or in the immediate vicinity of the cash register;
- was in plain view of anyone paying for goods or services by check;
- was no smaller than 8 by 11 inches, and stated the amount of the fee that would be charged for returned checks.
When the drawer sends a check by mail for payment of a debt and the check is dishonored and returned the processing fee may be collected if the drawer was given prior written notice that a fee would be charged for returned checks.
Depositing Returned Checks
Departments must deposit the returned check fee 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.
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