Check Replacement Policy/ ACH Reject Fee Authority

Check Replacement Policy - ACH Reject Fee Authority Information

ICSUAM 3103.02 Outgoing Payments (under Section: Electronic Disbursements and Check Disbursement)

  • All returned or rejected ACH payments must be investigated and resolved within a time period sufficient to avert loss from fraud or negligence.  The timeline may differ based on the particular situation.
  • Campuses must establish controls and procedures to manage the handling of returned and state dated checks. 

Policy Objective:

The campus will replace a lost or stolen check after a stop payment has been placed and confirmation from the bank is received that the original check has not cleared the bank. The policy statement below have been established to replace or cancel a lost, damaged or stolen check and/or ACH payment rejects.

Policy Statement:

An administrative fee of $20 will be assessed if one of the following occurs. The $20 administrative fee will be deducted from the original check amount):

For Check Recipients

  • The student believes the check was lost or stolen.
  • The student's bank declares the check was nonnegotiable (torn, stale dated, void, name change, etc.).
  • The student failed to update the current address at least, 10 business days prior to the check disbursement

For Direct Deposit Recipients

  • The direct deposit transaction was rejected because the account number or routing number provided by the student was invalid.
  • The student's bank account information changed and they failed to notify the University of the change online by entering the new information on the Direct Deposit Authorization Form at least 10 business days prior to the disbursement.
  • The student's bank account was closed and the student failed to cancel their direct deposit authorization in writing by completing the Direct Deposit Cancellation Form and delivering it to ADM-358 at least 10 business days prior to the disbursement.

Please direct any questions regarding this Special Notice to the Bursar's Office at (415) 338-1281 or submit a Service Ticket at

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