Payment Acceptance Policy - UTDBP3040

Policy Statement

Purpose

To provide guidance regarding the requirements for departments who accept payments.

Definitions

Cash: U.S. Currency and coin

Checks: Personal or business checks, money orders, traveler's checks, cashier's checks, certified checks.

Electronic payments: credit/debit cards, digital wallets, ACH, EFT and wire transfers.

Cash Handling Department: Campus operating unit authorized to collect funds and make deposits in accordance with the Office of Budget and Finance's procedures.

Change Fund: funds exclusively restricted for the use of providing change when processing authorized collections of cash in the department. It shall NOT be used for cash purchases, making loans to employees or students or cashing checks. Change Funds are temporary and shall be allowed only as an approved exception to standard business practice.

Custodian: Individual entrusted with the responsibility of safeguarding the assigned change fund.

Change Funds

Change funds may only be approved for one-time temporary use and must utilize cash handling procedures that have been approved by the Office of Budget and Finance. Departments are encouraged to pursue alternative payment methods, such as credit/debit card payments or other approved electronic payment methods.

The use of petty cash funds has been discontinued. Instead, faculty and staff should use a One Card or seek business reimbursement for purchases.

Payment Acceptance

Each department accepting payments must meet the requirements stated in this policy. The departments may be reviewed by Treasury and/or Internal Audit to determine that an effective system of internal controls has been developed and implemented.

Departments that routinely accept payments must maintain written procedures that detail how the requirements of this policy are met. Departmental procedures must describe the chain of custody, deposit reconciliation, and reporting. The documentation of transactions and the balancing of cash at all points of transfer and transport are critical to maintain the accuracy and safety of deposits.

Overages and Shortages

Cash overages and shortages must be accounted for immediately and reflected on that day's deposit report. In addition, shortages and overages of $25 or more in a single incident or in aggregate during a one-month period must be reported to and investigated by Treasury. Cash overages and shortages of less than $25 should be posted to the cash over/short financial account.

Losses involving possible theft or burglary should be reported to Treasury. Treasury will report the loss to the CFO, University Police, and Office of Audit and Consulting Services immediately upon discovery. If the incident occurs outside of normal business hours, the University Police should be notified immediately, and the incident reported to Treasury on the following business day.

Receiving Check Payments

1. Receiving Checks
   1. All checks shall be made payable to "The University of Texas at Dallas."
   2. Any department accepting checks must follow proper procedures outlined by Treasury for timeliness of check deposits.
   3. All payments of $5,000 or more should be made electronically directly to the appropriate UTD bank account.
2. Returned items
   1. When a check or electronic payment is returned for non-payment, a $25 service charge is assessed. The department that accepted the payment is responsible for collecting the payment amount plus the $25 return fee. The University does not redeposit returned checks.
   2. The payer has ten days from the notice to make full payment by:
      • Credit Card
      • Money Order

Failure to comply will result in refusal by the University to accept checks from the payer.

Deposits

1. Frequency of Deposits
   Deposits should be made daily if they are equal to or greater than $250.00. Deposits should be made at least weekly even if the accumulated total is less than $250.00.
2. Deposit methods
   1. In-Person
      Deposits may be made to secure deposit boxes in designated locations. For more information, please see https://finance.utdallas.edu/selling-goods-services/accepting-payments/ If a deposit or combined deposits contain more than $1,000, departments must have a UTD Police escort. For deposit amounts under $1,000 a departmental supervisor or other employee may accompany the courier.
   2. Remote Check Deposit
      Departments that regularly accept checks are required to utilize remote check deposit to submit checks directly to the bank on a daily basis. Treasury will ensure that department representatives receive the appropriate equipment, training and banking portal access in order to prepare and submit check deposits.

Receiving Credit Card Payments

Departments are encouraged to accept in-person and online payments via credit and debit cards utilizing the approved methods for accepting card payments.

The University has several options for accepting card payments and has established procedures for requesting merchant accounts.

Please refer to UTDBP3035 - Credit Card Acceptance Policy.

Receiving ACH/EFT and Wire transfers

Electronic payments are the University's preferred payment method. Departments are encouraged to request payments from businesses and other organizations by ACH, EFT or wire transfer. Departments must provide Treasury with the departmental contact and accounting information in order to record the deposits.

Authorization for Accepting Cash

In order to request an authorization for accepting cash, the department must submit a formal request to the Vice President for Budget and Finance. Any authorized cash fund will be subject to periodic inspection and review to ensure adherence to proper cash handling procedures. Failure to do so will result in the immediate cancellation of the authorization.