Procedure 7.3.17 Electronic Payments
System Procedures
Chapter 7 - General Finance Provisions
for Board Policy 7.3
Part 1. Authority. Board Policies 1A.1 and 1A.3 delegate authority to the chancellor to develop procedures to implement policy 7.3.
Part 2. General. Use of credit or debit cards and electronic checks (also known as “e-checks” or ACH payments) for payment of obligations has gained widespread acceptance in business operations of all types. This procedure is intended to offer the convenience of electronic payment options to students and colleges and universities, and to ensure sound and reasonable management of such payment processes.
Part 3. Offering Electronic Payment Options. Colleges and universities shall offer electronic payment options to students including credit cards, debit cards and electronic checks.
Subpart A. Web-based electronic payment. Colleges and universities shall offer students, at a minimum, the option of paying tuition and fees through use of a payment option accessible through the college or university web site. The college or university web site must connect through the common system-wide e-payment processor selected for this purpose.
Subpart B. Other electronic payment options. Colleges and universities may offer students the option of paying tuition and fees through other electronic payment options, such as telephone, at the cashier’s window, and so on.
Colleges and universities must interface all electronic payment options through the common systemwide processor in order to maximize processor volume and minimize related volume-based fee rates. Use of a single processor also simplifies the processing of refunds for payments made by credit card in that such refunds must be made through both the same credit card and same merchant agreement.
Colleges and universities currently under contract with processors other than the common systemwide processor must transition to the systemwide processor as soon as possible.
Part 4. Directing Payment. Colleges and universities shall allow students making an electronic payment to direct payment to their choice of common payment groups or colleges and/or universities as identified within the payment system (e.g., tuition and fees, housing, individual customized training courses, library fines, etc.). Directing payment to certain payment groups does not eliminate the students’ obligation for payment of the other listed charges.
Part 5. Cost Recovery. Students and those who make payments on behalf of students using credit or debit cards will be assessed a processing fee. This fee will be calculated, charged, and collected directly by the systemwide processor.
Related Documents:
- Policy 7.3 Financial Administration
- Procedure 7.3.1 Accounting and Payroll
- Procedure 7.3.2 Auxiliary Operations
- Guideline 7.3.2.1 Auxiliary Fund Accrual Financial Statements and Multi-year Financial Planning
- Procedure 7.3.3 Purchasing Cards
- Procedure 7.3.4 Cost Allocation
- Guideline 7.3.4.1 Cost Allocation and Implementation
- Procedure 7.3.5 Revenue Fund Management
- Procedure 7.3.6 Capital Assets
- Guideline 7.3.6.1 Capital Leases Involving Tax-Exempt Interest
- Procedure 7.3.7 Impairment of Capital Assets
- Procedure 7.3.12 Scholarships
- Procedure 7.3.13 Surplus Personal Property/Building Disposal
- Procedure 7.3.16 Finance Exception Reporting
- Guideline 7.3.17.1 Guideline for Payment Card Acceptance, Processing and Security
Date of Adoption: 12/20/05
Date of Implementation: 01/01/06
Date of Last Review: 6/25/26
Date & Subject of Amendments:
6/25/26 – Five-year Review. The procedure is amended to allow cost recovery for credit card processing charges.
8/27/13 - Amended Part 4 to give students the option to direct payment to a particular institution.
No additional HISTORY.