System Business Officers

Expand all | Collapse all

Refund Questions

  • 1.  Refund Questions

    Posted 11-20-2018 09:44 AM

    Good afternoon,

     

    I would like to request feedback regarding processing refunds when there is also a credit card payment on the account.  Can you please look at my questions below and advise how you would process each.

     

    1. The balance is paid by parent's credit card to meet the payment deadline.  Later in the term Financial Aid is awarded.  Would you refund back the credit card first and if there is any credit remaining process a refund to student or parent according to the type of aid?

     

    1. The account is paid in full by credit card the student is awarded funds from an external sponsor or internal institutional waiver which creates a credit on the account.  Would you refund the credit card up the amount of the initial credit card payment first and then process a refund to the student for any remaining excess?

     

    1. Is there any acceptable amount of time you would refund a credit card payment by ACH or check?

     

     

    Thank you in advance for your responses.

     

    Alana Martin

    Embry-Riddle Aeronautical University

     

    Sent from Mail for Windows 10

     



  • 2.  RE: Refund Questions

    Posted 11-20-2018 10:15 AM

    I would like to request feedback regarding processing refunds when there is also a credit card payment on the account.  Can you please look at my questions below and advise how you would process each.

     

    1. The balance is paid by parent's credit card to meet the payment deadline.  Later in the term Financial Aid is awarded.  Would you refund back the credit card first and if there is any credit remaining process a refund to student or parent according to the type of aid?

     

    You refund the credit card first. This is typically spelled out in the card merchant agreement. I'm not sure if you use TouchNet or not, but they allow, If I remember correctly, 19 months where a refund to a card payment can be processed. I'm no longer in Student Financial Services, but spent many years there before making the move over to the Academic side, (more money on this side J ). However, I will also note that when card payments were made at the window (and TouchNet could not be used to process refunds), it was sometimes easier to not refund the credit card. In this instance, the system we had required us to manually look up the original payment, write down the card number, and then physically key in a refund to the Card Merchant POS machine.

     

    1. The account is paid in full by credit card the student is awarded funds from an external sponsor or internal institutional waiver which creates a credit on the account.  Would you refund the credit card up the amount of the initial credit card payment first and then process a refund to the student for any remaining excess?

     

    Typically, for the internal institutional waiver, the refund would go back on the credit card to the amount paid by credit card, then a separate check or direct deposit refund for the remainder. For the external sponsor, I don't think it matters as these funds are viewed as payments, similar to the original credit card payment. However, if the external sponsor payment (say it comes in as a check) gets processed as an outside scholarship, then the refund process would be processed as such; refund to credit first, and then remainder processed separately.

     

    1. Is there any acceptable amount of time you would refund a credit card payment by ACH or check?

     

    There is a time limit on when credit cards can be refunded, (I mentioned the timeframe from TouchNet earlier). In this case, the refund would go out by paper check or direct deposit.

     

    When I worked at the University of South Florida, if the card or account was no longer active, as long as the student/parent provided an official letter from the banking institution, we would issue a paper check or Direcit Deposit instead of refunded to the card.

     

    When I worked at Middle Tennessee State University, we would refund to the card regardless if the card or account was inactive. We would leave it up to the banking institution to ensure the Funds made it to the recipient.

     

    I should point out that this policy also ensures that students cannot take advantage of the system and get refunds that they are no technically entitled to. For instance, a parent, grandparent, friend, pays the initial costs to keep the student from being withdrawn while financial aid comes through, (for any sort of multiple reasons they might not have a financial aid deferment). Then the aid comes in and the student gets a full refund. The other person is then left holding the bag. Some institutions may want to avoid this type of scenario altogether as it's best not to get involved in these things. However, I have had instances where the card holder didn't get the refund and then the student wouldn't pay up as they spent the refund thinking it was "free Money." The card holder then disputes the charge and the university gets a charge-back that they then have to bill the student. The student spent the funds and now has a built hey can't pay. Thus they can't register the following term. ETc. Etc. Etc. If you have a set policy on card refunds, you can avoid this entirely.

     

     

     

    W. Scott Roberts

    Business Administrator

    Corcoran Department of History

    University of Virginia

    Nau Hall - South Lawn

    Charlottesville, VA 22904

    (Office) 434-924-6380

    wsr2m@virginia.edu

    http://history.virginia.edu/

     

     

     






  • 3.  RE: Refund Questions

    Posted 11-21-2018 08:44 AM
    We do not generally do any refunds to credit cards unless it is a special situation.

    ------------------------------
    Scott Rosen
    Associate Controller
    Arcadia University
    rosens@arcadia.edu
    ------------------------------



  • 4.  RE: Refund Questions

    Posted 11-21-2018 11:04 AM
    Texas Tech University has a policy to refund a credit balance on a student account to a credit card if that card payment was made within the last 30 days.  This is to comply with credit card processor guidelines related to cash advances.  You may want to review your credit card processor policies for any refunding implications.

    ------------------------------
    Christine Blakney CPA
    Managing Director of Student Business Services
    Texas Tech University
    christine.blakney@ttu.edu
    ------------------------------



  • 5.  RE: Refund Questions

    Posted 11-22-2018 09:50 PM

    I would apply the refund to the student or parent based on the source of payment that created the credit balance – so, I would not apply the refund to the credit card.  There should not be any time limit on when a refund would be done for a credit card payment, and I would suggest processing the refund directly to the credit card.   

     

    Ron Bambacus

    Controller

    904-680-7722