Security of Checks
Boston University is required to be compliant with Commonwealth of Massachusetts regulation in connection with safeguarding of personal information contained in both paper and electronic records. Protected personal information includes Social Security Numbers, driver’s license numbers or state-issued identification card numbers and financial account numbers.
Original checks must be kept in a locked cash box at all times. The cash box must be kept in a locked desk, file cabinet and/or office. If you must make copies of checks, you are required to cover the financial (routing number and account number) information and any personal information (Social Security Number, driver’s license number or state-issued identification card number) that appears at the bottom portion of the check so that the personal information does not display on any copies.
Records that contain Personal Information must be destroyed as soon as there is no longer a business need to retain those records. View the policy.
Domestic Checks (checks drawn on a United States bank account)
All checks should be payable to Boston University in US dollars and should have the current date (post dated checks are not acceptable). Checks submitted for deposit must have a duplicate adding machine tape. Travelers checks are deposited in the same manner as checks. An endorsement stamp is required for deposits of checks at Metro. The following format should be used when ordering an endorsement stamp
- For Deposit Only
- Trustees of Boston University
- Department Name
- Department Unit/Department number (Legacy Format).
- Each check must be stamped on the upper portion of the back of the check in accordance with Federal Regulations (**see below). Please contact the Purchasing Office at 353-2370 to order your stamp.
**An endorsement is a legally enforceable obligation made by the payee’s handwritten or stamped signature on the back of an item. All items accepted for deposit, or presented for cash, must be endorsed by the original payees, subsequent payees and the depositor (if other than the payee). The individual or business named on the “Payable to” line of a check is the payee and must endorse the check exactly as it is payable.
Customers are required to endorse items in the designated area.
A bank guarantee endorsement stamp (“deposit to account of within named payee…”) may be used, unless item restrictions apply or the endorser receives cash back.
Customers should avoid endorsing items in the space reserved for the depository bank.
If the customer’s endorsement, or any other information the customer puts on the back of the item, obscures the bank’s endorsement, the customer is liable for any loss that occurs if the unpaid item is returned late because the bank’s endorsement cannot be read.
Checks drawn on a foreign bank account that do not contain an ABA routing number (U.S. bank number) should be sent to the University Cashier on a separate Cash Credit Voucher. The University Cashier will route these items through the International Collection department of our bank. Your account will be credited when a credit advice is received from our bank. Please note: there is a bank charge for this service; the amount of the charge depends upon the bank and country from which the funds are collected. Your account will be debited the amount of this charge. The collection of these funds may take from ten days to several months depending upon the issuing bank.
When deposited checks are returned for insufficient funds, stop payment, etc., the banks utilized by Boston University automatically deposit the checks a second time before returning the checks. This process minimizes the number of checks that are returned for non-payment. The University Cashier is responsible for both recording the returned checks and returning the checks back to the depositing department. It is the responsibility of each department to contact the person or organization for payment on returned checks. In addition, Boston University reserves the right to take the following actions:
- Access a fee for each returned check.
- Restrict future methods of payment to either cash or bank checks for all individuals or corporations whose checks are returned for non-payment.
For assistance, and to ensure compliance with collection laws, please contact the Boston University Collection Department at 617-353-4100.