University Business - May 2010 - (Page 1)

ADVERTISEMENT A Tale of Two Refunds Refund Solutions Should Be Simple for Everyone. Why Complicate Them for Students? “It was the best of times, it was the worst of times; it was the age of wisdom, it was the age of foolishness.” Charles Dickens penned the opening lines of “A Tale of Two Cities” to describe French Revolutionary times, but they could easily apply to the modern world of student refunds. Or, more specifically, to two of the primary alternatives to paper checks. One is simple, secure and smart. The other can be convoluted, controversial and painful for students. Refund #2: Third-Party Model Outsourcing refunds to a third party sounds good enough. The campus cuts one big check and the vendor handles everything else. However, unloading this business office hassle can create new ones for students. Some third-party outsourcers mail debit cards and strongly encourage students to open another bank account just to get their refund money. In the process, students enter screen after screen of personal information and then wade through more than 25 pages of an Refund #1: Direct Deposit Model online agreement with fine print detailing the terms and conditions. In the working world, employees have for years roared their ap- An ACH option is available but requires students to jump through proval for direct deposit. So have taxpayers and Social Security more hoops and encounter more hassles. recipients. Payers and payees alike have widely accepted the AutoOver time, such a model mated Clearing House (ACH) may create a real barrier to network as the preferred, most student participation and satefficient and reliable way to exisfaction. Meanwhile, the rechange funds electronically. fund outsourcer is building a Which helps explain how marketing machine for selling ACH transactions have conbanking products and services tinued to grow exponentially directly to your students. since the network’s inception, Students may wonder why and why more than 13,000 something so simple can be banks nationwide are National made so complicated. They Automated Clearing House Asmay even voice their displeasociation (NACHA) members. One is simple, secure and smart. The other can be sure via social media sites and In other words, direct deposit is blogosphere. happens. convoluted, controversial and painful for students. the But none of itIthas to. the standard. Period. Why should student refunds be handled any other way? Anyone familiar with the costs of pro- Convenience at What Price? cessing a paper check payment knows how easy and inexpensive an Let’s face it – refunds can be a pain. Painful enough to make any ACH transaction is. Electronic refund “checks” are no different. The solution look pretty attractive. school saves big time by dramatically reducing costs for printing, However, when a college or university outsources the job to a cutting and mailing. third party, it gives up more than a headache – it hands over control What to do for students without bank accounts? Sure there are of a large sum of money and access to its students. When it employs a few college students that are either unbanked or under-banked. a software-based, direct-deposit solution, everything stays in house In Higher Education, however, the number is very small. Several and under its control. That’s the best solution, because it’s a win-win schools that mandate direct deposit refunds have participation levels for both students and staff. over 95 percent. In any model there will always be few exceptions, In this tale of two refunds, simplicity is the key. but by automating the process the business office is freer to spend time with the few who need additional assistance. When it comes down to it, it’s the students’ money. A direct deposit-based refund solution provides them the fastest and least confusing route to money in their bank. http://www.touchnet.com

Table of Contents for the Digital Edition of University Business - May 2010

University Business - May 2010
Contents
Editor’s Note
College Index
Company Index
Advisory Board
Behind the News
Viewpoint
Human Resources
Money Matters
Models of Efficiency
Fast, Friendly Fix-its
Go With the Flow: Campus Traffic and Parking Solutions
What’s New
Community Colleges
End Note

University Business - May 2010