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Cashiering | Collection of Foreign Bank Drafts

Departments receiving checks drawn on foreign banks must verify that the checks are in U.S. dollars and will clear through the U.S. banking system, using the appropriate Federal Reserve Bank transit routing numbers that must be imprinted on the check.

If a department accepts a check that is not in U.S. dollars or does not have the appropriate transit routing number, UNI is required to process the check separately as a “collection” item. In this situation, the department will not receive credit until the funds are collected, will incur any collection fees assessed by the depository or originating bank and will also be responsible for any conversion fees charged. Generally, the foreign check must have the equivalent value of at least $100 (U.S. dollars) to have collection be an option. The normal time period to receive credit for a collection item is six to eight weeks.