Red Oak expands returned-payment fee to electronic transactions
Customers whose payments to the City of Red Oak are returned or rejected will be subject to the same fee regardless of the payment method used.
The City Council unanimously approved Resolution 2026-67, establishing a $50 returned-payment fee for personal checks, Automated Clearing House withdrawals, debit cards and credit cards.
City officials said electronic payments can initially appear to have been accepted before being rejected by the customer’s financial institution several days later. Staff members must then reverse the transaction, contact the customer and attempt to collect the outstanding amount.
Following a first returned payment, the customer must pay the original amount and the $50 fee using cash, a cashier’s check or a money order.
After a second returned payment, or two consecutive returned payments, the city may revoke the customer’s online payment privileges and stop accepting personal checks or electronic payments until those privileges are restored.
The existing $55 fee for reissuing a lost city-issued check remains unchanged. Failure to pay an outstanding utility balance and returned-payment fee could result in water disconnection or other collection action.
