PennCard may be used for laundry, vending purchases

The University is planning to lighten your wallet without taking away any of your dollar bills. Administrators have been working on a way for the PennCard to have much more extensive use as a debit card. The new system could be in place by the 1996-97 school year, according to Undergraduate Assembly member and Wharton sophomore Alan Danzig. University officials will meet December 7 to discuss the possible implementation of the debit system next year. Under the proposed system, laundry machines, copiers and vending machines on campus could be paid for with the PennCard, according to Vice President of Business Services Steve Murray. Currently, the PennCard can be used at Dining Services, Chats, Wharton Reprographics and The Book Store. "The ultimate goals of the new system are to improve security and cause students to carry less cash on campus," Associate Vice President for Finance Frank Claus said. "We don't want the card to become a commodity. Thus, the University's system would be hard-wired so that a stolen card becomes useless." Claus said the plan would call for students to pay a deposit before the PennCard could be used in the debit system. The students could then draw from their new account when necessary. A similar system is now working at Chats. Universities such as Duke, George Washington and Florida State already have a debit/credit card program in place for students. Claus said it is tougher for Penn to come up with a comprehensive system because many merchants who cater to University students are off campus. "Most schools that have these programs do not have the integrated community of on- and off-campus merchants," Claus said. "We need to involve a bank so that the card can be used for off-campus merchants." Danzig said the University of Pennsylvania Student Federal Credit Union may be hurt by an administration-run debit system. "Students' money will be taken away from the Credit Union and given to the University, which would act as a financial intermediary," he said. "The Credit Union would lose some business, but I believe it would not be destroyed." But UPSFCU President and Chief Executive Officer Matt Cherwin said he believes UPSFCU would not be adversely affected if the administration's debit card plan was installed. "We offer a range of banking services for students," he said. "A debit card run by the administration would give students an option." Cherwin, a Wharton senior, also said the credit union is developing an alternate plan for a debit system. "We are looking on our own to bring these services to the University," he said. "In terms of setting up the new services, it is a very complex process," he added. "We're still looking for vendors and other merchants who would be willing to support our plan." While the debit card is enjoying its status at American universities, it is not considered the most technologically advanced card. The next generation of personal cards has emerged in the Netherlands -- the Smartcard. The Smartcard is different from the PennCard and other American debit systems because it has a microchip instead of a magnetic stripe. This microchip allows students to carry personal information such as identification and addresses. Smartcards are also in use in England. "Smartcards have become very prevalent in Europe for one reason --their communications structure is extremely less pervasive," Murray said. Murray said such a chip could be installed in the PennCard within three years, but it would be predominantly centered around identification. "Some people predict that ID cards will be obsolete in five to 10 years," he added. "IDs could be checked by fingerprinting or eye readers for security purposes." But Claus said he believes students should see improved services as soon as possible. "Our students deserve it," he said. "If you come here and pay that kind of money for tuition, you deserve the world's best education and resources."