UA supports debit cards

The members of the Undergraduate Assembly Debit Card Committee met last night to discuss the new PennCash card. This card would allow students to use their PennCards as electronic debit cards. University officials hope to implement phase one of the cash card plan by the fall, with phases two and three to follow over the next three years, according to committee Chairperson Alan Danzig, a Wharton sophomore. Phase one will allow students to use their PennCards to pay for on-campus services such as vending machines, sports tickets, laundry and Student Health, Danzig said. Phases two and three would enable students to use the card in businesses in all University-owned buildings, such as Houston Hall and 3401 Walnut Street and ultimately in local private businesses, he added. Danzig said the card and all records necessary for its operation would also be maintained on-line in order to prevent card theft, since the card itself would contain no money. First-year Medical student Rajeev Shah, a representative from the University of Pennsylvania Student Federal Credit Union, explained that safety is the primary motivating factor behind the PennCash program. "The University would like to make West Philadelphia safer by taking the cash out of everyone's pockets, in which case the muggers will move to a different area," he said. Shah added that while plans for the new card have been around for nearly four years, several legal and practical problems are delaying their implementation. "The University would like students to deposit money, but because the University is a non-profit educational institution, it can't hold deposits," he said. Shah also mentioned problems in convincing local vendors to accept the system. "A business like a dry cleaner which usually takes cash does not see the benefit of switching," he said. He speculated the $100,000 installation cost for the system would be unacceptable to the University. And he added that the transaction fee for small purchases might cost more than the purchase price. Shah said UPSFCU is putting together a proposal of its own, though he would not comment on any further details. Danzig said three Wharton students have formed a company called Creative Software, which has proposed a plan called CampusCash. The plan would involve deposits held by local banks, and the card would have the ability to purchase items by drawing on these deposits via computer. The UA committee decided to contribute to the PennCash effort by helping to research and publicize the debit card programs.