PennCard to have debit capabilities

By next fall, many University students may not need their wallets. The Business Services Department has formed a partnership with PNC Bank, the University of Pennsylvania Student Federal Credit Union and MBNA America Bank to create a "cashless campus" by providing increased buying capability through the PennCard. The arrangement -- which will net the University $6 million over the next five years -- is part of an attempt to generate new revenue under the University's restructuring program, according to Executive Vice President John Fry. Fry explained that he is seeking new revenue sources since he does not want to use academic funding to cover the costs of non-academic programs. The revenue from this program will be used to pay for campus lighting. Using a microchip located on the front of the PennCard, students will be able to transfer up to $99 from PNC or UPSFCU bank accounts onto their cards. Students will also be offered an MBNA America Bank credit card through which they can transfer funds at zero interest. They will be required to pay a 50-cent transfer fee. Students will also be able to use the card's debit capability in vending, laundry and copy machines, in addition to charging purchases at The Book Store and Wharton Reprographics to their bursar bill. Laurie Cousart, director of University telecommunications, said she will begin to approach local business and hopes several will allow students to pay via PennCard by this fall. But students will not be able to charge purchases at local stores to their bursar bill; those purchases will be covered by funds stored on the card. The new PennCard will also feature a digital photograph of each student. Cousart said photos will be taken in April and the new cards will be distributed next fall. In addition to linkage with the PennCard system, MBNA will offer a special package deal to students subscribing to its credit card, including low introductory interest rates, no annual fee and a travel rewards program. The credit card will also be offered to alumni. Vice President for Business Services Steve Murray said the University plans to set up portable card readers for events and ticket sales on Locust Walk. And Cousart said she hopes to add a phone card program by fall and is in discussions with three or four companies. While campus police have said a "cashless campus" will increase safety, there are still security risks involved with the new system since criminals could use a stolen card to make purchases. "Since there's no cost to transfer the dollars and since these machines will be all over campus, we will be strongly encouraging people not to carry more than $40-50 on the chip at any given time," Murray said. Penn will become one of a handful of schools that offer computer chip technology, which is more secure than the MAC-stripe technology in use at other schools. This system is also less expensive and provides a platform for the future addition of new services, Cousart said. Murray said local businesses which already accept the rival student-run Quaker Card will allow payment via PennCard. He added that the vendors will have to decide whether to continue to accept the Quaker Card. "The general feedback we've gotten is very enthusiastic about this card coming and people will embrace it and look forward to working with it," Murray said. Wharton senior and Quaker Card co-founder Matthew Levenson said his company is currently engaged in discussions with the University and PNC to add Quaker Card capabilities to the new PennCard. Quaker Card will be accepted in 10 new businesses by fall and will continue operations either alone or as part of the PennCard. Levenson said he is not concerned about competition from the PennCard, since the Quaker Card focuses on food services. He added that a University of Michigan program offering similar services to Penn's has generated little student interest. "I'd love for them to be complimentary," Levenson said. "The last thing I want to do is compete with University. We are on friendly terms now and I'd like to stay that way."

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