QuakerCard shuts down operations

The debit card company's demise baffles students and merchants alike. Two years ago, the QuakerCard burst onto the scene when four Wharton seniors turned a class project into a debit card service that came to be used by thousands of University students as an alternative to cash at dozens of local merchants. And last week, just as suddenly, it vanished. Answers are few and questions many with regard to the company's unexpected demise. Students and merchants alike were surprised by the QuakerCard operators' removal of the card-reading devices from each all 30 University City locations where the card was previously accepted. Students who visited the QuakerCard's vacated offices in the Christian Association building at 36th Street and Locust Walk were greeted by a brief note explaining that the company had shut down permanently and that refund checks were being mailed to the students' home addresses. Though there was speculation over exactly when the refunds would be made, several students reported that they received checks for the full amount of their card balances last weekend. The QuakerCard was introduced in the summer of 1996 by then-Wharton seniors Matthew Levenson, Jon Guljord, Chris Cononico and Michael Vaughan. It functioned as a debit card, with students using money placed on the card to pay for food, groceries and even taxi fares. The reason behind the QuakerCard's sudden failure remains a mystery as company officials refused repeated calls for comment. A recent medical school graduate who requested anonymity was present when the card reader was removed from the Wawa at 36th and Chestnut streets. He said the QuakerCard representative told him that the company was closing down because it "wasn't making any money." "People have been trying to find out why they can't use their card," the student said. "Why aren't they answering people?" This turn of events comes on the heels of University Student Service's attempt last month to take their product to the national level. Through a recently created National College Registration Board, QuakerCard owners hoped to market a Campus Card to incoming freshmen at schools across the country. However, the marketing materials sent out in an April 8 mailing said that the card was "required" for many discounts and services nationwide, prompting a flood of phone calls to schools nationwide. Penn officials were similarly overwhelmed with inquiries from confused parents when the QuakerCard's made its debut. Many schools already have official identification cards, like the PennCard, that offer students a debit card function and access to a range of services. Levenson explained that the Campus Card is a private entity not affiliated with any official university ID card. He also promised a refund to any student who laid down money for the $25 card "without fully understanding the nature of the services offered." Though the QuakerCard never made it off the ground as a national project, many in Philadelphia are left scratching their heads. "They didn't tell me anything," said Steve Grant, the manager of the Wawa at 36th and Chestnut. "Nobody called up and contacted me or anything like that." Managers at other stores reported similar experiences of having the QuakerCard readers removed without prior notice. Store owners were given a brief note thanking them for their affiliation with the card. Reaction to the QuakerCard's passing was mixed. "I didn't think it was a great deal anyway," Grant said, estimating that card purchases accounted for 3 percent of his store's $50,000 weekly revenue. He said that the fee charged by QuakerCard -- an undisclosed percentage of each transaction -- cut into the profits of his "penny business." Grant added that he has had problems with the QuakerCard operators in the past over "discrepancies" in the amount the store owed the card operators. But Steve Malamut, director of operations for CosCo Management -- which owns La Pastabilities, the Philly Steak and Gyro Co. and Eat at Joe's Express, all in the 3401 Walnut Street food court -- was dismayed by the news. "We never had anything but good service out of them," he said. "It's going to affect the students more than it's going to affect the businesspeople."

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