Way paved for more PENNcard purchasing power

A new program allowing students to use PENNcards for Book Store purchases has been a tremendous success, paving the way for future expansions in PENNcard purchasing power, University officials said yesterday. Under the new program, which began on a trial basis during the summer and has been in full operation since September, students can use their PENNcards to buy items at The Book Store and the charge is added to their bursar bill. So far, about 7,000 students have signed up for the service, which was created as a convenience to students, but also to help improve campus safety by reducing the need for students to carry large sums of cash, Book Store Director Michael Knezic said yesterday. The initial success of the program has far reaching implications. Backers hope students will eventually be able to use PENNcards to pay for a variety of services, including purchases at local shops and restaurants. Such systems already exist at campuses across the country and several University committees are currently exploring the ways in which the PENNcard's buying power can be expanded. "Eventually we want to create a cashless campus," Knezic said. "There is pressure across the University to move in that direction." While planners said they had hoped more students would apply for the service, PENNcards nonetheless account for 24 percent of all Book Store purchases, Knezic said. To date over 40,000 transactions have been made using PENNcards, he added. And while convenience and safety were the prime reasons for creating the new service, The Book Store has realized financial benefits as well, Knezic said. There has been a 13-percent decline in cash and check purchases, a nine-percent decrease in Visa usage and a three-percent decline in purchases by American Express since the PENNcard program began, Knezic said. All of this means The Book Store has to pay less in transaction fees to credit card companies and banks. Knezic also said the system has led to shorter lines and faster transaction time since the technology is all located on campus. Credit card purchases can take over 30 seconds because they have to be verified through a wire connection to an outside company. Developed from what Knezic described as "unprecedented" cooperation between four University departments -- The Book Store, Student Financial Services, Data Processing, and the PENNcard Center -- the system turns the PENNcard into a credit card. There is a minimum purchase requirement of $25 and a credit limit of $750 per term. There are no fees or interest assessed if the student pays his balance on time and, if a student falls behind in payment, they are only assessed the normal late payment fee that is charged for student tuition bills. A student must pay off the outstanding balance by the end of a term in order to be eligible for the next term. And as with any credit card, the University cannot, by law, automatically add the service to every student's account; rather students apply for the service, Senior Director of Student Financial Services Operations John De Long said. Applications were mailed to all students in July, De Long said. De Long said he would like to see close to 100 percent participation in the program and he is not sure why more students have not yet applied. In order to apply, you must be a registered student with a valid PENNcard, no past bursar balance due, no unpaid returned checks and no financial hold status.

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