When cards collide …

ASU mulls turning Sun Cards into debit cars — in 5 to 7 years

 by Ryan Calhoun
 published on Thursday, March 27, 2008

ASU is considering joining universities nationwide who are using student ID cards as debit cards — but don't start cutting up your existing cards just yet.

Eight of the 15 largest colleges and universities in the U.S. — like Miami-Dade College and the University of Minnesota — have teamed up with banks to use their student ID cards as ATM cards to promote the use of checking accounts, while bringing in more revenue for the universities, according to an article published last week in USA Today.

And the ASU Sun Card could potentially double as a debit card, said Andrew Perkins, ASU's campus card manager.

Perkins said ASU is in the early stages of weighing the pros and cons, and a program wouldn't go into affect for at least five to seven years.

While many campuses are transitioning to the service for financial benefits, ASU is considering the move only if it's feasible for the students, Perkins said.

"We aren't doing it to make a dollar," Perkins said. "We are doing it to make it convenient for [students]."

ASU's Sun Card currently can be used as a cash card at 85 different locations on and off campus through Sun Dollars, but the Sun Card could be used as a debit card anywhere in the world, Perkins said.

"It's a nice tool for a student who is traveling," he said. "The less cards students are carrying with them, the better."

Elinor Campion, a computer systems engineering sophomore, said using the Sun Card as a debit card would be handy, but raised security questions.

"It would be a convenience," she said. "But if you lose your Sun Card, will ASU reimburse you for the money that's lost? You may have less cards, but if you lose one card, you lose everything."

Success of ID cards used as debit cards varies from campus to campus, said Lowell Adkins, the National Association of Campus Card Users executive director.

"I think it can work; 130 schools have already done it," Adkins said. "[But] each school has to evaluate for itself if it's the right fit for their school."

The University of Minne- sota receives $1 million annually and received a $2-million bonus upfront when it partnered with TCF Bank to make their ID card a debit card. In return, TCF Bank promotes their bank accounts throughout the campus and at the campus card office.

The University of Illinois receives $600,000 a year for its partnership with TCF, but the bank is limited to marketing card options at certain school events.

Each school develops its own relationship with financial institutions in order to ultimately educate the new

consumer — students — Adkins added.

"Most of the schools are providing education from both the banks and the university," Adkins said. "If [students] can learn at a college age how to handle money, they will be able to manage their money better."

Though universities can profit from the joint venture between themselves and banks, Perkins said banks benefit more than the schools because they are obtaining special access to students.

"Some universities are shying away from banking partnerships," Perkins said. "It's giving the banks business, but universities aren't getting much back."

Five of the eight colleges or universities that have teamed up with banks either don't receive a fixed amount or receive less than $50,000 from the bank, while the bank receives more benefits than competing banks on campus and special access to students, according to USA Today.

Perkins said if ASU were to team up with a bank, he would like to model the partnership after the University of Houston, which allows students to decide whether they want to sign up for a debit or credit card option.

"For us, it's about choice and flexibility," Perkins said. "We have to make sure it's right for the kids."

Reach the reporter at: ryan.calhoun@asu.edu.