SIUC officials work on getting debit cards
November 16, 1995
The projected date for allowing the use of debit cards in the private sector by public university students moves back and forth. But SIU officials say they are taking steps necessary to set up the program for students.
SIU Vice Chancellor Don Wilson said SIUC has been reviewing the debit card program, which is like a credit card and would allow SIU students to charge merchandise, food and other items in town and campus, for some time.
Wilson said SIUC administrators are working on putting some information together about debit cards to give to various institutions who would sponsor the program.
Advertisement
Students seem to think it would be good for them, Wilson said. We’re trying to get the specifics for what students need.
According to Gov. Jim Edgar’s July 21 veto message, he recommended the date for a bill before the General Assembly on the debit card be changed from Jan. 1, 1996 to July 1, 1996.
In Edgar’s veto message, he states that many universities in Illinois approve of students charging items at the university bookstores and food outlets. Edgar stated in the message that the bill will require any of the 12 Illinois public universities offering their own debit card service to allow for the use of the debit card at privately owned businesses in the community.
Edgar said the delay would give more time for private businesses and universities to plan for the implementation of the debit card program in order to benefit students, universities and businesses.
Wilson said there could be some drawbacks to the debit card program, but he said most students do not see the programs’ shortcomings. He said the debit cards are not like personal checks or credit cards because the debit card will take the money out of students’ accounts immediately.
Wilson said if a student went to the store and used the debit card, the amount of money the student spent would be electronically subtracted from the student’s banking account at the time of the transaction.
However, Wilson said one positive aspect of the debit card program is that it would allow students to carry less cash.
Advertisement*
Wilson said there would be some student cost for the use of the debit cards, but it is too early to know what the cost would be.
Ross Hodel, Illinois Board of Higher Education deputy director, said the debit card bill has been around for years and has been the subject of many controversies.
Hodel said the problem with debit cards arises when a university grows around one bookstore. He said the bookstore becomes the university’s private bookstore and allows students to charge books and supplies to their bursar accounts.
Hodel said private bookstore owners think the relationship between the bookstore and the university is unfair competition and the debit cards would prevent this by getting students to use their debit card at their stores.
Hodel said some private business owners have gone to lobbying groups in the last 10 years to lobby their cause. He said the lobbyists have introduced legislation to keep everyone on an even playing field.
It’s a complicated matter, he said. It varies from campus to campus. There are different viewpoints on each of the 12 campuses.
Advertisement