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CSULB
changes payment methods
By
Ryan Silveira
Online Forty-Niner
Cal State Long Beach started phasing out
credit card charges by June 1, 2004 which
forces students to rely on more direct,
up-front forms of payment beginning in summer.
The
credit card ban was a result of a projected
forecast that the school would lose a hefty
amount of money in credit transaction fees
by spring 2005.
Although
the decision is bound to have a huge impact
on the students CSULB will be saving hundreds
of thousands of dollars by discontinuing
credit card use.
"These
fees started small, which is why it was
never a problem, but it is projected that
$800,000 could be lost through credit card
processing by the end of next year,"
Nancy Eckhous said. Eckhous, CSULB's bursar,
moniters and manages the university's flow
of money. "Before the money reaches
the university it goes through many hands.
What it ultimately comes down to is that
the university loses two percent of its
revenue during the process."
The
fact that the California education system
is in a budget crisis places a huge strain
on the school. With classes and faculty
being cut to compensate for the decreased
budget, the school has to save money wherever
it can.
"When
credit cards began being used 10 years ago
the estimated loss by front end processors
was about $100,000," Eckhous said.
"It's more than quadruple that amount
now, and it's only going to get worse."
The
areas of the university where credit cards
will be banned are, enrollment services,
the cashier's office, the housing office
or any other university department that
is not a private enterprise. The Bookstore
is one of the places on campus that will
still accept credit card transactions.
Alternative
forms of payment
The
university will still allow the use of cash
and checks. In addition, the university
is adding three new forms of payment. Debit
cards and E-checks will be authorized for
use by the end of March.
• Debit Cards: Students can use ATM
cards in person, but will not be able to
use ATM charge cards, which are debit cards
that work like charge cards and usually
contain a Visa or MasterCard logo.
• SmartPay: This is housed through
CASHNet, which is a company that takes the
burden of handling credit transactions off
of the producer. This allows students the
option to pay by credit card. Students who
choose this form of payment must pay an
extra 2.9 percent service fee. This fee
covers the costs of the services associated
with CASHNet. Visa is the only major credit
card that cannot be used with SmartPay.
• Electronic Check (E-check): This
works like a paper check except that it
can be applied to the Internet. This means
students can pay by check without the hassle
of going to the cashier's office.
The
effect on students
The
university's decision is bound to have an
impact on students as an estimated two-thirds
use credit cards to pay for university-related
expenses.
"I
understand why the school is doing what
they are doing. It just makes paying for
things more of a problem, especially since
it can be hard to come up with large sums
of money at one time," said sophomore
Kelsey Wadman, who relies heavily on credit
to make her housing payments. "If it
wasn't for credit, I wouldn't be able to
pay for my housing next year."
"A
lot of people rely on credit cards these
days. The things I do pay for, I pay for
with my ATM charge card," said freshman
Scott Abling.
Although
the changes could inconvenience students,
the university is still offering alternatives
for those who cannot pay large cash sums
in full.
"The
university will still continue to offer
installment plans, short-term loans and
book loans," according to a diagnostic
handout received by the Associated Students,
Inc.
Some
reports may lead students and faculty to
believe that the A.S.I. had an active decision
regarding the change with credit cards.
The A.S.I., however, maintain that they
had no say in the matter.
"It
was never A.S.I.'s decision to [change the
policy on] credit cards, it was the university's
decision. All that the [representatives
for the university] did was come to the
Senate meeting to let A.S.I. know,"
vice president of A.S.I. at the time, Guido
Piotti, said.The matter was presented to
A.S.I. so they would be aware of the decision
the university made. Ideally, A.S.I. would
then relay that information out to the students.
"[A.S.I.]
has no control over this, and yes, it is
final. However, if the university didn't
do this, it would have to balance the budget
by eliminating classes," Piotti said.
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