Debit Cards Could Replace Cash


by Linda Charles
Cash on campus could become a thing of the past when Iowa 
State's new debit card becomes fully operational.

The cards eventually may be used for purchases on and off 
campus, at campus vending machines and for identification.
"We want students, faculty and staff to be able to carry one 
card for everything," said Joan Thompson, ISU treasurer and 
chair of the ISU Debit Card Committee.

Incoming freshmen will receive the new cards this year to use 
for identification. The purchasing and vending machine 
features will be added at a later date, Thompson said.
"We hope the card is something that students, faculty and 
staff are proud to carry," she said. The card will be issued 
to freshmen who attend summer orientation and should help 
them feel like Iowa State students early, she added.
Eventually, the cards will provide access to two accounts -- 
a bank account for purchases on and off campus and an account 
for campus vending machines, washers, dryers and copiers, 
Thompson said. 

The card will provide access to a bank account in the same 
way an ATM card does. They may be used anywhere there is a 
"point of sale" machine, such as the ones at some area 
grocery stores and gas stations. To make a purchase, you pass 
the card through the machine and enter your PIN (personal 
identification number). The machine automatically deducts the 
amount of your purchase from your account. The PIN number 
helps guarantee that others cannot access your bank account 
if your card is lost or stolen.

"This will be a debit, not a credit, card," Thompson 
emphasized. "The balance has to be in the account before 
purchases can be made." 

The cards also may be used with vending machines on campus. 
To use the vending account, the holder first must make a 
deposit at one of the special machines located around campus. 
The card can be used to buy items from the vending machines, 
up to the amount of the deposit. The card also may be used 
for campus copy machines and residence hall washers and 
dryers. The vending account will not require a PIN number. 

The amount that may be deposited in the account will be kept 
small so that the card holder will not lose a large sum in 
the event of theft, Thompson said. The goal is for all ISU 
departments that accept cash to eventually accept the debit 
card, Thompson said. Use of the card would eliminate the 
potential for theft, as well as the risk of employees being 
robbed.

Students also will be able to use the new card the same way 
they're currently using the university identification card at 
the residence halls, library and bookstore.

The card eventually could make it easier for the university 
to pay student refunds, travel reimbursements and 
honorariums, Thompson noted. Rather than drafting paper 
checks, the university could deposit the amount directly into 
people's accounts.

The bank account feature of the card should be available next 
summer semester, and plans are to re-card everyone by that 
time, Thompson said. The vending machine account may take a 
little longer, depending on whether current vending machines 
must be replaced.

Photos for the new ID cards will be taken with a video camera 
and the image digitized and stored. If a card is lost, 
university officials will not only be able to verify the 
identity of the person seeking a replacement, they will be 
able to quickly produce a new card. In the past, lost 
identification cards required retaking the photograph.

The cheaper cost of producing the new cards means the system 
should pay for itself within three years, Thompson said.
"The university is trying to become more electronic and serve 
our students, faculty and staff in a more efficient manner," 
Thompson said. "The new ID cards are a step toward that."

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contact:  Linda Charles, (515) 294-3129
updated:  7-7-95