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Colleges Looking at Increasing Card Linkages

Colleges and universities across the nation are looking for banks to partner with as the popularity of campus identification cards linked to checking accounts grows.

With their budgets being slashed under the weight of the nation's sagging economy, educational institutions are looking for ways to make or save money. One way is to link up with financial institutions to offer demand deposit access through campus cards.

In Pennsylvania, PNC Bank has such programs with several universities. The most recent is an agreement with Pennsylvania State University. The bank pays fees to rent space for automated teller machines placed on the schools' campuses. It also pays an annual fee to the school based on how many new accounts are opened with the bank.

The campus card accommodates PIN-based transactions only through the Star ATM/point-of-sale and Plus ATM networks. However, account holders also can sign up for a separate signature-based Visa check card. PNC does not charge students or faculty for the checking account or for use at PNC ATMs, and it provides free Internet access to account information.

U.S. Bancorp has a similar program with San Diego State University. The bank pays the school fees based on how many students add the ability to use the debit feature to the card, and students also can link a Visa check card to their accounts. U.S. Bancorp ties demand deposit account access to the cards of 13 different schools and expects to add 10 more this year.

Wachovia Bank has agreements with 13 different schools in four states that link those schools' campus cards to a Wachovia account for the student. The card itself is a school-issued student or staff card linked to an expense account at the school that is not affiliated with or accessible to the bank. What they use that card and expense account for varies from school to school from buying cafeteria food to checking out books or paying for fines. However, the students can add the check card/debit card feature by opening a Wachovia account and linking that account to the campus card for purchases both on and off campus and access to ATMs.

Copyright © 2003 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 13, No. 9, 12/03

First published on 12/01/2003

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