Credit card use costing students
Merchant fee of 3 percent to be passed along to students
Kaitlyn McConnell
Issue date: 9/3/08 Section: News
For students paying with credit cards, attending Drury University just became slightly more expensive.
Beginning in July, a 3 percent fee is now being charged to all students who choose to pay their tuition and fees with a credit card.
The change materialized in response to the rising trend among college students to pay their college bills by credit card.
Though the number of students paying by credit card is not an issue, the merchant fees associated with every transaction puts a growing financial strain on the university. At Drury, such merchant fees translated to $153,229 for the 2008 fiscal year, up from only $62,667 in 2001.
Drury is not the only university who is making changes to their credit card policies to control increasing charges. In the latest survey by the National Association of College and University Business Officers, at least 25 percent of schools nationwide that accept credit cards charge a "convenience fee" similar to Drury.
Not all universities, however, are choosing to pass the merchant fee onto their students. Some institutions, such as Boston College and Eastern Michigan University are simply doing away with the option of paying with a credit card altogether.
In conjunction with the 3 percent fee, VISA cards will no longer be accepted in the business office. The VISA credit card company will not allow universities to pass on a merchant's fee when calculated as a percentage of the bill; therefore, universities choosing to charge the merchant's fee must decline VISA cards.
MasterCard and Discover credit cards, however, will still be accepted. Payment by check, cash, and money order will still be accepted without incurring any additional fee.
Credit cards, including VISA, will still be accepted at the university bookstore without any additional fees.
Though the new change may take some students by surprise, there are benefits in the long run. In recent estimates, it has been calculated that the policy change will save Drury between $100,000 and $150,000 a year.
"I think it stinks for the students having to pay the extra fee," senior Sarah De Cloux said. "But I understand that the university is trying to cut costs and that someone has to assume the fee."
Since someone has to incur the fee, it now becomes a choice for students and their families, rather than a forced burden upon the university.
"Heretofore Drury has been "forced" to pay the merchant fee when a family chose to pay their account with plastic," stated Dr. Ken Johnson, Vice President of Administration, in a written statement. "Hereafter no one (not Drury and not the family) is being forced to pay a merchant fee, but the fee is a consequence of the family's choice of payment method."
Beginning in July, a 3 percent fee is now being charged to all students who choose to pay their tuition and fees with a credit card.
The change materialized in response to the rising trend among college students to pay their college bills by credit card.
Though the number of students paying by credit card is not an issue, the merchant fees associated with every transaction puts a growing financial strain on the university. At Drury, such merchant fees translated to $153,229 for the 2008 fiscal year, up from only $62,667 in 2001.
Drury is not the only university who is making changes to their credit card policies to control increasing charges. In the latest survey by the National Association of College and University Business Officers, at least 25 percent of schools nationwide that accept credit cards charge a "convenience fee" similar to Drury.
Not all universities, however, are choosing to pass the merchant fee onto their students. Some institutions, such as Boston College and Eastern Michigan University are simply doing away with the option of paying with a credit card altogether.
In conjunction with the 3 percent fee, VISA cards will no longer be accepted in the business office. The VISA credit card company will not allow universities to pass on a merchant's fee when calculated as a percentage of the bill; therefore, universities choosing to charge the merchant's fee must decline VISA cards.
MasterCard and Discover credit cards, however, will still be accepted. Payment by check, cash, and money order will still be accepted without incurring any additional fee.
Credit cards, including VISA, will still be accepted at the university bookstore without any additional fees.
Though the new change may take some students by surprise, there are benefits in the long run. In recent estimates, it has been calculated that the policy change will save Drury between $100,000 and $150,000 a year.
"I think it stinks for the students having to pay the extra fee," senior Sarah De Cloux said. "But I understand that the university is trying to cut costs and that someone has to assume the fee."
Since someone has to incur the fee, it now becomes a choice for students and their families, rather than a forced burden upon the university.
"Heretofore Drury has been "forced" to pay the merchant fee when a family chose to pay their account with plastic," stated Dr. Ken Johnson, Vice President of Administration, in a written statement. "Hereafter no one (not Drury and not the family) is being forced to pay a merchant fee, but the fee is a consequence of the family's choice of payment method."
Article last update: 9/2/08 at 9:05 PM CST
Viewing Comments 1 - 1 of 1
Accept credit cards
posted 2/19/09 @ 10:15 AM CST
I guess this is a general politics for credit cards, you first get them for free, use them for free and then you are announced you need to pay fees for your transactions. (Continued…)
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