How to Support Digital Payments on Campuses Without Credit Card Companies

If you attended college back in the early 2000s, what did you see when you first visited campus? Fraternity or sorority members with clipboards trying to convince you to join their House? Perhaps long tables with representatives from major credit card companies, giving away T-shirts and free pizza in exchange for a completed credit card application?

It was once common for credit card companies to aggressively recruit new cardholders on college campuses. That is, until the Credit CARD Act of 2009 became law. One of its protections significantly limited credit card companies from marketing directly to students/vulnerable borrowers in this way.

University campuses are doing everything they can to provide students with the best possible campus experience. Providing access to convenient digital payment options campus-wide is no exception. However, not every student has a bank account, leaving cash as their only payment method. 

Ready to reach those students and create an inclusive on-campus payment experience? Continue reading, as we’ll cover how to empower all students with secure and modern digital payment methods, so they don’t need to rely on high-interest credit card companies.

Why Credit Card Companies Were Restricted on College Campuses

Before Congress passed the Credit CARD Act of 2009, credit card companies targeted young college students, marketing to them on college campuses nationwide. These companies would offer branded freebies, food, or other enticing offers to persuade students to sign up for high-interest credit cards. 

Here’s the problem: These students had little to no credit history, yet they decided to sign up on their own. Furthermore, they often lacked the financial literacy to understand the short and long-term consequences of doing so. 

Once the Credit CARD Act became law, however, credit card companies could no longer:

• Accept credit card applications from applicants under 21 years old without a cosigner or proof of income.
• Be less than 1000 feet from any university campus when seeking new cardholder signups in exchange for a benefit or gift.
• Charge card holders double-charge interest they have already paid off.

While this law has curbed high-interest and other predatory offers to new, under-21 credit applicants, it’s also excluded others from fair access to digital payment methods. As a result, students who must use cash or otherwise don’t have access to a bank account go without the modern convenience of using a credit card across campus and elsewhere.

The Rise of Digital Payments in Higher Education

Today, students across higher ed. want convenient and secure ways to pay on campus. They’re busy with classes and social activities, so the faster and easier it is to pay, the better. It’s no surprise that campus payment apps and accounts, along with mobile wallets and other secure and inclusive digital payment methods, are in high demand, especially among Gen Z students.  

Of course, students aren’t the only ones who benefit. These modern digital payment systems check several boxes for any modern university campus, including:

• Faster transactions campus-wide
• A+ data control and real-time access to vital operational insights
• Reduced cash handling
• A safer and more secure campus
• Streamlined service-level operations 

Digital Alternatives to Campus Credit Cards: Cash-to-Card Kiosks

Many college students, including international students, may not have access to a traditional bank account or have the opportunity to open a traditional, low- or no-interest credit card. Yet these students still deserve to pay quickly and conveniently like their classmates, so they don’t miss a minute of class or other activities.

Reverse ATMs™, also known as Cash-to-Card® Kiosks, accommodate these students, allowing them to instantly convert cash into a prepaid debit card that they can use campus-wide and off-campus—anywhere major debit cards are accepted. 

Cash-to-Card® Kiosks provide every student with equal access to digital payment methods and the benefits that come from not paying directly in cash—secure and faster transactions. 

They don’t need to show an ID to use them, either. Cash-to-Card® Kiosks are highly secure, never storing personal information or linking to a bank account, allowing students, staff, and faculty to safely and anonymously convert their cash into a prepaid debit card. Converting their cash significantly reduces the likelihood of irrecoverable loss or theft, creating a safer campus for everyone.

Practical Campus Applications for Cash-to-Card Programs

From on-campus vending machines and meal payments in the dining hall to bookstore purchases and campus transport, payment transactions are happening around the clock on most campuses. Inclusive digital payment solutions, such as Cash-to-Card® Kiosks, will give cash-only and cash-preferred students the same payment experience as their classmates.

With all students on equal payment footing, and the direct exchange of cash out of the picture, campuses will experience several operational advantages. For one, staff members will no longer need to devote time to cash counting, till reconciliation, or other expensive cash-handling duties. 

Next, when students pay with a digital payment method, payment lines become significantly faster, leading to drastically shorter waiting times and increased throughput. Not to mention, Cash-to-Card Kiosks provide administrators with seamless, real-time access to all transaction data and spending behaviors—all A+ advantages for any university’s budget and operating procedures. 

Security and Compliance in Student Payment Systems

Modern campuses have a duty not only to protect the physical safety of their students but also their personal data and privacy. Choosing a secure student payment system is critical to achieve this aim. 

Start by choosing digital payment technologies that are PCI DSS compliant. Doing so will reduce the risks of fraud and more. Of course, a combination of multiple security features is ideal when protecting students (and the rest of the campus), including encryption and multi-factor authentication (MFA) protocols. Additionally, choosing a payment processor equipped with usage monitoring will also curb instances of misuse and fraud.

Finally, when it comes to maintaining a secure and compliant student payment system, you’ll need campus staff on deck. Devoting time to regular training is an effective way to protect your students’ most sensitive data.

Building Financial Inclusion and Literacy on Campus

Research shows that more than 40% of university students don’t possess “adequate financial literacy knowledge or skills.” These findings present an opportunity for college campuses to teach their students vital financial literacy skills that they can put into action outside of the lecture halls.

Not sure where to begin to start setting your students up for success? Consider these options. While faculty maintain academic freedom, it’s worth circulating a memo about the importance of teaching students the importance of inclusive payment access for everyone. 

Administrators can also update and tailor optional financial education programs so that they address modern and inclusive digital payment technologies, as well as:

• Welcoming speakers, such as local financial advisors, to provide campus-wide talks about the importance of financial literacy and inclusion.
• Hosting hands-on financial literacy workshops, such as Student Budgeting 101 or Responsible Spending Habits for Every College Student.
• Encouraging community-wide dialogue about the reality of credit card debt and bankruptcy.
• Placing secure and accessible payment technologies across campus, so students can practice and apply what they learn.

The role of the university is to equip its students with the necessary tools to succeed. When it does, students stand the best chance at reaping countless scholastic and real-world benefits. By prioritizing financial literacy and inclusion on campus, students will develop a deeper sense of fiscal responsibility, no matter where their degrees take them. 

For instance, instead of relying on high-interest credit cards to make purchases, they’ll learn how to budget and only spend what they’ve allocated (and can afford) on their prepaid debit card or digital wallet. In the end, when students go out into the world, they’re natural ambassadors for their university. 

They mirror what they’ve been taught and ultimately represent its core values. Learning how to spend responsibly early in adulthood will help them evolve into independent and dependable adults who can live within their means.

Empowering the Next Generation of Digital-First Campuses

Today’s digital-first higher ed campuses have a unique opportunity to provide financial literacy and secure digital payment methods to every student. With credit card companies now having limited access to recruit students to sign up for high-interest credit cards directly, it’s more important than ever to give your students the financial tools and methods they need to succeed beyond the classroom!

Students need safe, compliant, and inclusive digital payment systems everywhere they spend their money on campus. Adopting secure digital payment technologies will create a safer and more accessible campus, while boosting your students’ financial confidence long after graduation.