Students have a right to be concerned about the recent addition of a U.S. Bank debit strip to our ID cards. It isn’t explicitely clear to many students how U.S. Bank or campus administration is using the information. Replacement card fees have risen. Long lines outside the ID card office have become commonplace. Ultimately, students may wonder: is this deal risky for us? What is the university getting out of this? The transition period is uncomfortable. This is inevitable for any campus-wide implementation, especially for something that requires action on each student. It is clear, though, that the new contractual relationship between U.S. Bank and DU and the consequential U.S. Bank-activated debit strip on each ID card have been implemented primarily for students’ interests.

“It’s a completely voluntary relationship. […] We don’t want to create any burdens for the student,” said Janet Burkhardt, Director of Student Financial Services. She assured that the cards are issued without any attachment to U.S. Bank. If the student chooses, she may link a U.S. Bank debit account to the card. Otherwise, “They have an extra number on their card that’s never effective,” as Burkhardt stated.
Clearly, transparency was an important factor when creating this contract. In compliance with university policy, the contract is not available online, but it is available in the ID card office for any student to review. In accordance to administrative attempts to keep students’ interests in mind, there are no royalty payments associated to the contract. So: the university isn’t “getting” anything out of this contract financially. It is very apparent that DU created this agreement in hopes of creating an optional convenience for students, rather than garner revenue for the university.

There have been past concerns related to bank deals on college campuses. The New York Times published an article expressing concerns about high fees, marketing scams and lack of transparency. None of these will be concerns at DU. The debit accounts available through the ID card are the same accounts available to any student. There are no additional fees related to the card or account, as illustrated in the contract. Any student wishing to link a U.S. Bank account to his ID card should nonetheless evaluate all banking options. To aid student decisions, DU and U.S. Bank will coordinate in an effort to offer Financial Wellness Seminars. In addition, as also illustrated in the contract, DU must approve any and all marketing related to the ID card. This prevents any scam or false information on the part of U.S. Bank.

The U.S. Department of Education is also currently working on regulations for universities that incorporate this type of banking on-campus. Campuses across the nation will have to improve their card policy in the next couple years to become compliant.

“As soon as those rules are published, we will comply,” said Burkhardt. As DU prepares to comply with the expected regulations, this ensures that students will receive the fairest deal possible from the start.
It is very clear that the new agreement on campus has students’ best interests in mind. The contract is transparent, and the only burdens that would affect students are the replacement fee and new card implementation. Let’s face it, though: isn’t it about time we got a new card design? Maybe the higher replacement fee will force us to be a little bit more responsible with our cards, too.

Any student considering taking advantage of the new debit strip should consider all options carefully, as with any banking decision, but there need not be any concerns about the strip itself. DU has made the appropriate decision in considering the convenience of two transactions in one card. It’s possible some students will have a lighter wallet in the end, but hopefully more from the lack of an extra card than a loss of cash.