Question:

Our school is investigating the possibility of using stored credit cards (or debit cards) for per diem, room and board, etc. Are any other schools using stored credit cards for these types of payments? - Barbara Kapp, Purdue University

Responses:

Barbara: Is this for students, staff, or both? Vanderbilt is rolling out a procurement card program (credit card) for all purchases including travel; however, we are still issuing advances for student per diem for team travel. The University has had the program for some time, but Athletics is just now participating.
- Elizabeth Baldwin, Vanderbilt University

BYU is now in the initial stages of testing the value loaded card with our Men's Basketball Team. Our effort is to provide a means of avoiding a coach or business manager carrying large sums of cash that is used to issue meal money to coaches, staff, and athletes on team travel trips. This is a concern especially with M/W Basketball and many of our Olympic Sports.

The advantages are that the card looks, smells, and quakes like a credit card. We can load (authorize) a limited amount of credit on the card. For example we could load $20/day for three days for a total of $60 on an individual athletes value loaded card. The athlete then can use the card to purchase food at fast food restaurants, grocery stores, or other food outlets. Once the credit authorization is used up the card will decline any further transactions.

Other advantages include limiting the amount of credit available to the athlete an a daily basis. For example we could limit the amount available to $20/day and the athlete could only use up to $20/day. On the other hand we could load the credit amount so that the athlete would have $60 available over the three days. Any combination of days, amounts, and dates are easily handled by the value loaded card.

A third advantage is that in the event the athlete needs cash, the card could be used at bank cash machines to obtain the cash instead of using the card.

A fourth advantage is that the card could be limited to food outlets and not allow use of the card at gambling establishments, clothing stores & etc. We have opted not to limit the use because if we issued them cash we would have no control over how they used the cash.

A fifth advantage is that the athlete can check frequently on hers/his balance. A pin number is issued with each card and the athlete can call a toll free 800 number and use the pin number to obtain the credit balance available.

What we don't know:
(1) What are the bank fees for obtaining cash at a cash machine? We think minimal.
(2) Will the card work at the food outlets as easily as we anticipate?
(3) What kind of advance time is needed to authorize the amounts and days?We think this can be done within two to three days.
(4)What happens if an athlete loses his card?
(5) Should we gather up the cards at the end of the trip to avoid athletes losing their cards?
(6) What happens if the whole team goes to the same bank cash machine to get cash?

One of the major disadvantages is that the cards for all those traveling have to be obtained about 4 weeks in advance. So a good deal of advance planning is needed. We have obtained cards for all of the athletes, coaches, trainers, and managers that could possibly travel with the basketball team.

We think the value added card has a lot of flexibility and meets our needs better than cash. We also think that in the world we live in that sending a coach or business manager with large sums of money puts them at a very high security risk. To us the advantages outweigh the unknowns and disadvantages.
- Michael King, Brigham Young University