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A bill currently being discussed in the Maine legislature has drawn the skepticism from colleges and universities it is aimed at helping. The proposed bill, “An Act Concerning Fair Debit Card Practices,” is designed to allow college students to use a debit card to pay for merchandise and services off campus. But for University of Maine students the proposed bill would mean no changes in the use of their MaineCard.
Proponents of the legislation argue cards like the MaineCard should be used off campus as well as for on campus programs like the MaineCard Off Campus Merchants program. Wayne Berzinis, owner of the University of Southern Maine’s alternative bookstore and a vocal advocate for the bill, believes allowing students to use their student identification cards off campus will promote fair competition therefore benefiting students. Berzinis believes programs like the MOM program are good, but only allow students to choose from a small number of businesses picked by the university.
Jonathan R. Thomas, an Orono representative to the Maine legislature and a co-sponsor of the bill, said as long as MaineCards remain controlled by the university students will not be able to use it off campus except with programs like the MOM program.
Banking laws, Thomas said, stipulate that because the university controls the card rather than a bank, all the transactions must be made on campus. He said the legislation would have enabled the university to create a new card with debit card functions or change the current system to allow the MaineCard to have debit functions.
But Jon Lewis, executive director of Student Auxiliary Services, said the MaineCard and the MOM program are not affected by the proposed legislation. According to Lewis, the MaineCard is not a debit card and is not backed by a banking system. The MaineCard is an internal system that allows students access to their meal plans, dining funds, dormitories, library accounts and to attend university events. Because the MaineCard is not a debit card, the bill is moot in relation to UMaine, Lewis said.
Started more than two and a half years ago, the MOM program allows students to use dining funds to purchase food from area businesses that sign an agreement with the university. The only money the university earns through the program is a 20 percent commission. The rest of the money goes straight to the business from UMaine’s accounts. MOM program receipts show the program to be quite lucrative for the local businesses. For instance, from Jan. 16, until Feb. 15, of this year Pizza Dome receipts from the MOM program totaled $46,977.30. Pat’s Pizza recorded $39,976.45 for the same period. Cumulatively the businesses grossed more than $128,904.05 between the seven businesses.
This year, with the absence of the Memorial Union food vendors, there has been an increase in the number of people using the MOM program. Lewis said this was expected and he expects a decline in the use of the MOM program once the Memorial Union vendors are centralized and available again.
Some students find their own debit cards, such as those issued through the University Credit Union, are as handy as any MaineCard program.
Debit cards are currently issued through the credit union and directly affect the person’s savings or checking account. What the legislation is asking is that universities issue debit cards, which don’t exist here, and they be accepted at local businesses that associate with the university.
According to Thomas, the bill died in committee. The bill would have most affected the University of Southern Maine, Thomas said, but its effects would be far reaching and could eventually impact students at UMaine campus. He said he is currently working with the administration to find a way to lower the amount of money that students would lose from meal funds which are not being used by students. Thomas estimates students lose about a fifth of the money allotted for meal funds, which he believes is too high.
Bangor Daily News