In today's SP (July 29/10) there is an article by Brian Weiner, head of interchange for Visa Canada. The gist of the article is basically that Visa, defender of students, will not let the university use Visa for payment of tuition fees because of the "administration" fee the university proposed to charge. Apparently Visa Canada will not allow merchants to "surcharge" a customer for using Visa. I say Visa Canada because I personally had the experience in other countries of being told that use of my Visa card would up the cost.
Mr. Weiner states Visa believes it is important that students, like all customers, have the choice to pay with their preferred method of payment without being penalized with additional fees. He knows Visa is already charging students an arm and leg for the privilege of using the card and doesn't want to share that turf with the U of S. If Visa cared about students it wouldn't charge the university a fee for collecting tuition on a Visa and wouldn't nail students with 18% interest on lingering tuition fee charges.
Perhaps the U of S should have given Visa a taste of its own medicine and charge them a bundle to establish their credit card sign-up stations on campus so they can lure every new student into debt.
I'm not anti credit card - I just get extremely annoyed with corporations like Visa who try and spin the "we care" about you theme when in fact the only thing Visa cares about in this instance is the loss business.
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Although at first sight I thought the UofS was being ridiculous but then I had to ask myself about how many merchants already take a hit when you use your credit card in their store. I guess the UofS is justified although I believe they could have done a better job of controlling the spill out of complaints. For years companies have being giving breaks for paying in cash. Why couldn't the Uof S done something like a rebate if you don't use a credit card??
ReplyDeleteYour right Mistress VISA wants this money on their card they don't care about who pays the bill as long as its paid years down the road and after interest has been paid.
"If Visa cared about students it wouldn't charge the university a fee for collecting tuition on a Visa and wouldn't nail students with 18% interest on lingering tuition fee charges."
ReplyDeleteIt's rare that I agree with the Mistress 100%, but in this case, you are absolutely correct.
"students, like all customers, have the choice to pay with their preferred method of payment without being penalized with additional fees."
ReplyDeleteWhat additional fees? The only thing this prevents is people from collecting points or cash back on their cards. As a parent I would by mightily annoyed.
How many students are actually financing their tuition on a CC? If you are getting student loans, your tuition gets paid first, before you do. If you are not getting student loans then presumably you have other means to pay. Why shouldn't you be able to use your Visa, collect your points or cash back and pay the bill off when it comes?
I think the U of S is the one who is screwing students here. They have no problem taking Visa at the book store or the computer store but for some reason they think it is bad for tuition? Really? Or more likely is that they just don't want to have to pay the merchant fee.
And they know that charging extra for a CC is a violation of their merchant agreement, as it is for ANY other merchant.
ghostryder, once again you ignorance shines through. you have convinced yourself that students have various other means and that in reality they don't need or have to finance their tuition through their credit cards.
ReplyDeletehaving recently completed my degree from the u of s i can assure you that many students do finance their tuition through a credit card. i know several classmates who as the tuition deadline approached were forced to pay their tuition on visa (or mc or whatever) in order to beat the deadline. sometimes this was bridge financing that would last them until christmas (ie. a couple months) and sometimes it was a portion being paid off every couple weeks from part time work cheques.
you say "If you are not getting student loans then presumably you have other means to pay", but for some reason completely dismiss the idea that the other means of paying is in fact the credit card. with increasing pressure on obtaining a university degree in our society many students are left scrambling to find a way to pay for university.
you need to give your head a shake and quit acting like everyone in society thinks along your mentality.
Ghostryder just likes to hate on the Mistress, probably an NDP troll assigned to this webpage attempting to indoctrinate
ReplyDeleteReading the comments here I have to agree with Anon 9:46 when he says it is the UofS that is the culprit here.
ReplyDeleteThis isn't a new issue for them and it speaks more to the lack of administrative ability then anything else. Certainly the UofS has been paying the fee to Visa in the past and should they not have worked out their costs based on the overall tuition paid vs how many pay with Visa. I didn't see a reduction in tuition because we can no longer pay by Visa therefore the UofS is pocketing this extra cash.
Shame on the UofS to once again not considering providing a service to students but operating in a bubble that the average citizen, student or taxpayer has no say in how it is run.
"ghostryder, once again you ignorance shines through. you have convinced yourself that students have various other means and that in reality they don't need or have to finance their tuition through their credit cards.
ReplyDeletehaving recently completed my degree from the u of s i can assure you that many students do finance their tuition through a credit card. i know several classmates who as the tuition deadline approached were forced to pay their tuition on visa (or mc or whatever) in order to beat the deadline. sometimes this was bridge financing that would last them until christmas (ie. a couple months) and sometimes it was a portion being paid off every couple weeks from part time work cheques."
If you CHOOSE to finance your education with a credit card that is your CHOICE. Nobody is putting a gun to your head. So now that the Uni doesn't take Visa, someone who has no other means to finance their education is SOL.
And really, if the only means of paying for your education is a Visa, maybe you should work and save up some money first. Or go to your bank or credit union and get a LOC at a lower rate, or use a CC that has a low rate.
"Ghostryder just likes to hate on the Mistress, probably an NDP troll assigned to this webpage attempting to indoctrinate "
LOL Since when has fiscal conservativism and personal responsibility been NDP traits?
I don't hate the mistress. I just don't necessarily agree with her all the time. I'm not some anonymous groupie who blindy nods and says "yes, mistress. You are always right mistress. How may I serve you mistress."
Have you ever heard the term "devil's advocate"?
Why do merchants accept credit cards? Simple. In exchange for the fee the merchant pays, they get GUARANTEED payment, and the convenience of CC's for their customers.
Why do Uni's accept CC'S ? Guaranteed payment and convenience for their students.
All this is really about is that Visa won't let merchants pass on the merchant fee to consumers. The Uni wants its cake and eat it too. The guaranteed payment Visa offers plus pass on the cost to the student.
July 30, 2010 7:56 AM
The Grizz said...
Reading the comments here I have to agree with Anon 9:46 when he says it is the UofS that is the culprit here
Thanks. But my name is Ghostryder, not Anon.
And you hit the nail. The UofS's costs are going down since they are no longer paying the merchant fee. But you're not going to see tuition go down.
"LOL Since when has fiscal conservativism and personal responsibility been NDP traits?"
ReplyDeleteSince always? Who has been the ones to clean up the mess left after other governments?
"Since always? Who has been the ones to clean up the mess left after other governments?"
ReplyDeleteA slightly easier task than cleaning up the mess left by the NDP governments here in Saskatchewan. I suppose of buying labour votes for the generations will leave the system in the flawed state that it is in Sask.
I'm working from memory, but I believe the U of S costs for use of VISA was $900,000.00. The U of S is not a for profit organization. All costs related to running the university come from taxes and tuition. This simply means everyone's taxes and tuition go up to pay VISA for the privilege of putting desperate students into debt. My annoyance with VISA is the "caring" scenario put forward.
ReplyDeleteAs for working and saving money before you attend a post-secondary institution, these kids would be nearing retirment before that would happen. Between earning low income for unskilled labour jobs and paying the current cost of living in this city many would never realize their dreams and we, as a society, would be wanting for an educated work force.