 |
| Liz Baker is a senior marketing major and writes 'From the 32nd Floor' for the Daily News. Her views do not necessarily agree with those of the newspaper. |
Smart cards may be the wave of the future, at least in France. The little plastic cards, which look exactly like credit cards, were officially released at a national level this year. Could this save college bars and liquor stores everywhere?
Smart cards are essentially debit cards without the security. Plastic cards are embedded with microchips that store any number of available information. Countries like France and Japan are using the cards as prepaid credit cards. In France, "Moneo," the name for the national smart cards, was introduced to selected cities two years ago.
This year, it has expanded to the national level. Moneo is used for smaller, everyday purchases, like groceries, vending machine purchases and parking lot fees. The cards are swiped, and the money is deducted from the balance.
With Moneo, there is a $107 prepay limit, which protects card carriers because of a lack of security. Moneo does not require a signature, PIN or picture identification in order to use it. Basically, if the card is lost, you bought dinner for the lucky finder.
In Japan, the smart card system is called Edy, and 650,000 people use the cards. Users are burdened with recharging the cards. Cards have to be taken to special machines, or users have to buy an accessory for their at-home computer.
Ball State has its own version of the smart card. Students use their identification cards everyday. On-campus dining facilities are electronically enabled. Freshmen grab lunch and swipe their card eliminating that mandatory meal for today's limit.
Cardinal Cash is also akin to the Edy and Moneo cards. Students prepay their university account, and purchases at dining halls and the book store are deducted from the balance.
Smart cards are supposed to decrease error and time spent on simple transactions. If anyone has ever stood in line at the ATM, they would agree. But there are two real factors that determine if smart cards succeed or fail.
First, it matters who backs the smart card program. According to CNN, every major French bank owns shares of the company who launched Moneo. At Ball State, the administration requires students living on-campus to use their smart cards, or student identification cards. A large number of off-campus students also advocate their smart cards by using Cardinal Cash at the dining facilities between classes, at the book store for class material and at the bursar's office for tuition.
Second, security issues will always preclude serious debates about launching smart card programs. Because Ball State can monitor who uses "money" from smart cards, students are more willing to participate. In France, lack of any security pushes consumers away. Americans are obsessed with security. PIN numbers, numerous passwords and personal information are ways Americans justify electronic money transfers and online bill pay.
The idea of local smart cards could really help college students. Not taking a purse to a bar would be so much safer, and swiping plastic at a laundry mat would be easier than rummaging through the drivers seat of a car to find quarters. Local smart cards would also be good for businesses. It could increase impulse spending because swiping plastic is less intrusive than breaking a $20.
But the idea of a national smart card might prove unsuccessful at becoming profitable in the United States. Aside from consumers not willing to pay annual fees for the luxury of smart cards when debit cards work just fine, smart cards would be doomed to fail because people like finding that surprise $5 bill in their jeans pocket.
Write to Liz at eabaker@bsu.edu
Read More
Three Air Jam teams take home the win
October 12, 2012Nineteen teams shimmied, shook and flipped for a sold out John R. Emens Auditorium on Thursday night during the 25th annual Air Jam.
Bill Clinton Speaks at North Central High School
October 12, 2012Former President's Speech Could Have Effect on State Senate Race
