Brown University Eateries Will Soon Accept Credit Cards
While it may seem unusual, a number of colleges in America do not accept credit cards at campus-based restaurants because they expect students to pay on their meal plans. Until now, Brown University has been one of those institutions.
Brown has decided to allow credit cards in campus eateries because the demand to use credit cards is so high. These restaurants are losing business from students who do not have meal plans and rarely carry cash. Consequently, those students go to nearby fast food places that will accept their cards.
The reason meal plans are popular at universities is because they inevitably generate more money to the school. Students have to buy meal plans in varying amounts, and they can either spend all that money for a semester or lose it. Typically, there are no rollovers or refunds. When students spend with a credit card, they only buy what they need. In addition, the Universityhas to pay an interchange fee to the card issuer every time a student used a credit or debit card. So the University does not make as much money when credit cards are accepted.
Nevertheless, the added business from students using credit cards is going to work in Brown’s favor. Students who wish to use scholarship money to pay for food can still use their meal plan cards to cover their costs. Other students will be able to pay for food with their credit cards.
The eateries affected by this change at Brown include The Blue Room, Ivy Room, Campus Market and Poppy’s. All of them will accept credit cards starting in early November.