The University's M-Card, the all-in-one replacement for the old student ID, is one year old this fall. The "smart card" was introduced to students and the local community with the promise of simplicity, convenience and a new way of doing business, but a year later there are mixed opinions about its success.
Bob Russel, assistant director of financial operations, said there are 46,000 active M-Cards. According to the Office of Financial Operations, $805,000 has been spent using the M-Card during the past year. But Russel said the numbers are lower than expected.
"Transaction volumes since day one are 20-percent less than we anticipated. Dollars are 30-percent to 35-percent less," Russel said.
Russel said the numbers could be down because there is new technology involved and it takes time before people are comfortable.
"People don't understand the card. It's new technology; it takes a lot of people to try it," Russel said. "(It's the) same in Atlanta where they're using smart-card technology, done by Visa. It wasn't as popular as expected."
One issue that has affected the card's popularity is the extent to which the card is accepted by local merchants. According to financial operations, there are 82 vendors who accept the M-Card around campus. To some students, this isn't enough.
"I have it, but I never use it," said Engineering senior Aaron Brooks. "I don't find a need to."
Cardholders want more vendors, and vendors want more cardholders, Russel said. It's the classic chicken-and-egg story.
The M-Card has also faced some negative criticism for being too commercial.
"I don't really like First of America, and the University forces you to deal with First of America. They probably get more business. It seems like there's a lot of stuff in the background," Brooks also said.
But not all student opinion is negative.
"I like what it does for me," said LSA first-year student Stacy Lamb. "The debit card is easy. It's useful around this town."
Local businesses also have mixed opinions about the M-Card.
Jack Clyne, assistant manager of WhereHouse Records, said he is satisfied with the M-Card.
"It's just basically another credit card," Clyne said. "It's easy for (students) to pay. The debit card is easiest."
Clyne noted that accepting the M-Card is "a little expensive" for a business owner and doesn't compare with major credit cards in terms of volume, but that it is another payment alternative.
Jim Carey, bookkeeper at Shaman Drum Bookstore, said that when the store first joined the M-Card program, they weren't absolutely sure what to expect.
"The primary goal is to try and serve the students as best (we) can," Carey said. "I think it's given students larger opportunities, a broader spectrum of payment choices."
Carey did note a few criticisms in the planning of the card.
"It seems to me that the University of Michigan and First of America came up with an idea without consulting with area merchants," he said. "They thought of the students to some degree but about themselves mostly.
"It wasn't necessarily done with merchants."
This led to some difficulties for vendors who accept the card.
"They have made improvements," Carey said, noting merchant feedback meetings held by the University.
As for the future of the M-Card?
"There are things happening. We spent a lot of time with focus groups of students. We're retooling the card and how it's used," Russel said.
One change is that the M-Card will soon be accepted on AATA bus services.
"The AATA will be taking the card on all their buses by next spring," Russel said.
Financial operations is also considering longer-term options to make the card more competitive.
"We're looking at other ways to put money on the cash chip. (There is also) the possibility of adding credit," Russel said.
Controversy aside, the M-Card has established itself as a clear part of the University landscape over the past year.
"I use it a lot, sometimes too much," Lamb said. "I've never had a problem with it."