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Student’s website to reinstate credit card tuition payments
Students opposed to the University of Alberta’s discontinuation of credit cards as a payment option in July 2008 will soon see that option returned to them, but not on behalf of any U of A decision.
Third-year business student David Murray is launching Pay4u on December 4, a third-party website set up to let U of A students use their credit cards for fee payments.
“People were complaining about the [credit card issue] still,” Murray said. “[I thought] maybe this is something somebody could provide as a separate entity from the school. I looked into the legalities of that, which said as long as you’re a separate entity from the U of A, you can provide it.”
Murray started the company with a friend in Engineering, who helped with website design, and another friend who attends NAIT.
The website, pay4unow.ca, allows users to pay any amount, and the company then issues a cheque to the University.
“Let’s say your parents wrote a cheque on your behalf. [The University] doesn’t care where the money’s coming from, as long as we indicate it’s a student's tuition, and which student it is,” Murray explained.
However Ron Ritter, director and treasurer of the U of A’s financial services, is hesitant about the site’s use, and noted that the University wouldn’t enter into any type of agency agreement with the company.
“We’re not endorsing or behind this in any way, shape, or form,” he said. “We’re aware that there’s initiatives like this out there, but we’re reluctant to enter into any sort of arrangement with them because we know there would be additional service fees for students, even though they’re voluntary in nature.”
The website will charge a fee of 3.39 per cent on each transaction, and based on his market research, Murray thinks the rate is fair.
“We found a lot of people weren’t interested in [the service] based on financial duress — it was more on the rewards you receive and convenience you receive by using your credit card,” Murray explained.
“The average credit card returns one to two per cent cash back in rewards, so that’s a lot of it coming back into their pocket,” he added. “It’s a convenience thing. You’re paying for a service that provides you with the convenience of being able to defer your payments.”
Another factor preventing the University from entering into an agreement with the company is security costs.
“An agency relationship would introduce certain risk management issues for the University, and there would be costs associated with managing those,” Ritter said.
Despite the lack of official U of A association, Murray is confident that the measures he’s undertaken to protect students’ information will be more than sufficient.
“Visa and Mastercard have to do checks on your website; so they go and do hacking tests to make sure the certifications are all there,” he said. “I went to the max. We put as much security certification as we could find for it so it was a solid as it could be.”
Murray noted he isn’t expecting the site to make credit card use as widespread as it was before.
“It’s not a scam, and we're not trying to reach everybody,” he said. “But there is a market out there of people who do want this option [and] some that need this option. We just wanted to come and provide it for a reasonable price. Hopefully people will be comfortable with it, trust us, see that it works, and tell their friends.”
Are credit cards really more convenient?
By Stephanie ReevesYes, credit cards are ideally convenient. I originally was among the student population who was slightly annoyed when the University announced the removal of paying by credit card. Since the implementation of this policy I've come to realize that I'm not inconvenienced in the least. With the vast amount of payment options available credit cards prove to be no more advantageous than the rest. Why not skip a step of paying University fees on your credit card, then transferring funds to pay off the credit card bill and just use online direct billing to the University of Alberta? Simple and easy. I do support what Pay4u is trying to achieve by providing more options to the student body, but find the potential risk and costs associated an unnecessary expense.
I think its a great option, i
By Eric FilouI think its a great option, i am more into it bacuase of the rewards and the credit. For one i think any security "issues" people ae concerened about is a bit of over reacting to the vast medias "identity theft" thing. I am sure a service like this has to be put through rigorous encryption checks by both visa, master card and the bank that this company is using as there hub. I like paying my tuition with my credit card because its one of the very few things i can use to build my credit score, as a student i dont have the chance to put thousands of dollars through credit ,this oppurtunity lets me start building my credit early. It does come at somewhat of a cost they charge 3.39% i worked out my points per dollar and i end up receiving 2.5% back in rewards so 0.89% which on my tuition is 22.5$ a semester or about 5 bucks a month.
I like It
I appreciate the option Pay4u
By James TamnhaI appreciate the option Pay4u is bringing but isn't 3.39% a little steep?
I am intrigued about this
By JohnI am intrigued about this service so i read up on it and looks like there has already been a company thats done this since July.
http://www.4wardthinking.ca/
Offers 3.00%...a savings of roughly $30.00
i know when it comes time to
By Todi know when it comes time to pay for my tuition i will be using pay 4 u
I have heard of someone using 4ward thinking and they said that the use of charity is only to get tax breaks for the company. My extra 7 dollars with the 0.39% will be going toward pay4u
Great!
By DennyI'll be using this.
It's not that I need to use the credit card to pay tuition, if I didn't have the money to pay up front their are lower interest options than using a credit card that I would go with and like Stephanie pointed out, credit cards aren't more convenient than online transfers from my bank account.
What my credit card offers that a bank transfer doesn't though is Aeroplan reward miles.
I'm using this service so that I can get the reward miles my Visa offers.
Pay4U by the numbers
By UofA Student AdvocatesThis message is brought to you by the University of Alberta Student Advocates - Protecting students interests
Pay4U by the numbers: Is Pay4U an economically intelligent option for students?
The following is an illustration of the conceived benefits of utilizing Pay4U Inc. as well as a presentation of the factual reality of each conceived benefit.
Conceived Benefits
Credit Convenience:
If a student does not have cash on hand, using a credit card to pay tuition can be “convenient.”
The Reality:
If a student is unable to pay tuition by cheque or cash, Provincial and Federal Governments offer zero-interest loans to students while they are attending university – at a 0% service fee.
Accessibility Convenience:
If a student does not reside in Edmonton, he/she can pay their tuition confirmation deposit via Pay4U Inc.
The Reality:
There are alternative options: the University of Alberta offers a method whereby students can pay for tuition and confirmation fees via online debit transactions, cheque and telephone and internet banking.
Time Convenience:
The simple ease of being able to pay tuition with a single mouse click
The Reality:
Is the ease of payment really worth using Pay4U Inc.? The average student pays approximately $5,000 per year in tuition. At a service charge of 3.39%, the cost of utilizing Pay4U Inc. amounts to $169.50. Very few University students can actually afford this convenience.
Air Miles Rewards:
Though not explicitly acknowledged by Pay4U Inc., students may wish to use their service to accumulate air miles, Aeroplan credits, etc.
The Reality:
When exploring this conceived benefit, it becomes apparent that the $169.50 cost of utilizing the service greatly outweighs the value of the accumulated Air Miles. With a standard Air Miles plan (1 Air Mile per every $20 spent), a student could potentially accumulate 250 Air Miles per year via the tuition transaction. If redeemed, this is equivalent to two CD’s or approximately a $30 value.
Pay4U Inc. states that “[they] are providing [the students] with the convenience of paying by credit card, because [they] feel students deserve the option.” In response, we feel students deserve the RIGHT to factual information that can better aid them in making informed and intelligent economic decisions in an era where rampant credit card exploitation is omnipresent.
Is Pay4U Inc. just another business motivated by profit or is it a business that is truly motivated by increasing student welfare - as they attempt to make you believe? If Pay4U Inc. truly cared about student welfare, don’t you think they would charge a near or non-for-profit rate – not a steep 3.39%? Innovation is appreciated in a capitalistic society, but in our minds, not at the expense of student welfare. With students facing increasing tuition hikes and high rent costs, the last thing student’s need is another unnecessary and hefty service charge.
Does it make sense for you to incur a tuition payment cost that is completely unnecessary? Ask yourself this question when considering the usefulness and motivations of Pay4U Inc.
The following links can help you to better solve your tuition payment dilemmas and better inform you in the realm of student finances.
Canada Student Loans
http://www.hrsdc.gc.ca/eng/learning/canada_student_loan/index.shtml
U of A Student Tuition Payment Options
http://www.financial.ualberta.ca/student.cfm?cfnocache
College Students: Are You Spending Money Wisely at School?
- Important to read the last subtitle, “Use Common Sense.”
http://www.spendonlife.ca/blog/spend-money-wisely-at-university
College Consumer Savvy Tips
http://www.consumersavvytips.org/attention_college_students_we_found_mor...
ABC News: The Truth About Credit Card Reward Miles
- Read also the member comments at the bottom of the page
http://abcnews.go.com/GMA/MellodyHobson/story?id=7553348&page=1
Air Miles Canada
https://www.airmiles.ca/arrow/Home?_requestid=3051756
Check out 4wardthinking.com!!
By UofA Student AdvocatesAfter doing further research, it seems to us that there is a company looking out for students!
www.4wardthinking.com is a charitable organization that charges a lower rate than Pay4U. So much for having a competitive rate Pay4U. 4wardthinking.com charges 11% less of a fee for you to use their service than does Pay4U.
Not only are you keeping money in your pocket, but you can rest assure that a charitable organizations is looking out for the best interests of students.
It is nice to see a company value student welfare over making profits.
To reiterate: innovation is appreciated in our society, however exploitative innovation is deemed immoral in the books of most. It is one thing to be rewarded in profits by developing a service or good that is morally beneficial to society, an another to attempt to exploit vulnerable consumers. For example, it is morally wrong to sell cigarettes to addicted smokers and it is morally correct to profit by selling a necessary good like automobile service to consumers.
student advocate or 4ward
By Not-for-profit??????student advocate or 4ward thinking advocate??? I did some digging and based on the fact that 4ward thinking SENDS YOU TO PAYPAL to do their transaction, they are charged less than through a bank like Pay4U, they are charged a cheaper merchant rate, therefore they are probably clearing a bigger profit margin than Pay4U is.
Quit trying to play the saint and be honest with us as consumers. This is a capatalistic society that cant be run solely on NPOs.
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