Campus ID News
Card, mobile credential, payment and security
FEATURED
PARTNERS
FromTheArchives 1

From the archives: Closed-loop vs. open-loop vending payments

Andrew Hudson   ||   Jun 06, 2018  ||   ,

Payments via standard debit and credit cards, as well as payments via mobile device have posed a noticeable foe to the campus card at the vending machine. It's an ongoing topic of conversation today as universities plot payment environments that best suit their campus communities' demands.

In our 2016 coverage of the topic, we spoke with both campus card vendors and payment processors to examine the role that vending plays in the open-loop vs. closed-loop debate. From our "Vending marries open loop and campus card payments," we discuss that despite providers of traditional closed-loop campus card systems losing some of their once exclusive grip on cashless vending sales on campus, most maintain that the migration to open-loop payments is contributing to a rising tide in unattended sales.

Despite the convenience of open-loop payments, there has been something of a resurgence in closed-loop campus card use as universities realize the transaction costs associated with credit and debit cards. Also affecting the debate is a generational shift in students that sees an overwhelming number of kids arriving on campus already banked and carrying a credit or debit card.

Despite all this the closed-loop declining balance account remains viable, and is still the method of choice in dining halls, laundries, and copy and print environments.

These types of environments see closed-loop payments via the campus card still reign supreme. "Campuses don't want some points of sale to accept credit and debit cards, such as low-ticket items like printing and copying," says Apriva's James Lawrence. “And some campuses do not want to pay credit card interchange and processing fees, which can be as much as 3% per transaction.”

Another facet to the argument is the progression of card reader technology. Today a single reader can accept campus cards, credit cards, debit cards, gift cards, as well as contactless options like Apple Pay or Samsung Pay.

Regardless of your campus' preference, the open-loop vs. closed-loop debate is relevant to all. For a more in-depth look at this topic, read the full "Vending marries open loop and campus card payments."

|| TAGS:
Subscribe to our weekly newsletter

RECENT ARTICLES

Credentials 101 Series banner

Understanding chip options for contactless campus cards

Three main components underly modern credential technology – chips, formats, and encryption. Each are applicable to both cards and mobile credentials and understanding them is key to making informed decisions for your campus card program. In this series of articles, we will dive into each component, but first a brief preview. Chips are the core of […]
Apex OrderHQ Array modular lockers
Jul 02, 25 /

Modular locker solution streamlines campus order pickup

Apex Order Pickup Solutions launched a new modular system of automated order pickup lockers that can be stacked or setup in custom configurations. The OrderHQ Array Series lockers work in any floor plan without expensive remodeling. In an interview with Food On Demand, Kent Savage, founder and executive chairman of Apex Order Pickup Solutions, compares […]
Amy Surprenant, HID Global
Jun 26, 25 / ,

Effective project management key to GWU mobile credential launch

In a recent interview, HID Global’s Amy Surprenant discusses the project management component of the mobile credential launch at George Washington University (GWU). With 26,000 faculty, staff, and students, the project marked a significant milestone for the institution and its partners, including HID, CBORD, and various on-campus departments and vendors. The deployment of HID Mobile […]
CIDN logo reversed
The only publication dedicated to the use of campus cards, mobile credentials, identity and security technology in the education market. CampusIDNews – formerly CR80News – has served more than 6,500 subscribers for more than two decades.
Twitter

Attn: friends in the biometrics space. Nominations close Friday for the annual Women in Biometrics Awards. Take five minutes to recognize a colleague or even yourself. http://WomenInBiometrics.com

Feb. 1 webinar explores how mobile ordering enhanced campus life, increased sales at UVA and Central Washington @Grubhub @CBORD

Load More...
Contact
CampusIDNews is published by AVISIAN Publishing
315 E. Georgia St.
Tallahassee, FL 32301
www.AVISIAN.com[email protected]
Use our contact form to submit tips, corrections, or questions to our team.
©2025 CampusIDNews. All rights reserved.