An eight percent transaction fee has caused some businesses in the Boston area to shy away from Tufts University’s JumboCash debit card program. Businesses also have to pay 15 cents per transaction.
“The JumboCash fees are charged by our program to the vendor as a way to offset the cost of the program,” said Patti Klos, Tufts’ director of dining and business services. “JumboCash is not another credit card, it is the campus debit card, a way to conduct business around campus with the convenience of paying with your campus ID.”
One business owner commented that business was “great” without having to accept the JumboCash card. Another reason is the “percentage that would be taken away from our business,” he added.
Despite the high fee, 25 off campus merchants have opted to accept JumboCash. One business owner said that accepting the card was a good opportunity to expand his business.
“The demand was from the students to begin with, so [JumboCash] called me and we accepted it,” he said. “It’s not our best choice for a card [because] regular cards are three percent. It doesn’t help the cash flow, because you’re laying out the money.”
Read more here.
