Campus ID News
Card, mobile credential, payment and security
U Iowa contactless

U. Iowa suspends contactless payment option following Visa rule changes

Andrew Hudson   ||   Mar 02, 2022  ||   , ,

Changes to Visa's rules around merchant payment acceptance has led to the University of Iowa temporarily suspending its ability to accept student contactless payments made via mobile wallet in campus dining and retail locations. Visa's newly implemented rules require that all POS terminals have options for both contactless and chip reader payments in order to keep within compliance requirements.

According to The Daily Iowan, beginning February 1, students who previously used Apple Pay or Google Pay on their smartphone or mobile device have to now physically swipe their card to pay for meals.

In an email to The Daily Iowan, Scott Seagren, business officer at Division of Student Life, said the rule changes from Visa are normal and are not a cause for any card security concerns.

“The decision to temporarily disable contactless capabilities was to ensure that Housing & Dining remained in compliance with Visa Core Rules," said Seagren. “It is anticipated that new terminals will be installed yet this spring semester, which will enable acceptance of all contactless payments."

“Visa Core Rules require all merchants that support mobile wallet or app payments on a chip-enabled payment device to also support contactless chip tap payments,” said Seagren.

Seagren said the university was made aware a change was occurring in contactless payment in November 2021. Contactless payments include mobile wallets, like Apple Pay and Google Pay, and credit cards with tap functionality.

The university terminals do not accept contactless “tap” card functions. “The readers currently support payments made by swipe, by inserting a chip card, or by contactless mobile wallet payment e.g. Google Pay or Apple Pay,” said Seagren. “They cannot accept contactless chip payments made by tapping a physical card on the reader.”

The university could have faced fees if it did not update its POS terminals.

“If merchants have payment devices that are unable to meet that requirement, they must take action to disable all contactless payment capabilities or face Visa assessments starting at $5,000 per month and increasing to $10,000 or more per month,” Seagren said.

The university's credit card processing provider, Elavon Inc., has reportedly faced challenges updating the existing POS terminals, leading UI Housing and Dining to simply suspend contactless pay as a temporary fix.

“Housing and Dining chose to temporarily disable all contactless capabilities in the interim to avoid costly Visa assessments,” said Seagren.

Alternative payment methods are available to students in university dining locations, including Hawk Dollars, the Iowa One card, Dining Gift Cards, Meal Plan, and credit cards with magnetic stripe, and chip inserts. The only payment option that has been temporarily removed is contactless payment.

|| TAGS:
Subscribe to our weekly newsletter


Mar 31, 23 / ,

Grubhub, Transact Campus reveal integrated mobile ordering solution

Grubhub and mobile credential and payment solutions provider, Transact Campus have partnered to integrate Grubhub's Marketplace into Transact Mobile Ordering. The deal will enable students on Transact campuses to order from off-campus restaurants through the Grubhub Marketplace using their campus card for payment.
Mar 30, 23 /

New ETSU card design decided by student vote

East Tennessee State University has confirmed its new campus card design following a vote by the student body. The new card design coincides with a new technology card to be issued and was finalized after an online voting process.
Mar 28, 23 /

Managing system upgrades to streamline and ensure successful deployment

In the final installment of his four-part series, ASSA ABLOY's Tyler Webb offers his tips for campuses embarking on a system upgrade or new deployment. Upgrades can be challenging, but with proper planning, Webb says universities can minimize the risks and find success.
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.

Join us, @NACCUorg, and @TouchNet to explore how campus card programs can successfully navigate the sales and procurement process. Join the webinar on June 6, 2 pm EDT.

Webinar: Learn how the University of Arizona uses campus cards, mobile ordering, kiosks, lockers, and robots to revolutionize campus dining. April 7, 2-2:30 EDT. Register Now at

As supply chain issues in 2021 persist, identity solutions provider @ColorID discusses ways campuses can to overcome potentially troublesome delays until the situation eases.

A dining services push at the @UBuffalo is reinforcing the utility of self-service checkout. @CBORD is improving the food service experience using the GET app, as well as Nextep kiosks and Oracle’s Micros Simphony POS.

Did you miss our recent webinar? No worries - watch it on-demand. Leaders from @NAU and the @UAlberta joined Ryan Audus, Touchnet, and Andrew Hudson, @CR80News, to discuss innovative mobile services and the future of mobile tech in higher ed. Watch now:

Load More...
CampusIDNews is published by AVISIAN Publishing
315 E. Georgia St.
Tallahassee, FL 32301[email protected]
Use our contact form to submit tips, corrections, or questions to our team.
©2023 CampusIDNews. All rights reserved.