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.

Related Posts

|| TAGS:
Subscribe to our weekly newsletter


Transact partners with Reusables containers
Jun 14, 24 / ,

New integration enables Transact clients to deploy Reusables’ container solution

This week, Transact announced a new partnership with Reusables, a platform that enables students to check out and return reusable containers using their campus cards or mobile credentials. The integration between the two companies requires no additional app downloads, allowing students to easily and quickly begin using the system. Reusables is a Vancouver-based company dedicated […]
Southern Illinois University ID card

Southern Illinois uses summer to upgrade from mag stripe to contactless

This summer, Southern Illinois University is launching a new contactless campus card for students, faculty, and staff. Along with the new ID technology, the card will also feature an updated design. The prior mag stripe card will continue to be supported, but existing cardholders will have the option to upgrade their card. In July through […]
Virginia Tech access control readers from Allegion

Virginia Tech's multi-year journey eliminates brass keys from campus

  At Virginia Tech, a strategically planned, multi-year process has eliminated physical keys from the campus. Brass keys have been replaced by card access in buildings and residence halls. The only remaining keys are stored in secure key boxes for security personnel and residence hall advisors to access in case of emergencies or after hours […]
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.

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.

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

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.
©2024 CampusIDNews. All rights reserved.