New U-Store card breaks student agency monopoly

Last year, Carter Griffin '02 tried to start a business.

He wanted to open his own laundry agency. He applied to the University to open an official student agency, but was turned down because a student agency laundry service already existed.

Without the benefit of student agency status — and therefore without the ability to accept the U-Store card for payment — there was no good alternative way to accept payment from students. The student agency business, which would accept charges to U-Store cards, simply had too big an advantage.

But the U-Store card has changed.

The new U-Store MBNA Mastercard hasn't just changed the way students buy books. The new card ended the student agency monopoly on use of the U-Store card on campus, opening the door for new campus businesses that can take the U-Store card or any credit card — taking a serious advantage away from student agencies.

The old U-Store card could be used to charge payment to student agencies but not to other businesses. Students who tried to start businesses to compete with student agencies were unable to gain the same access to the U-Store card.

Student agencies lost about half their profit to the agencies office, but gained the added benefit of being able to accept the U-Store card. Student-run businesses, on the other hand, were excluded from using the U-Store card and found it difficult to set up a payment plan for their customers.

This year, Griffin has been able to begin his new business, Princetoncleaners.com, without being classified as a student agency.

"I think that in losing the U-Store card monopoly that [Princeton Student Agencies] has also lost its monopoly on campus business," he said.

Griffin said he thought students appreciate the new opportunities on campus.

"Our business has been absolutely fantastic. And I personally feel our service is better, which means the competition is great for the students," he added.

Robert Farrell, the manager of the previously existing student laundry agency, said the turnover of the U-Store card to a credit card was not very smooth.

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Agencies were not told of the change until late this past summer and had to scramble to find a new payment plan for pre-subscribed clients who opted to use the old U-Store card, he said.

Few customers were lost, "But the new U-Store policy created more a hassle than a loss in revenue," Farrell said.

Some students remember the old U-Store card fondly. A few, like Alisha Watts '03, said they feel guilty for charging small items on their new credit cards.

"Whereas before, charging nachos and dip to my U-Store card at 1:00 a.m. didn't seem all that bad, now I don't do that because it's ridiculous to charge nachos on a credit card," she said.

Others, like Cristina Rivera '05 and Joanne Coupet '05, said they think that as credit cards, the new U-Store cards are far more convenient than the old ones.