Between studying for midterms and planning for spring break, one of the last things students want to worry about is paying bills, especially rent. However, a new convenience is becoming more prevalent on campus for the monthly payment.
University of Wisconsin sophomore Aaron Swerdlow, who currently lives in the public dormitories, encountered a problem when a bill for his rent was mistakenly sent to his dorm room instead of his parents’ house. Swerdlow had no way of paying the rent himself. By the time the problem was resolved, Swerdlow had to pay a late fee.
“It would be easier if I could just give them my parent’s credit-card number,” he said.
Next year when he lives in a Steve Brown apartment, he will be able to use his credit card. Swerdlow is looking forward to paying his rent this way because it is another “deadline you don’t have to worry about.”
His roommate, Adam Beattie, agreed.
“I felt uncomfortable with my checkbook. I already carry my credit card in my wallet,” Beattie said. “It’s just easier.”
Students living in Private Residence Halls, which are owned by Steve Brown Apartments, can also pay rent with their credit card and about 40 percent of all students living in the Private Residence Halls do so, according to Scott Watson, controller for the Steve Brown Apartments and Private Residence Halls.
“Most student residents have their rent paid by a parent or guarantor, so it makes it convenient for that person to authorize payment by phone, or with a recurring charge order.”
Steve Brown Apartments has offered the option of paying rent with a credit card for seven years. He said he realized the convenience for customers but also the benefits for the company because it simplifies the rent-collection process. Watson said with the credit-card payment option, customers can earn benefits from credit-card companies, like frequent-flier miles for spring break.
Watson said why university-owned public dormitories do not accept credit cards is because of the extra cost to the business that is necessary in order to accept credit cards.
According to Watson, Visa and MasterCard charge about 2 or 3 percent of the business-transaction charge to the business. Under companies’ regulations, the transaction fees cannot be passed on to the consumer.
“The Private Residence Halls are very much based on resident choice and convenience, so we feel it is well worth the additional cost to us,” Watson said.
University Housing and the Bursar’s office are looking into other payment options that would not cost students an additional fee or would be very low in cost.
However, this may be easier said than done.
Although credit cards may be the most convenient option for students, the students themselves may not be the most reliable credit-card users.
Swerdlow warned students of the hidden cost to credit cards.
“You could wind up paying even more for rent with the interest,” he said.
However, if good credit is established or a student’s parents are willing to pay the bill, making payments for rent with a credit card can potentially be a good option.
