Higher One card confusion

It sounds simple enough. Money is credited to a card. Then you access the card to spend the money. However, the process has not been as cut and dry as expected.

The 2009 spring semester started with some changes as to how the Dallas County Community College District (DCCCD) distributed refunds, disbursements and financial aid to its students. A service provider called Higher One sent out what it calls a "money card" to qualifing students. After receiving this card in the mail, students are supposed to log on to DCCCDmoneycard.com to choose a refund preference.

A survey of 30 NLC students revealed there were many issues involving the Higher One MasterCard. First of all, many students were unaware of what they were looking at when they opened their mail. To some it looked like a credit card advertisement while others were not sure of the legitimacy of the card.

Although the Higher One card is not considered a credit card, it still has the MasterCard logo on it. The survey results showed this confused many students, as did the origin of the mail itself. Additionally, some students were bothered by the fact that they received mail from a bank in Connecticut regarding colleges in North Texas.

A majority of the students polled threw their cards away before fully understanding what it was. This is such a problematic trend that posters around school advertising the money cards actually say "Hey… Don't throw it away!"

Another general complaint revealed in the survey was that students couldn't find an ATM that didn't charge a fee to withdraw money. "It's infuriating that our grant and loan money go towards ATM fees," said NLC student Ashley Parson.

Aside from the confusion and the ATM fees, one more re-occurring survey issue was that you're allowed to go over the card limit. Most believed that once your funds were out you could no longer use your card. In actuality, the card allows you to continue spending regardless of available funds. This has caused students to face charges for exceeding their funds.

Stephen McDonald, director of general and student financial aid accounting, advises all students to learn about the card before making any decisions on the refund preference. He also said it is not mandatory to use this card to receive your funds. When you go to DCCCDmoneycard.com it allows you to choose what method is best for you. Specific options include receiving a paper check or having the money routed into an already existing bank account, he said.

Concerning the ATM fees, students can go to the same Web site and find ATMs that will not charge them fees. According to McDonald, the contract DCCCD has with its bank which provides ATM service expires next month. After the contract expires, the new ATM machines will be put in every campus and there will be no fee for students with the Higher One cards.

McDonald will meet with his staff and the staffs of all the colleges in the DCCCD to address what is working and what needs improvement for this system.

"Like with all banks, not just Higher One, students should monitor their balances and purchases so that they do not run into any issues," McDonald said.

Not all stories were complaints and grievances though. In the survey, 33 percent were satisfied with their card and the way it was used. Additionally, 16 percent seemed indifferent or had no negative response.

McDonald thanks all the students for their feedback. He said it helps him and his staff to know what areas they need to focus on to make the card work better for the students.