By Nick Norlen, Staff Writer
Princeton Public Library and the Princeton Regional School District have signed on to the “Princeton Community One Card” program, but are local merchants sold on the idea?
The partnership will involve a prepaid cash card program administered by the Princeton-based Heartland Payment Systems in which cardholders will get 1 percent cash back on every transaction they make using the card.
Users will then make the decision to keep that money or donate it to the default beneficiaries — the library and the school district — or another local charity.
In addition, the cards will double as library cards or student ID cards, or both, and will also come in smaller versions that can adhere to cell phones — a feature expected to be popular among younger users, according to Heartland Chief Executive Officer Bob Carr.
Apart from the charitable and convenience aspects, the appeal of the program for merchants, Mr. Carr said, is the card’s 1.5 percent processing fee — a significantly lower rate than most credit and debit cards.
Mr. Carr said his company has been courting merchants in the borough’s main shopping district as well as in the township, including merchants at the Princeton Shopping Center.
Approximately 60 local merchants — including “some of the most prominent merchants in town” — already use Heartland as their payment processor, and will be able to easily accept the new One Card, he said.
Others — like national chains that use their own computer system — might have to use some new equipment, if they choose to participate, he said.
”That’s really very dependent upon each individual merchant,” he said.
Heartland will give a presentation on the program at the next meeting of the Borough Merchants for Princeton, scheduled for 8 a.m. on Feb. 19 at the Nassau Inn.
”I think everyone is behind the idea of a community card, they just want to make sure it’s beneficial and (understand) how it works,” said Travis Linderman, a member of the Borough Merchants’ board of directors.
A potential concern is that some merchants use different payment processors, he said.
Because her company isn’t currently Heartland’s client, Whole Earth Center Marketing Director Fran McManus said she wants to know what the cost of acquiring new equipment will be.
However, she said it’s possible that she could choose to use both.
”That’s important to us, to be able to use our current credit card processor,” she said.
Ms. McManus said that although the idea of a charitable card isn’t new, she said it still might be a good fit with her business.
”Our customers are already giving back in that respect. The card is not a new concept for us at all,” she said. “But if it works to pull the community even closer together and to support local nonprofits, I think that’s great.”
Joanne Farrugia, owner of Jazams toy store, said her main concern is finding out the “basics.”
”I’m not real sure what the card is about — who gets the discounts, and how it works,” she said, citing concerns about the possibility of hidden fees. “I have tons of questions for them. It seems too good to be true.”
However, Borough Merchants President Kathy Morolda, who is the owner of Cranbury Station Gallery, said she doesn’t think there are any drawbacks.
”We’re not waiting to find out the catch, we’re all eager to get on board,” she said. “I believe that they’re onto something here. (But) I don’t have all the details. We’re having this meeting for that purpose.”
Ms. Morolda said she thinks the program will be a “win-win situation for everyone” — with the added benefit of Heartland being a local business.
”Anytime we can promote a locally owned business, we’re game,” she said. “If they can present something that’s going to be beneficial to everyone, the best part about that will be, once again, we’re all supporting each other.”
In an e-mail interview last week, Hamilton Jewelers President and Chief Executive Officer Hank Siegel said his business plans to accept the card when the program is officially under way. He said he feels that the program has no disadvantages — and that it would provide “ease of use, increased recognition and visibility of Princeton as a shopping destination.”
Still, Robert Landau, co-owner of Landau of Princeton clothing store, said he has doubts about whether young consumers will gravitate to the card.
”Every college student right now has their own credit card. I don’t know what we need another card for,” he said. “We’re not opposed to it, it’s just nothing that we would rush to be involved in. We just want the convenience for the customers. Beyond that it’s all gravy.”
Meanwhile, there’s no guarantee that the Princeton Public Library will finalize the contract with Heartland.
Director Leslie Burger said that library is going to issue a request for proposals for the services that have been described by Heartland in order to allow other companies a chance to bid on the project.
However, Ms. Burger said she believes the program is unique — a notion seconded by Mr. Carr.
”This is really a new product. It doesn’t really exist in the world,” he said. “But if somebody else does (bid), and wins the library’s business, we’re going to go forward regardless. We don’t expect that to happen.”
Mr. Carr also noted that the Bank of Princeton will be the holder of the accounts, but said that users don’t have to change their bank account to use the card, and that all transactions will be managed online.
For now, Heartland is going to continue communicating with merchants, he said.
”We’re expecting the majority of them to say ‘yes’ shortly after the Feb. 19 meeting,” he said.
