By Nick Norlen, Staff Writer
A partnership with a Princeton-based prepaid cash card program supported by both the Princeton Public Library and the Princeton Regional School District could provide an added revenue stream for both.
Called the Princeton Community One Card, the program would allow users receiving cash back on purchases from local merchants to decide to keep the money or donate it automatically to a charity of their choice.
Under the system, the library would be set as the primary default beneficiary, and users would be given the option for the Princeton Education Foundation to be named as the secondary default beneficiary, according to Superintendent Judy Wilson.
Cardholders would get 1 percent cash back on every transaction they make using the card. They would then have to make the decision to donate that the money or keep it for themselves. All transactions, including putting money on the card, will be managed online, according to Library Director Leslie Burger.
For users who register through the library, the card would also serve as the library card, and those who sign up through the school district would be given the option for the card to double as a student ID.
Both library and school officials have said the program provides a win-win opportunity, with its convenience factor and the possibility of added revenue.
The Board of Education unanimously voted to support the program at its meeting Tuesday night, and the library’s Board of Trustees followed on Thursday by voting in favor of the partnership at an emergency meeting.
The program is a new initiative by Heartland Payment Systems, a Princeton-based firm specializing in credit and debit card, payroll and related processing services for restaurants, hotels, and retail merchants around the country.
Materials distributed to the library board by Heartland have indicated that the card’s appeal to merchants will be its reduced interchange fee — 1.5 percent — which is lower than the rates of other debit or credit cards, and which would be automatically donated under its “Give Something Back” program.
Ms. Burger said approximately 60 merchants are already signed on to accept the card, which would be scanned using special readers.
According to Heartland, the firm will automatically give one-quarter percent of each purchase to the library, and an additional one-quarter percent to the Princeton Education Foundation.
Cardholders could then opt to keep their 1 percent cash-back, or donate it to another eligible charity, including the library.
Ms. Burger said it has yet to be decided whether the library, the Princeton Public Library Foundation or the Friends of Princeton Public Library will be the recipient of the donations.
Ms. Burger said the library is also in talks with Heartland to settle on a guaranteed minimum donation amount to be given regardless of how much is spent by cardholders.
Heartland did not guarantee a minimum revenue amount for the school district, Ms. Wilson said.
”It wasn’t necessary because it’s new territory,” she said. “We’re not shifting from any other revenue stream.”
As for the implementation, the library is hoping to launch a 1,000-card test run during National Library Week from April 13 to 19, when library-goers will be able to sign up for the program.
Ms. Burger said she expects a smooth transition for the card.
”It has a lot of positives,” she said. “There are a lot unanswered questions, but that’s the point of doing the test: what the community acceptance will be, what the merchant acceptance will be, whether it ultimately makes sense for Heartland and the library to go forward with this.”
Ms. Wilson said the program has two distinct advantages: the “huge convenience factor for parents and children,” and the potential revenue.
”The Princeton Education Foundation has strongly supported some of our key efforts in our last several years,” she said. “The more they’re able to do so, the greater impact it has on our education programs, especially for endeavors that we would never be able to tackle under the constraints of the budget.”
Ms. Wilson emphasized that the card would draw from a prepaid debit account — and is “not a credit card.”
”I want to be really clear about that,” she said, noting that the card could be used for school lunches, purchases at the school store, or, if desired, “anywhere else where it’s accepted in the community.”
It has yet to be determined whether cards issued through the district would double as library cards at the Princeton Public Library, she said.
”The goal is for it be completely interactive,” she said. “How much overlap we can get and how much of a level of integration is really a system that Heartland will work on for us.”
Ms. Burger said the card’s role as a library card could also save money for the library.
However, she said the board doesn’t have a specific amount in mind as a goal for how much money the cards will generate.
”We’re always looking to maximize the amount of revenue we can add to the library budget. It would be lovely if this were generating $100,000 a year, but that would be a lot of shopping,” she said. “It’s hard to tell.”
Heartland will give a presentation on the program at the next meeting of the Borough Merchants for Princeton, scheduled for 8 a.m. Feb. 19 at the Nassau Inn.
