By Nick Norlen, Staff Writer
After learning that their prior vote on the action was technically illegal, the Princeton Public Library Board of Trustees voted again Tuesday to solicit bids for a combined library and cash card initiative, but not before new concerns were raised about the Princeton Community OneCard — the Heartland Payment Systems proposal that precipitated the idea.
The concerns — raised by a board member and borough merchant — came just hours after a nearly all-positive reception at the well-attended Borough Merchants for Princeton meeting hosted by Heartland earlier that morning to inform merchants about the program.
If ultimately receiving the green light, the partnership, which has already been adopted by the Princeton Regional School District, would involve a prepaid cash card program in which users would get 1 percent cash back on every transaction they make using the card. Cardholders would then make the decision to keep that money or donate it to the primary beneficiary — potentially the library — or another nonprofit. The cards would double as library cards or student ID cards, or both, and would also come in “tag” versions for cell phones.
After Library Director Leslie Burger explained that the vote conducted by the board during the emergency meeting it called Jan. 25 was not legal because the issue didn’t pertain to public safety, the library board voted again Tuesday to draft a request for proposals for services similar to those described by Heartland.
During the discussion, borough merchant Leo Arons, of The Gilded Lion, said he is “not at all comfortable with the idea of the library sponsoring such a card” because he believes combining the two functions — the ability to take out books and the capacity to make purchases — “actually trivializes the library’s mission.”
Moreover, the system would be “discriminatory” because it would “cut out a segment of that merchant population,” he said. “You cut them out because they can’t afford or they don’t have the need for the Heartland System. They don’t get the benefit of the library’s endorsement.”
Mr. Arons was referring to the fact that although non-Heartland clients wouldn’t need to switch processors to accept the OneCard, they would need to buy or rent equipment.
Heartland Chief Executive Officer Bob Carr said during the merchant meeting that non-clients would have to pay $55 per month — plus a 1.5 percent fee on OneCard sales for up to $50,000 of processing — to rent the systems. Heartland clients would only have to pay $15 per month. Equipment available for purchase featured in a brochure distributed by Heartland at the meeting ranges from $110 to $799 per terminal, with three-pieced packages priced from $545 to $1,195.
After nodding in agreement with Mr. Arons, board member Grayson Barber said she was “offended” by the fact that Heartland was issuing sample cards that featured the library logo at the merchant meeting, which she attended that morning.
”Even though we haven’t approved the use of this card, Heartland is using us — the public library — for purposes of penetrating the merchants association, and I don’t think that’s appropriate, and I’m actually offended by it,” she said.
However, she added, “in fairness, Bob Carr’s presentation this morning to the merchants made it clear that the vote was tonight.”
And board member Ryan Lilienthal said he believes there was no “ill intent” behind Heartland’s use of the logo.
Still, he said he is concerned by the issue that Mr. Arons raised — that “some merchants just can’t participate.”
He added, “I think that presents a very real issue of those that are in and those that are out And I don’t think we want to be part of that.”
For that reason, he said the request for proposals issued by the library should reflect that concern. However, Ms. Barber said she wasn’t confident that it would effectively communicate all the specifications desired by the library. Nevertheless, the board eventually voted — with Ms. Barber dissenting — to go forward with the request for proposals.
Despite the concerns raised at the library meeting, most of the local merchants who spoke at the meeting earlier on Tuesday expressed favor for the program.
”The giving back to the community aspect is what thrills me right away,” said Dorothea von Moltke, co-owner of Labyrinth Books. “I love how transparent you’ve been with us.”
Indeed, Borough Merchants board member Travis Linderman said most of the merchants were pleased with the information presented by Heartland.
”I think the people that were there that had previously expressed concerns actually walked away feeling much more comfortable,” he said, noting that the main consideration being discussed by merchants now is the cost of the hardware.
Still, most have a “very good perception of Heartland as a company,” Mr. Linderman said — and Mr. Carr’s presentation at the merchant meeting seemed like an attempt to further that impression.
”We don’t have a hidden agenda in doing this,” he told the merchants, noting that Heartland makes its profits by increasing the number of transactions it processes — not raising rates. “We created a business model where we think all the players — including us — are going to benefit.”
The model benefits merchants, he said, by allowing them to grow their business, to manage requests for charitable donations, to reward customers and by charging a transaction fee lower than the average credit card rates.
He said some of Heartland’s approximately 75 clients in the township and borough are already signed up and will be ready to accept the card even before the official launch planned for the week of April 13.
The question is whether enough consumers will see the benefit of using the card over their regular credit or debit cards, he said.
”Heartland is betting millions of dollars that enough people will do it to make it successful,” he said.
