UPEI moves to online banking for tuition payments

As of July 1, 2010, UPEI will no longer accept credit card payments for tuition and residence fees, but now offers online banking as an alternative.

In the ongoing effort to cut costs while at the same time offer convenient payment options for students, UPEI has been set up as an online banking payee with all major banks and credit unions.

A student (or parent) can now make payment directly to a student's account at UPEI by selecting 'UPEI Student Accounts' in the online banking payee list and inputting the student's ID number.

Phil Hooper, Executive Director of Finance and Comptroller says, 'This is an important cost-saving measure. We always need to carefully examine our expenditures, and while reviewing these, we noticed that the annual cost to UPEI for accepting credit card payments for major fees is in excess of $150,000 and growing.' He adds, 'The estimated saving for UPEI, and in turn students, by eliminating this one payment method is the equivalent of about a one per cent increase in tuition.'

UPEI is not alone in adopting online banking as a payment method. Other major Canadian universities, including UNB, St. Thomas and Dalhousie, have also gone this route, and no longer accept credit cards.

'Every time you pay for something with a credit card, the vendor is charged a fee,' says Allan Hughes, Manager of Accounting. 'It varies by credit card company, but the fee averages close to two per cent of the total transaction. So if just one student uses a credit card to pay tuition, education fees, and residence fees, it costs the University $200. It doesn't take long to add up.'

UPEI is not permitted by the credit card companies to pass these costs on to students, nor does it want to because they have no connection to academic quality. Instead, a variety of no- and low-cost payment options are available including online banking, telephone banking, payment by mail with cheque, money order or bank draft, payment in person by debit, cash, cheque and payment via Canada Student Loans.

For more information, go to www.upei.ca/accounting/upei-fees.