Hanover Bucks was founded by a group that ran the now-defunct Green Card program, a similar declining balance card. One of the founders, Taran Lent, is a member of the Class of 1996, The Dartmouth reported previously.
Hanover Bucks may be harmed by the popularity of credit and debit cards among students and a lack of effective business marketing, according to Hanover business owners and students interviewed by The Dartmouth.
Businesses like the Dartmouth Co-op and Dartmouth True Value have seen few, if any, consistent card users, according to managers at both stores.
"I don't think it's taken off like they thought it would yet," Dartmouth Co-op manager Paul Bouchard said. Phil Damone, store manager of Boloco Inspired Burritos, said business has not noticeably increased since the restaurant started accepting Hanover Bucks. Damone said he thinks marketing is a key tool that Hanover Bucks may be under-utilizing.
"Lots of people don't realize [Hanover Bucks] is available," Damone said. "They might need to market more to parents. If something went out to all the parents, there might be more users."
Students interviewed by The Dartmouth said they have not seen Hanover Bucks widely advertised and, as a consequence, have not joined the program.
"I really don't even know about [Hanover Bucks]," Matthew Norwood '13 said. "Couldn't you just buy stuff [using cash]?"
Bouchard and Terrance Bei '13 said that the Hanover Bucks card does not offer any advantage over a credit or debit card.
"It's another card, another account you have to keep," Bei said.
Eighty-four percent of undergraduate students nationwide have credit cards, up from 76 percent in 2004, according to an April 2009 study by the Sallie Mae Fund. Since 2004, the number of first-year students who arrive on campus with a credit card in hand rose from 23 percent to 39 percent.
Hanover Bucks' "fun and beneficial promotions" distinguish the card from debit or credit cards, Foley Schmidt '12, Hanover Bucks co-chief marketing officer, said in an e-mail to The Dartmouth.
"Right now we have a promotion with [Everything But Anchovies,]" Schmidt said. "In the past we have done Give Backs' where we have reimbursed people randomly for certain meals during a certain period."
EBAs manager Amanda Deroy said Hanover Bucks' use of BlitzMail to advertise restaurant promotions among members has encouraged cardholders to go to the restaurant.
"[Hanover Bucks has] started blitzing users with our specials," Leroy said. "That's a good tool they're utilizing."
In the coming months, Hanover Bucks hopes to attract more cardholders and vendors, according to Schmidt.
"Our base is set up and it is solid," Schmidt said in the e-mail.
Restaurants and businesses that accept Hanover Bucks include EBAs, Wheelock Books, Molly's Restaurant, Bagel Basement, Lou's Restaurant and Murphy's On The Green.
