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Wednesdav, November 5. 1986 / University Daily Kansan
Area's future is in the cards
United Press International
DONALDSONVILLE, La. — The business districts of many small towns are dwindling as they give way to shopping malls, but in a southeast Louisiana town the preservation of its main street businesses could all be in the cards.
Shawn M. Maxwell was hired by Donaldsonville, a city of about 8,500 in southeast Louisiana, to protect its central business district from an eroding customer base.
His answer was a local credit card, the Rivertown Card, that would serve as a link between businesses in the downtown area and a source of new customers for those merchants.
The Rivertown Merchants Association represents dozens of businesses in close proximity to each other, much like a strip shopping mall. Maxwell said. But there has been no link between the businesses, and some do not even accept major credit cards because of the additional book-keeping responsibilities, he said.
Many customers would travel the 45 miles from Donaldsonville to Baton Rouge because they could choose from a variety of mails whose shops accepted credit cards or had their own in-store credit systems, Maxwell said.
The Rivertown Card, underwritten by Beneficial Financial Services, represents a revolving credit plan which saves customers on interest payments while offering the convenience of instant credit up to about $1.000. Maxwell said.
"If you make it so they can schedule out their payments instead of buying with cash, they are more likely to purchase something," he said.
The interest to the consumer is 1.5 percent per month, identical to cards such as Visa, he said. Beneficial charges each store about half of the 2 percent levied against charge sales for service, but is paid only once, he said.
To make the system even more attractive to merchants. Beneficial provides all the start-up costs such as producing the credit cards, printing applications, setting up credit verification and performing monthly bookkeeping chores.
So far, about 20 of the 30 businesses in the town's central business district have committed to participate. Maxwell said.
"It will be a very successful endeavor because we have a wide variety of stores involved," he said, including flower shops, formal wear stores, jewelry stores, clothing stores
and other shops.
Maxwell likened the program to linking stores in the downtown area much like a mail. It is part of the state's "Main Street Program," designed to improve business in small towns, he said.
Maxwell said the program should be in operation within a month, in time for Christmas shopping. The convenience of the card and deferred payments could prompt shoppers to patronize stores who honor the Rivertown Card even though they have not previously shopmed in the store.
The Rivertown program would offer card holders an extra incentive to shop at participating stores because the merchants will offer special discounts available only to card holders, Maxwell said.
To further entice customers, the application process has been vastly simplified, Maxwell said. After filling out an application, merchants can call a toll-free line to Beneficial, read the data over the telephone and receive charge privileges for the customer in about four minutes, he said.
The minimum income required is $16,000. But if a potential card holder's income is lower, Beneficial will take into account a steady job record.
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Don't Forget!
RUSH REGISTRATION
Centennial Room
Kansas Union
10 a.m. - 4 p.m.
Wednesday, November 5, A-L
Thursday, November 6, M-Z
Cost: $85 Please make checks payable to the
KU Panhellenic Association.
DOUBLE COUPONS!
WHOOSH
KU STUDENT BASKETBALL TICKETS
will be distributed Thur., Nov. 6 & Fri., Nov 7 1-5 p.m.
go to inner east lobby
You must bring KUID to pick up your ticket.
Allen Field House
ARENSBERG'S SHOES Quality Footwear for the whole family since 1958. 825 Massachusetts Downtown Lawrence
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$1.50 Beer + Shot Wednesdays
"The Usual" Thursdays
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