Diebold Inc. said it has begun installing a system that will result in the conversion of 10,000 identification cards at Pepperdine University to smart cards.

An initial 4,000 cards will be issued to main-campus students in the fall. The other five campuses will be phased in later.

The "Pep Cards" will bear students' photographs in addition to a magnetic stripe and the computer chip to provide a store-value cash function for on-campus transactions.

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