1. Winter 2003Building an eCommerce Infrastructure - NERCOMP1 Copyright Richard Dumm and Deborah Meder, Pennsylvania State University, 2003. This work is the intellectual property of the author. Permission is granted for this material to be shared for non- commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

2. Winter 2003Building an eCommerce Infrastructure - NERCOMP2 Building an eCommerce Infrastructure Richard Dumm eCommerce Consultant Administrative Information Services Debbie Meder Assistant Controller University Financial Officers

3. Winter 2003Building an eCommerce Infrastructure - NERCOMP3 Presentation Objective Payment Processing Concepts Payment Processing Concepts Future Evolution of eCommerce Future Evolution of eCommerce Penn State Adventures in eCommerce Penn State Adventures in eCommerce Partners in the Request for Proposal Process Partners in the Request for Proposal Process eCommerce infrastructure and Services eCommerce infrastructure and Services

4. Winter 2003Building an eCommerce Infrastructure - NERCOMP4 Penn State Adventures in eCommerce

5. Winter 2003Building an eCommerce Infrastructure - NERCOMP5 Adventures: Summary

6. Winter 2003Building an eCommerce Infrastructure - NERCOMP6 Adventures: History Summer 1999 – IBM Net.Commerce Project Summer 1999 – IBM Net.Commerce Project August 2001 – First Million $$ Day August 2001 – First Million $$ Day Fall 1998 – Cybercash pilot w/Undergrad Admissions Application Fall 1998 – Cybercash pilot w/Undergrad Admissions Application July 2002 – Migrated to IBM WebSphere Payment Manager July 2002 – Migrated to IBM WebSphere Payment Manager Today - $75 million processed in over 175,000 transactions Today - $75 million processed in over 175,000 transactions Fall 1999 – First Authorized Transaction Fall 1999 – First Authorized Transaction

7. Winter 2003Building an eCommerce Infrastructure - NERCOMP7 Adventures: Merchants 40+ merchants using eCommerce services today 40+ merchants using eCommerce services today 90+ merchants total at Penn State 90+ merchants total at Penn State

8. Winter 2003Building an eCommerce Infrastructure - NERCOMP8 Adventures: Applications 12 Web Applications: ADMISSIONS Applications (Grad and Undergrad) ADMISSIONS Applications (Grad and Undergrad) TRANSCRIPTS (REGISTRAR) TRANSCRIPTS (REGISTRAR)  Large Volume, Low $ WORLD CAMPUS Registration (2) WORLD CAMPUS Registration (2)

9. Winter 2003Building an eCommerce Infrastructure - NERCOMP9 Adventures: Applications STUDENT ACCOUNT and eBILL STUDENT ACCOUNT and eBILL  Tuition payments / eLION  Smaller Volume, Large $ Amounts  Integrated into Student System Id+ OFFICE Id+ OFFICE  Add funds to meal plans

10. Winter 2003Building an eCommerce Infrastructure - NERCOMP10 Adventures: Applications SMEAL – Global Trading Competition SMEAL – Global Trading Competition ePAY – Most Popular ePAY – Most Popular eSTORE Hosting eSTORE Hosting  Golf Store  PA State Data Center  Palmer Art Museum

11. Winter 2003Building an eCommerce Infrastructure - NERCOMP11 Adventures: Summary eCommerce continues to Grow at Penn State eCommerce continues to Grow at Penn State AIS is developing infrastructure to support and manage this growth AIS is developing infrastructure to support and manage this growth

12. Winter 2003Building an eCommerce Infrastructure - NERCOMP12 Credit Card Payment Processing Concepts

13. Winter 2003Building an eCommerce Infrastructure - NERCOMP13 Payment Processing: Defined On-Line Payment Processing On-Line Payment Processing  The buying and selling of products and services by businesses and consumers over the internet eCommerce eCommerce  Coordinating the flow of secured transactions among a complex network of processors and financial institutions

14. Winter 2003Building an eCommerce Infrastructure - NERCOMP14 Payment Processing: Components Cardholder Issuing Bank Cardholder / Customer Processor Credit Card Associations Settlement Acquiring Bank Payment Gateway Merchant Bank Merchant

15. Winter 2003Building an eCommerce Infrastructure - NERCOMP15 Payment Processing: Phases Settlement (Batch Deposit) Settlement (Batch Deposit)  Verifies that the card is active Authorization Authorization  Capture  Verifies Cardholder has sufficient credit  Cardholder’s Open-To-Buy is reduced  Cardholder account is charged  $$ deposited to Merchant Bank Acct

16. Winter 2003Building an eCommerce Infrastructure - NERCOMP16 Putting it all together: Authorization Cardholder / Customer Payment Gateway Processor Cardholder Issuing Bank Processor Payment Gateway Merchant

17. Winter 2003Building an eCommerce Infrastructure - NERCOMP17 Putting it all together: Settlement Cardholder / Customer Payment Gateway Cardholder Issuing Bank Processor Acquiring Bank Merchant Bank Merchant

18. Winter 2003Building an eCommerce Infrastructure - NERCOMP18 Payment Processing: Fraud Card Present vs. Card Not Present Card Present vs. Card Not Present Authorization vs. Address Verification (AVS) Authorization vs. Address Verification (AVS) Card Verification Value (CVV) Card Verification Value (CVV) Fraud Protection Programs Fraud Protection Programs

19. Winter 2003Building an eCommerce Infrastructure - NERCOMP19 Payment Processing: Summary Coordinating the flow of secured transactions among a complex network of processors and financial institutions Coordinating the flow of secured transactions among a complex network of processors and financial institutions

20. Winter 2003Building an eCommerce Infrastructure - NERCOMP20 The Penn State eCommerce Infrastructure

21. Winter 2003Building an eCommerce Infrastructure - NERCOMP21 Infrastructure: Imperative Establish a single, central, secure, scalable and available eCommerce capability for Penn State Establish a single, central, secure, scalable and available eCommerce capability for Penn State

22. Winter 2003Building an eCommerce Infrastructure - NERCOMP22 Infrastructure: Components IBM WebSphere Payment Manager IBM WebSphere Payment Manager Wintel Servers Wintel Servers IBM HTTP Server (Apache) IBM HTTP Server (Apache) IBM WebSphere Application Server IBM WebSphere Application Server IBM DB2 Database IBM DB2 Database JAVA Programming Environment JAVA Programming Environment

23. Winter 2003Building an eCommerce Infrastructure - NERCOMP23 Infrastructure: Components Internet (https) App Server Payment Mgr Web Server Database Wintel Servers Java/ J2EE Payment Gateway eCommerce Web App

24. Winter 2003Building an eCommerce Infrastructure - NERCOMP24 Infrastructure: Support Organization AIS Web TeamSupport Center

25. Winter 2003Building an eCommerce Infrastructure - NERCOMP25 Infrastructure: Summary The Penn State eCommerce infrastructure consists of various hardware and software components necessary to sustain a: The Penn State eCommerce infrastructure consists of various hardware and software components necessary to sustain a:  Central  Single  Secure  Reliable eCommerce capability.

26. Winter 2003Building an eCommerce Infrastructure - NERCOMP26 eCommerce Services

27. Winter 2003Building an eCommerce Infrastructure - NERCOMP27 eCommerce Services: ePayment ePayment ePay ePay Generalized Interface Web Services Generalized Interface Web Services eStore Hosting eStore Hosting

28. Winter 2003Building an eCommerce Infrastructure - NERCOMP28 Services: ePayment ePayment API for Credit Card Processing ePayment API for Credit Card Processing  HTTPS post with XML response  HTTPS requests and response are secured using SSL

29. Winter 2003Building an eCommerce Infrastructure - NERCOMP29 Services: ePayment Merchant Administration Tools Merchant Administration Tools  Credit Card Search  Issuing Refunds  Reporting

30. Winter 2003Building an eCommerce Infrastructure - NERCOMP30 Services: ePAY “Virtual” Credit Card Terminal “Virtual” Credit Card Terminal  Reporting Tool  Web Based Authorization  Troubleshooting Tool  Automatic Settlement for Merchant

31. Winter 2003Building an eCommerce Infrastructure - NERCOMP31 Services: Generalized Interface Web Services New Service Offering New Service Offering Integrates to ePay Tools Integrates to ePay Tools Eliminates ODBC Calls to Database Eliminates ODBC Calls to Database ePayment Web Services ePayment Web Services  ePaymentAuthorizeAndDeposit  ePaymentAuthorize  ePaymentDeposit

32. Winter 2003Building an eCommerce Infrastructure - NERCOMP32 Services: eStore Hosting AIS provides “Framework” for Hosting Penn State eCommerce Stores AIS provides “Framework” for Hosting Penn State eCommerce Stores Host the Website (Shopping Catalog) Host the Website (Shopping Catalog)  Maintain hardware and software Handle Payment Processing Handle Payment Processing

33. Winter 2003Building an eCommerce Infrastructure - NERCOMP33 Services: eStore Hosting  Help / FAQ / Contact Us Includes Shopping Basics: Includes Shopping Basics:  Home / Category Page  Product Page  Shopping Cart  Checkout Page  Order Status

34. Winter 2003Building an eCommerce Infrastructure - NERCOMP34 Services: eStore Hosting Provide Merchant Admin Tools Provide Merchant Admin Tools  Reporting  Category (Dept.) and Product  Price  Inventory  Order Processing

35. Winter 2003Building an eCommerce Infrastructure - NERCOMP35 Services: eStore Hosting https://ecommerce.psu.edu https://ecommerce.psu.edu  Pennsylvania State Data Center  Gravitational Physics Conference  Penn State Golf Store  College of Agricultural Sciences: Conferences & Short Courses  NEW: Behrend College – College for Kids and Alumni Reunion  Palmer Art Museum

36. Winter 2003Building an eCommerce Infrastructure - NERCOMP36 eCommerce Services: ePayment ePayment ePay ePay Generalized Interface Web Services Generalized Interface Web Services eStore Hosting eStore Hosting

37. Winter 2003Building an eCommerce Infrastructure - NERCOMP37 Partners in the Request for Proposal Process

38. Winter 2003Building an eCommerce Infrastructure - NERCOMP38 Partners in RFP Process Internal: AIS(ITS), Controller, Finance & Business, & Merchants Internal: AIS(ITS), Controller, Finance & Business, & Merchants  Customer & Merchant Needs  Technical Requirements  Controls and Reporting  Service

39. Winter 2003Building an eCommerce Infrastructure - NERCOMP39 Partners in RFP Process Banks and Processors Banks and Processors  Vendor Background/Experience  Processing  Technical Capabilities  Information Reporting  Implementation  Customer Service and Quality  Pricing

40. Winter 2003Building an eCommerce Infrastructure - NERCOMP40 Future Evolution of eCommerce

41. Winter 2003Building an eCommerce Infrastructure - NERCOMP41 Future Evolution: Technical Integrate with Business Systems Integrate with Business Systems Expand and Enhance eCommerce Services Expand and Enhance eCommerce Services Keep Current with eCommerce Technologies and Security… Keep Current with eCommerce Technologies and Security…

42. Winter 2003Building an eCommerce Infrastructure - NERCOMP42 Future Evolution: Administrative Consolidate Processing through eCommerce Server Consolidate Processing through eCommerce Server Automate Settlement and Cash Reporting Automate Settlement and Cash Reporting Streamline Account Reconciliation Streamline Account Reconciliation Actively Manage Discount Fees to Reduce Costs Actively Manage Discount Fees to Reduce Costs

43. Winter 2003Building an eCommerce Infrastructure - NERCOMP43 Conclusion Payment Processing Concepts Payment Processing Concepts Future Evolution of eCommerce Future Evolution of eCommerce Penn State Adventures in eCommerce Penn State Adventures in eCommerce Partners in the Request for Proposal Process Partners in the Request for Proposal Process eCommerce Infrastructure and Services eCommerce Infrastructure and Services

44. Winter 2003Building an eCommerce Infrastructure - NERCOMP44 Building an eCommerce Infrastructure Richard Dumm eCommerce Consultant Administrative Information Services Debbie Meder Assistant Controller University Financial Officers