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  • Transcript

    • 1. e-Commerce 101
    • 2. FACT OR FICTION ???
      • VISA processed 5,200 credit card transactions per minute this past Holiday Season?
      • The first ATM machine was developed in 1939?
      • The first Universal Credit Card for use in restaurants was issued in 1930?
    • 3. Introduction ….
    • 4. FACT OR FICTION ???
      • VISA processed 5,200 credit card transactions per minute this past Holiday Season?
      • FICTION: VISA processed over 5,200 transactions PER SECOND this past Holiday Season!
    • 5. FACT OR FICTION ???
      • The first ATM machine was developed in 1939?
      • FACT: Luther George Simjiian patented, the Bankamatic, a not so workable version of today’s ATM .
    • 6. FACT OR FICTION ???
      • The first Universal Credit Card for use in restaurants was issued in 1930?
      • FICTION: In 1950, Frank McNamara, the founder of Diners’ Club, is credited with having invented the first universal credit card for use in restaurants in 1950.
    • 7. e-Commerce 101: Course Objective We will provide an overview of electronic credit card payment processing concepts, architecture, experiences, partners, internal resources, and the eCommerce services we provide.
    • 8. e-Commerce 101: Outline
      • Definition of e-Commerce.
      • Credit card payment processing concepts, fee’s and security.
      • e-Commerce Web Applications.
      • Getting Started.
      • e-Commerce at PSU (History, Services, Architecture)
      • Q & A
    • 9. e-Commerce Definitions…
    • 10. Definitions of e-Commerce…
      • ON-LINE Perspective:
        • The buying and selling of products and services by businesses and consumers over the internet.
      • COMMUNICATION Perspective:
        • The delivery of information, products/services, or payments via Telephone lines, computer networks, or any other means
    • 11. Definitions of e-Commerce:
      • BUSINESS PROCESS Perspective:
        • The application of technology toward the automation of business transactions and workflows.
      • BUSINESS SERVICE Perspective:
        • A tool that addresses the desire of firms, consumers, and management to cut service costs while improving the quality of goods and increasing the speed of service delivery.
    • 12. Definitions of e-Commerce:
      • Presentation’s perspective:
        • The process of providing the capability of buying and selling products and information on the Internet and other on-line services ….
              • OR SIMPLY STATED
        • Collection of Payment for Goods and Services over the internet!
    • 13. Credit Card Payment Processing Concepts, Fee’s and Security
    • 14. Payment Processing: Defined
      • On-Line Payment Processing
        • Coordinating the flow of secured transactions among a complex network of processors and financial institutions
    • 15. Payment Processing: Components AUTHORIZE... Cardholder Issuing Bank Cardholder / Customer Processor Credit Card Associations Settlement Acquiring Bank Payment Gateway Merchant Bank Merchant
    • 16. Payment Processing: Phases AUTHORIZATION and SETTLEMENT
    • 17. Payment Processing: Phases
        • Verifies that the card is active
      • AUTHORIZATION
        • Verifies Cardholder has credit
        • Cardholder’s Open-To-Buy is reduced
        • Collect Cardholder name – record keeping
    • 18. Payment Processing: Phases
      • SETTLEMENT (Batch Deposit)
        • Capture authorizations in batch
        • Cardholder account is charged
        • $$ deposited to Merchant Bank Acct
    • 19. Putting it all together: Authorization Cardholder / Customer Payment Gateway Processor Cardholder Issuing Bank Processor Payment Gateway Merchant Merchant
    • 20. Putting it all together: Settlement Cardholder / Customer Payment Gateway Cardholder Issuing Bank Processor Acquiring Bank Merchant Bank Merchant
    • 21. Transaction Processing: Design Considerations <Reconciliation> Bank Processor Payment Gateway (Verisign) 2 <Authorize> 2 Card Issuing Bank 2 3 3 3 “ Checkout” <Web App> Shopper Shopper Shopper 1 Financial System Merchant Bank (Deposit) 6 6 5 5 5 <Settle> 5 4 4 4 “ Process Order”
    • 22. Payment Processing: Fee Bank Processing Fee Structure
    • 23. Payment Processing: Fees
      • Application Fee
      • Discount Rate
      • Transaction Fees
      • Monthly Fees
      Credit Card Associations Acquiring Bank
    • 24. Payment Processing: Security Fraud and Security
    • 25. Payment Processing : Security
      • Visa CISP
        • Cardholder Information Security Program
          • http://usa.visa.com (Search: CISP)
        • Verified by Visa Program
      • MasterCard Site Data Protection Service
    • 26. Payment Processing: Fraud
      • Card Present vs. Card Not Present
      • Authorization vs. Address Verification (AVS)
      • Card Verification Value (CVV)
      • Fraud Protection Programs
    • 27. Payment Processing: Summary
      • Coordinating the flow of secured transactions among a complex network of processors and financial institutions
    • 28. e-Commerce Web Applications….
    • 29. e-Commerce Web Applications
      • Extension of Brick and Mortar…
      • Design Considerations…
        • Navigation and Shopping Flow…
        • Home Page
        • Registration / Logon / Address Bk
        • Category Page
        • Product Page
        • Shopping Carts
    • 30. e-Commerce Web Applications
      • Order Processing …
        • Checkout…
        • PROCESS PAYMENT…
        • Order Acknowledgement
        • Customer Service
        • Security and Privacy statement ..
    • 31. e-Commerce Web Applications
      • On Line Store examples …
        • Amazon…
        • LL Bean…
        • U.S. Post Office…
        • Yukon Jack….
    • 32. Getting Started…
    • 33. Getting Started…..
      • Define your Objectives
      • Identify Resources
      • Select Bank Processing Partners
        • Merchant Bank
        • Acquiring Bank/Processor
        • Payment Gateway
    • 34. Getting Started: Gateway Direct Connect Payment Gateway Processor Acquiring Bank Web Site Merchant
    • 35. Getting Started: Financial Partners Payment Gateway
      • Payment Gateway
        • VeriSign
        • CyberSource
        • SurePay
        • NOVA
        • Vital
        • Paymentech
        • First Data
      Processor Acquiring Bank
      • Processor/Bank
    • 36. Getting Started…..
      • Start Small….
      • Architect your solution…
      • See Resource list ….
    • 37. e-Commerce at PSU: Administrative Information Services (AIS)
    • 38. Turn your Web Applications into Gold with e-Commerce….
    • 39. E-Commerce at PSU
      • Collection of Payment for Goods and Services over the internet….
      • Collection Methods for PSU includes Visa, MasterCard, Discover and American Express…
      • The Future…..
    • 40. What does AIS provide?
      • FN07 Policy Credit Card Sales (Internet)
      • AIS provides Infrastructure: Hardware, Software, Support ..
      • AIS operates the PSU Central Payment Processing Server…
    • 41. What does AIS provide?
      • Make life easier and more secure for PSU departments and customers….
        • Provide Services to e-Commerce enable applications
        • Comply to VISA CISP Program
        • Eliminate storing Credit Card numbers around PSU
    • 42. History
    • 43. Who uses e-Commerce?
      • API - 15+ e-Commerce enabled Web Apps – API
        • Admissions, Registrar, Tuition, etc.
      • 100+ e-Commerce Accounts (Merchants)…
      • ePay – Virtual Credit Card Terminal
      • eStore – 12 Stores (30 events)
    • 44.
        • Purchase a transcript from the registrar’s office…
        • Pay Undergraduate and Graduate School admissions fees
        • Apply payments to the Students Account via eLion (Parents and students)
      … a Credit Card can be used at Penn State to…
    • 45.
        • Make Donations to the Penn State Alumni department…
        • Apply points to the ID + meal plans
        • Pay your Penn State Fitness Pass fees
        • Purchase items from the Penn State Golf Store, Palmer Art Museum and Pennsylvania State Data Center…
      … a Credit Card can be used at Penn State to…
    • 46.
        • Pay registration fees for Conferences, Sport Camps, Scientific meetings, PASDC, College for Kids programs, and events…
        • Order ‘Get Well’ and ‘All Occasion’ Gift baskets from Penn State food services
        • Purchase DVD’s and other media from WPSX…
      … a Credit Card can be used at Penn State to…
    • 47. … a Credit Card can be used at Penn State to…
        • Purchase meat from the Ag Sciences Meat lab…
        • Make Tuition payments at several commonwealth locations….
        • Complete Housing and Food Service purchases …
        • Pay for Printing and Copy services at University Park…
    • 48. PSU e-Commerce Services ePay, Merchant Admin, API, and eStore
    • 49. ePay
      • “ Virtual” Credit Card Terminal
      • Replaces Bank Processor Leased Machine
      • Saves $$
      • History Tool
      • Secure, Easy to Use
    • 50. Merchant Admin
      • Provide Tools for:
        • Generating / emailing receipts
        • Issuing Credits
        • Reporting
    • 51. API’s
      • For calling Credit Card Payment Services – Authorize and Deposit
      • UP and Commonwealth Locations can use to create their own e-Commerce applications
    • 52. Services: eStore Hosting
      • AIS provides “Framework” for Hosting Penn State e-Commerce Stores
      • Host the Website (Shopping Catalog)
        • Maintain hardware and software
      • Handle Payment Processing
      • Small departments ….
    • 53. Services: eStore Hosting
        • Home Page
        • Product Page
        • Checkout
        • Order Status
        • Shopping Cart
        • Help/FAQ
    • 54. Other e-Commerce Services
      • e-Commerce Home Page
        • http://ais.its.psu.edu/e-Commerce
      • e-Commerce Users Group (EUG)
    • 55. Other e-Commerce Services
      • e-Commerce Statistics available to Financial Officers
      • ITS Training Seminar – “Getting Started with e-Commerce”
        • Twice per semester
    • 56. PSU e-Commerce Architecture
    • 57. WebSphere Commerce Components
      • WebSphere Commerce Business Edition 5.5
        • Payments 5.5
        • DB2
        • WAS 5.0
        • I H S (Apache Web Server)
    • 58. WebSphere Commerce Components
      • WebSphere Commerce Studio 5.0
        • JAVA / J2EE
        • JSP, EJB, etc.
      • Commerce (eStore Hosting)
      • W2K
    • 59. e-Commerce Payment Architecture “ Checkout” <Web App> Student Shopper ePay API “ Process Order” Gateway PSU PAY MGR Cassette Bank Processor – A Cassette ACH Cassette Bank Processor – B Web Services Business/Student Info Systems
    • 60. e-Commerce Resources
    • 61. Resources - FT
      • e-Commerce Consultant (Manager)
      • e-Commerce Consultant (Operations)
      • Developer (2 – Java/Asp)
      • DB2 Data base administrator
      • Server Administration (W2K)
      Resources - Supporting
    • 62. e-Commerce 101: Outline
      • Definition of e-Commerce.
      • Credit card payment processing concepts, fee’s and security.
      • e-Commerce Web Applications.
      • Getting Started.
      • e-Commerce at PSU (History, Services, Architecture)
      • Q & A
    • 63. Q & A http://ais.its.psu.edu/eCommerce

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