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Mea1 Mea1 Presentation Transcript

  • e-Commerce 101
  • 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?
  • Introduction ….
  • 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!
  • 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 .
  • 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.
  • 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.
  • 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
  • e-Commerce Definitions…
  • 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
  • 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.
  • 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!
  • Credit Card Payment Processing Concepts, Fee’s and Security
  • Payment Processing: Defined
    • On-Line Payment Processing
      • Coordinating the flow of secured transactions among a complex network of processors and financial institutions
  • Payment Processing: Components AUTHORIZE... Cardholder Issuing Bank Cardholder / Customer Processor Credit Card Associations Settlement Acquiring Bank Payment Gateway Merchant Bank Merchant
  • Payment Processing: Phases AUTHORIZATION and SETTLEMENT
  • 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
  • Payment Processing: Phases
    • SETTLEMENT (Batch Deposit)
      • Capture authorizations in batch
      • Cardholder account is charged
      • $$ deposited to Merchant Bank Acct
  • Putting it all together: Authorization Cardholder / Customer Payment Gateway Processor Cardholder Issuing Bank Processor Payment Gateway Merchant Merchant
  • Putting it all together: Settlement Cardholder / Customer Payment Gateway Cardholder Issuing Bank Processor Acquiring Bank Merchant Bank Merchant
  • 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”
  • Payment Processing: Fee Bank Processing Fee Structure
  • Payment Processing: Fees
    • Application Fee
    • Discount Rate
    • Transaction Fees
    • Monthly Fees
    Credit Card Associations Acquiring Bank
  • Payment Processing: Security Fraud and Security
  • Payment Processing : Security
    • Visa CISP
      • Cardholder Information Security Program
        • http://usa.visa.com (Search: CISP)
      • Verified by Visa Program
    • MasterCard Site Data Protection Service
  • Payment Processing: Fraud
    • Card Present vs. Card Not Present
    • Authorization vs. Address Verification (AVS)
    • Card Verification Value (CVV)
    • Fraud Protection Programs
  • Payment Processing: Summary
    • Coordinating the flow of secured transactions among a complex network of processors and financial institutions
  • e-Commerce Web Applications….
  • 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
  • e-Commerce Web Applications
    • Order Processing …
      • Checkout…
      • PROCESS PAYMENT…
      • Order Acknowledgement
      • Customer Service
      • Security and Privacy statement ..
  • e-Commerce Web Applications
    • On Line Store examples …
      • Amazon…
      • LL Bean…
      • U.S. Post Office…
      • Yukon Jack….
  • Getting Started…
  • Getting Started…..
    • Define your Objectives
    • Identify Resources
    • Select Bank Processing Partners
      • Merchant Bank
      • Acquiring Bank/Processor
      • Payment Gateway
  • Getting Started: Gateway Direct Connect Payment Gateway Processor Acquiring Bank Web Site Merchant
  • Getting Started: Financial Partners Payment Gateway
    • Payment Gateway
      • VeriSign
      • CyberSource
      • SurePay
      • NOVA
      • Vital
      • Paymentech
      • First Data
    Processor Acquiring Bank
    • Processor/Bank
  • Getting Started…..
    • Start Small….
    • Architect your solution…
    • See Resource list ….
  • e-Commerce at PSU: Administrative Information Services (AIS)
  • Turn your Web Applications into Gold with e-Commerce….
  • 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…..
  • What does AIS provide?
    • FN07 Policy Credit Card Sales (Internet)
    • AIS provides Infrastructure: Hardware, Software, Support ..
    • AIS operates the PSU Central Payment Processing Server…
  • 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
  • History
  • 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)
      • 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…
      • 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…
      • 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…
  • … 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…
  • PSU e-Commerce Services ePay, Merchant Admin, API, and eStore
  • ePay
    • “ Virtual” Credit Card Terminal
    • Replaces Bank Processor Leased Machine
    • Saves $$
    • History Tool
    • Secure, Easy to Use
  • Merchant Admin
    • Provide Tools for:
      • Generating / emailing receipts
      • Issuing Credits
      • Reporting
  • API’s
    • For calling Credit Card Payment Services – Authorize and Deposit
    • UP and Commonwealth Locations can use to create their own e-Commerce applications
  • 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 ….
  • Services: eStore Hosting
      • Home Page
      • Product Page
      • Checkout
      • Order Status
      • Shopping Cart
      • Help/FAQ
  • Other e-Commerce Services
    • e-Commerce Home Page
      • http://ais.its.psu.edu/e-Commerce
    • e-Commerce Users Group (EUG)
  • Other e-Commerce Services
    • e-Commerce Statistics available to Financial Officers
    • ITS Training Seminar – “Getting Started with e-Commerce”
      • Twice per semester
  • PSU e-Commerce Architecture
  • WebSphere Commerce Components
    • WebSphere Commerce Business Edition 5.5
      • Payments 5.5
      • DB2
      • WAS 5.0
      • I H S (Apache Web Server)
  • WebSphere Commerce Components
    • WebSphere Commerce Studio 5.0
      • JAVA / J2EE
      • JSP, EJB, etc.
    • Commerce (eStore Hosting)
    • W2K
  • 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
  • e-Commerce Resources
  • Resources - FT
    • e-Commerce Consultant (Manager)
    • e-Commerce Consultant (Operations)
    • Developer (2 – Java/Asp)
    • DB2 Data base administrator
    • Server Administration (W2K)
    Resources - Supporting
  • 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
  • Q & A http://ais.its.psu.edu/eCommerce