Copyright Richard Dumm and Deborah Meder, Pennsylvania State University, 2003.

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Winter 2003

Building an eCommerce Infrastructure - NERCOMP

Building an eCommerce Infrastructure

Richard Dumm
eCommerce Consultant Administrative Information Services

Debbie Meder
Assistant Controller University Financial Officers
Winter 2003 Building an eCommerce Infrastructure - NERCOMP 2

Presentation Objective
   

Penn State Adventures in eCommerce Payment Processing Concepts eCommerce infrastructure and Services

Partners in the Request for Proposal Process  Future Evolution of eCommerce

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Penn State Adventures in eCommerce

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Adventures: Summary
eCommerce Cumulative Growth
80 70 60 50 $ in Millions 40 30 20 10 0 1999 2000 2001 2002

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Adventures: History


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

   

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Adventures: Merchants

40+ merchants using eCommerce services today  90+ merchants total at Penn State

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Adventures: Applications
12 Web Applications:


ADMISSIONS Applications (Grad and Undergrad) TRANSCRIPTS (REGISTRAR)  Large Volume, Low $ WORLD CAMPUS Registration (2)
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Adventures: Applications

STUDENT ACCOUNT and eBILL  Tuition payments / eLION  Smaller Volume, Large $ Amounts  Integrated into Student System

Id+ OFFICE  Add funds to meal plans

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Adventures: Applications

eSTORE Hosting  Golf Store  PA State Data Center  Palmer Art Museum

SMEAL Global Trading Competition

 ePAY
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Most Popular
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Adventures: Summary


eCommerce continues to Grow at Penn State

eCommerce Cumulative Growth

80 70 60 50 $ in Millions 40 30 20 10 0 1999 2000 2001 2002

AIS is developing infrastructure to support and manage this growth

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Credit Card Payment Processing Concepts

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Payment Processing: Defined



OnOn-Line Payment Processing

Coordinating the flow of secured transactions among a complex network of processors and financial institutions

eCommerce


The buying and selling of products and services by businesses and consumers over the internet
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Payment Processing: Components

Cardholder / Customer Processor Cardholder Issuing Bank

Payment Gateway

Settlement

Acquiring Bank

Credit Card Associations Merchant

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Merchant Bank
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Building an eCommerce Infrastructure - NERCOMP

Payment Processing: Phases



Authorization
Verifies that the card is active  Verifies Cardholder has sufficient credit  Cardholders Open-To-Buy is reduced Open-To

Settlement (Batch Deposit)

Capture  Cardholder account is charged  $$ deposited to Merchant Bank Acct


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Putting it all together: Authorization

Merchant
Cardholder / Customer
Payment Gateway

Processor

Merchant
Payment Gateway Processor
Winter 2003 Building an eCommerce Infrastructure - NERCOMP

Cardholder Issuing Bank

16

Putting it all together: Settlement

Merchant Bank
Acquiring Bank

Merchant

Payment Gateway

Processor

Cardholder Issuing Bank

Winter 2003 Building an eCommerce Infrastructure - NERCOMP

Cardholder / Customer
17

Payment Processing: Fraud

 

Card Present vs. Card Not Present Authorization vs. Address Verification (AVS) Card Verification Value (CVV) Fraud Protection Programs
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Payment Processing: Summary

 Coordinating

the flow of secured transactions among a complex network of processors and financial institutions

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The Penn State eCommerce Infrastructure

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Infrastructure: Imperative
 Establish

a single, central, secure, scalable and available eCommerce capability for Penn State

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Infrastructure: Components
IBM WebSphere Payment Manager  Wintel Servers
    

IBM HTTP Server (Apache) IBM WebSphere Application Server IBM DB2 Database JAVA Programming Environment
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Winter 2003

Infrastructure: Components
Internet (https)
eCommerce Web App

Web Server Wintel Servers Java/ J2EE App Server

Payment Gateway

Database
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Payment Mgr
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Infrastructure: Support Organization

Administrative Information Services AIS Support Operations Database Support IBM DB2 Database Backup / Archiving Diversified Administrative Systems Information Services eCommerce WebSphere Payment Manager WebSphere Application Server Application Development Project Management Customer Consultant Infrastructure Network Hardware Wintel Server Support Server Support Server Security Production Environment IBM HTTP Server (Apache)

Support Center

AIS Web Team

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Infrastructure: Summary


The Penn State eCommerce infrastructure consists of various hardware and software components necessary to sustain a:

Single  Central  Secure  Reliable



eCommerce capability.
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eCommerce Services

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eCommerce Services:
 ePayment  ePay  Generalized

Interface Web

Services  eStore Hosting

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Services: ePayment
 ePayment API

for Credit Card

Processing

HTTPS post with XML response HTTPS requests and response are secured using SSL

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Services: ePayment


Merchant Administration Tools

  

Credit Card Search Issuing Refunds Reporting

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Services: ePAY


Virtual Credit Card Terminal Web Based Authorization  Automatic Settlement for Merchant
  

Reporting Tool Troubleshooting Tool

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Winter 2003

Services: Generalized Interface Web Services

New Service Offering  Integrates to ePay Tools  Eliminates ODBC Calls to Database  ePayment Web Services  ePaymentAuthorizeAndDeposit  ePaymentAuthorize  ePaymentDeposit

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Services: eStore Hosting



AIS provides Framework for Hosting Penn State eCommerce Stores Host the Website (Shopping Catalog)  Maintain hardware and software Handle Payment Processing
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Services: eStore Hosting



Includes Shopping Basics:  Home / Category Page

    

Product Page Shopping Cart Checkout Page Order Status Help / FAQ / Contact Us
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Services: eStore Hosting



Provide Merchant Admin Tools

  

Reporting Category (Dept.) and Product

Price  Order Processing



Inventory
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Winter 2003

Services: eStore Hosting



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

Winter 2003

eCommerce Services:
 ePayment  ePay  Generalized

Interface Web

Services  eStore Hosting

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Partners in the Request for Proposal Process

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Partners in RFP Process

 Internal:

AIS(ITS), Controller, Finance & Business, & Merchants  Customer & Merchant Needs  Technical Requirements  Controls and Reporting  Service

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Partners in RFP Process

 Banks

     
Winter 2003

and Processors

Vendor Background/Experience Processing Technical Capabilities Information Reporting Implementation Customer Service and Quality Pricing
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Future Evolution of eCommerce

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Future Evolution: Technical

 Integrate  Expand

with Business Systems

and Enhance eCommerce Services Current with eCommerce Technologies and Security

 Keep

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Future Evolution: Administrative

 Consolidate

Processing through eCommerce Server  Automate Settlement and Cash Reporting

 Streamline Account  Actively

Reconciliation

Manage Discount Fees to Reduce Costs

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Winter 2003

Conclusion
   

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

Winter 2003

Building an eCommerce Infrastructure

Richard Dumm
eCommerce Consultant Administrative Information Services

Debbie Meder
Assistant Controller University Financial Officers
Winter 2003 Building an eCommerce Infrastructure - NERCOMP 44