Copyright Richard Dumm and Deborah

Meder, Pennsylvania State

University, 2003. This work is the
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Winter 2003 Building an eCommerce Infrastructure - NERCOMP 1

 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

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 3

 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

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 5

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
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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)

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 8

Adventures: Applications

 STUDENT ACCOUNT and eBILL

 Tuition payments / eLION

 Smaller Volume, Large $ Amounts

 Integrated into Student System

 Id+ OFFICE
 Add funds to meal plans

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 9

Adventures: Applications

 eSTORE Hosting
 Golf Store

 PA State Data Center

 Palmer Art Museum

 SMEAL – Global Trading Competition

 ePAY – Most Popular

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 10

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
 On-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

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 13

Payment Processing: Components

Cardholder Processor Cardholder

/ Customer Issuing Bank

Payment Gateway Settlement

Acquiring Bank ¨

Credit Card
Associations Merchant Bank
Merchant
Winter 2003 Building an eCommerce Infrastructure - NERCOMP 14
Payment Processing: Phases
 Authorization
 Verifies that the card is active
 Verifies Cardholder has sufficient credit

 Cardholder’s Open-To-Buy is reduced

 Settlement (Batch Deposit)

 Capture
 Cardholder account is charged

 $$ deposited to Merchant Bank Acct

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 15

Putting it all together: Authorization

Payment
Merchant Gateway

Cardholder
/ Customer Processor

Cardholder
Merchant Issuing Bank

Payment Gateway Processor

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Putting it all together: Settlement
Acquiring
Bank
Merchant
Bank

Payment Processor
Merchant Gateway

Cardholder
Cardholder / Customer
Issuing Bank
Winter 2003 Building an eCommerce Infrastructure - NERCOMP 17
Payment Processing: Fraud

 Card Present vs. Card Not Present

 Authorization vs. Address Verification (AVS)

 Card Verification Value (CVV)

 Fraud Protection Programs

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 18

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

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 22

Infrastructure: Components
Internet
(https)
eCommerce
Web App

Web Server
Java/
Wintel J2EE
Servers App Server
Payment
Gateway
Database
Payment Mgr
Winter 2003 Building an eCommerce Infrastructure - NERCOMP 23
Infrastructure: Support Organization
A d m in is tr a tiv e In fo r m a tio n S e r v ic e s

A IS S u p p o rt D iv e r s if ie d A d m in is t r a t iv e S y s t e m s In fra s tru c tu re
O p e r a tio n s In fo r m a tio n S e r v ic e s N e tw o rk H a rd w a re

D a ta b a s e S u p p o rt e C o m m e rc e W in te l S e r v e r S u p p o rt

IB M D B 2 W e b S p h e re P a y m e n t M a n a g e r S e rv e r S u p p o rt

D a ta b a s e B a c k u p / A r c h iv in g W e b S p h e r e A p p lic a tio n S e r v e r S e r v e r S e c u r ity

A p p lic a tio n D e v e lo p m e n t P r o d u c tio n E n v ir o n m e n t

P r o je c t M a n a g e m e n t IB M H T T P S e rv e r (A p a c h e )

C u s to m e r C o n s u lta n t

Support Center AIS Web Team

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 24

Infrastructure: Summary
 The Penn State eCommerce infrastructure
consists of various hardware and software
components necessary to sustain a:
 Single
 Central
 Secure
 Reliable

eCommerce capability.

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 25

 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

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 28

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

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 30

Services:
Generalized Interface Web Services
 New Service Offering
 Integrates to ePay Tools
 Eliminates ODBC Calls to Database
 ePayment Web Services
 ePaymentAuthorizeAndDeposit

 ePaymentAuthorize

 ePaymentDeposit

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 31

Services: eStore Hosting
 AIS provides “Framework” for
Hosting Penn State eCommerce Stores
 Host the Website (Shopping Catalog)
 Maintain hardware and software

 Handle Payment Processing

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 32

Services: eStore Hosting
 Includes Shopping Basics:
 Home / Category Page

 Product Page
 Shopping Cart
 Checkout Page
 Order Status
 Help / FAQ / Contact Us

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 33

Services: eStore Hosting
 Provide Merchant Admin Tools
 Reporting
 Category (Dept.) and Product
 Price
 Order Processing

 Inventory
Winter 2003 Building an eCommerce Infrastructure - NERCOMP 34
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 Course

 NEW: Behrend College – College for Kids and Alumni Reunion

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 35

eCommerce Services:
 ePayment
 ePay
 Generalized Interface Web
Services
 eStore Hosting

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 36

 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

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 38

Partners in RFP Process
 Banks and Processors
 Vendor Background/Experience
 Processing
 Technical Capabilities
 Information Reporting
 Implementation
 Customer Service and Quality
 Pricing

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 39

 Future Evolution of
eCommerce

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Future Evolution: Technical
 Integrate with Business Systems

 Expand and Enhance eCommerce Services

 Keep Current with eCommerce

Technologies and Security…

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Future Evolution: Administrative
 Consolidate Processing through eCommerce
Server

 Automate Settlement and Cash

Reporting
 Streamline Account Reconciliation

 Actively Manage Discount Fees to Reduce

Costs

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 42

Conclusion
 Penn State Adventures in eCommerce
 Payment Processing Concepts
 eCommerce Infrastructure and Services
 Partners in the Request for Proposal Process

 Future Evolution of eCommerce

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 43

 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