winter 2003building an ecommerce infrastructure - nercomp1 copyright richard dumm and deborah meder,...

Winter 2003 Building an eCommerce Infrastructure - NERCOMP 1

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


Building an eCommerce Infrastructure

Richard DummRichard DummeCommerce ConsultanteCommerce Consultant

Administrative Information ServicesAdministrative Information Services

Debbie MederDebbie MederAssistant ControllerAssistant Controller

University Financial OfficersUniversity Financial Officers


Presentation Objective

Payment Processing ConceptsPayment Processing Concepts

Future Evolution of eCommerceFuture Evolution of eCommerce

Penn State Adventures in eCommercePenn State Adventures in eCommerce

Partners in the Request for Proposal ProcessPartners in the Request for Proposal Process

eCommerce infrastructure and ServiceseCommerce infrastructure and Services


Penn State Adventures in eCommerce


Adventures: Summary

0

10

20

30

40

50

60

70

80

$ in Millions

1999 2000 2001 2002

eCommerce Cumulative Growth


Adventures: History

Summer 1999 – IBM Net.Commerce ProjectSummer 1999 – IBM Net.Commerce Project

August 2001 – First Million $$ DayAugust 2001 – First Million $$ Day

Fall 1998 – Cybercash pilot w/Undergrad Fall 1998 – Cybercash pilot w/Undergrad Admissions ApplicationAdmissions Application

July 2002 – Migrated to IBM WebSphere Payment ManagerJuly 2002 – Migrated to IBM WebSphere Payment Manager

Today - $75 million processed in over Today - $75 million processed in over 175,000 transactions175,000 transactions

Fall 1999 – First Authorized Transaction Fall 1999 – First Authorized Transaction


Adventures: Merchants

40+ merchants using eCommerce services today40+ merchants using eCommerce services today 90+ merchants total at Penn State90+ merchants total at Penn State


Adventures: Applications

12 Web Applications:12 Web Applications:

ADMISSIONS Applications (Grad and Undergrad)ADMISSIONS Applications (Grad and Undergrad)

TRANSCRIPTS (REGISTRAR)TRANSCRIPTS (REGISTRAR) Large Volume, Low $Large Volume, Low $

WORLD CAMPUS Registration (2)WORLD CAMPUS Registration (2)



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

Id+ OFFICEId+ OFFICE Add funds to meal plansAdd funds to meal plans



SMEAL – Global Trading CompetitionSMEAL – Global Trading Competition

ePAY – Most PopularePAY – Most Popular

eSTORE Hosting eSTORE Hosting Golf StoreGolf Store PA State Data CenterPA State Data Center Palmer Art MuseumPalmer Art Museum


Adventures: Summary eCommerce continues to Grow at Penn StateeCommerce continues to Grow at Penn State

AIS is developing infrastructure to support AIS is developing infrastructure to support and manage this growthand manage this growth

0

10

20

30

40

50

60

70

80

$ in Millions

1999 2000 2001 2002

eCommerce Cumulative Growth


Credit Card Payment Processing Concepts


Payment Processing: Defined

On-Line Payment ProcessingOn-Line Payment Processing

The buying and selling of products and services by The buying and selling of products and services by businesses and consumers over the internetbusinesses and consumers over the internet

eCommerceeCommerce

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


Payment Processing: Components

Cardholder Issuing Bank

Cardholder / Customer

Processor

Credit Card Associations

¨

Settlement

Acquiring Bank

Payment Gateway

Merchant BankMerchant


Payment Processing: Phases

Settlement (Batch Deposit)Settlement (Batch Deposit)

Verifies that the card is activeVerifies that the card is active AuthorizationAuthorization

CaptureCapture

Verifies Cardholder has sufficient creditVerifies Cardholder has sufficient credit Cardholder’s Open-To-Buy is reducedCardholder’s Open-To-Buy is reduced

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


Putting it all together: Authorization


Payment Gateway

Processor


ProcessorPayment Gateway

Merchant

Merchant


Putting it all together: Settlement


Payment Gateway


Processor

Acquiring Bank

Merchant Bank

Merchant


Payment Processing: Fraud

Card Present vs. Card Not PresentCard 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 ProgramsFraud Protection Programs


Payment Processing: Summary

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


The Penn State eCommerce Infrastructure


Infrastructure: Imperative

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


Infrastructure: Components

IBM WebSphere Payment ManagerIBM WebSphere Payment Manager Wintel ServersWintel Servers

IBM HTTP Server (Apache)IBM HTTP Server (Apache)

IBM WebSphere Application ServerIBM WebSphere Application Server

IBM DB2 DatabaseIBM DB2 Database

JAVA Programming EnvironmentJAVA Programming Environment


Infrastructure: Components

Internet(https)

App Server

Payment Mgr

Web Server

Database

Wintel Servers

Java/J2EE

Payment Gateway

eCommerce eCommerce Web AppWeb App


D atabase Backup / A rch iv ing

IBM D B2

D atabase Support

A IS SupportO perations

C ustom er C onsu ltant

P ro ject M anagem ent

App lica tion D eve lopm ent

W ebSphere Applica tion Server

W ebSphere Paym ent M anage r

eC om m erce

D ivers ified Adm in istra tive System sIn form ation Serv ices

IBM H TTP Server (Apache)

P roduction Environm ent

Server Security

Server Support

W in te l Server Support

In frastructureN etw ork H ardw are

Adm in istra tive In form ation Serv ices

Infrastructure: Support Organization

AIS Web TeamSupport Center


Infrastructure: Summary The Penn State eCommerce infrastructure The Penn State eCommerce infrastructure

consists of various hardware and software consists of various hardware and software components necessary to sustain a:components necessary to sustain a:

CentralCentral

SingleSingle

SecureSecure

ReliableReliable

eCommerce capability.eCommerce capability.


eCommerce Services


eCommerce Services: ePaymentePayment ePayePay Generalized Interface Web Generalized Interface Web

ServicesServices eStore HostingeStore Hosting


Services: ePayment

ePayment API for Credit Card ProcessingePayment API for Credit Card Processing

HTTPS post with XML responseHTTPS post with XML response

HTTPS requests and response are HTTPS requests and response are secured using SSLsecured using SSL


Services: ePayment

Merchant Administration ToolsMerchant Administration Tools

Credit Card SearchCredit Card Search

Issuing RefundsIssuing Refunds

ReportingReporting


Services: ePAY

““Virtual” Credit Card TerminalVirtual” Credit Card Terminal

Reporting ToolReporting Tool

Web Based AuthorizationWeb Based Authorization

Troubleshooting ToolTroubleshooting Tool

Automatic Settlement for MerchantAutomatic Settlement for Merchant


Services: Generalized Interface Web Services

New Service OfferingNew Service Offering Integrates to ePay ToolsIntegrates to ePay Tools Eliminates ODBC Calls to DatabaseEliminates ODBC Calls to Database ePayment Web ServicesePayment Web Services

ePaymentAuthorizeAndDepositePaymentAuthorizeAndDeposit ePaymentAuthorizeePaymentAuthorize ePaymentDepositePaymentDeposit


Services: eStore Hosting

AIS provides “Framework” for AIS provides “Framework” for Hosting Penn State eCommerce StoresHosting Penn State eCommerce Stores

Host the Website (Shopping Catalog)Host the Website (Shopping Catalog) Maintain hardware and softwareMaintain hardware and software

Handle Payment ProcessingHandle Payment Processing



Help / FAQ / Contact UsHelp / FAQ / Contact Us

Includes Shopping Basics:Includes Shopping Basics: Home / Category PageHome / Category Page Product PageProduct Page Shopping CartShopping Cart Checkout PageCheckout Page Order StatusOrder Status



Provide Merchant Admin ToolsProvide Merchant Admin ToolsReportingReportingCategory (Dept.) and ProductCategory (Dept.) and ProductPricePrice

InventoryInventory

Order ProcessingOrder Processing


Services: eStore Hosting https://ecommerce.psu.eduhttps://ecommerce.psu.edu

Pennsylvania State Data CenterPennsylvania State Data Center Gravitational Physics ConferenceGravitational Physics Conference

Penn State Golf Store Penn State Golf Store

College of Agricultural Sciences: Conferences & Short CoursesCollege of Agricultural Sciences: Conferences & Short Courses

NEWNEW: Behrend College – College for Kids and Alumni Reunion: Behrend College – College for Kids and Alumni Reunion

Palmer Art MuseumPalmer Art Museum


eCommerce Services: ePaymentePayment ePayePay Generalized Interface Web Generalized Interface Web

ServicesServices eStore HostingeStore Hosting


Partners in the Request for Proposal Process


Partners in RFP Process Internal: AIS(ITS), Controller, Finance & Business, & MerchantsInternal: AIS(ITS), Controller, Finance & Business, & Merchants

Customer & Merchant NeedsCustomer & Merchant Needs Technical RequirementsTechnical Requirements Controls and ReportingControls and Reporting ServiceService


Partners in RFP Process Banks and ProcessorsBanks and Processors

Vendor Background/ExperienceVendor Background/Experience ProcessingProcessing Technical CapabilitiesTechnical Capabilities Information ReportingInformation Reporting ImplementationImplementation Customer Service and QualityCustomer Service and Quality PricingPricing


Future Evolution of eCommerce


Future Evolution: Technical

Integrate with Business SystemsIntegrate with Business Systems

Expand and Enhance eCommerce Expand and Enhance eCommerce ServicesServices

Keep Current with eCommerce Keep Current with eCommerce Technologies and Security…Technologies and Security…


Future Evolution: Administrative Consolidate Processing through Consolidate Processing through

eCommerce ServereCommerce Server

Automate Settlement and Cash Automate Settlement and Cash ReportingReporting

Streamline Account ReconciliationStreamline Account Reconciliation Actively Manage Discount Fees to Reduce Actively Manage Discount Fees to Reduce

CostsCosts


Conclusion

Payment Processing ConceptsPayment Processing Concepts

Future Evolution of eCommerceFuture Evolution of eCommerce

Penn State Adventures in eCommercePenn State Adventures in eCommerce

Partners in the Request for Proposal ProcessPartners in the Request for Proposal Process

eCommerce Infrastructure and ServiceseCommerce Infrastructure and Services


Building an eCommerce Infrastructure

Richard DummRichard DummeCommerce ConsultanteCommerce Consultant

Administrative Information ServicesAdministrative Information Services

Debbie MederDebbie MederAssistant ControllerAssistant Controller

University Financial OfficersUniversity Financial Officers

winter 2003building an ecommerce infrastructure - nercomp1 copyright richard dumm and deborah meder,...

Documents

ecommerce slide

internet ecommerce ecommerce

ecommerce services

ecommerce partners

summary ecommerce

penn state ecommerce

services slide

penn state slide