I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 1 -

Electronic CommerceCSG

October, 1999

Sandy Senti

I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 2 -

Primary Goals Flexibility for departments No credit card numbers stored on

campus Single transaction processing service Integration with financial systems Service is self-sustaining

I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 3 -

A Middle Approach Out-source credit card processing, run

web sites locally - ICOMS, OpenMarket Vendor takes risk of credit card fraud Vendor provides technical support for

financial transaction Centrally built infrastructure to make it

easier to use for departments

I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 4 -

Infrastructure API framework for customization Data warehouse for transaction tracking Hooks into financial systems Database for product management Web site to get people started Stanford branded payment forms

I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 5 -

Benefits/Issues Everyone wants to customize Everyone needs a substantial amount of

consulting to start Bank relationship

slow progress have reduced credit card fees

Cash management/finance reduced manual operations control worries

Not clear if it will be self sustaining Policy requires use of infrastructure

I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 6 -

Service Offerings Vanilla

fast, inexpensive standard payment forms

Partial customization more flexible relies on infrastructure standard payment forms

Full customization everything is customized through an API

I N F O R M A T I O N T E C H N O L O G Y S Y S T E M S & S E R V I C E S - 7 -

Costs 40 cents per transaction - sliding scale $100 per store setup fee Credit card fees

Visa, Mastercard - 1.95% American Express - 2.65%

Consulting fees Central costs

$12,000 to brand payment forms Infrastructure projects