This document provides an overview of e-commerce and electronic payment processing. It discusses key concepts like credit card transaction authorization and settlement between merchants, payment processors, and card issuers. It also outlines Penn State's e-commerce services, which allow online payments for goods and services through a centralized payment processing system managed by the university's administrative IT department.

1. e-Commerce 101

3. Introduction ….

7. 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.

9. e-Commerce Definitions…

13. Credit Card Payment Processing Concepts, Fee’s and Security

15. Payment Processing: Components AUTHORIZE... Cardholder Issuing Bank Cardholder / Customer Processor Credit Card Associations Settlement Acquiring Bank Payment Gateway Merchant Bank Merchant

16. Payment Processing: Phases AUTHORIZATION and SETTLEMENT

19. Putting it all together: Authorization Cardholder / Customer Payment Gateway Processor Cardholder Issuing Bank Processor Payment Gateway Merchant Merchant

20. Putting it all together: Settlement Cardholder / Customer Payment Gateway Cardholder Issuing Bank Processor Acquiring Bank Merchant Bank Merchant

21. 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”

22. Payment Processing: Fee Bank Processing Fee Structure

24. Payment Processing: Security Fraud and Security

28. e-Commerce Web Applications….

32. Getting Started…

34. Getting Started: Gateway Direct Connect Payment Gateway Processor Acquiring Bank Web Site Merchant

37. e-Commerce at PSU: Administrative Information Services (AIS)

38. Turn your Web Applications into Gold with e-Commerce….

42. History

48. PSU e-Commerce Services ePay, Merchant Admin, API, and eStore

56. PSU e-Commerce Architecture

59. 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

60. e-Commerce Resources

63. Q & A http://ais.its.psu.edu/eCommerce