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Strategic Issue
Issue: Whether implementing a comprehensive e-Commerce solution for student-related charges
is within the scope of the implementation of a new Student Information System (SIS).
PRISM #: 034
Student System Project Contact (PRISM Issue Owner): Lynn Davis
Scope Type:
Issue Priority:
General |
Critical |
School/Unit Issue |
High |
Medium |
Coordinating Project |
New Functionality
Low
Impact Statement:
 Best practice is a comprehensive e-Commerce solution that facilitates electronic billing and payment of student-related
charges, including but not limited to tuition and fees, for students and designated proxies. E-Commerce provides convenient,
efficient, mechanisms for online viewing and payment of student-related charges via credit card or Automated Clearing House
(ACH) through a third- party vendor.
 The University currently accepts cash, checks, and wire transfers for the payment of regular session tuition and fees. The
University neither accepts credit cards for regular session tuition and fees nor utilizes ACH for payment of student-related
charges. Students and parents are limited in payment options available—if a payment needs to be made quickly on a student's
behalf, it may be sent through the mail, delivered to the Cashier's Office in Carruthers Hall, or sent through the Lockbox
process with Bank of America.
 Students and parents have requested the ability to receive bills and make payments electronically, especially for low dollar
payments, financial holds, and payments for international students. Student Council approved a resolution on 2/14/06
recommending that the University accept credit cards for tuition payments. Institutions including Stanford, Michigan,
Indiana, Virginia Tech, James Madison University, and Radford enable online tuition billing and payment through a third-party
vendor.
 The University currently has credit card processing standards but does not have an institutional policy governing the acceptable
use of credit cards, Units that accept credit card payment are required to use Financial Administration’s program, process
payments through the same processor (Nova), and utilize the University’s credit card gateway for web payment processing, but
there is not an overarching policy governing when credit cards may be used to collect payment. For example:
1. Credit cards are accepted for tuition and fee payment by the School of Continuing and Professional Studies (SCPS)
and Summer Session and by various offices and schools for application fee payment. Because these transactions
generate E&G revenue, these schools and departments currently plan in their expenditure budgets for the absorption of
convenience fees applied to each credit card transaction. SCPS and Summer Session are "pay up front" operations
that were involved in a pilot program that aimed to make it as convenient and efficient as possible for students to
register and pay for courses online. When this pilot program was implemented, the only online payment option
available was via credit card.
2. Credit cards are accepted by Business Operations to pay for auxiliary services, by Student Health for services such as
vaccinations, and by Intramural-Recreational Sports for services such as program offerings. These auxiliary areas also
are responsible for payment of the credit card convenience fee but as self-supporting operations must incorporate this
cost into their pricing structures.
 A project team in the Comptroller's area is currently evaluating a potential implementation of a system from infiNET that
would provide an e-Commerce solution in which electronic billing and payment for tuition and fees will be made available to
on-Grounds, regular session students. Such an implementation would be subject to review and approval by the ISIS Review
Committee and the Executive Committee. The convenience fee to be paid by students is expected to be approximately 2.75%
of the charge. Under this scenario, the University will not incur any additional fee for payments made by credit card.
 Utilizing the services of a third party vendor with proper security measures in place minimizes the risk to the University from
potential compromise of credit card data. Additionally, when a credit card or ACH payment is used the University is able to
take advantage of the immediate collection of funds and reduce the risk of non sufficient funds in regards to paper checks.
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Options and Implications:
1. Implementing a comprehensive e-Commerce solution for student-related charges is outside the scope of the implementation of
a new SIS. In this option, Student Financial Services will continue to mail paper bills and incur the rising costs related to this
process. Customers will retain current payment options: check, over-the-counter, and through Bank of America Lockbox.
2. Implementing a comprehensive e-Commerce solution for student-related charges is within the scope of the implementation of a
new SIS. In this option, the new student system will be able to improve customer service in terms of providing electronic
payment options for student bills, to be more in line with best practices and meet requests made by students and parents.
Recommendation:
 Option 2: Implementing a comprehensive e-Commerce solution for student-related charges is within the scope of the
implementation of a new SIS.
 The Project Team will remain cognizant of the effort currently underway within the Comptroller's area.
Dependencies:
 The review and possible approval by the ISIS Review Committee and the Executive Committee of an e-Commerce solution
prior to the implementation of a new student system.
 The desire of the University to use the implementation of a new SIS and/or the implementation of an e-Commerce solution
prior to the implementation of the SIS as an opportunity to develop an institutional policy governing the acceptable use of
credit cards for the payment of student-related charges.
 The desire of the University to implement an SIS and/or e-Commerce solution that meet the University’s needs now and in the
future—that will facilitate programmatic growth.
 The scope of the implementation of an e-Commerce solution, which may be informed by vendor selection.
 The impact of a comprehensive e-commerce solution on other University systems and business processes, such as how fees
associated with credit card processing will be absorbed, e.g., whether fees will be passed on to students.
Next Steps (if in scope):
 The University should review the charge, composition, and leadership of existing e-Commerce project teams and committees
to determine whether/how these groups and their work may be leveraged to consider the relationship between an e-Commerce
solution and the SIS implementation; to develop options and a recommendation for the Executive Committee; and to develop
an institutional policy governing the consistent, acceptable use of credit cards for payment of student-related charges.
 The Project Team will research peer institution practice and the legal implications of various practices and will coordinate with
appropriate groups/individuals.
Deadline for Executive Committee:

Decision by Executive Committee: Option 2: Implementing a comprehensive e-Commerce solution for student-related
charges is within the scope of the implementation of a new SIS.
Executive Committee Reviewer/Approver: Full Executive Committee
Signature of Reviewer: Gene Block
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Date: April 18, 2006