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Fall 2006

Exploring the utilization of identification technologies on college and university, K-12, and corporate campuses

Innovation lives on campus cards Campus card banking partnerships gain ground Sodexho oers biometric mealplan access CBORD builds value from Diebold acquisition Swiss campus opts for contactless ID card Badging visitors closes security gap


Contents

Fall 2006 4 | OPINION | After five years of electronic distribution, CR80News welcomes you to its first-ever print edition 22 | BANKING | Students expecting more from their financial providers

18 | TIPS | Attracting faculty and staff to your campus card banking service

9 | ISSUANCE | ID cards for visitors: Easier and more necessary than ever

20 | INNOVATION | SmartCentric and QI team to bring wireless and contactless to campus cards

12 | SECURITY | When it comes to issuance, contactless ‘rocks’ prox

24 | RESEARCH | Annual CR80News bank partner survey results

14 | VENDORS | One year later ... CBORD building value from Diebold acquisition

28 | PAYMENTS | Securely handling credit card transactions earns Blackboard kudos

16 | ON CAMPUS | Wisconsin Lutheran adds banking to the campus card

30 | BIOMETRICS | Students in San Diego build biometric vending machine

INDEX OF ADVERTISERS

10 | MEALPLAN | Gonzaga and North Texas students ‘touch the future’ paying on and off campus with biometrics

6 | INTERNATIONAL | Contactless campus card secures Swiss campus

Color ID (www.colorid.com) CBORD Group, Inc. (www.cbord.com) Digital Identification (.digital-identification.com) HID (www.hidcorp.com) HDO Card Systems (hdocardsystems.com) NACAS (www.nacas.org) NACCU (www.naccu.org) NuVision Networks (www.nuvisionnet.net) Sequoia (www.sequoiars.com) Tokenworks (www.tokenworks.com) Visionbase (www.visionbase.com)

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Perspective Campus card news you can hold Almost five years after the CR80News premiere, we welcome you to our new print edition Chris Corum Executive Editor, AVISIAN Publications It is hard for me to believe that we have been publishing CR80News for nearly five years. As we prepared for this first-ever print version, I decided to go back to the archive and check out our inaugural issue, back in January 2002. What did we cover back then? Banking partnerships, the University of Michigan’s decision to end its smart card program, the changing vendor landscape … All topics that we could and do cover today. In my opening column from that issue, I laid out our mission for CR80: “While we do not claim to know it all, we do commit to work tirelessly to compile valuable, usable information from a wide variety of sources. Additionally, we will strive to present it to you in concise and user friendly formats.” At the five-year mark, I believe that CR80News continues to meet that original commitment. We still don’t know everything, we still work hard (maybe not tirelessly anymore but still hard), and I feel that our content continues to improve. But it is the last part of our mission that we are striving for with this print edition – the commitment to present our content in user-friendly formats. We have migrated from interactive PDFs to HTML mini-magazines to web portals and now to print. Over the years, four other titles have joined CR80News in our family of ID technology publications. I truly hope you find this new format beneficial and I hope that it makes it opens new doors for you sharing campus card information with colleagues in your office and across your campus. Inside these pages there is plenty to share. We have released the findings from our annual survey of campus banking partnerships; there are articles on new applications and technologies for campus cards; a number of stories on vendors and their clients; and more. Let me know what you think of this new CR80News Print Edition. We plan to produce it quarterly as an enhancement to the great content you can find every day at CR80News.com and that you receive via email in our CR80News eDigests. One last thing … many of you have been with us from the beginning - way back in January 2002. I greatly appreciate your support and camaraderie over these years. It binds me to this campus card community and makes this all worthwhile. Enjoy!

PUBLISHER Jeff Staples, jeff@AVISIAN.com EXECUTIVE EDITOR Chris Corum, chris@AVISIAN.com CONTRIBUTING EDITORS Kristen Fossgreen, Erik Peterson, Sara Pralle, Marisa Torrieri, Andy Williams, David Wyld ART DIRECTION TEAM Darius Barnes, Mike Houghton, Ryan Kline ADVERTISING SALES Jeff Staples, jeff@AVISIAN.com SUBSCRIPTIONS CR80News is free to qualified professionals in the U.S. For those who do not qualify for a free subscription, or those living outside the U.S., the annual rate is US$45. Visit www. CR80News.com for subscription information. No subscription agency is authorized to solicit or take orders for subscriptions. Postmaster: Send address changes to AVISIAN Inc., 315 E. Georgia Street, Tallahassee, Florida 32301. ABOUT REGARDING ID MAGAZINE CR80News is published four times per year by AVISIAN Inc., 315 E. Georgia Street, Tallahassee, Florida 32301. Jeff Staples, President and CEO. Circulation records are maintained at AVISIAN Inc., 315 E. Georgia Street, Tallahassee, Florida 32301. Copyright 2006 by AVISIAN Inc. All material contained herein is protected by copyright laws and owned by AVISIAN Inc. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without written permission from the publisher. The inclusion or exclusion of any does not mean that the publisher advocates or rejects its use. While considerable care is taken in the production of this and all issues, no responsibility can be accepted for any errors or omissions, unsolicited manuscripts, photographs, artwork, etc. AVISIAN Inc. is not liable for the content or representations in submitted advertisements or for transcription or reproduction errors. EDITORIAL ADVISORY BOARD Submissions for positions on our editorial advisory board will be accepted by email only. Please send your qualifications to info@AVISIAN.com with the message subject line “Editorial Advisory Board Submission.”


Contactless campus card secures Swiss campus LEGIC provides payment and security applications for students in Switzerland Andy Williams Contributing Editor, AVISIAN Publications While many U.S. colleges and universities have been hesitant to delve into the contactless world, European and Asian campuses have taken the opposite approach. So it is with the University of Technology and Economics (HTW Chur) in Chur, Switzerland. The college opted for a contactless campus card system based on chips supplied by LEGIC Identsystems Ltd., also based in Switzerland. The company specializes in the design and manufacture of 13.56 MHz contactless smart card technology, including ISO 15693 and ISO 14443 compliant read/write chip sets, security modules, and transponder chips.

CR80News

HTW Chur specializes in high tech pursuits, so what better way to emphasize your philosophy than to offer your students and faculty a cutting edge, cashless ... and contactless ... environment? The range of courses offered by the HTW Chur covers six degree and three postgraduate courses, two Executive Masters of Business Administration and a wide-range of training courses. The college, according to LEGIC, specializes in the fields of tourism, entrepreneurship and commerce, telecommunications and electrical engineering, structural engineering and architecture design and computer science.

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Two other Swiss companies, EVIS and Kaba, are also involved in the Chur project. EVIS, a LEGIC partner for more than 11 years, provides the project with vending solutions, access control systems, card personalization, hardware/ software, cashless payment systems, POS terminals, and time and attendance solutions. Kaba specializes in security technology, such as locking cylinders, security locks, motorized cylinder locks and access control systems. “We are a basic technology supplier,” said Stephen Neff, LEGIC’s vice president for sales and business development. “We supply transponder chips and people integrate our products into the finished product. Our technology products allow them to make the all-in-onecard system.” Utilizing this multi-function technology, the university has already issued more than 2,000 cards to students, staff, faculty, and visitors at HTW Chur. The cards serve as the students’ ID, allow access to lockers (where student laptops are typically stored), provide cashless vending and copying, serve as the library card, and enable discounts at off-campus merchants. Museums and theaters also accept the contactless smart card, said Mr. Neff.

The college prints its own cards on site with a card printer from Zebra. This, said Mr. Neff, allows the school to personalize the cards and initialize the chip according to the area in which it will be used. Payment applications are crucial to campus card success Students are issued their cards when they enroll. Guests, visitors, and external users of HTW Chur facilities such as the library, can obtain a LEGIC smart card upon payment of a deposit. The student ID is used for payment transactions in the canteens, vending machines, and copiers and printers. Charging stations - one in each of the two main buildings - allow students or faculty to add value to their card’s e-purse with up to 300 Swiss francs (about US$240). “The student simply presents his contactless smart card to the charging station,” says Mr. Neff, “inserts the money he/she wants to load on the card and after a few seconds the loading station confirms that the card has been recharged.”


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“One of the main advantages of this system,” said Mr. Neff, “ is that students only have to bring cash to school if they plan to recharge their electronic purse. They don’t need cash for vending machines, the canteen, or copying machines.” When funds are spent - via vending or in the canteen - the transaction is forwarded to a central server via the campus’ existing network. Thanks to the TCP/IP networking of all reading units, the card balances can be checked and (lost or stolen) cards can be blocked immediately if necessary. “The balance is not stored in a back end system,” said Mr. Neff.“The money is in the possession of the cardholder only. This increases the security and the confidence in the system.” Physical security complements the financial offering ...

CR80News

Kaba technology is used for access control and the locks on the 800 lockers. EVIS provides the vending solutions, added Mr. Neff. Since it is a contactless card, a student need only tap his card against the locker’s lock to open it. While dormitory access is possible using the system, HTW Chur doesn’t need that capability because it is a commuter school, said Mr. Neff. But the campus does have plans to expand the access control capabilities of the system.

In the near future, officials plan to deploy locking systems on individual laboratory doors to guarantee greater security and convenience for the user.

“There are more then 50 universities in Europe and Asia using the LEGIC contactless smart card technology already and more are opting for this technology every year,” said Mr. Neff.

One of the benefits of this particular LEGIC technology, the all-in-one-card, is that more applications and functional areas can be added later as the college’s needs progress.

But, encouraging U.S. institutions to opt for contactless is a challenge. With offices in Chicago, and Dallas, LEGIC is doing what Mr. Neff calls “missionary work. We’re working with campuses, going to suppliers, trying to sell them on using contactless technology.”

Mr. Neff provides the following example: “... a Chinese university, with more than100,000 LEGIC student cards, installed readers in dormitory showers that turn off the water automatically when the student takes his card away from the waterproof reader in order to save water and money. (Others have added) parking access or access to fitness centers.” “(HTW Chur) is very satisfied with the new allin-one-card solution,” said Mr. Neff.“The whole process is much easier and the students profit a lot from the increased comfort. Even the complexity for the card administration has been reduced significantly.” And, he added, thanks to the central data administration and the university using its own printers, it can easily administer and replace lost or stolen cards. Evangelizing contactless technology in the U.S. LEGIC has installed its campus card solution in many locations in addition to HTW Chur.

Of course, U.S. Government requirements, such as those included in FIPS 201 and the Department of Defense’s Common Access Card, are helping generate contactless demand, he adds. “Four or five years ago, it (contactless) was a non-issue. Now we’re at least getting invitations. It didn’t happen overnight in Europe, either.” Even so, LEGIC currently has some 70 million contactless cards in the field. Contactless advantages for campus card systems ... He thinks contactless cards would be preferable at universities if, for nothing else, than for ease of maintenance. “Universities tend to incur quite a bit of vandalism (with items such as gum or coins) being stuffed into the slot designed for the contact card. In Canada’s (early) ATMs, the slot was exactly the thickness of a processed cheese slice, (and vandals stuck them in) so they had to make the slot smaller. Contactless is almost vandal-proof which, I think, is its biggest advantage over contact.” Another big contactless advantage is, of course, its hands-free capability. “You can put your contactless ID badge into your pocket and walk by the reader. With a contact badge, you always have to take the card out of the holder and put it back again,” said Mr. Neff. Concludes Mr. Neff:“The most important thing for universities is linking access control with vending, restaurant and other applications. They have to be able to run independently of each other so the card becomes the network ... you can obtain IT access as well as physical access. The biggest stumbling block is that many people don’t believe it can be done.”

Students at HTW Chur use their contactless cards to access reader-equiped lockers. 8

Fall 2006


ID cards for visitors: Easier and more necessary than ever Even in a post 9-11 world, college campuses remain fairly open. Anyone can enter the campus itself with barely a nod from security. Corporations are a different matter and many have hardened building access in recent years. So, too, have K-12 schools. But with more options and lower costs, is it now time for colleges to take another look at better controlling visitors to their campuses? Supporters of visitor management solutions think so. “Colleges are watching ingress and egress better than they used to do,” said Steve Blake, director of secure systems for Fargo Electronics, whose printer/encoders are used in visitor ID management systems.“But adoption has been better for visitor management in K-12 than in post secondary schools.”

It’s one of the tradeoffs for having an open campus, a quality in which most colleges take pride. But are those days numbered? “(People are) implementing both unattended and attended visitor management systems,” explains Mr. Blake. “However, if you’re concerned about security, there is no reality to using an unattended system. I’ve been to several schools where you print out your own badge. It’s based on the honor system and it will work only for those who are honorable.” Visitor management systems were in use even before 9-11. “They’ve been available for about seven years,” said Mr. Blake. “But there was a low level of adoption until the last couple of years. What has changed is that prices have come down to where they’re more affordable. New technology also makes it much easier to go through the registration and badging process.”

Some of the more popular visitor management programs are the ones that allow a visitor’s driver license to be swiped or scanned, thus providing a visitor’s critical information along with his picture. Then a temporary badge can be produced, usually in less than a minute, complete with photo. “Driver license scanners can be tied to the software. A school clerk will take your driver license, run it through a scanner and be able to print a card with a Fargo printer in color or black and white, within 30 seconds,” said Mr. Blake. “This is what’s really driving the growth in visitor management. If anything happens, the school has the front and back of the visitor’s driver license.” Despite the ease of creating visitor IDs, it could still be difficult for colleges to implement.“The issue is that with colleges, they tend to be an open environment with a lot of public access,” said Mr. Blake.“If you’re going to have attended locations for visitors you might have multiple points of issuance. Some (colleges) do use ID cards for visitors, but there hasn’t been a high level of adoption here.” To date, the real adoption of visitor security has been in the corporate arena, Mr. Blake added.

Selecting a visitor management system from the host of options Do a Google search on “visitor ID badge management” and nine different products show up on the first page alone. Some of the bigger providers of visitor ID management software include Avery and Brady ID, plus “there are a lot of homegrown ones out there as well,” said Mr. Blake. Most work with ID card printers, but Avery’s for example also prints on paper labels.

Another aspect of visitor badge management is whether it will be standalone (located on a single computer) or tied to the network. Standalone architecture is obviously easier since all data resides on the PC at the front desk. But regardless of the system chosen, says Mr. Blake, implementation is simple. “You can be up and running in 30 minutes.” Visitor management systems don’t require top-of-the-line printers to function adequately. “Our entry level printers tend to be the printer of choice for visitor management,” he said. “They contain just the features that are necessary. A visitor management solution typically doesn’t require high volume card production.” Another consideration is how easy the visitor ID badge printer is to operate and maintain. “(Operators) need to be able to change ribbons and load the cards easily, so they can spend their time with people interaction, not printer interaction,” said Mr. Blake. “With our Persona C30 printer, for example, you can just pop the ribbon and cleaning cartridges in, unlike some printers where you have to deal with rolls of ribbons or cleaning rollers. Ease of use is extremely important. Operators can’t be afraid of what they’re about to use.” Visitor management software has also evolved, said Mr. Blake. “They’ve migrated to include modules that are not only people-related, but will handle packages as well. For example, if UPS or FedEx delivers packages to the front desk, the software allows the packages to be logged in ... right at the front door to create a history, an audit trail, of that package internally.” With lower prices, more products from which to choose, and ease of use, “maybe it’s time for colleges to take another look at this,” said Mr. Blake. “There has been great adoption (and successes) elsewhere. This could be the time for colleges to examine how visitor ID management can benefit them.”

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Had some kind of visitor management program been in effect at the University of Cape Town in South Africa, a university professor might have avoided being beaten up by people who easily gained access to the building housing the professor’s office, as recently reported by a Cape Town online news service.

But it took “9-11 for visitor management (and other security systems) to skyrocket,” added Mr. Blake.


Gonzaga and North Texas students ‘touch the future’ paying on and off campus with fingerprint biometrics Andy Williams Contributing Editor, AVISIAN Publications More student choices, more options, and peace of mind for their parents are some of the ideas that went into the development of iMye, Sodexho’s new method of paying for food on or off campus. Oh yes, there’s also the “coolness” factor. “You don’t need a card or cash, just your finger,” said Ric Rocca, senior vice president of strategy for Sodexho Education Services, of the company’s finger scan technology.

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Even the name, “iMye” tracks the idea behind the program: In explaining the genesis of its name, the company explains “I Am Me...My Choices are Mine.” Said Mr. Rocca: “The name was developed internally and reflects the Millennium Student. They’re individuals. It’s a combination of ‘me’ and ‘my,’ a reflection fo how they view music. They don’t buy albums anymore, just individual music and they want more variety and flexibility in terms of where they’re eating.” The program - in a pilot stage right now - is at two colleges: Gonzaga University, Spokane, Wash., and the University of North Texas, Denton, Tex. It allows students and faculty to pay for their meals on campus and at select restaurants off-campus with a simple scan of their finger. Both Gonzaga and UNT were chosen for the pilot “because we have had great support from our clients there and from the Sodexho operational team,” said Mr. Rocca. Sodexho handles food service for an estimated 900 campuses across North America. Dale Goodwin, PR director at Gonzaga, reported that early indications suggest that the system seems to be a success from the student perspective said the “students like it, from what I hear.”

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Storing scans not fingerprints to protect privacy First thing Sodexho wants to make clear is that it’s a “finger scan” not a “fingerprint.” In other words, the actual fingerprint is never stored in the centralized database, only algorithms that allow for simple identification. “It’s finger scan technology, not a fingerprint, so a record isn’t kept. It uses 16 points which converts the finger scan into algorithmic numbers, rather than the 64 points used for fingerprint comparisons,” said Charles Wesley, Sodexho general manager in Spokane. “Essentially,” as the web page points out, the finger scan is simply “a batch of numbers, not your fingerprint” that’s kept on file. Added Mr. Rocca: “The finger scan takes an image of the student’s finger, then we discard the actual fingerprint.” The later finger scan is compared with the algorithm. The finger scan database is stored centrally on a Sodexho computer and transmitted over the Internet.

How the system works: the student perspective “Students can sign up online or on campus,” said Mr. Rocca. “They can even mail in an application, but to validate the account, they have to put their finger on a finger reader on campus. Everything else can be done online.” That includes loading, or reloading the student’s account.

It’s a prepaid meal plan type account, a debit system, added Mr. Rocca. “It allows them to go to participating retailers around campus and outlets (off-campus) which have finger scan technology right next to the cash register. Students (or parents) can set up the account for automatic reloads or buy a meal plan. They get dollar for dollar.” In other words, there is no cost to the students. “This university (Gonzaga) was interested in being part of the pilot program, on the cutting edge,” said Mr. Wesley. “The school is pleased with the ability of the program to offer students a prepaid account to spend on and off campus.”


Mr. Rocca, who heads up iMye, said one of the main concepts that led to its development was that “we’re always looking for ways to better satisfy our clients, our customers. Students want choices and we always try to give them that.” He said students “like the technology associated with biometrics. They’re comfortable with it, they like the fact they don’t have to carry a card. We’d been looking at the technology for a while. It’s a safe and convenient way to do the same thing that a card does.” Sodexho has partnered with Biometric Access, a Texas company that produces the finger scan readers. “It’s a good, solid company,” said Mr. Rocca.“They’re growing and they fit the bill with what we needed for this program.” How the system works: the merchant perspective Since Sodexho operates a campus’s foodservice program, the readers cost the college nothing; they’re part of the contract. Offcampus, eventually merchants accepting finger scan technology will have to pay

a fee.“There are a variety of ways to supply the readers,” said Mr. Rocca. “They can rent it, lease it or buy it outright, but since iMye is still in the test stage, we’re not charging the merchants right now.” The finger scanner is about eight inches high, four inches wide and takes up about a 6-by-6inch square space on the cash register table. One glitch so far, if it can be called that, is transaction speed. Since the finger scan is compared with a database and is transmitted via the Internet, merchants with dial-up connections could experience longer transaction times. Normally, approval is almost instantaneous. Merchants and the university also have to make sure their cashiers are properly trained. “Once the right amount of training is in place, you save time at the register,” said Mr. Rocca. “You have to make sure cashiers know how to complete the transaction with somebody’s finger,” added Mr. Wesley. “With a trained cashier and a customer used to finger scanning, it can be faster than cash or credit card. While the cashier is ringing up the order, the customer has the capability to start the finger scan process.”

The pilots at the two schools were initiated mid-term, in the middle of the normal school year. Just 350 students at Gonzaga (slightly more than five percent of its 6,000 students) signed up and about twice that number participated at UNT, said Mr. Wesley. The smaller numbers, however, gave Sodexho time to explore the feasibility of the program.

He said some 20 merchants have signed up in Spokane and “a little less” at UNT. Merchant participation, too, is expected to increase this fall. “The merchants that we are signing up now are predominately either restaurants or grocery stores,” he said. But that’s likely to change as other types of merchants become interested in the program. That could also lead to different types of purses in the student accounts. “In the near future the money in the students’ accounts will be segmented into buckets of money ... some that can be used only for food, some that can be used for anything, such as bookstores and other non food merchants,” said Mr. Rocca. “Students seem happy with the program and our clients seem happy,” said Mr. Rocca. “The system works well, kids like the technology, the coolness of it. We’re really excited about it. Bottom line is it gives kids more options, more choices in where and how they eat. And it gives parents the peace of mind that their students are using the money they send them for food.” Or, as Mr. Wesley pointed out, iMye “is about touching the future.”

“We’re expecting a much higher penetration this fall,” said Mr. Rocca.

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CR80News

Moving from pilots to full-blown programs

The program is also going to expand into other colleges in the Spokane area and possibly at UNT as well. “We’re not going to blow it out just yet. We’re trying to make sure it’s the right thing to do, we’re moving cautiously,” said Mr. Rocca. “We want to grow these test accounts first.”


When it comes to issuance, contactless ‘rocks’ prox 13.56 Mhz contactless cards improve flexibility and security for access control Chris Corum Executive Editor, AVISIAN Publications

CR80News

Contactless technology facilitates multiple applications and services from a single card, but Erik Larsen, Product Manager of Identity Solutions for Lenel Systems International, stresses that another advantage is equally crucial for card issuers. “Contactless lets you take control of - and secure - the data on your cards,” he says, “something proximity technology just doesn’t do.” “We give customers the ability to encode the cards themselves and capture the data they want to use,” explains Mr. Larsen. “You can populate it all into (Lenel’s) onGuard system and then let the issuer encode what they want onto their cards. You no longer need to be told by the application or technology what will be on the credential.” Other leaders in the contactless arena concur. According to June Colagreco, VP Marketing Communications for HID Global, “our iCLASS contactless offerings have enabled us to provide much greater control and flexibility to our issuers. By using the iCLASS field card programmer, our customers have the flexibility to instantaneously issue personalized credentials on the spot”. How does traditional prox issuance differ? In most cases, proximity cards arrive at the client site with a unique identification number pre-encoded on the card. Typically, this same number is also printed on the card as well. When an issuer (e.g. company, university, security integrator) prepares a new badge for a cardholder, that card is printed through an ID card printing system or simply handed to the cardholder if it is not to be personalized with data, photograph, etc. 12

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Next the ID number that was encoded in the proximity card at the factory must be enrolled into the issuing organization’s ID card system, security system, and perhaps other systems. Specifically, the card’s assigned number must be linked to the database record of the cardholder to whom it was issued. If this process is skipped or done incorrectly, these systems won’t know how to manage the individual’s approved privileges and access rights. The system’s integrity would be compromised. These additional steps are necessitated because the card number is preset in the majority of proximity card issuances (note: in certain instances, prox cards can be programmed by the integrator or issuer at the time of issuance, though this is the exception rather than the rule). Contactless streamlines issuance process Unlike typical proximity cards, however, contactless cards often arrive at the issuer’s location without the pre-encoded ID number. Each card is blank, awaiting input from the card issuing system to assign numbers and data to different fields or files on the chip. Most modern issuance systems have the ability to encode an array of common contactless chips “inline” during the card imaging process. Still, many contactless issuers prefer to order their cards pre-programmed. “The majority of (our) customers still order secure contactless cards pre-programmed with their access control application information,” says John Menzel, CEO of contactless reader manufacturer XceedID. “This is mainly due to the fact that they have always done it this way. “

Updating data on the card creates flexibility and saves money This fundamental difference between proximity and contactless technology has additional repercussions on system operation beyond initial issuance. During the lifecycle of a cardholder within an organization, there may be cause to change an ID number in an existing card or port the number from one card to another. With proximity cards neither of these options can be accomplished but contactless makes both easy and secure. “Since (most contactless) cards can be written to multiple times you can ‘re-program’ a smart card if you have a programmer with the appropriate keys to overwrite a particular sector,” says Mr. Menzel. This is a major advantage over prox technology, he stresses, citing that prox is “typically a one time write with no security.” Conclusions In prior articles we have examined: • How price is comparable between the prox and contactless cards and readers, • How a wide array of applications and services are supported with contactless, • How transition to contactless can be virtually seamless thanks to a new breed of multi-technology readers that support both technologies at the same time. This examination of the benefits that contactless technology provides over proximity in the issuance process should provide more food for thought as you consider when the time is right for your organization to migrate to contactless, the new standard in identification technology.


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One year later ... CBORD building value from Diebold acquisition

CR80News

Andy Williams Contributing Editor, AVISIAN Publications With The CBORD Group’s acquisition of Diebold‚s card systems a year old, the Ithaca, NY-based company now spans the range of colleges and universities--small, medium and now large campuses. To Bruce Lane, CBORD’s executive vice president, the acquisition was a perfect fit with CBORD’s strategic direction. “Finally the stars aligned to make this happen,” explains Mr. Lane. “I’d been staying in contact with my competitors at Diebold for many years and I kept after them on it.”

The $38 million transaction addressed a gap in CBORD’s product line by adding Diebold’s access control and security expertise. The purchase also involved Diebold’s Card System employees migrating to CBORD. Most of them did, a couple didn’t, said Mr. Lane. “There were a lot of great people at Diebold that we are now happy to have as part of the CBORD family.”

Proving to the market that the acquisition makes sense ... “Prior to the acquisition, CBORD had the largest installed base of campus card users in the industry,” said Mr. Lane. “Diebold had larger university customers and that provided us with the need to meet any size campus.” Besides its 650 colleges, mostly in Canada and the U.S., but also in South Africa, New Zealand and Australia, CBORD also has about 200 corporate accounts, including hospitals and companies like Sprint and Daimler Chrysler. CBORD serves between 6 and 7 million cardholders. It is also delving into community colleges. “We found some beginning synergies that benefited both customer bases,” says Mr. Lane. “Diebold had a very strong core competency in access control. The CS Gold access control product is highly optimized to meet the particular needs of colleges. The product has hundreds of access control installations in colleges. It’s a very powerful, defining product and we’re looking forward to bringing that to our Odyssey customers.”

14

Fall 2006

CBORD has spent much of the past year proving that the acquisition was good for both companies. “Anytime there’s a change in the players or the marketplace, it’s always reasonable to assume that schools or employees or suppliers are going to get a little nervous. There’s no way to deal with that other than to show it was a good combination,” said Mr. Lane. “Our goal is to make the combined companies as successful as they can be, and to make it viable over the long haul. We’ve worked really hard and made the investment to show the marketplace that it was a logical move.” For example, he said, CBORD has moved the CS Gold help desk into a new facility in Canton, Ohio.“We’ve also refurbished our training facility in Farmington, New York.” CS Gold is optimized for large institutions while “Odyssey has a sweet spot among smaller and medium-sized schools,” said Mr. Lane.


“The Gold system is highly desired by institutions that have an IT staff and where the operators are looking for the ability to customize all levels of software for their use. These colleges have the time and resources to get into the system. The Odyssey system accomplishes most of that through user-set parameters where you don’t have to employ a programmer to do it,” he added. Another difference between the two: Odyssey can use a Sybase ASA or Oracle database, while CS Gold is Oracle-based. “We found that when we were competitors there are customers who want a highly customizable system and others who want a very parameter-driven system,” Mr. Lane added. “(The two products) appeal to very different campus operations. They each have different system architectures. Now either type of customer can find a solution at CBORD.”

Interfaces and shared components

CR80News

Building an interface between CS Gold and CBORD’s signature Webfood online food ordering system, “was one of first things we did,” said Mr. Lane. Webfood, he said, is now installed in a number of CS Gold schools. CBORD, he said, also pioneered its campus card users’ ability to use industry-standard POS terminals developed by MICROS Systems. “They’re the largest hospitality POS provider in the world,” said Mr. Lane. “When I started working with them 20 years ago, they were a small company. What’s nice is that now we’re one of MICROS’ largest resellers in the world. That gives our customers better access to service and product enhancements.” He said Diebold had already begun to install MICROS as a better alternative to making POS terminals themselves.“So use of MICROS was a first, great similarity and point of synergy between the Gold and Odyssey systems.” He added: “For off-campus programs, a school often takes CBORD card readers and sticks them at off-campus merchants. The readers work off the university’s host. We have hundreds of schools that do that, but we are evolving a new off-campus merchant program, a whole different paradigm to make off campus card use a lot more possible, particularly from a cost perspective.” 16

Fall 2006

Integrating access control into the Odyssey platform CBORD is also working on integrating Diebold’s access control system into campuses currently using the Odyssey platform. Before acquiring Diebold, CBORD had relied on third-party systems, such as Best, Synergistics and Sensormatic to provide access control solutions to campuses. “Access control is different because you have to know how to deal with resident students, those on vacation, assigning students various levels of privilege,” said Mr. Lane. “Access control matrixes seem to be lot deeper for universities. They’re not a 9 to 5 operation. The matrix of privileges seems to be more complex for colleges and a lot of off-the-shelf access systems choke on that.” CBORD is nearly complete with interfacing Diebold’s CS Access, the original native access control part of CS Gold, to the Odyssey platform. However, CBORD will still support thirdparty access control products if the school doesn’t want to change. But with CS Access capability, CBORD will no longer have to pass on requests for a one-stop service that includes access control, as the

company had to do in the past. “We now have the industry’s best access control system that’s highly tuned to the campus world,” said Mr. Lane. “Some (access control) companies build their systems to work well in a corporate or factory setting, but CS Access is very attuned to the particular needs of the college students and administrators.” The CS Access portion is not being actively marketed yet.“The development work is done,” said Mr. Lane. “CS Access is battle-proven, Odyssey is battle- proven, so we hope to have it introduced within the next few months.”

The future ... Mr. Lane said he’s been very gratified with the acceptance of this transaction among CBORD’s university clients. “It seems to me the marketplace has accepted the work we’ve done and rewarded us with a number of new accounts,” he said. As to the future:“We have a lot of tricks up our sleeve and cool new things we’re going to be doing. We’ve doubled our development capability (and) we have no plans to do anything but grow. We’re very competitive and we’re very pleased our Gold and Odyssey products are widely accepted in the marketplace.”

Wisconsin Lutheran adds banking to card Dianne Cox Wisconsin Lutheran College Warrior OneCard Manager Based on student feedback from recent surveys we learned that the students of Wisconsin Lutheran College wanted the ability to use their card for purchases on—and off—campus. Through a partnership with U.S. Bank our students are now able to do that. Just a little over a year ago, we contacted our card vendor, General Meters and inquired on the feasibility of adding the banking functionality to our cards. General Meters gladly made the necessary changes to allow us to move forward. One of the most important steps was creating and encoding each of the new cards with a unique 16-digit ISO number. There was also a small amount of reprogramming that had to take place on our end. General Meters helped us facilitate both of these important steps. Our students now have the option to add ATM and point-of-sale debit features to their card simply by opening a student checking account with U.S. Bank. The new Warrior OneCard offers students a convenient, easy and safe way to make purchases and utilize campus services. Our students continue to have the card features they depend on, and now we are pleased to offer them the convenience and features that U.S. Bank has to offer.


Attracting faculty and staff to your campus card banking service Sure, students are a bank’s reason for its campus existence, but a more profitable client base includes the ones teaching the students ... as well as the university administrators and staff. But attracting professors and staff that already have a banking relationship is no easy task. Whitney Bright, vice president, Campus Banking, for U.S. Bank, said that while its programs are “tailored to the students rather than faculty and staff in terms of our ability to offer them services, they’re probably twice as profitable as a (typical) student account.” Put another way: “If we can grow faculty and staff, we don’t have to get as many students to justify the expense (of the branch),” she said. But how do you attract faculty and staff away from their existing banks?

CR80News

“We’re looking at how to (better) penetrate that market, but we haven’t yet had great success,” said Ms. Bright. A method that works with new employees is to grab them before they have a chance to select another bank. “Employee orientation is a great way to get them,” says Ms. Bright. But the bank has to have a good in with the human resources department to make that happen. Ms. Bright reports that some universities have let U.S. Bank be part of the employee orientation program. For existing employees, Ms. Bright suggests that direct deposit service can present an opportunity. “One of things we did with Marquette is help them with their direct deposit campaign,” said Ms. Bright. “Most schools have some kind of direct deposit. Of course, it does help to have a branch on campus. Then it’s more of a push to bank with us and to have direct deposit with us,” she adds. At Milwaukee, Wisconsin-based Marquette, “everyone who signed up for direct deposit, received $10. The university appreciated our help in supporting (their effort to) increase number of faculty on direct deposit. If one signed up for a new account, the person got $5 and if he also signed up for direct deposit, the total was $15,” said Ms. Bright. “(At the on campus branch), we can keep a supply of direct deposit authorization forms ... which helps the university facilitate that process.” 18

Fall 2006

Finally, there’s always the convenience factor to consider. In many, it’s easier to walk across campus to make that deposit, cash that check, or use an ATM than it is to leave campus to conduct routine banking business. And if the faculty or staff member has an account with the on-campus bank, he or she can save money as well as time by avoiding ATM fees. The key to penetrating the faculty and staff market seems to a combination of patience, persistence, and creativity. Encourage your bank partner to keep the out in front of the audience and continually refine the message stressing a range of benefits. Not every benefit (e.g. convenience, cost savings, direct deposit) will resonate with every employee ... but it is likely that at least one will. The trick is finding that sweet spot for each individual.


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SmartCentric and QI team to bring wireless and contactless to campus cards Andy Williams Contributing Editor, AVISIAN Publications Ireland-based smart card solutions provider SmartCentric Technologies has chosen the partnership route to add more functions to the services it offers clients. Its recent agreement with Texas-based QI Systems is intended to provide SmartCentric’s university and corporate campuses with new unattended card readers capable of handling both contact and contactless smart cards. SmartCentric’s focus is on secure payments and transactions and multi-application smart card systems. Its flagship SmartCity is a multiapplication smart card-based system with varied uses including stored

value, loyalty, gift cards, logical and physical access, biometrics, car parking and ticketing. SmartCity has been installed at more than 90 sites worldwide with some five million cards issued at colleges, government offices, military establishments, banks, stadiums, oil companies and more. QI Systems, which develops and markets contact and contactless chipbased card payment and tracking solutions, previously partnered with USA Today newspaper to allow students to use their ID cards to obtain free papers from on-campus vending machines. QI Systems’ products and core competencies also include smart card and storedvalue systems, security protocols, data communication software design and hardware manufacture.

CR80News

Under the new agreement, SmartCentric’s SmartCity platform will incorporate QI System’s unattended point-of-sale card solutions for laundry equipment, vending machines, printers, copiers and parking equipment, using both contact and contactless cards. “The strategy for SmartCentric is to offer our customers a real choice from contact to contactless technology while providing unattended devices, such as vending and laundry and allowing for remote collection of transaction data,” said Kieran Timmins, CEO of SmartCentric.

Enabling offline readers to operate online for transaction collection One of the first out-of-the-box benefits from the agreement will allow SmartCentric customers to collect transactions remotely for unattended devices rather than the manual collection process they currently use. “With QI we’ll be able to hook up these laundry and vending machines with WiFi or TCP/IP and allow the card office to collect all that information from these machines,” said Mr. Timmins. “It helps us solve the issue of transaction collection and hot-listing of lost or stolen cards by providing wireless collection methods.” 20

Fall 2006


“We’re probably the only ones in the market to offer contact and contactless simultaneously ... and a migration path between the two card technologies.” – Kieran Timmins, SmartCentric Technologies

For example, he added: “If you take an existing Coke machine; currently the student will put in his card and the transaction is recorded in the reader. In order for the card office to capture that transaction, they have to go out to that Coke machine and insert a special card that unloads the transactions onto that card, which is then inserted into a PC. The data is then unloaded and processed. Whether it is a magnetic strip system or a smart card system these type of machines tend to be offline, which means the data has to be collected manually,” added Mr. Timmins. With the SmartCity and QI system in place, the data can now be uploaded remotely.

Mr. Garman added: “I think you will see an acceleration towards the use of contactless technology in the next year or so. SmartCentric is well positioned to capitalize on the growing interest in advanced card technology.”

Launching in Florida in early 2007 The first SmartCentric customer to see the benefits of this new agreement with QI is expected to be Nova Southeastern University (Fort Lauderdale, Fla.) in early 2007, said Mr. Timmins. SmartCentric, in conjunction with its partner, Siemens Corp., is in the process of replacing Nova’s current system with the SmartCity One Card., complete with both contact and contactless technologies. Its first applications will include student, faculty, and staff ID cards, cashless purchases at POS, vending machines, pay for print, meal plans, a web-based card revalue and card holder portal, and access control.

“What we will have here is all the convenience of an online system and all the convenience of an offline system with all the advantages of both,” added Mr. Timmins.

But Mr. Timmins quickly adds, “this solution (the QI agreement) is not being built for one institution. It will be part of our generic operation available to new and existing customers.” And it’s not just for U.S. customers either. “This will be an international operation,” said Mr. Timmins.

Adding the flexibility of contactless technology to the platform Another advantage with the agreement is that it will open up SmartCentric to more fully utilize both contact and contactless technologies, supporting customers in both venues. “We’re probably the only ones in the market to offer contact and contactless, simultaneously and a migration path between the two card technologies,” said Mr. Timmins. “With QI, we’ll be able to offer the choice of technologies in a manner colleges haven’t seen before. What we’re proposing is to be able to seamlessly migrate between the two. We will be able to take a customer with contact cards and be able to seamlessly inject new technology, contactless. As people come into the system they would be issued the new cards...”

In fact, adds Mr. Garman, “ we already provide Parcxmart readers through Cale Parking Systems. They’re one of our largest customers.” The Parcxmart solution is a parking and local merchant smart card payment system that utilizes SmartCentric’s SmartCity platform.

Conclusions “This is certainly an extension of what we’ve been doing; a logical extension of where we want to go,” said Mr. Garman, “and SmartCentric shares our long-term vision. We’re glad to be able to partner with a company likes SmartCentric because we both see the market moving in the same direction. This alliance capitalizes on our strength and allows us to extend our business model; bringing our high-level expertise into a broader marketplace.”

Fall 2006

21

CR80News

“(We will) supply Smart Centric with a product that provides convenience and speed while reducing their clients’ operational cost,” said Steven R. Garman, President and CEO of QI Systems Inc. “By linking a lot of unattended devices in the same system, it’s much easier for the operator to control and collect the data. What Kieran is providing (to his customers) is a major step towards the campus of the future, where they want to be able to quickly and conveniently gather information and settle accounts.”


Students expecting more from their financial providers Fee-free checking, online banking, and more have become standard fare Students, like other customers, are expecting more and more services from their financial institution. And banks are working hard to find attractive offerings and competitive pricing to meet these new demands. Recent research and studies of student banking habits lend insight into this trend.

Don’t charge me for my checking account Fee-free checking is one method that banks, those on campus or in a college community, are using to attract more student customers.

fourth birthday. Another, the article adds, automatically reverts its student account to a direct deposit account after five years. Some banks have no minimum deposit requirements, others, $50 to $100; others have no minimum balance mandates either, according to the Retail Banker International article. One bank offers a fee-free checking account for the first five years as long as there is at least one monthly direct deposit or if the student’s parents have an account there.

Online banking is becoming a “must”

CR80News

An article in last year’s Retail Banker International on student banking in the U.S. noted that banks “are turning to fee-free product offerings” to attract more student customers. Some of the larger banks provide free checking services to students only if their parents are already customers. Upon graduation, the student accounts often revert to standard accounts. For example, the article notes that one bank rolls a student’s account over to a basic banking account on the individual’s twenty-

Brick and mortar campus branch banks aren’t necessarily the only option for students. Online banking is another viable choice and, according to a recent J.D. Power and Associates study, many bank customers prefer online banking to face-to-face interaction with a teller. Quoting transaction times that are nearly three times faster than physically visiting a bank, the Power report, 2006 Retail Banking Satisfaction Study, concluded that online banking is the preferred transaction method among many customers. This first-ever study by J.D. Power focused on performance among the nation’s largest banks, analyzing the retail banking experience from two points of view – customer satisfaction and customer commitment. It’s no surprise that a customer’s interaction with a bank has the greatest impact on his satisfaction level. Comparing online and inperson transactions, the study found that the average online transaction takes just 2.8 minutes to complete, compared to 7.7 minutes of combined wait and transaction time with a branch teller. Online transactions received the highest marks in terms of satisfaction, even though this type of transaction is still conducted less frequently than the traditional in-person branch transactions. Online banking also presents “a clear opportunity for banks to differentiate themselves from potential customers,” remarked Jeff Taylor, director of the banking practice at J.D. Power

22

Fall 2006

when the study was released. It used to be that free checking helped attract new customers, but 90% of the 12,904 households surveyed for the J.D. Power study reported already having that benefit. A significant majority, 94%, received free online banking and free debit cards. The second part of the study, commitment, was designed to give banks a better picture of a customer’s revenue potential. Again, customer satisfaction was a major aspect influencing customer commitment to the bank, the study suggests. For example, customers with commitment levels in the top 25% use an average of 3.3 banking services, compared to 2.5 for those in the bottom 25%. Overall, the retail banking industry enjoys a commitment level of 28%, compared to 13%, on average, in other industries measured by J.D. Power.

A host of other services help differentiate one bank’s student offering from another There are other carrots banks are using to lure students. One enticement is a fee-free credit card with low interest rates. At least one bank rewards students with redeemable points on their credit card if they receive good grades. However, the same bank requires an annual student income of at least $8,000. One bank used overdraft protection to reverse its declining student accounts. It offered an emergency use card good for a one-time refund of an insufficient funds charge, a stop payment fee or a foreign ATM charge. Banks are also getting quite creative in their attempts to attract students. Other programs include linking the bank’s web site to its scholarship program, offering free $1,000 financial aid drawings, tying debit cards to separate accounts for on- and off-campus use and even offering free downloads from iTunes if the student opens an account within a certain time period. It seems that creativity may key to attracting student accounts but quality service and competitive pricing is still required to keep them as clients.


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Number of campus card bank partnerships continues to rise Annual CR80News survey suggests steady growth, more dominance among major players Chris Corum, Executive Editor, AVISIAN Publications In early 2003 CR80News editors conducted the first-ever survey of campus card programs with financial institution partnerships. The goal of that initial study was to determine the extent to which colleges and universities were, via their official student ID card, offering banking services from accredited financial institutions. That initial study identified 47 partnerships among our survey participants and has served as a benchmark enabling an annual review of changes and a means to extrapolate basic trends. For our 2006 study, we asked representatives of the financial institutions known to our editors as active providers of these services to update their client lists with both new and expired partnerships. The seven participating financial institutions reported 115 campus partnerships.

CR80News

So what have we learned over the years? We have been adding banking partnerships at a fairly steady rate of about 17 per year since the study began four years ago. Interestingly, however, the quantity has not climbed as the base of actual partnerships has grown. Thus the percentage growth rate has actually declined over the years of study. What can we conclude from this? Perhaps it suggests that there is little correlation between one partnership and addition of the next. Or is it possible that the growth is based on some fixed resource such as the banks’ capability to spread the word and convince campuses to go from concept, through RFP, to implementation?

Last year only one partnership ended among our survey participants. This astonishing feat was topped this year as not a single partnership ended between the two survey dates. Certainly this is in no small part a testament to the benefits campuses receive from these relationships. It is also likely, however, suggestive of the difficulties that can arise in changing banking partners. The lesson perhaps is leap … but look carefully at your available landing spots.

Campus card bank partnerships: ‘05 -’06 comparison Bank

‘05 total

’06 total

U.S. Bank

24

28

17%

Higher One

20

23

15%

Wells Fargo

18

22

22%

Wachovia

13

15

15%

PNC Bank

11

11

0%

TCF Bank

8

10

25%

Commerce

3

4

33%

Suntrust

2

2

0%

99

115

16%

Total

% inc.

The importance of the footprint One general note … maturation among early and mid-stage campus adopters should be expected as many campuses have three or more years of partnership under their belts. Also there is a new range of alternative products (e.g. Higher One’s Refund cards, PNC Bank’s University Light program) gaining momentum.

A bank’s footprint – the states that it serves via its network of branches – is key to understanding these survey results … and it is crucial to understanding your campus card program’s potential suitors when it comes to banking partners. Banks entertain campus card partnerships within their footprint. So your location determines the banks eligible to respond to your RFP.

2006 findings … Once again in 2006, U.S. Bank tops the list with a total of 28 campus partnerships, nearly 25% of the total partnerships from the survey. Higher One and Wells Fargo are neck-and-neck for the number two position with 23 and 22 partnerships respectively. These three institutions are certainly the dominant providers today, accounting for more than 63% of our list’s partnerships. But three other institutions have extremely strong positions in their respective footprints. Wachovia serves 15 partners in the Southeast; TCF serves 10 campuses in the Great Lakes region; and PNC Bank serves 11 clients predominately in Pennsylvania. 24

Fall 2006

Here’s an example of how this works. With certain exceptions, the West Coast is Wells Fargo territory when it comes to banking partnerships; the Southeast is dominated by Wachovia; and the Midwest is U.S. Bank country -- though it faces stiff competition in states where TCF Bank’s footprint overlaps (e.g. Minnesota, Illinois, Indiana). Higher One is the exception to this rule. Because Higher One does not operate or rely on a branch network, they will offer their campus card bank partner services in any state. If you want a branch you won’t get it from Higher One, but you can get a portfolio of card-based and online services that has landed the company in the number two spot on our list of total partnerships.


CAMPUS

BANK

ST

CAMPUS

BANK

ST

University of Houston

Higher One

TX

Indiana University of Pennsylvania

PNC Bank

PA

University of Wisconsin -Stout

Higher One

WI

Edinboro University of Pennsylvania

PNC Bank

PA

Sam Houston State University

Higher One

TX

Seton Hall University

PNC Bank

NJ

Pace University

Higher One

NY

University of Scranton

PNC Bank

PA

Eastern MIchigan University

Higher One

MI

Carnegie Mellon University

PNC Bank

PA

Liberty University

Higher One

VA

University of Minnesota

TCF Bank

MN

University of Wisconsin - Parkside

Higher One

WI

Northern Illinois University

TCF Bank

IL

Angelo State University

Higher One

TX

Saginaw Valley State University

TCF Bank

MI

Marshall University

Higher One

WV

St. Cloud State University

TCF Bank

MN

University of Wisconsin - Lacrosse

Higher One

WI

University of Michigan

TCF Bank

MI

Lamar University

Higher One

TX

Minnesota State University, Mankato

TCF Bank

MN

Portland State University

Higher One

OR

DePaul University

TCF Bank

IL

Columbus State University

Higher One

GA

Milwaukee Area Technical College

TCF Bank

WI

Southern Oregon University

Higher One

OR

St. Xavier University

TCF Bank

IL

McLennan Community College

Higher One

TX

Northern Michigan University

TCF Bank

MI

Texas State Technical College - Waco

Higher One

TX

University of Florida

Wachovia

FL

Texas State Technical College - West Texas

Higher One

TX

Clayton College and State University

Wachovia

GA

Texas State Technical College - Marshall

Higher One

TX

Clark Atlanta University

Wachovia

GA

Texas State Technical College - Harlington

Higher One

TX

Georgia Perimeter College

Wachovia

GA

Daytona Beach Community College

Higher One

FL

Mercer University

Wachovia

GA

Lynn University

Higher One

FL

University of North Carolina–Chapel Hill

Wachovia

NC

Northwest Shoals Community College

Higher One

AL

University of North Carolina–Greensboro

Wachovia

NC

Wittenberg University

Higher One

OH

North Carolina A&T State University

Wachovia

NC

Xavier University

U.S. Bank

OH

NC State University

Wachovia

NC

Iowa State University

U.S. Bank

IA

Elon University

Wachovia

NC

College of Mt. St. Joseph

U.S. Bank

OH

Guilford College

Wachovia

NC

Minnesota State University - Moorhead

U.S. Bank

MN

Virginia Commonwealth University

Wachovia

VA

University of Akron

U.S. Bank

OH

Philadelphia College of Osteopathic Medicine

Wachovia

VA

St. Louis University

U.S. Bank

MO

Villanova University

Wachovia

VA

University of Louisville

U.S. Bank

KY

Fayetteville State University

Wachovia

NC

Drury University

U.S. Bank

MO

North Carolina Central University

Wachovia

NC

Morehead State University

U.S. Bank

KY

Midwestern State University

Wells Fargo

TX

Northwest Missouri State University

U.S. Bank

MO

University of Arizona

Wells Fargo

AZ

Henderson State University

U.S. Bank

AR

Arizona State University

Wells Fargo

AZ

San Diego State University

U.S. Bank

CA

Mesa State College

Wells Fargo

CO

Bellarmine University

U.S. Bank

KY

University of Northern Colorado

Wells Fargo

CO

Creighton University

U.S. Bank

NE

University of Nebraska, Kearney

Wells Fargo

NE

Ouachita Baptist University

U.S. Bank

AR

University of Nebraska, Lincoln

Wells Fargo

NE

Gonzaga University

U.S. Bank

WA

University of Texas, Arlington

Wells Fargo

TX

John Carroll University

U.S. Bank

OH

University of Texas, Brownsville

Wells Fargo

TX

Northwestern University

U.S. Bank

IL

University of Texas, Dallas

Wells Fargo

TX

Northern Kentucky University

U.S. Bank

KY

University of North Texas

Wells Fargo

TX

Missouri Western State University

U.S. Bank

MO

University of Texas, El Paso

Wells Fargo

TX

North Dakota State University

U.S. Bank

ND

Texas A&M University, College Station

Wells Fargo

TX

University of Wisconsin - Eau Claire

U.S. Bank

WI

Texas A&M University, Corpus Christie

Wells Fargo

TX

University of Wisconsin - Oshkosh

U.S. Bank

WI

Texas State University, San Marcos

Wells Fargo

TX

University of Wisconsin - Stevens Point

U.S. Bank

WI

Baylor University

Wells Fargo

TX

Austin Peay State University

U.S. Bank

TN

Texas Tech University

Wells Fargo

TX

Case Western Reserve University

U.S. Bank

OH

El Paso Community College

Wells Fargo

TX

Wisconsin Lutheran College

U.S. Bank

WI

San Francisco State University

Wells Fargo

CA

Truman State University

U.S. Bank

MO

New Mexico State University

Wells Fargo

NM

Duquesne University

PNC Bank

PA

University of Nevada, Reno

Wells Fargo

NV

University of Pennsylvania

PNC Bank

PA

California State University, Los Angeles

Wells Fargo

CA

Robert Morris University

PNC Bank

PA

The University of Kansas

Commerce

KS

University of Pittsburgh

PNC Bank

PA

Pittsburg State University

Commerce

KS

Penn State University

PNC Bank

PA

Fort Hays State Univ

Commerce

KS

Temple University

PNC Bank

PA

Wichita State Univ

Commerce

KS


ne .S .B an k W ac ho vi a W el ls Fa rg TC o F Ba nk PN C Ba nk C om m er ce To ta l

rO

U

he ig Alabama

x

Alaska

x

Arizona

x

x

Changes in the services offered to campuses

Arkansas

x

x

California

x

x

x

An important trend that has emerged in recent years is the diversification of the partnership options offered to campuses. Several of our survey participants stressed that they were partnering with campuses in ways that did not include a position on the official campus card. These relationships did not fit our survey’s strict definition of campus card partnerships and thus were not included in the results. Nevertheless, these different partnerships suggest an important trend.

Colorado

x

x

x

Connecticut

x

x

Delaware

x

x

Florida

x

x

2

Georgia

x

x

2

• Higher One has 27 college and universities using its refund services outside of the campus card. At these institutions, a separate account and debit card is issued to participating students. Financial aid and other payments from the campus are deposited directly to this account saving money for the institution and improving convenience for the cardholder. • PNC Bank has four campuses partnering through its University Banking Light program. This offering has no link to the campus ID card but does enable a campus to provide a financial account solution tailored to the needs of students.

CR80News

States served by campus card financial partners

H

Following this investigation of footprints further, we examined the states served by our survey respondents. Nearly 50% of all states have three surveyed banks eligible to offer partnerships. Roughly 20% have two potential partners and just less than 20% fall into the footprint of just one survey participant. Only a very small number of states (seven) find four or five banks eligible to compete for their business.

Hawaii

x

Idaho

x

x

2

x

2

x

3 2 x

4 x

2 x

x

3

x

x

x

x

Indiana

x

x

x

x

Iowa

x

x

x

Kansas

x

x

Kentucky

x

x

Louisiana

x x

Maryland

x

Mass,

x

Michigan

x

Minnesota

x

3

1 x

Illinois

Maine

4

x x

5 5 3

x x

3 3 1 1

x

x

3 1

x

x

x

3

x

x

4

Mississippi

x

Missouri

x

x

Montana

x

x

x

3

Nebraska

x

x

x

3

Nevada

x

x

x

3

What lies ahead?

New Hamp.

x

New Jersey

x

More partnership announcements should be coming soon as several survey participants indicated that they were currently negotiating final contracts with new clients.

New Mexico

x

New York

x

North Car.

x

North Dak.

x

x

x

Ohio

x

x

x

Oklahoma

x

Oregon

x

Penn.

x

Rhode Isl.

x

South Car.

x

South Dak.

x

x

Tennessee

x

x

Texas

x

Utah

x

Vermont

x

• U.S. Bank has an on campus branch at five institutions at which they do not have an accompanying campus card partnership.

It is important to remember that our survey participants include the active seekers of campus card partnerships known to our editors at the time of data collection. There are numerous campuses served by a local financial partner and there are certain to be other regional banks providing services to one or more campuses that were not identified for the study. Additionally, just because a financial institution has not partnered with a campus in the past does not mean that it will not find interest in your campus’ RFP. If you are seeking a banking partner, begin by understanding which banks from this active partner list are eligible to respond to your bid. Investigate their typical offering. Talk to other banks that are active in your community to gauge their interest. Remember, your best partner may not be an active provider from our survey. Most importantly, know what you want from your partnership and understand what banks are able and willing to provide it. This is the key to getting your program the partner it deserves. 26

Fall 2006

Virginia

x

Washington

x

x

2 x

3

1 x

x

3

x

2 x

2

x

2 3 x

4 1

x

x

3 x

x

3 1

x

x x

2

x

3 x

3

x

3

x

3 1 x

x

x

W. Virginia

x

Wisconsin

x

x

x

Wyoming

x

x

x

50

24

23

x

3 3 1

x

4 3

16

6

8

3


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Securely handling credit card transactions earns Blackboard kudos Card systems at colleges and universities have typically centered around on-campus commerce and access. But today, they are extending their reach off-campus and opening their on-campus services to more commerce-savvy students, faculty, and staff. Credit card use has continually increased on college and university campuses, specifically in conjunction with their transaction systems. The companies provisioning campus card program technologies, as well as the universities, find themselves facing greater responsibilities and, more importantly, liabilities.

CR80News

In Blackboard’s case, it meant assuring the 400-plus colleges utilizing the company’s Commerce Suite products that cashless transactions – campus card and credit card -- are handled in a secure fashion. That meant making sure Blackboard’s Payment Gateway has been certified as compliant with major card association security programs, such as Visa CISP (Cardholder Information Security Program), MasterCard SDP (Site Data Protection) program, Discover’s DISC (Discover Information Security and Compliance) program and American Express’ Data Security Operating Policies, said Blackboard’s Tom Bell, vice president, industry relations. “These programs utilize the Payment Card Industry (PCI) data security standard as the foundation to assess third-party processors,” he added.“This standard ensures that all thirdparty processes safely and securely store, process, and transmit sensitive credit card data across their network infrastructures. This is the second year that Blackboard has achieved this milestone in the payment card industry.” In short, universities “want to make sure the partner they’re dealing with is compliant and understands the issues,” said Mr. Bell. “We’re very serious about this.” As more campuses move to a system that deals with people when they’re on- or off-campus, and even online, “we see more issues with dealing with e-commerce or adding funds to accounts ... different ways of paying for things. 28

Fall 2006

Blackboard has to provide a diverse choice. Years ago, we didn’t have to worry about this,” said Mr. Bell. “While many third-party processors are not compliant with the PCI standard, Blackboard proactively met this challenge in early 2004 to ensure all credit card transactions originating from our Web Interfaced Card Management Applications were handled in the most secure way possible,” says Mr. Bell. “Our Payment Gateway is a powerful and flexible channel for conducting cardholder-not-present electronic transactions.”

What are the certification benefits? “Every member along the electronic payment processing channel -- from card association (Visa, MasterCard, American Express, Discover) to acquirer to processor to payment gateways down to the merchant level must comply with these standards in order to accept credit card transactions online,” said Mr. Bell. “Our clients must prove to their acquirers that any processor they are affiliated with is complying with the PCI standards. In short, university credit card acquirers must ensure that the university’s credit card processor(s) are complying with the PCI directives in order to maintain compliancy with their higherups, the card associations. In addition to embracing the required security standards, Blackboard provides our clients with a level of confidence when they negotiate discount rates with their Merchant Services Provider.”

Added Russ Palay, Blackboard’s director of e-business and electronic payments: “Visa, MasterCard, etc. mandated it throughout the entire chain ... and since we are a third party processor for credit card transactions, we have a responsibility to make sure the credit card data that is transmitted and processed adheres to the card association compliance programs that are bundled under PCI.” “What’s driving this is customer demand,” said Ron Dinwiddie, senior director of product development for Blackboard. “Pubic and private colleges and Universities are issuing mandates requiring the highest levels of security when accepting credit cards as a form of tender. We will continue providing our clients with the highest levels of security to protect them and their constituents.”


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Students in San Diego build biometric vending machine Andy Williams Contributing Editor, AVISIAN Publications A group of grad students at the University of California, San Diego (UCSD) are in the process of creating what one of the students calls the “most over-designed soda machine in the world.” Right now, the machine has attached to it a barcode scanner, a fingerprint reader, and a web cam for facial recognition. Want a Coke? Stick your thumb on the reader so the machine recognizes you as having an account, take out the drink, then walk way, never having had to reach into your pocket for change.

CR80News

The project, called SodaVision (sodavision. com), is the brainchild of UCSD engineering associate professor Stefan Savage. “I came up with the idea in June, 2005, but we didn’t get the soda machine until later that year. I had some discretionary money, so I bought a generic machine,” he said. “The biggest problem was putting through a purchase order for a ‘biometric soda machine.’ I got a few weird looks. I never actually gave the project the name. That came from the students.” He said the computer science department at UCSD has had a soda and snack cooperative, nicknamed Chez Bob by the students, for some 20 years. “You would put in 50 cents and take out a coke. About 10 years ago, someone came up with the idea that you could log into a computer, list the amount of money you’re depositing into the (Chez Bob) account; then when you buy a coke, log that in against your account,” said Dr. Savage. “I thought, ‘Here we are a leading computer science program, we should have something better.’ So, I offered it as a project for the grad students.” What SodaVision ended up becoming-and it’s still a work in progress-is what second year computer science grad student Tom Duerig calls “the most over-designed soda machine in the world.” “I wanted it to be incredibly easy to use,” said Dr. Savage. “I bought the soda machine and a touch screen and the fingerprint reader, a 30

Fall 2006

Fujitsu MBF 200. We looked for a fingerprint reader that would work with our software and with Linux. Now they (about 10 students) have actually torn (the fingerprint reader) apart and rewired it to work with the machine.” The students built the interface. “I had one guy design a touchscreen that looks like the one used in Star Trek. Somewhere along the way they added a camera and another group added a 2D laser barcode scanner,” said Dr. Savage. The camera, a web cam, is for facial recognition, the next big step in the technology-heavy machine. “The students even wrote the software to recognize the images,” he added. “Our goal is to have the soda machine simply recognize who is standing in front of it when a soda is vended or money is inserted to charge or deposit into the appropriate account. And thus was born SodaVision,” wrote Mr. Duerig in a paper explaining the project. As he further pointed out in the same paper: The camera “is trained on users faces, which are added to the repository. Recognition requires detecting a face, morphing the face, running preprocessing on the face, looking up the face in the repository, running an election over many frames, and finally logging in the user with the most votes in the election.” The brain inside SodaVision is a small computer designed for cars. It is stored inside the soda machine and is equipped with an Intel Celeron 2GHz processor with 512MB of RAM. The computer fit the students’ needs in that “it was very small, slow, quiet, and didn’t produce a lot of heat,” explained the 23-year-old Mr. Duerig. “We briefly considered putting a quad CPU 1U server in there as that would have fit, but we decided against it for heat reasons.” “The students have been entirely cooperative in this project. It has created a tremendous esprit de corps, a lot of energy and excitement,” said Dr. Savage.

The machine is available to grad students, faculty and staff in a locked room accessible via a card reader on the door. “The only way to purchase soda is when you’re logged in (currently via the fingerprint reader). You can also deposit money into your account (through a slot attached to the machine),” said Mr. Duerig. When a user vends a soda, his/her account is automatically debited. A candy bar or other snack item is scanned with the barcode reader and charged against the user’s account. Right now, the facial recognition part of SodaVision is carrying an 80% accuracy rate. “We’re shooting for 95% accuracy.” Eventually, the plan is for “dual recognition,” added Mr. Duerig. You sign in with your thumbprint, and then go for facial recognition. But until we hit the magic 95% accuracy, it isn’t integrated with the payment/purchase system,” he added. “I suspect we’ll hit that mark at the end of this summer for the unveiling of the project.” While the camera is there primarily for humans, it can be used for other things as well. For example, said Mr. Duerig, “We’re looking at `facial’ recognition for bananas because they don’t have barcodes.” During the summer, SodaVision sees 20 to 50 users a day, but during the fall usage picks up. “In the fall I get about 10 emails for every five minutes the system is acting weird,” said Mr. Duerig.


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CR80News Fall 2006  

Exploring the utilization of identification technologies on college and university, K-12 and corporate campuses