OFF-CAMPUS Self OP vs. Out Source

Elon University and

Clemson University

Session Focus• Educate

– As always the big QUESTION. How will this impact my card program and the university?

• Innovate– Off-campus has been a great success at both

schools. We will look at the two different approaches.

• Everywhere– Schools all over the country are developing off-

campus programs. If you have not then WHY?– Here are a few facts that hopefully will help you

move forward in starting a program or at least answer a few questions about the difference.

SELF OP or OUT SOURCE ?

Elon – Self OperatedClemson – Out Sourced

(BbOne)

• What is the difference?• Is one way really better?• Is it just a matter of choice?

Off-Campus Program Benefits

University• Generate revenue from off-campus

sales• Increase depositing levels and

interest float• Offer an enhanced student service• Enhance town-gown relations• Maximize the investment in your

transaction system

Off-Campus Program Benefits

Parents & Students• Safe, secure and convenient

payment platform• School-endorsed program including

approved merchants• Private local network• Valuable student budgeting tool

Off-Campus Program Benefits

Merchants• Access to proprietary funds,

otherwise not available to merchants• Access to official university channels

such as card program web sites and deposit mailers

• On-campus promotion

Elon – Self Op

Elon Fast Facts

• A Premier Private University located in central North Carolina.

• 4950 students (including 250 graduate students).

• 1000 full and part-time faculty and staff

• 57 % of students live on campus• Male/female ratio: 39%/61%

The Phoenix Card

• Implemented Fall 2000 – 65 readers

• Currently 213 readers• Deposits

– ’00-’01 $500,000– ’05-’06 (est) $2,100,000

Phoenix Card Off-Campus Program• Implemented in March 2002 with 4

merchants• Currently have 37 merchants• Sales for ’03-’04 for 23 merchants

were $527,000 (deposits were $2,000,000)

• Sales for ’04-’05 were $652,683 (deposits were $2,085,000)

Participating Merchants

Why choose Self Op?• Easily expands the purchasing utility of the

university ID card to off-campus vendors with few additional university resources.

• Lower commission for merchants.• Merchants are paid bi-monthly which

produces interest revenue for university.• Able to provide quick response for service.• Commission stays at university.

Self Op Team• Manager of Phoenix Card Services –

recruits merchants, monitors program performance, manages results and executes program components. Provides marketing to merchants and students.

• Phoenix Card Technician – terminal set-up and support.

• Bookkeeper – payments to merchants bi-monthly

Merchant Management• Provide training to merchants on

terminal use and procedures.• Advise merchants on best ways to

market their business to students.• Audit receipts of merchants that sell

alcohol to assure compliance with 50% alcohol – 50% food sales.

Men’s Basketball

Elon - 74Clemson – 69

How did this slide get in here???

Clemson – Out Source

Clemson University

Brief History• - 1988

– Griffin/Val-Dine, Card Office

• 1988-1999– Meal Plans, Declining Balance, Laundry,

Vending, Copy, VTS

• 1999-2004– UnipriNT, OLCO, Re-card, Vending expansion, IP

Devices, Office Automation

• 2004- 2005– Off Campus

Current ID Card

Declining Balance AccountsPaw Point• 3,500 active

accounts• Nearly $1.5 million

sales in 2005• ONLY on campus

dining locations• Deposit funds by

Phone, in Person, by Mail.

TigerStripe• 17,000 active

accounts• Over $6.8 million

sales in 2005• Accepted at ALL

locations• Deposit funds by Web,

by Phone, in Person, by Mail, by VTS

Impact to Depositssince Launch

0%

5%

10%

15%

20%

25%

30%

35%

Fall 04 Spring 05 Fall 05

31% Increase to Deposits from 2004 to 2005

One Card – Multiple Uses

• Official Clemson University ID• Meal Plan• Library• Access Control• Campus Recreation• Athletic Tickets• Declining Balance

Why choose BbOne?• Easily expands the purchasing utility of the

university ID card to off-campus vendors with no additional university resources

• Produces revenue while seamlessly integrating with the Blackboard Transaction System

• Utilizes existing campus discretionary accounts• Manages merchant recruitment, terminal

deployment, funds settlement, and merchant support

• Provides marketing and account management resources dedicated to maximizing program performance

Expert marketing of university card programs

Provides fast, professional terminal services and back-end merchant

support

Recruits merchants, monitors program performance, manages results and executes program

components

BbOne Account Team4

Program Manager

Operations Support

Marketing Manager

Merchant Management

• Merchant research & recruitment

• Terminal Set-up & Support

• In-store signage• Alcohol, tobacco,

firearms, or obscene materials prohibited

• Target Merchant Fees

How Does BbOne Work?

Dial

1 2 3

4

1. Customer presents University ID for payment; Merchant swipes card and enters sale amount

2. Terminal dials University Transaction System for authorization

3. Host authorizes transactions and adjusts account balance

4. Transaction approval/decline returned to the terminal

5. Terminal batches transactions for settlement

5

BbOne Marketing Services• Clients can leverage our marketing

expertise and economies of scale.• Geared toward the core strategic goals of:

– Increasing cardholder deposits and usage– Educating cardholders– Building a card program brand

• Blackboard provides strategic development and creative support of collateral such as: – Pre-term deposit mailings, card program

brochures, flyers, and card office signage

Out Source - In Summary

• BbOne is revenue generating• BbOne is easy to implement• BbOne has the program management

and marketing experience to help grow your overall card program, including on-campus spending and dining

• BbOne provides parents the level of control they desire and students the flexibility they need

Acknowledgments

• BbOne• Blackboard• Jai Hokimi• Dan Gretz• Clemson University• Elon University

Thank You!William McGee

DirectorTiger 1 Card

ServicesStudent Affairs

Clemson Universitybmcgee@clemson.edu

Janet CooperManager

Phoenix Card Services

Elon Universitycooperj@elon.edu