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 Operated Clemson – 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 students (including 250 graduate students) 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 - 74 Clemson – 69 How did this slide get in here???

Clemson – Out Source

Clemson University

Brief History –Griffin/Val-Dine, Card Office –Meal Plans, Declining Balance, Laundry, Vending, Copy, VTS –UnipriNT, OLCO, Re-card, Vending expansion, IP Devices, Office Automation –Off Campus

Current ID Card

Declining Balance Accounts Paw 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 Deposits since Launch 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 Team 4 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 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 Director Tiger 1 Card Services Student Affairs Clemson University Janet Cooper Manager Phoenix Card Services Elon University

Thank You! William McGee Director Tiger 1 Card Services Student Affairs Clemson University