1. Ski Clubs and E-Commerce
Steve Olson, Chief Technology Officer,
Strategic Growth Solutions
Balboa Ski and Sports Club, Orange Council
Is this something your members want ?
How does it work ?
What does it take to set this up ?
What does it take to run on a day-to-day basis ?
What does it cost ?
What are the benefits ?
What are the negative points ?

2. Is this something your members want ?
Survey your members
Balboa Ski and Sports Club determined that 15% of the revenue was already being charged via credit card over the phone.
Members said they might like to use their credit cards for events and trips if it was secure and easy.
Often times when registering for local trips or events late, checks do not get picked-up and recorded quickly enough for the event leader to be provided a ‘paid’ list. If online credit card acceptance could facilitate the process, then it would be used more.

3. How does it work ?
Customer requests payment via credit card from a Web server
Web server accept requests and makes a request to a Merchant card processor through a secure Gateway processor
The response is sent back to the Web server with the approval code (if approved)
The final response is formatted for the Customer and an optional is generated with an invoice

4. What does it take to set this up ?
A primary Web site for your council or club is recommended, but not absolutely required.
An E-commerce Shopping Basket software system. You may purchase one, build one yourself or use one provided by an ISP. Many ISP’s provide software at no charge in order to get your business. A good package will cost about $400 to $600. The less expensive packages have less functionality and require more technical skill.

5. What does it take to set this up ? (continued)
A Credit Card Merchant account is required. There are a multitude of brokers that can match you with a provider. Credit card merchant accounts are provided by banks, savings and loans, and a variety of other financial institutions. Many brokers are really just selling accounts, and do not have specialized knowledge in establishing the best service for clubs. This can result in spending lots of time to get an account approved. There are some Brokers (such as Online Data Corporation) that can process applications quickly and often get an account approved within 24 hours.
An Internet enabled credit card processor. There are many card processors that do not accept real-time credit card transactions and only have dial-up capability. These processors are geared for small retail merchants.

6. What does it take to set this up ? (continued)
Be sure that your merchant account is hosted by a processor that is Internet enabled. The top processors are:
NDC
FDC
Nova
FDMS
Vital Other card processors are becoming Internet enabled, so be sure to verify their capability.

7. What does it take to set this up ? (continued)
It is very costly to become certified to connect to a card processor. Most merchants connect to a card processor using the services of a Gateway processor. There are dozens of Gateway processors to choose from. Some you may have heard of:
Authorize.Net
Cybercash
Card Services International
Linkpoint
Accesspoint
VeriSign

8. What does it take to set this up ? (continued)
In order to connect your E-commerce Web site to Card Processor you will need run your site on a Web server that is security enabled with a Certificate issued by a Certificate of Authority. This allows the data to be encrypted between the Web server and the Gateway. A Web server at an ISP that has already been certified should be a requirement. Make sure the ISP you choose already has servers that are certified, and that you are not the first.

9. What does it take to set this up ? (continued)
A system administrator will be required to setup the shopping basket with the initial details of trips and events as well as the prices. This can be your current Webmaster but does not have to be.
Some initial training should be done for the council or club representative maintaining the Shopping Basket if the is is not being done by the Webmaster.

10. What does it take to set this up ? (continued)
If there is an existing Web site, the Webmaster will need to provide a link to the Shopping Basket from some appropriate place on the Web site, such as as an advertisement for a trip or event.
It may be desirable to institute an online registration Web page for trips and events. Most trips are paid for by check. At this point you might want to provide the option for credit card payment, which would then link to the Shopping Basket.

11. What does it take to run on a day-to-day basis ?
An invoice is usually sent to the customer’s address. A copy can be sent along with a merchant confirmation to a club administrator indicating what was purchased and by whom.
The administrator will normally notify the club representative managing the accounting and the bank accounts. Also, if there is person running a trip, they may need to be notified as well of an online payment or registration.

12. What does it cost ? Costs can be categorized as:
Initial start-up costs
Ongoing transaction related costs
Monthly costs
Costs for Internet Merchant accounts are higher than for regular retail merchants.

13. What does it cost ? Start-up costs include:
E-commerce ISP costs. This may include the Shopping Basket software ($0 to $600).
ISP E-Commerce fees range from $0 to $100 for setup
Credit card fees
Gateway $0 to $200 for setup
Security Certificate $100 to $350 a year if you obtain one of your own. No cost if you use one provided by your ISP.

14. What does it cost ? Ongoing costs:
Discount rate 1.9% to 4% of the transaction
Authorization Fee (per transaction) $.25 to $.35
Monthly Statement Fee $10 to $15
Monthly Gateway Fee $15 to $20

15. What does it cost ?
High Risk Merchant Accounts Most travel clubs will be placed in a High-Risk status. Most Merchant Banks will withhold 10% of the transaction value for 6 months. For VERY High Risk accounts, the Merchant Bank may withhold 50% of the transaction value for 6 month.
Most ski clubs will fall into the high risk category

16. What does it cost ?
How does your club qualify for Standard Risk status ?
Providing copies of your bank statements for about 2 years
Providing good trade references
Previous Credit Card Merchant account (non-Internet)

17. Merchant Account Application
What Information Will I need ?
Corporate Name and DBA
Corporate contact information (Address phone numbers, etc.)
When the business started
Tax ID
Average transaction amount
Maximum transaction amount
Expected annual sales
Type of goods sold/type of business

18. Merchant Account Application

19. Merchant Account Application
What Information Will I need ?
Ownership Information, including Social Security Number

20. Merchant Account Application
What Information Will I need ?
Trade References

21. Merchant Account Application
What Information Will I need ?
Bank References, including Account number and contact

22. Merchant Account Application
What Information Will I need ?
Type of business

23. Merchant Account Application
What Information Will I need ?
(example)   

24. Merchant Account Application
Other Credit Cards besides Visa and MasterCard

25. What are the benefits ? Flexibility to your members
More sign-ups for Club and Council trips vs. going with commercial travel agencies
Late event bookings can be paid for

26. What are the negative points ?
Potential Charge backs from members not satisfied with a trip or event
Funds held by Merchant banks for high risk accounts
Requires new training to setup and administer

27. Balboa Ski and Sports Club

28. Balboa Ski and Sports Club

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