University Business - February 2012 - (Page 1)

SPONSORED Are Third-Party Payments the Final Frontier? Automation, Service and Security Gains Haven’t Graced Contract Accounts … Until Now n a recent poll taken by the National Association of College and University Business Officers, nearly a quarter of respondents said their campuses had seen thirdparty payments increase by 25 to 50 percent over the previous year. Another 12 percent of respondents reported them growing by more than half. The numbers reflect a general upswing in third-party payments, sponsor payments or however a campus refers to contract accounts. Despite their growing importance to a college or university’s bottom line, these complex accounts are often handled like student accounts once were – with manual, paper-intensive, risky and often difficult-to-reconcile procedures. Smart campuses are realizing it’s time for a better strategy. I the benefits of greater efficiency and improved student satisfaction. However, billing and payments for contract accounts are still, by and large, processed manually, as in offline and messy. Fortunately, signs are pointing to growing interest and momentum in automating contract payments. Consider these points: 1. Contract payers are strategic partners. Contract accounts are major accounts. These business relationships represent an opportunity to generate incremental revenue at a time when most institutions are looking for new funding sources. Nurturing major accounts is smart business. They will only grow in importance during the coming years. 2. Contract accounts are complex. Many colleges and universities handle their contract payments as the exception, not the rule. They use manual systems rife with paper files, “off-line” spreadsheets, and challenging reconciliation procedures. If contract accounts are difficult for the business office to manage, imagine how frustrating they must be to the students’ sponsors. 3. Contract payments have PCI implications. Dependence on manual, paper-intensive processes generally has a negative impact on PCI compliance. The basic rule is: Where there are manual payments, there are spreadsheets … and where there are spreadsheets, there are data security issues and higher potential risk. Bottom line: Contract accounts can have a big impact on both cash flow and work flow. Contract payments are the next frontier of business office automation. When campuses treat sponsors like partners, not payers, they help the sponsors and themselves. TouchNet SponsorPoint™ is built to do just that. It’s the latest addition to TouchNet U.Commerce® and represents a major advancement in automation, service and security for the processing of contract accounts and third-party payments. Business officers can learn more by visiting touchnet.com/sponsporpoint. Sponsors Wanted They come in all sizes to schools of all shapes. Third-party payers can range from a corporation putting employees through courses to a government agency funding clinical research. Typically the biggest third-party payers on campus are military, government agencies and programs, other nations and state college prepaid plans. At a fouryear research institution or two-year community college, a single contract account can be worth millions. Institutions welcome the relationships and the revenue, but business officers may struggle to manage the accounts. ERP systems and payment systems are built around students, with whom the school’s relationship is much different. For example, there may be 30,000 student accounts on campus, but the transactions are between the school and students, and virtually all of them pay at the same rate, at the same time. On the other hand, 30 contract accounts can have 30 unique sets of requirements. And it can be rare when are all paid on time. Sometimes these issues can strain these valuable relationships. Partner Like It’s 2001 During the last decade, higher education has made much progress in automating eCommerce transactions, gaining http://www.touchnet.com/sponsorpoint http://www.touchnet.com/sponsorpoint

Table of Contents for the Digital Edition of University Business - February 2012

University Business - February 2012
Contents
Editor's Note
College Index
Ad Index
Behind the News
Financial Aid
Campus CFO
Education Gateways
5 Things Administrators Must Know About E-commerce Now
There’s an App for That
Internet Technology
End Note

University Business - February 2012