Note: If you intend to use the funds capture functionality, you must complete the funds capture setup steps.
Funds capture is the automated funds capture process through electronic payment methods, such as direct debits of bank accounts, credit cards, and remittance of bills receivable, where payment is retrieved, or captured, from the payer who owes a debt to the payee.
The Oracle Payments setup checklist for the funds capture process is shown in the table below. These setup steps must be performed in the sequence indicated.
| Step Number | Setup Step | Step Type | Oracle Application |
|---|---|---|---|
| 19. | Configuring the ECApp Servlet | required | Oracle Payments |
| 20. | Setting Up Funds Capture Payment Methods | required | Oracle Payments |
| 21. | Setting Up Funds Capture Process Profiles | required | Oracle Payments |
| 22. | Setting Up First Party Payees | required | Oracle Payments |
| 23. | Setting Up Credit Card Brands | conditionally required | Oracle Payments |
| 24. | Loading Risky Instruments | optional | Oracle Payments |
An ECApp servlet is the only front-end servlet in Oracle Payments. You must configure the ECApp servlet to use Oracle Payments PL/SQL API and 3i Backward Compatibility API.
Oracle Payments integrations packaged with E-Business Suite products start functioning after you configure the ECApp servlet. The ECApp servlet provides an interface to the Oracle Payments engine to process payment-related operations such as authorization, capture, and return.
To enable SSL security for the ECApp servlet, perform the following steps:
Create a wallet file on the database tier.
Import the certificate for the Certifying Authority (CA), which signed the Middle Tier's server certificate into the wallet file.
Save the wallet with auto login mode enabled.
Specify the location of the wallet for all E-Business Suite applications by running AutoConfig or manually setting the system profile option Database Wallet Directory (FND_DB_WALLET_DIR) to the full path of the directory where the wallet file resides.
Related Topics
For information on the Oracle wallet, see Oracle Advanced Security Administration Guide.
A funds capture payment method is a payment medium by which a third party payer, such as a customer, chooses to remit payment to the first party payee, which is the deploying company. Oracle Payments supports three funds capture payment methods for automated funds capture processing: credit cards, PINless debit cards, and bank account transfers.
Oracle Payments seeds three updateable funds capture payment methods for credit card, PINless debit card, and bank account transfer instrument types and also seeds five updateable payer-initiated instrument types, such as check or wire transfer. For payer-initiated instrument types, Oracle Payments records the transaction, but does not perform any processing for these payment methods.
From the Funds Capture Payment Methods page, you can view and update the seeded funds capture payment methods or define new funds capture payment methods for bank account transfers only.
Once the funds capture payment methods are set up, they are available for selection by the source product user while creating or updating external payers. Additionally, source product users select one of the following seeded funds capture payment methods before submitting a payment transaction to Oracle Payments:
ACH (Automated Clearing House) Transfer
EFT (Electronic Funds Transfer) Bank Transfer
Credit Card
PINless Debit Card
Check
Cash Payment
Wire Transfer
Invoice
Offline Manual Payment
Of those in the preceding list, the first two are bank account transfer methods and the last five are payer-initiated methods.
The purpose of setting up funds capture payment methods is to assign validation sets to seeded funds capture payment methods and to assign validation sets and define details of bank account transfers.
When you create a funds capture payment method for the processing type of bank account transfer, you enter user-defined values in the Code field, which is an identifier, or shortname, for the funds capture payment method you are creating.
In the Assign Validation Sets region, you assign applicable validation sets to the funds capture payment methods of processing type Bank Account Transfer that you are creating.
Note: The Assign Validation Sets and Descriptive Flexfields regions only display for non payer-initiated payment instrument types.
A funds capture process profile is a setup entity that acts as a blueprint for funds capture processing. It is equivalent to the payment process profile for funds disbursement processing. When you create a funds capture process profile, you specify funds capture processing rules for a specific payment system. These funds capture process profile rules include how:
online messages, such as authorizations, for bank account transfers, credit cards, and debit cards are formatted and transmitted
settlements are aggregated into a settlement batch
settlement batches are formatted and transmitted
acknowledgements received from the payment system are received and parsed
payment system account information is linked into the payment process
Before you can set up funds capture process profiles, you must perform the following set up steps:
formats
transmission configurations
payment systems
funds capture payment methods
The purpose of setting up funds capture process profiles is to specify funds capture processing rules for a specific payment system. The funds capture process profiles contain all the rules necessary for the execution of funds capture orders for specific payment systems.
The region name that you see in the Create Funds Capture Process Profiles page is dependent upon the option selected in the Processing Type drop-down list.
If you select Bank Account Transfer from the Processing Type drop-down list in the Create Funds Capture Process Profile page, the Online Payer Verification region displays. By selecting outbound and inbound payment system formats, as well as a transmission protocol, the deploying company ensures that it can:
send an online message to the payment system, asking it to verify that the transmission configuration is set up correctly to capture funds from customer bank accounts
receive an online response message from the payment system
Note: Online Payer Verification is an optional feature and is not offered by all payment systems.
If you select Credit Card from the Processing Type drop-down list in the Create Funds Capture Process Profile page, the Online Authorization region displays. By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:
send an online message to the payment system, asking it to authorize an online credit card payment from the customer's credit card account with the issuing bank
receive an online response message from the payment system
If you select Debit Card from the Processing Type drop-down list in the Create Funds Capture Process Profile page, the Online Debit region displays. By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:
send an online message to the payment system, asking it to debit a customer's checking account for payment via the customer's debit card
receive an online response message from the payment system
By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:
send a settlement request to the payment system, which includes individual online settlements for gateway-model payment systems and settlement batches for processor-model payment systems
receive an online response message from gateway-model payment systems
Payer notification is a message sent by the deploying company to each of its customers after the settlement or settlement batch is transmitted, notifying them of a funds capture transaction. This notification is formatted according to the option selected in the Format field of the Payer Notification region and delivered to the payer, that is, the deploying company's customer, by e-mail, fax, or United States mail.
Note: If the payment system is a processor, then the Automatically Submit at Settlement Completion check box appears in the Payer Notification region of the Create Funds Capture Process Profile page. If the payment system is a gateway, then the Automatically Submit at Settlement Completion check box disappears from the Payer Notification region of the Create Funds Capture Process Profile page.
By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:
Actively retrieve a response from the payment system, acknowledging that a settlement or batch settlement was received or not received from the deploying company.
Parse the acknowledgement message.
Acknowledgements are sent from the payment system to the deploying company, indicating whether credit card or bank account transfer settlements were made. Acknowledgements can be pushed by the payment system onto the deploying company's system, or the deploying company may need to actively retrieve acknowledgements from the payment system. Acknowledgements can also indicate whether the settlement batch was processed and had successes or failures.
A payment system can reject a settlement batch when the batch is incomplete or missing information.
Settlement grouping begins when you select check boxes in the Settlement Grouping region of the Create Funds Capture Process Profile page. Selection of settlement grouping attributes specifies that settlements with the same settlement grouping attributes will be included in a unique settlement batch when that Funds Capture Process Profile is used.
The grouping example in the table below illustrates how settlements A to D are grouped into settlement batches, given the three settlement grouping attributes selected for Funds Capture Process Profile Y. The following settlement grouping attributes are used in the example:
First Party Organization
First Party Legal Entity
Settlement Date
| Settlement | Settlement Attributes on Settlement | Unique Settlement Batches Contains... |
|---|---|---|
| A |
|
Settlement Batch I contains:
|
| B |
|
|
| C |
|
Settlement Batch II contains:
|
| D |
|
Settlement Batch III contains:
|
You can specify limits that apply to each settlement batch, including the maximum number of settlements in a batch.
The Exchange Rate Type drop-down list has the following options:
Corporate: An exchange rate you define to standardize rates for your company. This rate is generally a standard market rate determined by senior financial management for use throughout the organization.
Spot: An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies to the immediate delivery of a currency.
User: An exchange rate you specify when you enter a foreign currency journal entry.
When you specify payment system accounts to be used with the funds capture process profile, you are effectively creating separate profiles at the account-level. By default, these account-level profiles are named by concatenating the funds capture process profile name and the payment system account name, but you can change it.
Once the identifier is entered, you can select the applicable transmission configuration that corresponds to each selected transmission protocol.
The transmission configuration options available in the Payment System Accounts region are dependent on the options selected in the Transmission Protocol fields.
Note: When you change options in the Transmission Protocols fields, you must clear the transmission configuration selections and reselect.
The following conditions apply to the selection of transmission configurations:
When you select a transmission protocol, the corresponding transmission configuration list of values only displays the transmission configurations for the selected transmission protocol.
If you do not initially select a transmission protocol and then select a transmission configuration, the corresponding transmission protocol field is populated.
On the funds capture side, the first party payee is the deploying company, or organizations within the deploying company, that receives funds from its customers, the payers, by credit card payments, debit card payments, direct debits to bank accounts, and bills receivable transactions sent to banks.
Before you can set up first party payees, you must perform the following setup steps:
payment systems
payment system accounts
payment methods
funds capture process profiles
The purpose of setting up first party payees is to tie the payment processing rules of the funds capture process profile to the business entities that need to use them.
In the Code field of the Create Payee page, enter a shortname for the payee. This value is not updateable in the Update Payee page.
In the Merchant Category Code field of the Create Payee page, enter a four-digit code that is usually supplied by the payment system, which identifies the industry in which the deploying company operates.
In the Payment System Accounts region of the Create Payee page, you select payment systems from the Payment System list of values that are used by the deploying company or its organizations. Additionally, you select payment system accounts from the Payment System Account list of values.
Each payment system is associated with one or more payment system accounts. The payment system account is an account identifier used by the deploying company's payment system, which is stored in Oracle Payments.
Note: If you do not select a payment system from the Payment System list of values, then all the payment system accounts are displayed in the Payment System Account list of values and the Payment System field is populated with the option that corresponds to the selected payment system account.
In the Assign Operating Units region of the Create Payee page, you can assign one or more operating units to the payee. The assignment of one or more operating units to a first party payee occurs because source products attribute each funds capture transaction to an operating unit. This setup allows Oracle Payments to map a transaction from an operating unit to a payee. Each operating unit may only be assigned to one payee.
Default payment systems are used by Oracle Payments to process transactions only if the routing rules do not specify a payment system account or none of the conditions in the routing rules are met for the transaction in question.
You can specify the level of transaction detail that is sent to the payment system for purchase card processing, along with the settlement. Level II of purchase card processing transaction detail includes the amount to be captured plus additional information, such as tax and shipping charges. Level III of purchase card processing transaction detail includes the amount to be captured plus tax and shipping charges, as well as itemization of the products or services purchased, such as one sweater, two pairs of slacks, and three pairs of shoes.
A risk formula is a group of risk factors plus weights, which tells Oracle Payments how to calculate the risk score of credit card transactions. A risk factor is any information, which a first party payee uses to evaluate the risk of a customer who wishes to buy products or services from the payee. Examples of risk factors are address verification, payment history, and transaction amount.
One or more risk formulas, comprised of risk factors, can be configured for each first party payee. First party payees can associate each risk factor with different weights that must total 100. Based on their business model, deploying companies can use any number of the seeded risk factors for their organizations.
The majority of the risk factors have associated updatable fields for which you enter information or select options. For some risk factors, such as address verification code or risk scores, your payment system provides values for you to enter.
A risk threshold is a number value, or score, between 0 and 100, above which, the deploying company may want to review or reject a credit card or a purchase card as payment for products or services. A zero risk threshold represents no risk and 100 represents the highest possible risk. The risk threshold value is determined and entered after reviewing all the risk factors for the particular payee and their associated weights.
Oracle Payments routes settlement requests to the appropriate payment systems. Each first party payee may have one or more routing rules with corresponding priorities. Routing rules determine which payment system account and which funds capture process profile are used to process funds capture transactions for specific payment methods.
Routing rules are comprised of destination information and one or more conditions that must be met if the funds capture transaction is to be routed using that rule's destination information. Destination information specifies the payment system account to which the transaction is routed. A condition is comprised of a criterion, (such as Amount, Currency, Organization, Card Type, or Bank Routing Number) an operator related to the criterion, and the value of the criterion. An example of a condition is Amount (criterion) Greater Than (operator) $1,000 (value).
Routing rule are prioritized and the one with the highest priority is evaluated by Oracle Payments first. If the values in the requested funds capture transaction match the conditions in the routing rules, the settlement request is routed to the applicable payment system account for processing.
Oracle Payments seeds the major credit card brands in the Credit Card Issuers Setup page. If necessary, you can add more brands and update them after implementation.
The purpose of setting up credit card brands is to enable the credit card brands that your company accepts for payment, along with their associated authorization validity periods, in days, that your company uses.
The Risky Instruments upload utility, RiskyInstrUtil, is a Java application used to store risky payment instruments.
Java executable in your application environment
Oracle Applications Java class Library in the CLASSPATH. The Oracle Applications Java class Library is included in the classpath after you set up the applications environment.
A command using the syntax below requires an operation and a filename. It modifies the risky instruments table in the database, depending on the entries in the file.
java<add one space here>-DJTFDBCFILE=<dbc filelocation>-DAFLOG_ENABLED=TRUE -DAFLOG_MODULE=iby%-DAFLOG_LEVEL=STATEMENT -DAFLOG_FILENAME=./af.logoracle.apps.iby.irisk.admin.RiskyInstrUtil [ADD/DELETE] [filename]
<remove the Or>
The command below deletes all the risky instruments in the table.
java<add one space here>-DJTFDBCFILE=<dbc filelocation>-DAFLOG_ENABLED=TRUE -DAFLOG_MODULE=iby%-DAFLOG_LEVEL=STATEMENT -DAFLOG_FILENAME=./af.logoracle.apps.iby.irisk.admin.RiskyInstrUtil DELETE all
The file format for risky instruments is as follows:
Each line corresponds to one risky instrument.
The fields are comma separated and are in the following order: Payee identifier, instrument type, and credit card number. Instrument type has to be a CREDITCARD. For example: payee1, CREDITCARD, 4500234023453345.
For the add operation, each risky instrument in the file that has a valid payee identifier, instrument type, and a new credit card number is added to the table.
For the delete operation, each risky instrument that matches the payee identifier, instrument type, and the credit card fields is deleted from the table.
The command prints the results of the operation on each risky instrument in the file.