How Authorizations for Credit Cards Are Processed

Oracle Fusion Payments processes authorization requests that are received from source products. An authorization is a real-time process that:

• Validates credit card information

• Reserves funds through the payment processor and issuing bank

Settings That Affect Authorizations for Credit Cards

The following table describes the options that affect authorization processing:

Page or Dialog Box	User Interface Element	Action
Create or Edit Funds Capture Process Profiles Page	Formats tab, Authorization section: Outbound Format choice list and Inbound Response Format choice list. Accounts tab: Authorization Transmission Configuration choice list	Controls the formats and transmission configurations used to communicate with the payment system.
Create Routing Rules Page	All fields.	Routes funds capture transactions to a payment system Determines the payment system account and the funds capture process profile to be used for authorization processing.
Reorder Priority of Routing Rules Dialog Box	All fields	Reorders priority of routing rules.
Set Rules Page	All fields	Specifies default payment systems that are used if no routing rules are set up or if none of the conditions in the routing rules are met for the funds capture transaction.

How Authorizations for Credit Cards are Processed

The following diagram illustrates the steps performed in the authorization process.

The authorization process for credit cards includes the steps described in the following table.

Step	Description
Request authorization.	The source product requests authorization. Oracle Fusion Receivables creates an automatic receipt. This process determines the payment system to which a transaction is sent, as well as the funds capture process profile.
Route transaction to payment system.	Routing rules are applied in the order of their priority. Payments performs settlements or refunds through the same payment system used for authorizations.
Perform extract and format operation.	This process: Extracts data from Payments tables Uses Oracle Business Intelligence Publisher (Oracle BI Publisher) to format the extracted data into a message that is understood by the payment system.
Open connection with payment system.	Payments: Opens a connection with the payment system using transmission information specified in the funds capture process profile Sends the formatted authorization request
Validate payment instrument.	The payment system or the issuing bank: Validates the credit card May perform a fraud checking service Ensures that the credit card is active
Reserve funds.	After the issuing bank determines that the credit card is valid, it reserves funds.
Receive payment system response.	Payments receives a response from the payment system and closes the connection. The response contains a variety of information, depending on the success or failure of the transaction.
Update authorization status.	Authorization information received from the payment system is stored in the Transaction Authorization Entity table owned by Payments. This table creates a unique reference identifier for the transaction. For example, a credit card that receives a successful authorization stores the following data in the table. Authorization code Amount Date Assigned funds capture process profile and payment system The preceding information is used during the settlement process.
Send results notification.	Payments: Notifies Receivables of the success or failure of the transaction authorization. Sends the unique reference identifier for the authorization to the source product.
Perform error-handling.	Receivables displays any errors. You can resolve errors returned by Payments.
Store authorization reference.	The source product stores the unique authorization reference.