Embedded Banking Services with J.P. Morgan: Updates for Positive Pay for In-house Check Printing

Embedded banking services with J.P. Morgan provides businesses with a comprehensive view of their financial position to operate their day-to-day business finance effectively. The solution provides integrated banking and payment services enabled from turnkey connectivity between Cloud ERP and J.P. Morgan Payments for U.S. and Canada customers. It includes synchronization of all bank account master data, the requisite setup needed to automate funds capture/disbursement, and continuous bank statement retrieval, processing, and reconciliation. The integration also provides a seamless onboarding experience by automatically configuring connectivity and importing bank account master data. In 24D, additional functionality is available to support positive pay for in-house check printing.

Business benefits include:

Reduced risks for customers by using positive pay file as a security measure against any fraudulent activities committed by third parties.

Steps to Enable

To enable this feature you need to log a Service Request (SR).

The payment system and transmission configuration are predefined and available.

As a prerequisite, discuss the use of positive pay files with JPM, and request them to create the required inbound and outbound file folders.

Steps to Enable:

Check template:

Create a template as per JPM-specific format for in-house check printing.
Upload the template in the BI Publisher.

Check format:

Create a format by attaching the created template.
Attach the following predefined validations:

Payment Method Alias Must be Equal to CHK
Either Payer BIC or Branch Number is Required
Logical Group Reference Number is Required (JPM follows ISO20022 format for positive pay file and requires the logical group reference value)

Payment method:

Create a payment method and provide the alias value as CHK, or update the alias value of all the check payment methods that are used for JPM inhouse check printing as 'CHK'.

Payment Process Profile:

Payment system tab -
1. Select the payment system as - JPM Payment System:
2. Select the payment system account - JPM_PSA JPM ISO20022 CGI
3. Select the Payment Transmission configuration - JPM Positive Pay File Outbound
Payment tab - Enable the 'Document grouping rules' - Ultimate Debtor, Bank Charge Bearer, Payment reason and Delivery channel.
Grouping tab - Transaction grouping rules - Select all the options.
Reporting tab -
1. Format - Select the positive pay file with name - Disbursement XSL Positive Pay File Formats
2. Select the ‘Automatically transmit file checkbox.

JPM supports remittance stub in the physical check. Based on the number of invoices that can be included in the physical check, perform the setup for the remittance stub in the payment document setup.

This feature is released with controlled availability. Please log an SR and get the details on how to enable the feature.

Tips And Considerations

Check printing by third parties isn’t supported for positive pay through Oracle B2B. The steps outlined in this document apply to first-party check printing only.
Positive pay file needs to be transmitted automatically after the payment file is confirmed.
Exception in SRA generation - .
- If positive pay file process ends in error, you must redo the process. You can’t submit a positive pay file manually.
- JPM supports the ISO20022 format for the positive pay file with a unique reference number. The payment file reference number fails the uniqueness check if voided checks are included
- In this scenario, customer needs to void all payments in the payment file and needs to submit a new PPR for generating the payments again.
You can't generate a positive pay file for single or pay-in-full payments
JPM supports acknowledgment processing against the positive pay file. Oracle does not currently support acknowledgment processing
JPM positive pay file is supported for generating checks with Negotiable status only.