This section describes the procedures that Receivables follows to validate credit card payments. This section also provides information about the external software modules that Receivables integrates with when requesting and receiving credit card payment authorization.
Oracle Receivables integrates with Oracle Payments, the Oracle Applications payment engine, during the funds capture process. Oracle Payments provides a central repository for your customers' payment information and uses that information to interact directly with third party payment systems and financial institutions. Payments handles all funds capture processing for Receivables transactions that have automatic receipt methods.
For more information, refer to Oracle Payments Implementation Guideand the Oracle Payments User's Guide.
When you approve an Automatic Receipts batch of credit card payments, Receivables creates a funds capture process request and sends it to Payments, which communicates directly with third party payment networks, such as CyberCash or Verifone, to authorize and reserve funds.
The third party payment processor verifies that the credit card is valid, ensures that the customer has not exceeded their credit limit, and reserves the payment amount from the cardholder's account. For each receipt that receives authorization, the credit card issuer generates an approval code and passes it to Payments via the third party payment processor.
After authorization is successfully obtained, authorization details are recorded as attributes of the approved receipt within Payments.
To "capture" the credit card payment, you must initiate the transfer of funds as payment for the selected transactions by creating and approving remittances for each receipt in Receivables.
If authorization already exists on a receipt in a remittance batch, then authorization has already occurred and Receivables will not call Payments to try to reauthorize a receipt. Instead, Receivables calls Payments to interact with the third party payment processor to capture the credit card payment. The third party payment processor determines whether an approval code is still valid. If an approval code has expired, then Payments captures the error message from the third party payment processor and returns it to Receivables, which includes the error in the exception reports.
See: Correcting Funds Transfer Errors.
If authorization does not exist on a receipt in a remittance batch, then Receivables calls Payments to perform both authorization and capture for the receipt.
For each receipt that is approved, the credit card issuer initiates the transfer of funds from their bank to yours. Payment information is returned to Receivables and to your bank so that you can reconcile your receipts.
For more information about this process, refer to Processing Credit Card Transactions and Payments.
When you have a transaction with split payment terms (invoice payments with multiple installments), the Automatic Receipts program creates multiple receipts with the same authorization details. Because authorization exists for this invoice, the Automatic Receipts program will not ask Payments to reauthorize any of the installment receipts.
For security purposes, you cannot submit the same authorization details more than once for capture. When you submit the approval process of the Remittances program, Payments detects the duplicate authorization details on the subsequent installment receipts for your credit card payments. After detecting the duplicate authorization information, Payments automatically reauthorizes your customer's credit card account, and captures the payment in one step.
See: Entering Invoices with Installments.
Other Oracle applications that are integrated with Payments store information such as the receipt method, credit card information, and authorization details for each order. The applications may then pass this information to Oracle Order Management (OM) to create the orders.
If authorization takes place at the time of the order, then Order Management works with Payments to obtain authorization.
Authorization details are recorded as attributes of the order and are passed to Receivables during the import process.
Frequently, you may have multiple shipments that are based on the same order (split shipments), but the entire order does not interface into Receivables at the same time. This can cause the generation of multiple invoices that reference the same order number.
If credit card authorization occurred with Order Management and Payments, then each invoice that was generated by each shipment will be created with the same authorization details. When generating receipts, the Automatic Receipts program may then create multiple receipts that also have the same authorization details.
When you submit the approval process of the Remittances program, Payments detects the duplicate authorization details on the multiple receipts. Payments automatically reauthorizes your customer's credit card account and assigns that information to the duplicate receipt's record in Payments. Even though new authorization details are assigned to the receipt, the imported transactions retain the authorization details.