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.