Setting Up a Payment System in Oracle Fusion

 

In Oracle Fusion Payments, setting up a payment system is mandatory if your company wants to transmit electronic payments or funds capture transactions to a payment system or a bank. The payment system can be the bank where your company has its bank accounts or it can be a third-party processor or gateway that connects your company to a financial network. The purpose of setting up a payment system is to define the external organization that Payments uses to process your funds capture and disbursement transactions.

Payment systems are not required for printed disbursement payments, such as checks, but may be required for related services, such as a positive pay report.

Setting up a payment system includes the following actions:

·       Selecting a gateway or processor payment system

·       Considering best practices

·       Defining a payment system

·       Specifying payment system settings

·       Understanding payment system accounts

 

Selecting a Gateway or Processor Payment System

Payments supports both gateway and processor payment systems. A gateway is a service provider that acts as an intermediary between a first party payee and a payment processor. A processor is a service provider that interacts directly with banks and card institutions to process financial transactions. Examples of payment processors include Visa, MasterCard, and American Express.

Your choice of integrating with a gateway or a processor payment system is generally determined by your:

·       Type of business

·       Number of transactions per day

·       Your bank

The following table describes the differences between gateway and processor payment systems.

Factors	Gateways	Processors
Connectivity and Security	Provide easy connection, often using SSL-based internet connectivity.	Provide more rigorous security, connectivity, and testing requirements.
Additional Fees	Charge additional fees, including per-transaction fees, beyond what processors charge.	Not applicable.
Volume of Transactions	Favor lower-volume merchants or merchants who are willing to pay a per-transaction premium for easier setup and connectivity.	Often favor higher-volume merchants who are willing to exert more effort for processor connectivity.
Online or Offline	Takes all transactions online.	Allows authorizations in real-time and follow-up transactions, such as settlements and credits offline. ·       Offline transactions must be batched together and sent as a single request to the payment system. ·       All transactions other than authorizations are, by default, performed offline. ·       Offline transactions are sent when the next settlement batch operation is attempted.

Considering Best Practices

Before you set up a payment system, leverage your current banking or processing relationship. Determine whether your bank or processor can process transactions or has a partnership with a processor.

Defining a Payment System

In the Setup and Maintenance work area, use the following to define a payment system:

·       Offering: Financials

·       Functional Area: Payments

·       Task: Manage Payment Systems

On the Manage Payment Systems page, click Create. The Create Payment System page appears.

When you set up a payment system on the Create Payment System page, specify the following:

·       Types of payment instruments the payment system supports for funds capture transactions

·       Data file formats and transmission protocols accepted by the payment system

·       Settings required by the payment system

·       Settings required by the tokenization provider if your company has enabled tokenization

Note: Setting up a payment system may be required, even for transmitting a payment file offline by downloading it to your local drive and then e-mailing it to your payment system or bank. The payment system and payment system account setup capture several attributes, which are passed in the payment file or settlement batch message. Without these attributes, a payment file is invalid and rejected by bank.