Demystifying the World of Oracle Payments in R12 How to Handle Credit & Debit Card Captures

Transcription

1 Demystifying the World of Oracle Payments in R12 How to Handle Credit & Debit Card Captures In this session, attendees will gain knowledge and insight of how to implement Oracle Payments Fund Capture Flow. Attendees with also learn how Office Depot was able to customize the Payments Funds Capture Flow to automate an end to end process for Authorization through Settlement and Acknowledgement using a Third Party Payment Gateway Session ID: Prepared by: Lori Cirella, IT Consultant Edson Morales, IT Consultant Office Depot, Inc. April 24, :00 AM Remember to complete your evaluation for this session within the app!

2 Agenda

3 Agenda Introductions Office Depot Overview A Success Story: Implementing R12 Payments - Funds Capture at Office Depot R12 Payments Introduction Office Depot Funds Capture Configuration Office Depot Credit Card / Debit Card Processing Office Depot Encryption Q&A

4 Introduction

5 About the Presenters Lori Cirella Oracle E-Business Suite (EBS) Financial IT Consultant / Solution Architect Over 16 years of experience implementing, upgrading and enhancing EBS Financials Order to Edson Morales 19 years of experience in the IT industry 14 years of experience developing and supporting Oracle E-Business Suite solutions 14 years of experience performing Oracle database modeling

6 Office Depot Overview Office Depot, Inc. is a leading provider of business services and supplies, products and technology solutions through its fully integrated omni-channel platform of approximately 1,400 stores, online presence, and dedicated sales professionals and technicians to small, medium and enterprise businesses. Through its banner brands Office Depot, OfficeMax, CompuCom and Grand&Toy, the company offers its customers the tools and resources they need to focus on their passion of starting, growing and running their business.

7 Office Depot EBS Business Modules Overview Business Area Customer to Cash Procure to Pay General Accounting Business Functions Accounts Receivable, Bill Management, ebill, Credit Management, Credit Settlement, Collections Integration, Cash Application, Order Management, Payments, Cash Management, Sales Margin, EBTax, Tax Content, Customer Data Hub, TOPS Accounts Payable, Vendor Management, Check Printing, iexpense iprocurement, Purchasing, Inventory, Shared HR, isupplier General Ledger, Fixed Assets, Project Accounting, Reporting/FSGs, COGS, Customer Service Case Management, isupport 3 rd Party Upgrades Informatica (ILM), Taxware, Teradata Decision Experts

8 A Step Forward in our Transformation Journey

9 A Success Story: Implementing Oracle R12 Payments - Funds Capture at Office Depot

10 Office Depot Success Story Office Depot implemented funds capture by integrating Oracle Payments R12 with a third party payment gateway (AJB) for authorization and settlement of funds. Implementation of funds Capture Configuration (including servlet and encryption), ireceivables authorization and settlement. Required functionality that would integrate with a 3rd party payment system that would process Authorizations, Settlements for Credit Card, Purchasing Cards, and Pinless Debit Cards for sales and returns through it s various sales channels. Required functionality that would allow of our customers to access a portal where they could view all the invoices, credit memos, debit memo. Customer s also had to be able to pay for the outstanding invoices, debit memos and deposits by using their credit card. Oracle ireceivables provides the functionality which fulfills these requirements.

11 Oracle R12 Payments Introduction

12 Oracle R12 Payments Introduction Oracle R12 Payments module is a centralized engine that is designed to work with multiple E- Business Suite products. Products that integrate with Oracle Payments are; Advanced Collections, Cash Management, Order Management, Payables, Receivables, ireceivables and istore.

13 Oracle R12 Payments Primary Functions Two primary functions Funds Capture Funds Capture refers to the electronic retrieval of funds from payers, such as customers, who owe debts to a company. Funds Disbursement Paying of Funds owed to creditors, such as suppliers Think Accounts Receivable (AR) Think Accounts Payable (AP)

14 Oracle R12 Payments Key Features Key Features

15 Oracle R12 Payments General Features

16 Oracle R12 Payments Understanding Servlets Oracle Payments consists of the following servlets: ECServlet The ECServlet provides an interface to the Oracle Payments engine to process payment-related funds capture operations such as authorization. This servlet is primarily used for the PL/SQL APIs provided by Oracle Payments. Payment system servlets Payment system servlets take payment files and transmits them to payment systems according to transmission configurations set up in Oracle Payments. Oracle Payments includes payment system servlets for Paymentech, First Data (North), and Concord EFSnet.

17 Oracle R12 Payments Security Features Encryption Credit Card Encryption is an advanced security feature within Oracle Payments that enables Oracle Applications to encrypt credit card data. Use of the Credit Card Encryption feature assists with your compliance with the cardholder data protection requirements of the Payment Card Industry (PCI) Data Security Standard. When the feature is enabled, credit card and bank account numbers for external third parties, such as customers, suppliers, or students are encrypted. Oracle Payments Engine to Oracle Payments Servlet Communication Oracle Payments architecture lets you install the payment system servlet in a machine outside the firewall. Use of Oracle Wallet to store certificates and credential information to support authentication of the engine. Oracle Payments retrieves the certificates from the Oracle Wallet and sends the certificates to the server for authentication

18 Oracle R12 Payments Payment Methods Supported Payment Methods Oracle Payments supports the following electronic payment methods for funds capture payments: Credit Cards Purchase Cards PINless Cebit Cards Bank Account Transfers Oracle Payments supports several payment methods for funds disbursement payments, including: Checks Wires Electronic Funds Transfers (EFT)

19 Funds Capture Configuration

20 Funds Capture Implementation Steps Things to Consider Funds Capture or Funds Disbursement? Which Payment System do you Use? What Source Products are you using? What Format do you need? What are your Security Needs?

21 Configure Funds Capture for Office Depot

22 Funds Capture Setup - Dashboard Payment processing for both funds capture and funds disbursement can be setup through one form, the Payments Setup Form.

23 Configure Step 1 User Setup

24 Configure Step 2 System Security Options System security options enable you to set security options for payment instrument encryption, masking, and credit card control. Before you can set up security options, you must set up a wallet. The wallet is a file, which stores the system key The wallet has two functions: Perform HTTP client authentication of your middle-tier server for payment systems that require this level of security Store the system (master) security key used to encrypt sensitive data The purpose of setting up the wallet in the Wallet Setup page is to: specify the location of the wallet file define the password for the wallet file specify whether to generate the system key yourself or let the system do it

25 Configure Funds Capture Wallet Setup System Security Options are Under the Payments Setup Share Setup System Security

26 Configure Steps 3-5 Step 3 Setting Up XML Templates The purpose of setting up Oracle XML Publisher's templates is to create and register templates in Oracle XML Publisher. These templates are required by Oracle Payments to format payment instructions. Step 4 Setting up Formats Financial institutions, payment systems, and/or countries have specific formatting requirements for funds capture transactions, funds disbursement transactions, payment documents, and payment-related reporting. Formats are created within Oracle Payments to represent these requirements. Each format in Oracle Payments corresponds to one Oracle XML Publisher template. Step 5 Setting up Validations Validations ensure that funds capture and funds disbursement transactions are valid, in addition to being correctly formatted before they are printed or submitted to payment systems. Office Depot Bypassed these setup steps in order to create a custom Servlet. The Office Depot custom servlet calls the Payment System (AJB) for Authorization for Oracle ireceivables Transactions.

27 Configure Step 6 Transmission Configurations The purpose of setting up transmission configurations in the Create Transmission Configuration setup page is to enable electronic connectivity with payment systems by specifying parameter values. Payments Setups Shared Setup Payment Systems Transmission Configurations

28 Configure Step 7 Configure Tunneling Tunneling is to allow connectivity between Oracle Payments and external payment systems without compromising network security. Oracle Payments uses a customized tunneling protocol called the Oracle Payments Tunneling Protocol (code= IBY_DELIVERY_ENVELOPE). This protocol uses HTTP POST as its underlying transmission mechanism and sends within the body of the request an XML message header identifying the tunneled or encapsulated protocol, as well as the host name, user name, and password for FTP.

29 Configure Step 8 Set up Payment Systems A payment system is an organization that provides financial settlement services. The purpose of setting up payment systems is to: define the external organizations that Oracle Payments collaborates with to process your funds capture and funds disbursement transactions define the deploying Office Depot relationships with its payment system, AJB.

30 Setup Payment Systems Payments Setup Shared Setup Payment Systems Payment Systems

31 Setup Payment System Accounts Payments Setup Shared Setup Payment Systems Payment Systems Update Accounts When you define payment system accounts, you provide the actual payment systemprovided values for these parameters.

32 Setup Payment System Payee The purpose of setting payees is to tie the payment processing rules of the funds capture process profile to the business entities that need to use them. Oracle Payments Setup Funds Capture Setup Payees

33 Setting up Routing Rules Insert Receipt Method

34 Office Depot Credit Card / Debit Card Processing

35 Office Depot Payments Challenges Sales Orders / Payments Volume Approx. 500K Sales orders imported every day Into Oracle Order Management. AR Transactions 88 Mil, Avg per Month 2.4Mil AR Transaction Lines 878 Mil, Avg per Month 29.6Mil AR Payment Schedules 140Mil, Avg per Month 4.1Mil AR Open Payment Schedules 1.7Mil AR Cash Receipts 52 Mil, Avg per Month 1.6Mil Authorization is captured at ordering system POS (Store) register WWW / Online Sales Channels Remittance Performance Issues Automatic Remittance split into 2 steps Automatic Remittances Creation Program (API) is used to change the receipt to REMITTED status in ar_cash_receipts_all. Submit Offline Transactions is used to settle the receipt. This program calls the standard servlet which calls the custom servert which finally calls settlement_pkg. Submit Offline Transactions not multi threaded Encryption changes. Had to migrate 11i system security key to R12 wallet Oracle no longer provided Decryption functionality. Receipt Summarization Summarize POS (Store) receipts by store, date, tender in AR.

36 Office Depot Solutions Bypass The decision was made to bypass Oracle Payments for credit card auth/settlement except for ireceivables. What does this mean? Authorization Before: Create credit card bank account, credit card assignment. Create receipt Perform voice authorization request Voice authorization would call payment system servlet (ODAJBservlet). ODAJBservlet would return success. Authorization After Create receipt Capture Before: Run automatic remittance Run Submit Offline Transaction (New to R12) Submit Offline Transaction would call the configured payment system servlet (ODAJBservlet) ODAJBservlet would call custom settlement_pkg.pre_capture_ccreturn. Custom settlement_pkg.pre_capture_ccreturn would call custom settlement_pkg. custom_stg_receipt_for_settlement. Information recorded in custom IBY Batch TRXNS and custom IBY Batch DET Tables Capture After: Receipts stored in custom receipts detail table. Run OD: IBY Stage Credit Card Settlement Master OD: IBY Stage Credit Card Settlement Master calls custom settlement_pkg. custom_receipt_for_settlement. Information recorded in custom IBY Batch TRXNS and custom IBY Batch DET Tables

37 Receivables Setup for Bypass vs ireceivables

38 Office Depot Credit Card Flow (Bypass)

39 ireceivables Authorization and Settlement ireceivables Authorization & Settlement Customer Oracle ireceivables Initiate Credit Card Payment for Open Invoices OD Custom Servlet Credit Card Auth Successful Auth AJB Gateway Createor Update Credit Card Account IBY Tables Create cash receipt in AR Create Standard AR Cash Receipt Credit Card Providers (Vantiv) Automatic Remittance Credit Card is Stored with 2 Encrypted Values 1. Oracle EBS Standard Encryption 2. Custom Encryption using AJB Key (DFF) AJB Gateway Custom Receipt Table Create Custom Receipt OD Custom Servlet Submit Offline Transactions Custom IBY tables Stage Settlement irec Stage Settlement Credit Card Sources Encrypted Credit Card

40 Office Depot Payments Servlet Oracle Payments provides the ability to register a servlet that communicates with your payment gateway. The Office Depot servlet handles: Voice Authorizations Returns SUCCESS No longer used Authorizations Transforms Oracle Payment request to AJB authorization request format Sends AJB request, response Transforms AJB response to Oracle Payments format Used for ireceivables Returns/Funds Capture Parses Oracle Payment request. Calls custom package to record response in custom settlement staging table

41 Office Depot Payment Servlet Lessons Learned Oracle provides a sample servlet. Use it to test your Oracle Payments Implementation without having to register a real payment system. The sample servlet will return success unless the transaction value matches pre-set values which simulate specific error scenarios. Use the sample servlet as a template when creating a new payment servlet. Servlet alias, parameters must be configured in the orion-web.xml file. After modifying the orion-web.xml file bounce apache and oacore. Use the Transmission Testing pages to test the servlets. To set up a payment system servlet with secured sockets layer, enable HTTPS on the middle-tier server where the servlet resides

42 Submit Offline Transactions Performance During the R12 upgrade initiative, performance testing revealed that Submit Offline Transaction was a bottleneck. Bug : NEED ABILITY TO RUN SUBMIT OFFLINE TRNXS MORE THAN ONE AT A TIME MULTI THREADED Installed patch p _r12.iby.b_r12_linux.zip. Results Without multi-threading Transaction Count: 5568 SOT Processing Time: 20 min 53 secs Multi-threading 3 workers Transaction Count: 4607 Elapse Time: 6 min 23 secs

43 Office Depot Encryption

44 Credit Card Encryption No longer able to place encrypted credit card values in the oe_payments_iface_all.credit_card_number. Oracle wants it unencrypted, and it will encrypt it while importing. Populate the oe_payments_iface_all table but appending -BYPASS to the original_sys_document_ref field to avoid having standard HVOP/Order Import fail because the credit card number field is not provided/or custom encrypted Custom Encrypted Data (Encrypted Credit Card and Key used to encrypt/decrypt credit card field).

45 Office Depot 11i Encryption/Decryption Processing Credit Cards 11i Encryption/Decryption Processing Credit Cards Import SAS Files (Pmts) Into Interface Tables ireceivables Credit Card Processing SAS Files Decrypt With SAS Key Encrypt Using Standard 11i Oracle Key ireceivable Credit Card Receipts R11 Bank Account & Receipt Creation API Insert Encrypted Value (11i Oracle Key) AP_BANK_ACCOUNTS_ALL Insert Encrypted Value (11i Oracle Key) Completed Custom Deposits Table HVOP & Order Import Encrypted Value is passed OE_PAYMENTS_IFACE_ALL Custom Return Tenders IFACE Table (Interim Tables) HVOP - Credit Card Processing Prepayment API OE_PAYMENTS Custom Returns Tender Table Insert Encrypted Value (11i Oracle Key) Stage Settlement AR & irec Credit Card Receipts Automatic Remittance (AR/iRec Receipts) Insert Encrypted Value (11i Oracle Key) Custom Receipts Table YES Scheduled Concurrent Program irec Receipt? NO Receipt already Exists in order receipt detail AP_BANK_ACCOUNTS_ALL Executes Settlement Package R11 Bank Account & Receipt Creation API NON-POS Type POS Custom Receipts Table Insert Encrypted Value (11i Oracle Key) Stage Settlement POS Credit Card Receipts Executes Decrypt Using 11i Oracle Key Encrypt Using AJB Key Insert Encrypted Value (11i Oracle Key) Insert Encrypted Value (11i Oracle Key) Insert Encrypted Value (AJB Key) AP_BANK_ACCOUNTS_ALL Completed Custom Receipts Table IBY History Tables

46 R Encryption/Decryption Processing Credit Cards Import SAS Files Into Payment Interface Tables SAS Files Decrypt With SAS Key Encrypt Using Custom Key ireceivable Credit Card Receipts ireceivables Credit Card Receipt Processing Encrypt Using Custom Key (for irec Staging) R12 API Credit Card & Receipt Creation Receipt Created? YES Store Receipt Info Insert Encrypted Value (Custom Key) Insert Encrypted Value (Custom Key) Insert Encrypted Value (R12 Oracle Key) R12 IBY Credit Card Account Table IREC STAGING (Interim Table) Custom Deposits Table OE_PAYMENTS_IFACE_ALL Custom Return Tenders IFACE (Interim Tables) Stage Settlement AR & irec Credit Card Receipts HVOP & Order Import Insert Encrypted Value (R12 Key) Encrypted Value is passed Decrypt Using Custom Key R12 API Credit Card & Receipt Creation R12 IBY Credit Card Account Table HVOP - Credit Card Processing NON-POS Prepayment API Type Update OE_PAYMENTS with extension OD OE_PAYMENTS Custom Return Tenders IFACE POS Custom Receipts Table Insert Encrypted Value (Custom Key) Insert Encrypted Value (Custom Key) Insert Encrypted Value (Custom Key) Custom Receipts Table Automatic Remittance (AR/iRec Receipts) IREC STAGING (Interim Table) Retrieve irec Encrypted Value (Custom Key) YES Scheduled Concurrent Program irec Receipt? Insert Encrypted Value (Custom Key) Directly Executes NO Custom Receipts Table Stage Settlement POS Credit Cards ( POS Internal Store Customer Only) Receipt already Exists in order receipt detail Executes Settlement Package Insert Encrypted Value (AJB Key) Decrypt Using Custom Key Encrypt Using AJB Key Settlement History

47 Office Depot Encryption

48 Office Depot Encryption

49 Appendix

50 MOS Notes Configuration and Setup Setup and steps required to test the transaction flow from Oracle Receivable(AR) to Payments(IBY ) using Dummy Payment system for Funds Capture Processing (Bank Transfers). (Doc ID ) Note: Oracle Payments Setup For Funds Capture Processing (Bank Transfers) Automatic Receipts and Remittance: A Complete Guide for R12 Oracle Receivables Users (Doc ID ) R12: IBY: Understanding What the Oracle EBS "Payments" (IBY) module Is, and What It Does (Doc ID ) Information Center: Oracle Payments for Receivables (FC) & Payables (FD), Releases 11i and 12 (Doc ID ) How To Enable Oracle Payments Data Encryption Functionality (Doc ID ) Troubleshooting R12: Oracle Payments (IBY) Funds Capture Analyzer Diagnostic Script (Doc ID ) Automatic Receipts & Automatic Remittance: Listing of Log File Errors Generated by Credit Card Processing (Doc ID )

51 References Oracle Payments Implementation Guide Release 12 Part No. B Oracle E-Business Suite Release 12 Payments, The Centralization of Payment Processing, Alyssa Johnson, Solution Beacon, LLC Oracle Payments User's Guide Release 12.1 Oracle Payments Data Sheet R12: IBY: Understanding What the Oracle EBS "Payments" (IBY) module Is, and What It Does (Doc ID ) How To Enable Oracle Payments Data Encryption Functionality (Doc ID )

52 Disclaimer These slides represent the work and opinions of the presenter and do not constitute official positions of Oracle or any other organization. This material should not be reproduced without the written permission of Office Depot, Inc. Office Depot s participation in this presentation does not infer endorsement of any product or services of Oracle Corporation.

53 Session ID: Remember to complete your evaluation for this session within the app!

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