Processing Payments Using Card

Payouts and Oracle E-Business Suite

White Paper

Version 1.0

Employee Expense Reimbursement via VISA Card Payouts

1. Disclaimers:

1. This document is furnished to you solely in your capacity as a client of Visa and/or a participant in the Visa payments system. By accepting this presentation, you acknowledge that the information contained herein (the “Information”) is confidential and subject to the confidentiality restrictions contained in the Visa Core Rules and Product and Service Rules or other confidentiality agreements, which limit your use of the Information. You agree to keep the Information confidential and not to use the Information for any purpose other than in your capacity as a customer of Visa or as a participant in the Visa payments system. The Information may only be disseminated within your organization on a need-to-know basis to enable your participation in the Visa payments system. Please be advised that the Information may constitute material non-public information under U.S. federal securities laws and that purchasing or selling securities of Visa Inc. while being aware of material non-public information would constitute a violation of applicable U.S. federal securities laws.

2. Any use cases in this document are for illustrative purposes only. Program providers are responsible for their programs and compliance with any applicable laws and regulations.

3. Case studies, comparisons, statistics, research, and recommendations are provided “AS IS” and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial, or other advice. Visa neither makes any warranty or representation as to the completeness or accuracy of the information within this document, nor assumes any liability or responsibility that may result from reliance on such information. The Information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.

4. All brand names, logos, and/or trademarks are the property of their respective owners, are used for identification purposes only, and do not necessarily imply product endorsement or affiliation with Visa.

2. Introduction

The Card Payouts service enables corporate (treasury) banks to offer the Visa Direct payout service to their enterprise clients. Card Payouts can be integrated into enterprise resource planning (ERP) systems, such as Oracle E-Business Suite, so that accounts payable teams can use the service as part of their A/P workflows.

This white paper is based on Visa’s internal solution to enable its employees to get reimbursed for out of pocket expenses via Visa’s Oracle E-Business Suite ERP system. Please note that this example may provide insight into application in numerous other payout scenarios and use cases. The document is intended to give enterprise system administrators an illustrative example of the functionality and steps associated with setting up and processing payments. The functionality discussed in this document may also be extended to supplier payments processed through the same system.

Process steps included

1. Creating a new payment method in Oracle E-Business Suite
2. Setting up a default new payment method on an employee supplier record
3. Processing payments and transferring payment files to Visa Direct
4. Processing payment response files from Visa Direct and voiding payments in case of failure
5. Informing employees following successful reimbursement

Important Note: To follow the steps outlined in this white paper, you will need to have already integrated Card Payouts into your Oracle E-Business Suite instance. This document does not include integration guidelines.

About Visa Direct

Visa Direct is a digital payment capability that enables enterprises and financial institutions to move money to billions of endpoints worldwide over the Visa network, using card numbers or financial account numbers to route the payments. With Visa Direct, enterprises have an efficient, secure, and seamless way to disburse funds directly to a recipient’s eligible Visa Debit or Visa Prepaid card.

3. Key Terms

Enterprise Resource Planning (ERP)

Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities, such as accounting, procurement, project management, risk management and compliance, and supply chain operations. This document focuses on the Oracle E-Business Suite.

Payment Method

The payment method is a payment attribute associated with an invoice that indicates the process by which a payer makes a payment to a payee.

Payment Process Profile (PPP)

A payment process profile is a payment attribute assigned to an invoice that specifies how Oracle Payments performs processing. PPPs are comprised of several types of payment processing information, including specifications for formatting and transmission.

Payment Process Request (PPR)

A payment process request is a request created by Oracle Payments services that contains one or more invoices to be paid along with payment processing instructions.

Employee Portal

This is the Oracle portal where employees can enter and manage their debit card information.

PAN Data

Personal Account Number (PAN) data refers to an employee’s debit card account number.

ERP Shared Services

This contains the Secure Account Capture UI (which includes debit card account validation and bank tokenization) and the Message Transaction Service (which transfers the payment batch information during the API call and connects with the corporate bank for payment processing).

Hub/ERP Hub

This refers to Oracle E-Business Suite.

Bank – Issuing

This is the bank that has issued the payee’s Visa debit card and that will receive the disbursed funds.

Bank – Corporate or Treasury

This is the bank associated with the business who is paying the employee, vendor, or other payee. Funds will be transferred from this bank to the payee during the payment process.

Alias Directory Service (ADS)

The ADS is the beneficiary directory where Visa stores the bank tokens.

EBS

This is an acronym for Oracle E-Business Suite.

4. Payment Process Overview

There are two main processes involved in the overall payment flow. This document focuses on the Oracle E-Business Suite process and Card Payouts components that facilitate this flow.

4.1. Card Payouts Enrollment Flow

The high-level process flow for Card Payouts Enrollment includes the following steps:

• The Accounts Payable team sends the employee an invitation to enroll their Visa debit card in the Card Payouts application.
• The employee clicks on the enrollment link in the email, the system authenticates, and the employee is taken to the Card Payouts Enrollment page that has been integrated into the Oracle employee portal.
• The employee enters and submits their card details.
• The employee’s issuing bank validates the card, checks for fast funds eligibility, and tokenizes the card’s credentials. If the issuer is not fast funds enabled, the system cannot enroll the card and will return an error message.
• The token is stored in the Alias Directory service (ADS), mapping the employee ID and token.
• The employee portal for Visa Direct generates a file with the enrollment status and transfers it to the Oracle E-Business Suite system.
• Oracle processes the enrollment file and updates the payment method in the Card Payouts supplier record for future payouts.

4.2. Card Payouts Processing Flow

The high-level process flow for Card Payouts Processing includes the following steps:

• The enrolled employee submits their out of pocket expenses for approval.
• Approved expenses are batched and sent to the Oracle Payables system.
• The Accounts Payable team creates an invoice with payment method set to Card Payouts.
• The Accounts Payable Team runs a payment batch for Card Payouts.
• The Oracle E-Business system generates a payment file for Card Payouts invoices.
• The payment file is processed by Visa Direct using the employee debit card token. API calls are made to the corporate bank, and the transaction status is updated.
• Visa Direct processes the transaction and provides the payment status as a response file to Oracle.
• Oracle processes the response file.
• A confirmation email is sent to the employee upon successful reimbursement.
• If any errors occur, the Accounts Payable team is notified and failed payments are automatically voided in the system.
• The employee receives funds in the bank account associated with their debit card.

5. How to set up and process payments

5.1. Create a new Payment Method in Oracle E-Business Suite

Step 1: Log in to Oracle E-Business Suite as an Administrator.

Step 2: Navigate to Oracle Payments Setup > Payment Methods > Create

Step 3: Enter the following details:

Step 4: Click Next, then Select Payables. Uncheck the box next to Automatically assign Payment Method to all Payees.

Step 5: Click Next, then click Next again, and finally click Finish.

5.2. Set up the new Payment Method as default on the Employee Supplier Record

Once an employee enrolls their debit card in the Card Payouts application, Visa Direct automatically generates a registration file based on the below specification. This file is sent to Oracle E-Business Suite, which then updates the payment method in the employee’s supplier record in the Card Payouts application.

Visa Direct registration file specification

File name : org_user_card_events_.txt

File structure will be header & record(s). Header structure: InitiatingParty:VisaPaymentEnabler ReceivingParty: NumberOfTransactions: Record structure: All these individual elements are delimited by “|” userIdentifier(sent by organization) token last4digits date(expiryMonth) expiryYear cardBrand createDate changeDate| Mode(AorD) A – add D – delete

Oracle E-Business Suite uses Visa’s Card Registration API below to process the registration file and update the employee supplier payment method.

Card Registration API specification

API Package : iby_disbursement_setup_pub

API name: Update_External_Payee

Type: Public

Pre-reqs: None

Function: Update payees for records passed in through the payee PL/SQL table

Parameters:

IN NUMBER Required

IN : p_api_version
p_init_msg_list
p_ext_payee_tab

IN VARCHAR2 Optional IN External_Payee_Tab_Type Required OUT : x_return_status
x_msg_count
x_msg_data
x_ext_payee_id_tab
x_ext_payee_status_tab

OUT VARCHAR2 Required

OUT NUMBER Required

OUT VARCHAR2 Required

OUT Ext_Payee_ID_Tab_Type OUT Ext_Payee_Create_Tab_Type Required

5.3. Set up a payment processing file and transfer it to Visa Direct

The next step is to create a payment format template that Oracle needs to generate a payment file per the specification below. This template includes the supplier information that Oracle will use to generate a payment batch file that is ready to make an API call to the corporate bank.

Payment file specification

File name will be “cardpay_YYYYMMDDHHMMSS.txt”

File structure will be header & record(s). Header structure: InitiatingParty: ReceivingParty: VisaPaymentEnabler NumberOfTransactions: Record structure: All these individual elements are delimited by “|” PaymentInformationIdentification - 35 – AlphaNumeric Bankname BankIdentifier (account number) Branch UserIdentifier (organization) paymentToken (returned by secureCapture form during card registration) CdtTrAmt - credit transfer amount CdtTrAmtCcy – Credit transfer amount currency - ISO 4217 (3 contiguous letters) PurpCode – purpose code (list of invoice numbers) – 100 text

Step 1: Log in to Oracle E-Business Suite as an Administrator.

Step 2: Navigate to Oracle Payments Setup > Formats > XML Publisher Format Templates > Go to Task > Create Template

Step 3: After creating the template, create the payment format. Navigate Oracle Payments Setup > Formats > Go To Task. Select Disbursement Payment Instruction > Create.

Step 4: Next, set up the payment document and internal bank details. Navigate to Cash Management > Setup > Banks > Bank Accounts. Search for the correct bank, select an account and click on Manage Payment Documents and Create. Select the payment format created in Step 3.

Step 5: Once the payment file is generated, transfer it to the Visa Direct hub for processing the payment.

5.4. Process the payment response file from Visa Direct and void failed payments as needed.

Visa Direct will process the payment file and send back the response file to Oracle E-Business Suite per the specification below.

Payment response specification

To void any failed payments, create a concurrent program in Oracle to process the response file and use the Void Failed Payment API listed below. Note that Visa is using a standard API provided by Oracle here, and the Oracle name for this API is AP_VOID_PKG.IBY_VOID_CHECK.

Void Failed Payment API

API Package : Ap_Void_Pkg

API name: iby_Void_Check

Pre-reqs: None

Function: procedure to be used by Oracle Payments during voiding of payments

Parameters: IN : p_api_version IN NUMBER Required p_init_msg_list IN VARCHAR2 Optional p_commit IN VARCHAR2 Optional p_payment_id IN NUMBER Required p_void_date IN DATE Required OUT : x_return_status OUT VARCHAR2 Required x_msg_count OUT VARCHAR2 Required x_msg_data OUT VARCHAR2 Required

In the case of payment failure, be sure to inform the Accounts Payable team.

4.5 Send a payment confirmation email to the employee

Once the response file is processed and the payment is successful, send an email confirmation to the employee.

Commercialization support partner

Visa has collaborated with a consulting service company who supports Card Payout implementations and Oracle configurations. For more details, please reach out to the Visa Direct ERP product team.