Example: Electronic check payment with multiple releases and price increase
A customer places an order for three items that total 300 USD: item A costs 45 USD, item B costs 120 USD, and item C costs 135 USD. The 45 USD item is available in stock, the 120 USD item is available in two days, and the 135 USD item is available in four days. The customer uses an electronic check to pay for the order.
The merchant uses the Early Deposit payment rule (Deposited, Deposited, Deposited).
The price increases for one item, the 45 USD item, before it releases to fulfillment.
At primePayment (order capture): The Payment Rules order amount is 300 USD and the initial amount is 45 USD because only one item is available. The payment instruction is to use the payment method of ACH (BankServACH) and amount of 300 USD. The validation, reservation, and finalization amounts are as shown:
Validation amount Reservation amount Finalization amount 45 0 0 Back-end system: At the payment back-end system, there is no amount approved but 45 USD is deposited for this payment.
Amount approved Amount deposited - 45
For the 45 USD item in stock in release A
At ReservePayment (release to fulfillment): A release has been created (release A). The total amount of this part of the order is 45 USD. The payment instruction is to use the payment method of ACH and amount of 300 USD.
The price of the item increases from 45 to 100 USD (55 USD more). The difference for this order item is calculated and a second entry is made for the difference. A Customer Service Representative edits the order and the total amount of the order increases to 355, as does the payment instruction.
The validation, reservation, and finalization amounts are as shown:
Validation amount Reservation amount Finalization amount 45 45 0 0 55 0 The validation amount is zero at this stage because no validation activity is occurring. The Payment Rules release A is: total (100), reserved (100), finalized (0).
Back-end system: At the payment back-end system, no amount is approved, and a deposit occurs for 55 USD.
Amount approved Amount deposited - 45 - 55 At FinalizePayment (shipping of release A): The payment instruction is to use the payment method of ACH and amount of 355 USD.
Validation amount Reservation amount Finalization amount 45 45 45 0 55 55 The Payment Rules release is: total (100), reserved (100), finalized (100).
Back-end system: At the payment back-end system, no amount is approved, and deposits are already made for 45 and 55 USD.
Amount approved Amount deposited - 45 - 55 At this point, this item was shipped but two items still remain.
For the 120 USD item in release B
At ReservePayment (release to fulfillment): Release B has been created. The order amount is 355 USD and the initial amount is 45 USD. The initial amount does not change since it is associated with the first item that was able to release. The total amount of this part of the order is 120 USD. The payment instruction is to use the payment method of ACH and amount of 355 USD. The validation, reservation, and finalization amounts are as shown:
Validation amount Reservation amount Finalization amount 0 120 0 The validation amount is zero at this stage because no validation activity is occurring. The Payment Rules release B is: total (120), reserved (120), finalized (0).
Back-end system: At the payment back-end system, no amount is approved, and 120 USD is deposited.
Payment Amount approved Amount deposited In release A - 45 In release A - 55 In release B - 120 At FinalizePayment (shipping of release B, 120 USD item): The payment instruction is to use the payment method of ACH and amount of 355 USD.
Validation amount Reservation amount Finalization amount 0 120 120 The validation amount is zero at this stage because no validation activity is occurring. The Payment Rules release is: total (120), reserved (120), finalized (120).
Back-end system: At the payment back-end system, no amount is approved, and 120 USD is already deposited.
Payment Amount approved Amount deposited In release A - 45 In release A - 55 In release B - 120
For the 135 USD item in release C
At ReservePayment (release to fulfillment): Release C has been created. The order amount is 355 USD and the initial amount is 45 USD. The payment instruction is to use the payment method of ACH and amount of 355 USD. The total amount of this part of the order is 80 USD this time rather than 135 (135 - 55 price increase of other item = 80 remaining reservation).
The validation, reservation, and finalization amounts are as shown:
Validation amount Reservation amount Finalization amount 0 80 0 The validation amount is zero at this stage because no validation activity is occurring. The Payment Rules release C is: total (135), reserved (80), finalized (0).
Back-end system: At the payment back-end system, no amount is approved, and only 80 USD is deposited against a release that costs 135 USD.
Payment Amount approved Amount deposited In release A - 45 In release A - 55 In release B - 120 In release C - 80 At finalizePayment (shipping of release C, 135 USD item): The payment instruction is to use the payment method of ACH and amount of 355 USD.
Validation amount Reservation amount Finalization amount 0 80 80 The validation amount is zero at this stage because no validation activity is occurring. The Payment Rules release is: total (80), reserved (80), finalized (80).
Back-end system: At the payment back-end system, no amount is approved, and 80 USD is already deposited.
Payment Amount approved Amount deposited In release A - 45 In release A - 55 In release B - 120 In release C - 80 (C) Copyright IBM Corporation 1996, 2006. All Rights Reserved.