A non-transitory machine-readable medium storing instructions that, when executed by a computing system, causes the computing system to perform a method for optimizing transaction authorization conversion rates based on a use of network tokens, the method including:
- identifying, by one or more processors, factors for authorization of transaction requests;
- generating, by the one or more processors, a database of transaction requests using one or more of data science methods or machine learning, wherein the database includes past transactions, associated authorization results, and optimization factors produced by a performance manager based on issuer preferences and factor success data, wherein the factor success data includes data from (i) comparing results for optimized transactions corresponding to test transactions and non-optimized transactions corresponding to control transactions, and (ii) measuring, at a level of a specific issuer and account range, of a sensitivity of an optimization factor among the optimization factors;
- calibrating, by the one or more processors, the optimization factors based on an increase in a rate of chargebacks or fraud alerts that occur when a transaction is approved, wherein the calibrating includes modifying prior rules based on continuing assessment of the results from transactions sent to the specific issuer and account range;
- receiving, at an acquirer processor, a payment transaction from a point of sale (POS) device of a merchant interacting with a user through a user interface of the POS device, wherein the POS device includes a POS terminal or a web interface, and wherein the user interface includes one or more of a magnetic strip reader, a contactless reader, a radio frequency identification reader, a near field communications device, a Bluetooth transceiver, a Wi-Fi transceiver, an infrared transceiver, or a laser scanner;
- determining, at the acquirer processor, whether the payment transaction includes a network token;
- upon determining that the payment transaction does not include a network token, determining, at the acquirer processor, whether the payment transaction should be modified to include a network token based on a likelihood that the payment transaction will be authorized by a financial institution will be increased when the payment transaction includes a network token, wherein the likelihood is determined based on the optimization factors in the database of transaction requests;
- upon determining whether the payment transaction should be modified to include a network token, generating, by a network token service provider, the network token based on the payment transaction;
- obtaining, at the acquirer processor, the network token for the payment transaction from the network token service provider;
- modifying, at the acquirer processor, the payment transaction to include the obtained network token, and, based on (i) the optimization factors and (ii) a likelihood that the payment transaction will be authorized by a financial institution will be increased by further modification;
- determining a merchant classification code having a greatest likelihood of authorization among a plurality of qualifying merchant classification codes for the merchant based on a viewed risk of the qualifying merchant classification codes by the merchant;
- modifying the payment transaction to include the merchant classification code having the greatest likelihood of authorization among the plurality of qualifying merchant classification codes for the merchant, wherein the merchant classification code classifies transactions according to the type of merchant;
- and
- submitting, at the acquirer processor, the modified payment transaction including the network token and the merchant classification code having the greatest likelihood of authorization to the financial institution for processing.