Payment processing system for applying merchant promotions to a push payment transaction

A push payment promotion system for applying promotions to push payment transactions, the push payment promotion system comprising:

• a database storing a plurality of merchant records associated with a respective plurality of merchants, wherein each merchant has a merchant account with a receiving institution, and wherein each of the merchant records includes a merchant ID associated with the respective merchant and a merchant promotion applicable to push payment transactions initiated with the respective merchant;
• a computing device communicatively coupled to the database and a mobile device associated with a user, wherein the mobile device is configured to facilitate a push payment transaction initiated by a user, wherein the user has a user account with an originating institution, and wherein the computing device is configured to:
• receive a promotion request message, the promotion request message including a merchant ID and an initial push payment transaction amount, the promotion request message transmitted by a mobile device associated with a user, wherein the user has a user account with an originating institution;
• retrieve, from the database, a merchant promotion associated with a merchant identified by the merchant ID, wherein the merchant has a merchant account at a receiving institution;
• apply the retrieved merchant promotion to the initial push payment transaction amount to determine an updated transaction amount;
• transmit a promotion response message to the mobile device, the promotion response message including the merchant ID and the updated transaction amount;
• receive an authorization message from the mobile device, the authorization message authorizing the push payment transaction in the updated transaction amount;
• transmit a promotion response message to the mobile device, the promotion response message including the merchant ID and the updated transaction amount;
• and
• initiate a transfer of funds in the updated transaction amount from the user account with the originating institution to the merchant account at the receiving institution.

A non-transitory computer-readable storage medium that includes computer-executable instructions for applying a merchant funded promotion to a push payment, wherein when executed by a computing device comprising a processor in communication with a memory device, the computer-executable instructions cause the processor to:

• receive a promotion request message, the promotion request message associated with a push payment transaction initiated by a user and including a merchant ID and an initial push payment transaction amount, the promotion request message transmitted by a mobile device associated with the user, wherein the user has a user account with an originating institution;
• retrieve, from the memory device, a merchant promotion associated with a merchant identified by the merchant ID, wherein the memory device includes a table associating merchant IDs with merchant promotions, and wherein the merchant has a merchant account at a receiving institution;
• apply the retrieved merchant promotion to the initial push payment transaction amount to determine an updated transaction amount;
• transmit a promotion response message to the mobile device, the promotion response message including the merchant ID and the updated transaction amount;
• receive an authorization message from the mobile device, the authorization message authorizing the push payment transaction in the updated transaction amount;
• and
• initiate a transfer of funds in the updated transaction amount from the user account with the originating institution to the merchant account at the receiving institution.