Methods and systems for assigning interchange rates to financial transactions using an interchange network
AssigneeMastercard International Incorporated
InventorsKevin P. Carroll, Colin L. McGrath, Leland S. Englebardt
Life of this patent
Estimating the term…
Abstract
A method for assigning an interchange rate to a financial transaction is provided. The method uses at least one input device in communication with an interchange database. The financial transaction is initiated by a cardholder using a card over a card interchange, the card having been issued by an issuer bank. The method includes the steps of storing issuer data within the interchange database, the issuer data including whether the issuer bank has entered into a special relationship with the interchange.
Claims18
A method for assigning an interchange rate to a financial transaction using at least one input device in communication with an interchange database over an interchange, the financial transaction initiated by a cardholder using a financial transaction card over the interchange, the card issued by an issuer bank, said method comprising the steps of:
- storing issuer data within the interchange database, the issuer data including whether the issuer bank has a predefined relationship with the interchange;
- receiving at the interchange, transaction data from the input device, wherein the transaction data includes bank identification data;
- accessing the interchange database;
- comparing, at a computer associated with the interchange, the bank identification data to the issuer data stored within the interchange database;
- determining, at the computer associated with the interchange, a type of predefined relationship between the issuer bank and the interchange;
- automatically assigning, at the computer associated with the interchange, an interchange rate to the transaction based on the determined type of predefined relationship, wherein the interchange rate is stored in the interchange database as either a credit or debit to a corresponding issuer bank and acquiring bank, and each financial transaction occurs through an acquiring bank;
- and
- summing debits and credits for a plurality of transactions involving the acquiring bank and the issuer bank, and transmitting a credit or debit to the acquiring bank and the issuer bank on a periodic basis.
A network-based system for assigning an interchange rate to a financial transaction, the financial transaction initiated by a cardholder using a transaction card over an interchange, wherein the transaction card is issued by an issuer bank, said system comprising:
- an interchange database for storing information;
- and
- a server system configured to be coupled to an input device and said interchange database, said server system further configured to:
- store issuer data within the interchange database, the issuer data including whether the issuer bank has entered into a predefined relationship with the interchange;
- receive transaction data from the input device, wherein the transaction data includes bank identification data indicating an identity of the issuer bank issuing the transaction card;
- access the interchange database;
- compare the received bank identification data of the issuer bank with the issuer data stored within the interchange database;
- determine a type of predefined relationship between the issuer bank and the interchange;
- automatically assign an interchange rate to the transaction based on the determined type of predefined relationship, wherein the interchange rate is stored in the interchange database as either a credit or debit to a corresponding issuer bank and acquiring bank and each financial transaction occurs through an acquiring bank;
- and
- sum debits and credits for a plurality of transactions involving the acquiring bank and the issuer bank, and transmitting a credit or debit to the acquiring bank and the issuer bank on a periodic basis.
A computer coupled to an interchange database for assigning interchange rates to a financial transaction performed by a cardholder using a transaction card over a card interchange, the computer in communication with a transaction input device, the transaction card having been issued by an issuer bank, said computer programmed to:
- store issuer data within the interchange database, the issuer data including whether the issuer bank has entered into a predefined relationship with the interchange;
- receive transaction data from the input device, wherein the transaction data includes bank identification data indicating an identity of the issuer bank issuing the transaction card;
- access the interchange database;
- compare the bank identification data with the issuer data stored within the interchange database to determine a type of predefined relationship between the issuer bank and the interchange;
- assign an interchange rate to the transaction based on the determined predefined relationship, wherein the interchange rate is stored in the interchange database as either a credit or debit against a corresponding issuer bank and acquiring bank and each financial transaction occurs through an acquiring bank;
- and
- sum debits and credits for a plurality of transactions involving the acquiring bank and the issuer bank, and transmitting a credit or debit to the acquiring bank and the issuer bank on a periodic basis.
Dependencies are inferred from the claim text.