Volume based transaction cost recovery

• US 10,467,612 B2
• Filed: 11/19/2012
• Issued: 11/05/2019
• Est. Priority Date: 11/19/2012
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Murphy, Matthew D., Whitler, Elbert Lee
• Primary Examiner(s): Oyebisi, Ojo O
• Application Number:
  US13/681,293
• Publication Number:
  US 20140143135A1
• Time in Patent Office: 2,542 Days
• Field of Search: 705 35, 705 39, 705 38
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/22 Payment schemes or models

Abstract

Apparatus and methods for determining a surcharge yield are provided. A surcharge behavior may be monitored during a time period. A change in a first performance metric may be monitored during the time period. A change in a second performance metric may be monitored during the time period. A relationship between the surcharge behavior, the change in the first performance metric and the change in the second performance metric may be determined. The surcharge yield may be determined based on the relationship. Apparatus and methods for adjusting a transaction cost recovery amount are provided. A rate of change in a transaction volume may be monitored. The transaction volume may be associated with a merchant location. When a threshold rate of change is detected the transaction cost recovery amount may be adjusted.

Claims

1. A dynamic surcharge customization system, the system comprising:

network hardware including a plurality of communication pathways for transmitting and receiving electronic data;

a plurality of transaction participant computer systems comprising;

a plurality of POS devices positioned in distinct geographic locations and configured to;

receive POS data comprising geographic information associated with a first set of transactions initiated by a plurality of credit cards;

upon the receiving of the POS data, transmit the POS data via the network hardware to at least one other transaction participant computer system; and

execute the first set of transactions in response to receiving authorization for the first set of transactions via the network hardware; and

an issuer computer system remote from the plurality of POS devices and configured to transmit, via the network hardware, the authorization for the first set of transactions; and

a centrally-located dynamic surcharge engine including software and hardware, wherein the surcharge engine is in electronic communication with the issuer computer system and the plurality of POS devices via the network hardware and is configured to receive the transmitted POS data, via the network hardware, from the plurality of POS devices, the surcharge engine comprising;

a processor; and

a non-transitory computer usable medium having computer readable program code embodied therein, the program code when executed by the processor configures the plurality of POS devices to apply a surcharge to a second set of credit card transactions, the surcharge adjusted to control customer traffic at the distinct geographic locations, the computer readable program code in said article comprising;

computer readable program code for causing the surcharge engine to monitor, in the received POS data, transaction volumes associated with the plurality of POS devices in the distinct geographic locations and rates of change in the transaction volumes associated with the plurality of POS devices;

computer readable program code for causing the surcharge engine to transmit surcharge notices, to at least one of the plurality of POS devices in a target geographic location when a predetermined rate of change threshold is detected by the program code;

computer readable program code for causing the surcharge engine to apply the surcharge to the second set of transactions and thereby control customer traffic at the target geographic location after;

the predetermined rate of change threshold is detected; and

a predetermined transaction volume threshold within the target geographic location is detected by the program code; and

computer readable program code for causing the surcharge engine to;

adjust an amount of the surcharge based on the POS data, including the monitored rates of change, such that imposing the adjusted surcharge amount on the second set of transactions received by POS terminals within the target geographic location controls customer traffic by;

 

increasing transaction volume within a predetermined time period;

or

 

decreasing transaction volume within the predetermined time period; and

transmit to the issuer computer system, via the network apparatus, the adjusted surcharge amount;

wherein, the issuer computer system, in response to receiving the adjusted surcharge amount, transmits authorization for the adjusted surcharge amount to the POS terminals within the target geographic location via the network hardware;

wherein the predetermined rate of change threshold is associated with the target geographic location; and

wherein the surcharge engine dynamically adjusts the amount of the surcharge to increase or decrease the transaction volume within the predetermined time period and thereby maintain a target transaction volume at the target geographic location.

2. The surcharge customization system of claim 1 wherein the predetermined rate of change threshold corresponds to an increase in the transaction volumes during a time period.

3. The surcharge customization system of claim 1 wherein the predetermined rate of change threshold corresponds to a decrease in the transaction volumes during a time period.

4. The surcharge customization system of claim 1 further comprising computer readable program code for causing the surcharge engine to adjust the surcharge based on the monitored rates of change.

5. The surcharge customization system of claim 1 further comprising computer readable program code for causing the surcharge engine to determine a notice time based on:

the detected predetermined rate of change threshold; and

an expected time to reach the threshold transaction volumes.

6. The surcharge customization system of claim 1 wherein the predetermined rate of change threshold is associated with a temporal value.

7. The surcharge customization system of claim 1 wherein the transaction volumes are associated with a network of merchant locations.

8. The surcharge customization system of claim 1 further comprising computer readable program code for causing the surcharge engine to:

measure an effect of the adjusted surcharge amount on the rates of change; and

readjust the surcharge amount if the transaction volumes fall below the transaction volume threshold.

9. The surcharge engine of claim 1, the computer readable program code in the surcharge engine further comprising:

computer readable program code for causing the surcharge engine to receive a first plurality of transaction records, each of the first plurality of transaction records comprising a synoptic attribute and the surcharge;

computer readable program code for causing the surcharge engine to determine a graphical relationship that correlates the synoptic attribute and the surcharge;

computer readable program code for causing the surcharge engine to determine an inflection point of the graphical relationship;

computer readable program code for causing the surcharge engine to receive a second plurality of transaction records each of the second plurality of transaction records comprising the synoptic attribute and the surcharge; and

computer readable program code for causing the surcharge engine to adjust the surcharge when at least one of the second plurality of transaction record comprises the synoptic attribute and the surcharge corresponding to a point within a distance of the inflection point.

10. The surcharge engine of claim 9 wherein:

the synoptic attribute corresponds to the transaction volumes; and

the graphical relationship correlates the surcharge amount with the transaction volumes.

11. The surcharge engine of claim 9 wherein adjusting the surcharge comprises increasing the surcharge.

12. The surcharge engine of claim 9 wherein adjusting the surcharge comprises decreasing the surcharge.

13. The surcharge engine of claim 9 wherein the graphical relationship corresponds to an effect of the surcharge on the synoptic attribute.

14. The surcharge engine of claim 9 wherein the synoptic attribute corresponds to the rates of change in the transaction volumes.