Variable Revenue Sharing For Multiple Account Payment Instruments

• US 20080120234A1
• Filed: 11/17/2006
• Published: 05/22/2008
• Est. Priority Date: 11/17/2006
• Status: Abandoned Application

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Jagatic, Jason, Kulkarni, Seshadri
• Application Number:
  US11/561,326
• Publication Number:
  US 20080120234A1
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/22 Payment schemes or models
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists

Abstract

A method and system are disclosed for facilitating allocation of payments among multiple transaction instrument partners. The method and system comprises receiving at a network a transaction authorization request from a merchant; determining the total amount of merchant fee to be charged for the total transaction; subtracting from the total amount of the merchant fee a predetermined portion for retention by the network; transmitting the balance of the merchant fee to a card issuer; and allocating at the issuer portions of the balance of the merchant fee to be allocated among two or more transaction instrument partners.

Claims

1. A method for facilitating allocation of payments among multiple transaction instrument partners, comprising:

receiving at a network a transaction authorization request from a merchant;

determining a total amount of a merchant fee to be charged for a total transaction amount;

subtracting from the total amount of the merchant fee a predetermined portion for retention by the network;

transmitting a balance of the merchant fee to a transaction instrument issuer; and

allocating portions of the balance of the merchant fee among two or more transaction instrument partners by;

determining an interchange amount as a function of the transaction amount;

determining a first portion of the transaction to be charged to a first transaction instrument partner;

determining a second portion of the transaction to be charged to a second transaction instrument partner;

receiving from the first transaction instrument partner the first portion of the transaction amount less a first interchange share retained by the first partner;

receiving from the second partner the second portion of the transaction amount less a second interchange share retained by the second partner; and

retaining at the issuer at least a portion of the balance of the interchange amount.

2. The method according to claim 1, further comprising:

transmitting a discounted amount of the total transaction amount to the provider.

3. (canceled)

4. The method according to claim 4, further comprising:

determining the first interchange share as a function of the first portion of the transaction amount transmitted by the first partner.

5. The method according to claim 4, wherein:

if the first partner does not have sufficient funds to cover the first portion of the transaction amount, then transmitting less than the full amount of the first portion and transmitting the balance of the first portion from a further partner; and

determining the first interchange share as a function of the amount transmitted by the first partner.

6. The method according to claim 5, wherein the further partner comprises a line of credit associated with the transaction instrument.

7. A method for allocating interchange payments among multiple transaction instrument partners, comprising:

transmitting a transaction authorization request from a merchant;

receiving the transaction authorization request at a network;

transmitting the transaction authorization request from the network to a transaction instrument issuer and a transaction processor;

determining at the processor the merchant category, the validity of the transaction instrument, and the order in which funds to honor the transaction should be drawn from one or more transaction instrument partners;

transmitting at least a part of the transaction authorization request from the issuer to at least one of first and second transaction instrument partners based on information obtained by the issuer from the processor;

transmitting from the at least one transaction instrument partner to the issuer at least a portion of the requested transaction amount less an interchange share retained by the at least one transaction instrument partner; and

transmitting from the issuer to the merchant the requested transaction amount less an interchange share retained by the issuer.

8. The method according to claim 7, further comprising:

transmitting at least a further part of the transaction authorization request from the issuer to at least the second of the transaction instrument partners based on information obtained by the issuer from the processor; and

transmitting from the second transaction instrument partner to the issuer at least a portion of the requested transaction amount less an interchange share retained by the second transaction instrument partner.

9. A system for allocating interchange payments among multiple transaction instrument partners, comprising:

a plurality of transaction instrument partners that contain funds to fund transaction requests; and

a transaction instrument issuer that receives a transaction amount authorization request from a merchant;

determines an interchange amount as a function of the transaction amount;

determines a first portion of the transaction to be charged to a first transaction instrument partner;

receives from the first partner the first portion of the transaction amount less a first interchange share retained by the first partner;

determines whether a second portion of the transaction is to be charged to a second transaction instrument partner, and, if so,

receives from the second partner the second portion of the transaction amount less a second interchange share retained by the second partner; and

retains at least a portion of the balance of the interchange amount.

10. The system according to claim 9, wherein:

the first interchange share is determined as a function of the first portion of the transaction amount transmitted by the first partner.

11. The system according to claim 10, further comprising:

a line of credit account associated with a transaction instrument from which funds may be withdrawn to cover at least part of the first portion of the transaction amount if the first partner does not have sufficient funds to cover the entirety of the first portion of the transaction amount, wherein the first partner'"'"'s interchange share is determined as a function of the amount transmitted by the first partner.

12. A computer program product comprising a computer useable medium including control logic stored therein for use in facilitating allocation of payments among multiple transaction instrument partners, comprising:

first control logic means for enabling the computer to receive at a network a transaction authorization request from a merchant;

second control logic means for enabling the computer to determine a total amount of a merchant fee to be charged for the total transaction;

third control logic means for enabling the computer to subtract from the total amount of the merchant fee a predetermined portion for retention by the network;

fourth control logic means for enabling the computer to transmit a balance of the merchant fee to a processor; and

fifth control logic means for enabling the computer to allocate at the processor portions of the balance of the merchant fee to be allocated among two or more transaction instrument partners.

13. The computer program product according to claim 12, further comprising:

sixth control logic means for enabling the computer to notify a third party to pay the discounted amount to the provider.

14. A computer program product comprising a computer useable medium including control logic stored therein for use in allocating interchange payments among multiple transaction instrument partners, comprising:

first control logic means for enabling the computer to receive at an issuer a transaction amount authorization request from a merchant;

second control logic means for enabling the computer to determine an interchange amount as a function of the transaction amount;

third control logic means for enabling the computer to determine a first portion of the transaction to be charged to a first transaction instrument partner;

fourth control logic means for enabling the computer to determine a second portion of the transaction to be charged to a second transaction instrument partner;

fifth control logic means for enabling the computer to receive from the first partner the first portion of the transaction amount less a first interchange share retained by the first partner;

sixth control logic means for enabling the computer to receive from the second partner the second portion of the transaction amount less a second interchange share retained by the second partner; and

seventh control logic means for enabling the computer to retain at the issuer at least a portion of the balance of the interchange amount.

15. The computer program product according to claim 14, further comprising:

eighth control logic means for enabling the computer to determine the first interchange share as a function of the first portion of the transaction amount transmitted by the first partner.

16. The computer program product according to claim 15, further comprising:

ninth control logic means for enabling the computer to transmit less than the full amount of the first portion if the first partner does not have sufficient funds to cover the first portion of the transaction amount, and to transmit the balance of the first portion from a further partner; and

tenth control logic means for enabling the computer to determine the first interchange share as a function of the amount transmitted by the first partner.

17. The computer program product according to claim 16, wherein the further partner comprises a line of credit associated with the transaction instrument.