Data Element Specific Transaction Routing

• US 20090063291A1
• Filed: 09/04/2007
• Published: 03/05/2009
• Est. Priority Date: 09/04/2007
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Newbrough, Keith, Robbins, Peter
• Granted Patent: US 8,818,879 B2
• Time in Patent Office: Days
• US Class Current: 705/26
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems

Abstract

Systems and methods for determining a least cost transaction scheme for a merchant is provided according to one embodiment of the invention. The least cost transaction scheme may be determined at a point of sale device or at a host computer system that communicates with a point of sale device. The least cost transaction scheme may depend on a standard industrial classification (SIC) code associated with the merchant and a transaction amount. In one embodiment the transaction amount and merchant ID is sent to a host computer system. Based on the merchant ID and the transaction amount the host computer system determines a fees for a plurality of transaction schemes. From the plurality of transaction schemes, a least cost transaction scheme is selected and a user is prompted to use the least cost transaction scheme to tender the transaction.

Claims

1. A method for determining a least cost transaction scheme for a merchant, wherein the merchant is associated with a standard industrial classification (SIC) code, the method comprising:

receiving a transaction amount;

calculating a processing cost for each of a plurality of transaction schemes, wherein each processing cost is based at least in part on the transaction amount, the SIC code and the transaction scheme;

determining the least cost transaction scheme from the plurality of transaction schemes; and

prompting a consumer to use the least cost transaction scheme.

2. The method according to claim 1, wherein the prompting comprises prompting the consumer to use a presentation instrument associated with the least cost transaction scheme.

3. The method according to claim 1, wherein the prompting comprises prompting a consumer to use the least cost transaction scheme on a webpage.

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

determining a second least cost transaction scheme; and

communicating the second least cost transaction scheme to the consumer.

5. The method according to claim 1, wherein each of the plurality of transaction schemes is selected from the group consisting of:

credit card payment, signature debit card payment, PIN debit card payment, stored value card payment, cash, electronic balance transfers, and check.

6. The method according to claim 5, wherein the credit card payment may comprise a credit card payment from one of a plurality of credit cards.

7. The method according to claim 5, wherein the debit card payment may comprise a debit card payment from one of a plurality of debit cards.

8. The method according to claim 1, wherein the calculating based on the transaction scheme further comprises calculating based at least in part on a bank identification number (BIN) associated with the transaction scheme.

9. A method for determining a least cost transaction scheme at a host computer system, the method comprising:

receiving a transaction amount and merchant ID from a merchant to a host computer system;

looking up the merchant'"'"'s SIC code based on the merchant ID;

calculating, at the host computer system, a processing cost for each of a plurality of transaction schemes, wherein each processing cost is based at least in part on the transaction amount, and the SIC code;

determining a least cost transaction scheme from the plurality of transaction schemes; and

sending the least cost transaction scheme to the merchant from the host computer system.

10. The method according to claim 9, wherein each of the plurality of transaction schemes is selected from the group consisting of:

credit card payment, signature debit card payment, PIN debit card payment, stored value card payment, cash, electronic balance transfers, and check.

11. A method for determining a least cost transaction scheme for an online purchase, the method comprising:

providing a transaction table array comprising a series of tables, wherein each table includes a list of transaction schemes sorted based at least in part on processing fee amounts, each table is generated based at least in part on a transaction amount, and the series of tables is based at least in part on SIC codes;

receiving a transaction amount from a web server;

selecting an appropriate transaction table from the transaction table array based at least in part on the amount of the transaction and a merchant SIC code;

determining the merchant'"'"'s least cost transaction scheme from the plurality of transaction schemes; and

requesting payment from the consumer on a webpage using the least cost transaction scheme.

12. The method according to claim 11, wherein each of the plurality of transaction schemes is selected from the group consisting of:

credit card payment, signature debit card payment, PIN debit card payment, stored value card payment, cash, electronic balance transfers, and check.

13. The method according to claim 11, further comprising:

determining a second least cost transaction scheme; and

requesting payment from the consumer on a webpage using the second least cost transaction scheme.