System and Method of Currency Conversion in Financial Transaction Process
First Claim
1. A system for processing credit card transactions involving a plurality of currency conversions, comprising:
- an issuing financial institution for issuing credit cards to cardholders;
an acquiring financial institution for processing a credit card transaction between a merchant and the cardholder;
a credit card association having a communication link to the issuing financial institution for providing credit card processing services; and
a transaction processing center having a communication link with the acquiring financial institution and credit card association, the transaction processing center;
(a) receiving foreign exchange rates for each of a plurality of currencies,(b) receiving the credit card transaction from the merchant in a request currency for payment by the cardholder to the merchant,(c) determining a transaction currency as a baseline for currency exchange, account reconciliation, generating statements, and reporting,(d) converting the request currency to the transaction currency,(e) identifying a native clearing currency of the issuing financial institution,(f) analyzing profitability of converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution based on the foreign exchange rate and mark-up and mark-down in monetary value of the credit card transaction,(g) converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution if determined profitable to the transaction processing center,(h) receiving settlement of the credit card transaction in a native settlement currency of the issuing financial institution,(i) identifying a native settlement currency of the acquiring financial institution,(j) analyzing profitability of converting the credit card transaction from the native settlement currency of the issuing financial institution to the native settlement currency of the acquiring financial institution based on the foreign exchange rate and mark-up and mark-down in monetary value of the credit card transaction,(k) converting the credit card transaction from the native settlement currency of the issuing financial institution to the native settlement currency of the acquiring financial institution if determined profitable to the transaction processing center, and(l) converting the native settlement currency of the acquiring financial institution to merchant funding currency.
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Accused Products
Abstract
A transaction process system (10) provides for data transactions between parties. In a credit card transaction, the parties are the merchant (20), acquiring bank (24), card association (34), issuing bank (14), and cardholder (12). A transaction processing center (30) is positioned between the acquiring bank and the card association. The transaction processing center provides data processing channels for message-based processing (72) and filed-based processing (76). The file-based processing uses an incoming queue (80) and outgoing queue (84) to simplify the interface. The transaction processing center also provides for currency conversions and account reconciliation on a per transaction basis. The transaction processing center uses a scheduler (160) to efficiently manage the data processing resources.
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Citations
25 Claims
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1. A system for processing credit card transactions involving a plurality of currency conversions, comprising:
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an issuing financial institution for issuing credit cards to cardholders; an acquiring financial institution for processing a credit card transaction between a merchant and the cardholder; a credit card association having a communication link to the issuing financial institution for providing credit card processing services; and a transaction processing center having a communication link with the acquiring financial institution and credit card association, the transaction processing center; (a) receiving foreign exchange rates for each of a plurality of currencies, (b) receiving the credit card transaction from the merchant in a request currency for payment by the cardholder to the merchant, (c) determining a transaction currency as a baseline for currency exchange, account reconciliation, generating statements, and reporting, (d) converting the request currency to the transaction currency, (e) identifying a native clearing currency of the issuing financial institution, (f) analyzing profitability of converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution based on the foreign exchange rate and mark-up and mark-down in monetary value of the credit card transaction, (g) converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution if determined profitable to the transaction processing center, (h) receiving settlement of the credit card transaction in a native settlement currency of the issuing financial institution, (i) identifying a native settlement currency of the acquiring financial institution, (j) analyzing profitability of converting the credit card transaction from the native settlement currency of the issuing financial institution to the native settlement currency of the acquiring financial institution based on the foreign exchange rate and mark-up and mark-down in monetary value of the credit card transaction, (k) converting the credit card transaction from the native settlement currency of the issuing financial institution to the native settlement currency of the acquiring financial institution if determined profitable to the transaction processing center, and (l) converting the native settlement currency of the acquiring financial institution to merchant funding currency. - View Dependent Claims (2, 3, 4, 5, 6)
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7. A system for processing credit card transactions involving a plurality of currency conversions, comprising:
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an issuing financial institution for issuing credit cards to cardholders; an acquiring financial institution for processing a credit card transaction between a merchant and the cardholder; a credit card association having a communication link to the issuing financial institution for providing credit card processing services; and a transaction processing center having a communication link with the acquiring financial institution and credit card association, the transaction processing center; (a) receiving foreign exchange rates for each of a plurality of currencies, (b) receiving the credit card transaction from the merchant in a request currency for payment by the cardholder to the merchant, (c) determining a transaction currency as a baseline for currency exchange, account reconciliation, generating statements, and reporting, (d) converting the request currency to the transaction currency, (e) identifying a native clearing currency of the issuing financial institution, (f) analyzing profitability of converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution based on the foreign exchange rate, (g) converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution if determined profitable to the transaction processing center, (h) electing settlement of the credit card transaction in a native settlement currency of the acquiring financial institution, and (i) converting the native settlement currency of the acquiring financial institution to merchant funding currency. - View Dependent Claims (8, 9, 10, 11, 12, 13)
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14. A method of processing credit card transactions involving a plurality of currency conversions, comprising:
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providing an issuing financial institution for issuing credit cards to cardholders; providing an acquiring financial institution for processing a credit card transaction between a merchant and the cardholder; providing a credit card association having a communication link to the issuing financial institution for providing credit card processing services; and providing a transaction processing center having a communication link with the acquiring financial institution and credit card association; receiving foreign exchange rates for each of a plurality of currencies; receiving the credit card transaction from the merchant in a request currency for payment by the cardholder to the merchant; providing a transaction currency as a baseline for account reconciliation, generating statements, and reporting; converting the request currency to the transaction currency; identifying a native clearing currency of the issuing financial institution; analyzing profitability of converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution based on the foreign exchange rate; converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution if determined profitable; receiving settlement of the credit card transaction in a native settlement currency of the issuing financial institution; identifying a native settlement currency of the acquiring financial institution; analyzing profitability of converting the credit card transaction from the native settlement currency of the issuing financial institution to the native settlement currency of the acquiring financial institution based on the foreign exchange rate; converting the credit card transaction from the native settlement currency of the issuing financial institution to the native settlement currency of the acquiring financial institution if determined profitable; and converting the native settlement currency of the acquiring financial institution to merchant funding currency. - View Dependent Claims (15, 16, 17, 18)
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19. A computer program product, comprising computer readable program code embodied in a computer usable medium, the computer readable program code adapted to implement a method of processing credit card transactions involving a plurality of currency conversions, comprising:
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receiving foreign exchange rates for each of a plurality of currencies; receiving the credit card transaction from a merchant in a request currency for payment by a cardholder to the merchant; providing a transaction currency as a baseline for account reconciliation, generating statements, and reporting, converting the request currency to the transaction currency; identifying a native clearing currency of an issuing financial institution; analyzing profitability of converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution based on the foreign exchange rate; converting the credit card transaction from the transaction currency to the native clearing currency of the issuing financial institution if determined profitable; electing settlement of the credit card transaction in a native settlement currency of an acquiring financial institution; and converting the native settlement currency of the acquiring financial institution to merchant funding currency. - View Dependent Claims (20, 21, 22, 23, 24, 25)
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Specification