METHOD AND SYSTEM UTILIZING MERCHANT SALES ACTIVITY TO PROVIDE INDICATIVE MEASUREMENTS OF MERCHANT AND BUSINESS PERFORMANCE

• US 20130173320A1
• Filed: 12/29/2011
• Published: 07/04/2013
• Est. Priority Date: 12/29/2011
• Status: Abandoned Application

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: BANK, Jeff, Chauhan, Rohit, Cimatu, Michael, Unser, Kenny, Bernard, Serge
• Application Number:
  US13/339,634
• Publication Number:
  US 20130173320A1
• Time in Patent Office: Days
• US Class Current: 705/7.11
• CPC Class Codes: G06Q 10/0639 Performance analysis of employees; Performance analysis of enterprise or organisation operations
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data

Abstract

A system for measurements of merchant performance using a payment card processing system, the system includes a managing computer system of a payment card service provider, the managing computer system having a memory device capable of storing data for generating measurements of merchant performance based on payment card transactions, and a computer processor. The computer processor is configured to: receive payment card transactions from at least one merchant; store the payment card transactions for the at least one merchant; generate at least one business performance indicator for the payment card transactions of the at least one merchant; compare the at least one business performance indicator for the at least one merchant to a comparable business performance indicator; and generate a measurement of merchant performance for the at least one merchant based on the comparison of the at least one business performance indicator to the comparable business performance indicator.

Claims

1. A system for measurement of merchant performance using a payment card processing system, the system comprising:

a managing computer system of a payment card service provider, the managing computer system having a memory device capable of storing data for generating measurements of merchant performance based on payment card transactions, and a computer processor configured to;

receive payment card transactions from at least one merchant;

store the payment card transactions for the at least one merchant;

generate at least one business performance indicator for the payment card transactions of the at least one merchant;

compare the at least one business performance indicator for the at least one merchant to a comparable business performance indicator; and

generate a measurement of merchant performance for the at least one merchant based on the comparison of the at least one business performance indicator to the comparable business performance indicator.

2. The system of claim 1, wherein the at least one business performance indicator for the at least one merchant is compared to a comparable business performance indicator for the at least one merchant.

3. The system of claim 1, wherein the at least one business performance indicator for the at least one merchant is compared to a comparable business performance indicator for a plurality of merchants having similar goods and/or services.

4. The system of claim 3, wherein the computer processor is configured to:

store payment card transactions from the plurality of merchants;

generate the comparable business performance indicator for the plurality of merchants; and

generate the measurement of merchant performance for the at least one merchant based on the comparison of the at least one business performance indicator for the at least one merchant and the comparable business performance indicator for the plurality of merchants.

5. The system of claim 3, wherein the comparison of the at least one business performance indicator of the at least one merchant and the plurality of merchants is based on goods and services as defined by the merchant category code (MCC).

6. The system of claim 1, wherein the managing computer system generates a printout and/or a visual display of the measurement of the merchant performance.

7. The system of claim 1, wherein the at least one business performance indicator is a transaction index, a sales index, an average ticket index, a returns index, a loyalty index, a customer count index, and/or a chargeback index.

8. The system of claim 1, wherein the at least one business performance indicator is a transaction index, which is based on a ratio of a total number of transaction for the at least one merchants divided by a total number of transactions for a given period.

9. The system of claim 1, wherein the at least one business performance indicator is a sales index, which is based on a ratio of total sales for the at least one merchant divided by total sales for a given period.

10. The system of claim 1, wherein the at least one business performance indicator is an average ticket index, which is based on ratio of total sales for the at least one merchant divided by total number of transactions for a given period.

11. The system of claim 1, wherein the at least one business performance indicator is a returns index, which is based on a ratio of total returns for the at least one merchant divided by a total number of returns over a given period.

12. The system of claim 1, wherein the at least one business performance indicator is a loyalty index, which is a ratio of a total number of transactions for the at least one merchant from repeat buyers divided by total transactions for a given period.

13. The system of claim 1, wherein the at least one business performance indicator is a customer count index, which is based on a total of unique accounts transacting with the at least one merchant divided by total unique accounts for a given period.

14. The system of claim 1, wherein the at least one business performance indicator is a chargeback index, which is calculated based on a number of disputed transactions for the at least one merchant divided by a total number of transactions for a given period.

15. A method for measurement of merchant performance using a payment card processing system, the method comprising:

receiving payment card transactions from at least one merchant in a managing computer system hosted by a payment card service provider, the managing computer system comprising a memory device capable of storing data and a computer processor for generating and calculating measurements of merchant performance based on payment card transactions;

storing the payment card transactions for the at least one merchant;

generating at least one business performance indicator for the payment card transactions of the at least one merchant;

comparing the at least one business performance indicator for the at least one merchant to a comparable business performance indicator; and

generating a measurement of merchant performance for the at least one merchant based on the comparison of the at least one business performance indicator to the comparable business performance indicator.

16. The method of claim 15, wherein the at least one business performance indicator for the at least one merchant is compared to a comparable business performance indicator for the at least one merchant.

17. The method of claim 15, wherein the at least one business performance indicator for the at least one merchant is compared to a comparable business performance indicator for a plurality of merchants having similar goods and/or services.

18. The method of claim 17, further comprising:

storing payment card transactions from the plurality of merchants;

generating the comparable business performance indicator for the plurality of merchants; and

generating the measurement of merchant performance for the at least one merchant based on the comparison of the at least one business performance indicator for the at least one merchant and the comparable business performance for the plurality of merchants.

19. The method of claim 17, wherein the comparison of the at least one business performance indicator of the at least one merchant and the plurality of merchants is based on goods and services as defined by the merchant category code (MCC).

20. The method of claim 15, wherein the at least one business performance indicator is a transaction index, a sales index, an average ticket index, a returns index, a loyalty index, a customer count index, and/or a chargeback index.

21. The method of claim 15, wherein the managing computer system generates a printout and/or a visual display of the measurement of the merchant performance.