Method and system for merchant processing of purchase card transactions with expanded card type acceptance

• US 7,069,244 B2
• Filed: 09/17/2002
• Issued: 06/27/2006
• Est. Priority Date: 09/17/2002
• Status: Expired due to Term

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Weis, David G., Nimmo, Kathleen K., Strayer, Allen C.
• Primary Examiner(s): Kazimi, Hani M.
• Assistant Examiner(s): Subramanian, Narayanswamy
• Application Number:
  US10/245,784
• Publication Number:
  US 20040054622A1
• Time in Patent Office: 1,379 Days
• Field of Search: 705 35- 40
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/1235 with control of digital rights management [DRM]
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

Systems and methods for merchant processing of purchase card transactions with expanded card type acceptance are provided. For each merchant, a record is maintained of each card type that the merchant accepts, and merchant-specific transaction processing parameters are associated with each card type. During transaction processing, a card type for the transaction is identified from transaction data submitted by the merchant, and the merchant-specific transaction processing parameters associated with the identified card type are used to control transaction processing.

Claims

1. A computer-implemented method for acquirer processing of a purchase card transaction submitted by a merchant, the method comprising:

storing, in a database, a merchant card type list including a plurality of merchant card type records, each merchant card type record corresponding to one of a plurality of card types accepted by the merchant,

each merchant card type record including a merchant-specific group of purchase card identifiers associated with that card type and a plurality of merchant-specific processing parameters defining processing rules for transactions for that card type,

wherein a purchase card identifier is included in at most one of the merchant-specific groups of purchase card identifiers;

receiving, at an acquiring server communicably coupled to the database, transaction data for the purchase card transaction, the transaction data including a purchase card identifier of a presented card;

matching, by the acquiring server, the purchase card identifier of the presented card to one of the merchant-specific groups of purchase card identifiers in the merchant card type list in the database, thereby identifying a card type for the presented card;

obtaining from the database, by the acquiring server, the merchant specific processing parameters of the merchant card type record corresponding to the identified card type; and

processing and routing the purchase card transaction by the acquiring server in accordance with the processing rules defined by the merchant-specific processing parameters obtained from the database.

2. The method of claim 1, wherein the merchant specific processing parameters obtained during the act of obtaining include a routing parameter identifying a routing destination and wherein processing and routing the purchase card transaction by the acquiring server includes:

routing the transaction data to the routing destination identified by the routing parameter.

3. The method of claim 2, wherein routing the transaction data includes:

adding the transaction data to a batch of transaction data to be transmitted to the routing destination.

4. The method of claim 2, wherein the merchant specific processing parameters obtained during the act of obtaining further include a format parameter identifying a data format and wherein processing and routing the purchase card transaction by the acquiring server further includes:

prior to routing the transaction data, formatting the transaction data in the data format identified by the format parameter.

5. The method of claim 2, wherein the purchase card transaction is an authorization transaction, the method further comprising:

receiving an authorization response from the routing destination; and

transmitting the authorization response to the merchant.

6. The method of claim 1, wherein the merchant-specific processing parameters obtained during the act of obtaining include a transaction type parameter specifying one or more transaction types that are to be accepted by the merchant for the identified card type and wherein processing and routing the purchase card transaction by the acquiring server includes:

identifying a transaction type from the transaction data; and

determining from the transaction type parameter whether the merchant is authorized to accept the identified transaction type for the identified card type, wherein the purchase card transaction is rejected if the merchant is not authorized to accept the identified transaction type.

7. The method of claim 6, wherein the transaction type parameter specifies one or more of sales transactions, cash advance transactions, return transactions, or payment transactions.

8. The method of claim 6, wherein the transaction type parameter specifies one or more of authorization transactions or ticket transactions.

9. The method of claim 1, wherein the merchant-specific processing parameters obtained during the act of obtaining include a reimbursement flag indicating whether the acquirer reimburses the merchant and wherein processing and routing the purchase card transaction by the acquiring server includes:

extracting a transaction amount from the transaction data;

determining from the reimbursement flag whether the acquirer reimburses the merchant for transactions for the identified card type;

in the event that the acquirer does not reimburse the merchant, adding the transaction amount to a first running total; and

in the event that the acquirer reimburses the merchant, performing the following acts;

computing a reimbursement amount from the transaction amount; and

adding the reimbursement amount to a second running total.

10. The method of claim 9, wherein the merchant specific processing parameters obtained during the act of obtaining further include a discount rate parameter and wherein computing the reimbursement amount from the transaction amount includes:

determining a discount rate from the discount rate parameter; and

computing the reimbursement amount by reducing the transaction amount by the discount rate.

11. The method of claim 9, further comprising:

after processing a batch of purchase card transactions submitted by the merchant, initiating, at the acquiring server, a funds transfer transaction from the acquirer to the merchant, wherein the amount transferred by the funds transfer transaction is equal to the second running total.

12. The method of claim 9, further comprising:

after processing a batch of purchase card transactions submitted by the merchant, reporting, by the acquiring server, the first running total and the second running total to the merchant.

13. The method of claim 9, further comprising:

adding the transaction amount to a third running total corresponding to the identified card type.

14. The method of claim 1, wherein the plurality of card types accepted by the merchant includes at least a first card type corresponding to a private label card issued for a retailer, and the merchant is not an outlet of the retailer.

15. The method of claim 1, wherein each merchant-specific group of purchase card identifiers comprises a range of card prefixes.

16. The method of claim 15, wherein matching the purchase card identifier of the presented card includes:

determining a card prefix from the purchase card identifier of the presented card; and

determining whether the card prefix of the presented card is within the range of card prefixes for one of the merchant-specific groups of purchase card identifiers.

17. The method of claim 1, further comprising:

defining, in a card product database, a master card product list including a plurality of master card type records, each master card type record corresponding to one of a plurality of card types processed by the acquirer,

each master card type record including a master group of purchase card identifiers associated with that card type and a plurality of default processing parameters defining default processing rules for transactions for that card type,

wherein at least one purchase card identifier is included in more than one of the master groups of purchase card identifiers; and

building, by a computer, the merchant card type list,

wherein the act of building includes inheriting, as one or more of the merchant card type records, one or more of the master card type records from the master card product list.

18. The method of claim 17, further comprising, in the computer:

overriding, in the merchant card type list, one of the default processing parameters inherited from one of the master card type records with a merchant-specific value.

19. An acquirer computer system for processing a purchase card transaction submitted by a merchant, the system comprising:

a database configured to store a merchant card type list for the merchant, the merchant card type list including a plurality of card type records, each card type record corresponding to one of a plurality of card types accepted by the merchant,

each card type record including a merchant-specific group of purchase card identifiers associated with that card type and a plurality of merchant-specific processing parameters defining processing rules for transactions for that card type,

wherein a purchase card identifier is included in at most one of the merchant-specific groups of purchase card identifiers;

an interface configured to receive transaction data for the purchase card transaction, the transaction data including a purchase card identifier of a presented card; and

control logic communicably coupled to the database and the interface,

wherein the control logic is configured to match the purchase card identifier of the presented card to one of the merchant-specific groups of purchase card identifiers, thereby identifying a card type for the presented card, to obtain from the database the merchant-specific processing parameters of the card type record corresponding to the identified card type, and to process and route the purchase card transaction in accordance with the processing rules defined by the obtained merchant-specific processing parameters.

20. The system of claim 19, wherein the obtained merchant-specific processing parameters include a routing parameter identifying a routing destination and a format parameter identifying a data format, the system further comprising:

control logic configured to format the transaction data in the data format identified by the format parameter and to route the formatted transaction data to the routing destination identified by the routing parameter.

21. The system of claim 20, wherein the control logic is further configured to:

receive an authorization response when the purchase card transaction is an authorization transaction; and

transmit the authorization response to the merchant.

22. The system of claim 19, wherein the plurality of card types accepted by the merchant includes at least a first card type corresponding to a private label card issued for a retailer, and the merchant is not an outlet of the retailer.

23. The system of claim 19, wherein each merchant-specific group of purchase card identifiers comprises a range of card prefixes and wherein the control logic is further configured to match a card prefix of the presented card to one of the ranges of card prefixes.

24. A computer-implemented method for acquirer processing of a purchase card transaction submitted by a merchant, the method comprising:

storing, in a database, a merchant card type list including an identifier of each of one or more card types accepted by the merchant and a plurality of merchant-specific processing parameters associated with each accepted card type,

wherein the merchant card type list includes at least a first card type corresponding to a private label card issued for a retailer and wherein the merchant is not an outlet of the retailer;

receiving, at an acquiring server communicably coupled to the database, transaction data for the purchase card transaction, the transaction data including a purchase card identifier;

matching, by the acquiring server, the purchase card identifier to one of the card types in the merchant card type list in the database, thereby identifying a card type for the purchase card;

obtaining from the database, by the acquiring server, the merchant specific processing parameters associated with the identified card type; and

processing and routing the purchase card transaction by the acquiring server in accordance with the merchant-specific processing parameters obtained from the database.

25. An acquirer computer system for processing a purchase card transaction submitted by a merchant, the system comprising:

a database configured to store a merchant card type list for the merchant, the merchant card type list including an identifier of each card type accepted by the merchant and a plurality of merchant-specific processing parameters associated with the card type,

wherein the merchant card type list includes at least a first card type corresponding to a private label card issued for a retailer and wherein the merchant is not an outlet of the retailer;

an interface configured to receive transaction data for the purchase card transaction, the transaction data including a purchase card identifier; and

control logic communicably coupled to the database and the interface,

wherein the control logic is configured to match the purchase card identifier to one of the card types in the merchant card type list, to obtain from the database the merchant-specific processing parameters associated with the identified card type, and to process and route the purchase card transaction in accordance with the obtained merchant-specific processing parameters.