Systems and methods for a flat interchange fee for high value credit card purchases

• US 7,882,026 B1
• Filed: 07/25/2007
• Issued: 02/01/2011
• Est. Priority Date: 07/25/2007
• Status: Active Grant

• Current Assignee: United Services Automobile Association
• Original Assignee: United Services Automobile Association
• Inventors: Zettner, Steven Dale
• Primary Examiner(s): Hayes; John W
• Assistant Examiner(s): Chen; George
• Application Number:
  US11/782,898
• Time in Patent Office: 1,287 Days
• Field of Search: None
• US Class Current: 705/38
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A maximum interchange fee is described herein. Calculating an interchange fee to be assessed may include receiving a purchase amount, determining if the purchase amount exceeds a set level, and if the purchase amount exceeds a set level, capping the interchange fee assessed at a maximum level. Calculating an interchange fee may include determining a maximum fee to be assessed, establishing a rate of reduction for the interchange fee so that the fee assessed does not exceed the maximum amount, receiving the purchase amount, and determining the interchange fee based upon the purchase amount and the rate of reduction. Providing for a capped interchange fee may include determining a maximum interchange fee, receiving a purchase amount, calculating an interchange fee, determining if the interchange fee calculated exceeds the maximum interchange fee, and notifying the merchant that the interchange fee exceeds the maximum amount.

Claims

1. A computer-implemented method of calculating an interchange fee to be assessed on a merchant for a purchase amount, comprising:

establishing a maximum interchange fee to be assessed, wherein the interchange fee is calculated as a percentage of a purchase amount;

establishing a rate at which the percentage decreases as the purchase amount increases, wherein the percentage decreases so that an interchange fee calculated from a purchase amount does not exceed the maximum interchange fee;

receiving the purchase amount; and

calculating by a computer processor the interchange fee using the purchase amount and the percentage.

2. The method of claim 1, wherein establishing a maximum interchange fee to be assessed comprises sending a request to a credit card issuing bank to establish the maximum interchange fee to be assessed, wherein the request is generated by the merchant.

3. The method of claim 2, further comprising receiving an approval of the request from the credit card issuing bank.

4. The method of claim 1, wherein establishing a maximum fee to be assessed comprises:

determining a type of good or service for the purchase;

determining that the type is one of a plurality of types approved for a maximum fee; and

setting a maximum interchange fee.

5. The method of claim 4, wherein the plurality of types includes one of an emergency service, an emergency good, a necessary service, and a necessary good.

6. The method of claim 1, wherein a credit card issuing bank establishes the maximum interchange fee to be assessed.

7. The method of claim 1, wherein receiving the purchase amount comprises summing all purchase amounts for all purchase amounts received from the merchant over a specified period of time.

8. A system for calculating an interchange fee to be assessed on a merchant for a purchase amount, the system comprising:

a processor; and

a computer-readable storage medium including instructions that configure the processor to;

establish a maximum interchange fee to be assessed, wherein the interchange fee is calculated as a percentage of a purchase amount;

establish a rate at which the percentage decreases as the purchase amount increases, wherein the percentage decreases so that an interchange fee calculated from a purchase amount does not exceed the maximum interchange fee;

receive the purchase amount; and

calculate the interchange fee by the computer processor using the purchase amount and the percentage.

9. The system of claim 8, further comprising instructions that configure the processor to send a request to a credit card issuing bank to establish the maximum interchange fee to be assessed, wherein the request is generated by the merchant.

10. The system of claim 9, further comprising instructions that configure the processor to receive an approval of the request from the credit card issuing bank.

11. The system of claim 8, further comprising instructions that configure the processor to:

determine a type of good or service for the purchase;

determine that the type is one of a plurality of types approved for a maximum fee; and

set a maximum interchange fee.

12. The system of claim 11, wherein the plurality of types includes one of an emergency service, an emergency good, a necessary service, and a necessary good.

13. The system of claim 8, wherein a credit card issuing bank establishes the maximum interchange fee to be assessed.

14. The system of claim 8, further comprising instructions that configure the processor to sum all purchase amounts for all purchases amounts received from the merchant over a specified period of time.

15. A computer-readable storage medium comprising computer-readable instructions for calculating an interchange fee to be assessed on a merchant for a purchase amount, the computer-readable instructions comprising instructions used by a processor to:

establish a maximum interchange fee to be assessed, wherein the interchange fee is calculated as a percentage of a purchase amount;

establish a rate at which the percentage decreases as the purchase amount increases, wherein the percentage decreases so that an interchange fee calculated from a purchase amount does not exceed the maximum interchange fee;

receive the purchase amount; and

calculate the interchange fee using the purchase amount and the percentage.

16. The computer-readable storage medium of claim 15, further comprising computer-readable instructions to send a request to a credit card issuing bank to establish the maximum interchange fee to be assessed, wherein the request is generated by the merchant.

17. The computer-readable storage medium of claim 16, further comprising computer-readable instructions to receive an approval of the request from the credit card issuing bank.

18. The computer-readable storage medium of claim 15, further comprising computer-readable instructions to:

determine a type of good or service for the purchase;

determine that the type is one of a plurality of types approved for a maximum fee; and

set a maximum interchange fee.

19. The computer-readable storage medium of claim 18, wherein the plurality of types includes one of an emergency service, an emergency good, a necessary service, and a necessary good.

20. The computer-readable storage medium of claim 15, wherein a credit card issuing bank establishes the maximum interchange fee to be assessed.

21. The computer-readable storage medium of claim 15, further comprising computer-readable instructions to sum all purchase amounts for all purchases amounts received from the merchant over a specified period of time.