Method and system for emulating a private label over an open network

• US 8,170,936 B2
• Filed: 02/18/2010
• Issued: 05/01/2012
• Est. Priority Date: 06/20/2005
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Ahmad, Farhan
• Primary Examiner(s): Hammond, III, Thomas M
• Application Number:
  US12/707,784
• Publication Number:
  US 20100153199A1
• Time in Patent Office: 803 Days
• Field of Search: 705 35- 45
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• 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 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• 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
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

According to one embodiment, the present invention relates to a method and a system for emulating a private label network over an open network where settlement occurs at varying discount rates with one or more merchants or providers. A computer implemented method and system for settling a transaction at a discount rate may include receiving an authorization record for the transaction initiated by a customer over an open payment network; identifying payment plan data associated with a transaction; creating a settlement record based at least in part on the authorization record and the payment plan data; determining a discount rate for the settlement record; and settling with a provider for the transaction at the discount rate.

Claims

1. An automated computer implemented method for settling a transaction at a variable discount rate, wherein the method is executed by a programmed computer processor which communicates with a user via a network, the method comprising the steps of:

receiving an authorization record via the network for a transaction initiated by a customer over an open payment network, wherein the open payment network comprises a card association and a card acquirer;

identifying payment plan data associated with the transaction and specific to a merchant, using the programmed computer processor, wherein the payment plan data comprises data associated with one or more financing plans relating to the transaction;

creating a settlement record based at least in part on the authorization record and the payment plan data, using the programmed computer processor;

applying a discount rate for the settlement record wherein the discount rate is a variable discount rate based at least in part on the identified payment plan data and at least one of the transaction type, the transaction amount, and the customer ability to pay, using the programmed computer processor; and

settling with the merchant for the transaction at the variable discount rate, wherein the variable discount rate comprises at least a variable percentage rate of an amount of the transaction which is charged to the merchant by one or more of the card association and the card acquirer for processing the transaction.

2. The method of claim 1, further comprising the step of:

funding a settlement account for an amount of the transaction.

3. The method of claim 1, further comprising the step of:

identifying transaction data for the transaction, wherein the transaction data comprises one or more of merchant identity and transaction type, wherein the discount rate is further based on the transaction data.

4. The method of claim 1, wherein the payment plan data comprises data associated with one or more financing plans to finance the transaction.

5. The method of claim 4, wherein the payment plan data is selected at a point of sale for the transaction.

6. The method of claim 4, wherein payment plan data is predetermined by a customer.

7. The method of claim 4, wherein the payment plan data is determined after the transaction.

8. The method of claim 1, wherein the discount rate is adjusted after the step of settling.

9. The method of claim 1, wherein the discount rate is based at least in part on the merchant.

10. The method of claim 1, wherein the merchant is a provider of medical services.

11. The method of claim 1, wherein the discount rate is calculated for a plurality of transactions.

12. The method of claim 1, wherein the customer receives a consolidated bill for a plurality of transactions for a plurality of providers.

13. A computer implemented system for settling a transaction at a discount rate, the system comprising:

a computer processor;

an authorization module programmed to receive an authorization record for a transaction initiated by a customer over an open payment network, wherein the open payment network comprises a card association and a card acquirer;

a card holder module programmed to identify payment plan data associated with the transaction and specific to a merchant, wherein the payment plan data comprises data associated with one or more financing plans relating to the transaction; and

a settlement module programmed to;

create a settlement record based at least in part on the authorization record and the payment plan data;

apply a discount rate for the settlement record wherein the discount rate is a variable discount rate based at least in part on the identified payment plan data and at least one of the transaction type, the transaction amount, and the customer ability to pay; and

settle with the merchant for the transaction at the variable discount rate, wherein the variable discount rate comprises at least a variable percentage rate of an amount of the transaction which is charged to the merchant by one or more of the card association and the card acquirer for processing the transaction;

wherein the computer processor, the authorization module, the card holder module and the settlement module are interoperably connected.

14. The system of claim 13, wherein a settlement account is funded for an amount of the transaction.

15. The system of claim 13, wherein transaction data for the transaction is identified, wherein the transaction data comprises one or more of merchant identity and transaction type, wherein the discount rate is further based on the transaction data.

16. The system of claim 13, wherein the payment plan data comprises data associated with one or more financing plans to finance the transaction.

17. The system of claim 16, wherein the payment plan data is selected at a point of sale for the transaction.

18. The system of claim 16, wherein payment plan data is predetermined by a customer.

19. The system of claim 16, wherein the payment plan data is determined after the transaction.

20. The system of claim 13, wherein the discount rate is adjusted after the step of settling.

21. The system of claim 13, wherein the discount rate is based at least in part on the merchant.

22. The system of claim 13, wherein the merchant is a provider of medical services.

23. The system of claim 13, wherein the discount rate is calculated for a plurality of transactions.

24. The system of claim 13, wherein the customer receives a consolidated bill for a plurality of transactions for a plurality of providers.

25. An automated computer implemented method for settling a transaction at a variable discount rate, wherein the method is executed by a programmed computer processor which communicates with a user via a network, the method comprising the steps of:

receiving an authorization record for a transaction initiated by a customer over an open payment network, wherein the open payment network comprises a card association network;

identifying payment plan data associated with the transaction and specific to a merchant, wherein payment plan data comprises data associated with one or more financing plans to finance the transaction;

creating a settlement record based at least in part on the authorization record and the payment plan data;

identifying transaction data for the transaction, wherein the transaction data comprises one or more of provider identity and transaction type;

applying a discount rate for the settlement record, wherein the discount rate is further based at least in part on two or more of the transaction data, the transaction amount the customer ability to pay and the identified payment plan data;

settling with a provider for the transaction at the discount rate, wherein the discount rate comprises at least a variable percentage rate of an amount of the transaction which is charged to the merchant by one or more of the card association and the card acquirer for processing the transaction; and

funding a settlement account for an amount of the transaction.

26. A computer implemented system for settling a transaction at a variable discount rate, the system comprising:

a computer processor;

an authorization module programmed to receive an authorization record via a network for a transaction initiated by a customer over an open payment network, wherein the open payment network comprises a card association network;

a card holder module programmed to identify payment plan data associated with the transaction and specific to a merchant, wherein payment plan data comprises data associated with one or more financing plans to finance the transaction;

a settlement module programmed to;

create a settlement record based at least in part on the authorization record and the payment plan data;

identify transaction data for the transaction, wherein the transaction data comprises one or more of provider identity and transaction type;

apply a discount rate for the settlement record, wherein the discount rate is further based at least in part on one or more of the transaction data, the transaction amount the customer ability to pay and the identified payment plan data;

settle with a provider for the transaction at the discount rate, wherein the discount rate comprises at least a variable percentage rate of an amount of the transaction which is charged to the merchant by one or more of the card association and the card acquirer for processing the transaction; and

fund a settlement account for an amount of the transaction;

wherein the computer processor, the authorization module, the card holder module and the settlement module are interoperably connected.