Methods and systems for managing co-brand proprietary financial transaction processing

• US 8,606,662 B2
• Filed: 04/01/2009
• Issued: 12/10/2013
• Est. Priority Date: 04/04/2008
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Tomchek, Brad Michael, Chong, Jill E., Rausaria, Suman, Bone, Cathrine Lee, McCorkell, Linda L., Wong, Shoon Ping, Smith, Janet
• Primary Examiner(s): Gart, Matthew
• Assistant Examiner(s): Goyea, Olusegun
• Application Number:
  US12/416,727
• Publication Number:
  US 20090254462A1
• Time in Patent Office: 1,714 Days
• Field of Search: 705/35, 705/39, 705/40, 705/14.17, 705/17, 705/38, 705/14.34, 705/14.26, 705/14.27, 705/14.25, 705/14.38, 235/375, 235/379, 235/380, 235/381
• US Class Current: 705/30
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/0241 Advertisements
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• 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 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: H04L 63/101 Access control lists [ACL]

Abstract

A method and system for processing a financial transaction using a co-brand proprietary payment card through a multi-party payment card interchange network is provided. The method includes storing within a database a list of merchants participating in a co-brand program with the interchange network, receiving an authorization request for the transaction involving the co-brand payment card wherein the authorization request includes a merchant identifier, determining whether the transaction originated at one of the participating merchants by comparing the received merchant identifier to the list of participating merchants stored within the database, manipulating the authorization request to include a private label identifier when the transaction is determined to have originated at one of the participating merchants, and transmitting an authorization response from the interchange network to the acquirer. The authorization response includes the private label identifier and designates the transaction for processing as a private label transaction.

Claims

1. A computer-based method for processing a financial transaction using a co-brand proprietary payment card through a multi-party payment card interchange network, the co-brand payment card is associated with a cardholder and a co-brand program, the co-brand program including an issuer, a co-brand merchant partner, and the interchange network, said method comprising:

storing within a computer database a list of merchants participating in the co-brand program with the interchange network and an account range associated with a private label merchant screening service;

receiving at an interchange network computer an authorization request for the financial transaction involving the co-brand payment card, the authorization request received from an acquirer and including a merchant identifier and an account number associated with the co-brand payment card;

determining, by the interchange network computer, whether the account number associated with the co-brand payment card is within the account range associated with the private label merchant screening service;

determining, by the interchange network computer, whether the transaction originated at one of the participating merchants by comparing the received merchant identifier to the list of participating merchants stored within the database upon the determination by the interchange network computer that the account number associated with the co-brand payment card is within the account range associated with the private label merchant screening service;

manipulating at the interchange network computer the authorization request received from the acquirer to include a private label identifier upon the determination by the interchange network computer that the transaction originated at one of the participating merchants; and

transmitting an authorization response from the interchange network computer to the acquirer after receiving the authorization response from an issuer, the authorization response including the private label identifier, the authorization response designating the transaction for processing as a private label transaction, the private label identifier used for clearing and settling the transaction.

2. A computer-based method according to claim 1 wherein storing within a database further comprises:

storing account data within the database, the account data including data representing a plurality of accounts registered with the network interchange, the plurality of accounts including co-brand accounts and non co-brand accounts, each of the plurality of accounts having a cardholder, a payment card and an account number associated therewith, the account data further including a co-brand identifier associated with each payment card designated as a co-brand payment card.

3. A computer-based method according to claim 2 wherein receiving at the interchange network an authorization request further comprises:

determining from the received authorization request that the transaction was initiated using one of the co-brand payment cards by detecting the co-brand identifier associated with the co-brand payment card used in the transaction.

4. A computer-based method according to claim 1 wherein manipulating at the interchange network the authorization request to include a private label identifier further comprises:

populating a product code data field included with the authorization request with the private label identifier.

5. A computer-based method according to claim 4 further comprising:

transmitting the authorization request with the private label identifier to the issuer; and

receiving at the interchange network the authorization response generated by the issuer, the authorization response including the private label identifier and approval data, wherein the approval data includes confirmation from the issuer that the cardholder has sufficient funds to settle the transaction.

6. A computer-based method according to claim 1 wherein transmitting an authorization response from the interchange network to the acquirer further comprises:

transmitting the authorization response with the private label identifier from the interchange network to the acquirer, wherein the authorization response is further transmitted to the participating merchant to approve the transaction, and wherein the authorization response instructs the acquirer to designate the transaction as a private label transaction.

7. A computer-based method according to claim 1 further comprising:

receiving settlement data from the acquirer corresponding to the transaction, the settlement data including the private label identifier for identifying the settlement data for processing as a private label transaction, wherein the settlement data represents monetary funds being transferred between the issuer, the acquirer and the participating merchant for completing the transaction.

8. A computer-based method according to claim 7 further comprising:

determining at the interchange network that the settlement data received from the acquirer is identified as being associated with a private label transaction;

determining a private label interchange rate for the private label transaction; and

processing the private label transaction at the interchange network at the private label interchange rate.

9. A computer-based method according to claim 7 further comprising:

determining at the interchange network that the settlement data received from the acquirer is identified as being associated with a private label transaction;

generating rewards program data for the private label transaction when the private label transaction is eligible for a private label rewards program; and

transmitting the settlement data along with the rewards program data to the issuer for processing.

10. A computer-based method according to claim 1 wherein the co-brand payment card is associated with a single co-brand merchant partner, the single co-brand merchant partner being a single business entity having multiple points of sale, the co-brand payment card configured to allow the cardholder to initiate private label transactions at any of the points of sale of the single co-brand merchant partner or initiate non-private label transactions with merchants other than the single co-brand merchant partner that are registered with the interchange network.

11. A computer-based method according to claim 1 wherein the co-brand payment card is associated with a coalition of co-brand merchant partners, the coalition of co-brand merchant partners including a plurality of merchant partners each merchant partner being a separate business entity, the co-brand payment card configured to allow the cardholder to initiate private label transactions at any of the coalition merchant partners or initiate non-private label transactions with merchants other than the coalition merchant partners that are registered with the interchange network.

12. A network-based system for processing a financial transaction using a co-brand proprietary payment card through a multi-party payment card interchange network, the co-brand payment card is associated with a cardholder and a co-brand program, the co-brand program including an issuer, a co-brand merchant partner, and the interchange network, said system comprising:

a database; and

an interchange network server system configured to be in communication with the database and an acquirer computer system, said interchange network server system configured to;

store within the database a list of merchants participating in a co-brand program with the interchange network and an account range associated with a private label merchant screening service;

receive from the acquirer computer system an authorization request for the financial transaction involving the co-brand payment card, the authorization request including a merchant identifier and an account number associated with the co-brand payment card;

determine whether the account number associated with the co-brand payment card is within the account range associated with the private label merchant screening service;

determine whether the transaction originated at one of the participating merchants by comparing the received merchant identifier to the list of participating merchants stored within the database upon the determination that the account number associated with the co-brand payment card is within the account range associated with the private label merchant screening service;

manipulate the authorization request received from the acquirer computer system to include a private label identifier when the transaction is determined by said interchange network server system to have originated at one of the participating merchants; and

transmit an authorization response to the acquirer computer system after receiving the authorization response from an issuer computer system, the authorization response including the private label identifier, the authorization response designating the transaction for processing as a private label transaction, the private label identifier used for clearing and settling the transaction.

13. A system according to claim 12 wherein said server system is further configured to:

store account data within the database, the account data including data representing a plurality of accounts registered with the network interchange, the plurality of accounts including co-brand accounts and non co-brand accounts, each of the plurality of accounts having a cardholder, a payment card and an account number associated therewith, the account data further including a co-brand identifier associated with each payment card designated as a co-brand payment card.

14. A system according to claim 13 wherein said server system is further configured to:

determine from the received authorization request that the transaction was initiated using one of the co-brand payment cards by detecting the co-brand identifier associated with the co-brand payment card used in the transaction.

15. A system according to claim 12 wherein said server system is further configured to:

populate a product code data field included with the authorization request with the private label identifier.

16. A system according to claim 15 further comprising an issuer computer system associated with the issuer and coupled to said server system, said server system further configured to:

transmit the authorization request with the private label identifier to the issuer computer system; and

receive the authorization response from the issuer computer system, the authorization response including the private label identifier and approval data, wherein the approval data includes confirmation from the issuer that the cardholder has sufficient funds to settle the transaction.

17. A system according to claim 12 wherein said server system is further configured to:

transmit the authorization response with the private label identifier to the acquirer computer system, wherein the authorization response is further transmitted to the participating merchant to approve the transaction, and wherein the authorization response instructs the acquirer computer system to designate the transaction as a private label transaction.

18. A system according to claim 12 wherein said server system is further configured to:

receive settlement data from the acquirer computer system corresponding to the transaction, the settlement data including the private label identifier for identifying the settlement data for processing as a private label transaction, wherein the settlement data represents monetary funds being transferred between the issuer, the acquirer and the participating merchant for completing the transaction.

19. A system according to claim 18 wherein the database stores interchange rates for a plurality of different types of transactions, and wherein said server system is further configured to:

determine that the settlement data received from the acquirer computer system is identified as being associated with a private label transaction;

determine a private label interchange rate for the private label transaction; and

process the private label transaction at the private label interchange rate.

20. A system according to claim 18 wherein the database stores rewards program data, and wherein said server system is further configured to:

determine that the settlement data received from the acquirer computer system is identified as being associated with a private label transaction;

retrieve rewards program data from the database for the private label transaction when the private label transaction is eligible for a private label rewards program; and

transmit the settlement data along with the retrieved rewards program data to the issuer for processing.

21. A system according to claim 12 wherein the co-brand payment card is associated with a single co-brand merchant partner, the single co-brand merchant partner being a single business entity having multiple points of sale, the co-brand payment card configured to allow the cardholder to initiate private label transactions at any of the points of sale of the single co-brand merchant partner or initiate non-private label transactions with merchants other than the single co-brand merchant partner that are registered with the interchange network.

22. A system according to claim 12 wherein the co-brand payment card is associated with a coalition of co-brand merchant partners, the coalition of co-brand merchant partners including a plurality of merchant partners each merchant partner being a separate business entity, the co-brand payment card configured to allow the cardholder to initiate private label transactions at any of the coalition merchant partners or initiate non-private label transactions with merchants other than the coalition merchant partners that are registered with the interchange network.

23. A multi-party interchange network computer for processing a financial transaction using a co-brand proprietary payment card, the co-brand payment card is associated with a cardholder and a co-brand program, the co-brand program including an issuer, a co-brand merchant partner, and a multi-party payment card interchange network, said interchange network computer having a memory, said interchange network computer programmed to:

store within the memory a list of merchants participating in a co-brand program with the interchange network and an account range associated with a private label merchant screening service;

receive an authorization request for the transaction from an acquirer involving the co-brand payment card, the authorization request received from an acquirer and including a merchant identifier and an account number associated with the co-brand payment card;

determine whether the account number associated with the co-brand payment card is within the account range associated with the private label merchant screening service;

determine whether the transaction originated at one of the participating merchants by comparing the received merchant identifier to the list of participating merchants stored within the memory upon the determination that the account number associated with the co-brand payment card is within the account range associated with the private label merchant screening service;

manipulate the authorization request received from the acquirer to include a private label identifier when the transaction is determined by the interchange network computer to have originated at one of the participating merchants; and

transmit an authorization response to the acquirer after receiving the authorization response from an issuer, the authorization response including the private label identifier, the authorization response designating the transaction for processing as a private label transaction, the private label identifier used for clearing and settling the transaction.

24. A computer according to claim 23 wherein said computer is programmed to:

populate a product code data field included with the authorization request with the private label identifier.

25. A computer according to claim 24 wherein said computer is programmed to:

transmit the authorization request with the private label identifier to the issuer; and

receive the authorization response from the issuer, the authorization response including the private label identifier and approval data, wherein the approval data includes confirmation from the issuer that the cardholder has sufficient funds to settle the transaction.

26. A computer according to claim 23 wherein said computer is programmed to:

transmit the authorization response with the private label identifier to the acquirer, wherein the authorization response is further transmitted to the participating merchant to approve the transaction, and wherein the authorization response instructs the acquirer to designate the transaction as a private label transaction.

27. A computer according to claim 23 wherein said computer is programmed to:

receive settlement data from the acquirer corresponding to the transaction, the settlement data including the private label identifier for identifying the settlement data for processing as a private label transaction, wherein the settlement data represents monetary funds being transferred between the issuer, the acquirer and the participating merchant for completing the transaction.

28. A computer according to claim 27 wherein the memory stores interchange rates for a plurality of different types of transactions, and wherein said computer is programmed to:

determine that the settlement data received from the acquirer is identified as being associated with a private label transaction;

determine a private label interchange rate for the private label transaction; and

process the private label transaction at the private label interchange rate.

29. A computer according to claim 27 wherein the memory stores rewards program data, and wherein said computer is programmed to:

determine that the settlement data received from the acquirer is identified as being associated with a private label transaction;

retrieve rewards program data from the memory for the private label transaction when the private label transaction is eligible for a private label rewards program; and

transmit the settlement data along with the retrieved rewards program data to the issuer for processing.

30. A non-transitory computer readable medium storing a computer program for processing a financial transaction using a co-brand proprietary payment card and a multi-party payment card interchange network computer, the co-brand payment card is associated with a cardholder and a co-brand program, the co-brand program including an issuer, a co-brand merchant partner, and a multi-party payment card interchange network, said program is executed by the interchange network computer and comprises at least one code segment that, when executed by a computer, causes the computer to perform the steps of:

storing within a database a list of merchants participating in a co-brand program with the interchange network and an account range associated with a private label merchant screening service;

receiving an authorization request for the transaction from an acquirer involving the co-brand payment card, the authorization request received from an acquirer and including a merchant identifier and an account number associated with the co-brand payment card;

determining whether the account number associated with the co-brand payment card is within the account range associated with the private label merchant screening service;

determining whether the transaction originated at one of the participating merchants by comparing the received merchant identifier to the list of participating merchants stored within the database upon the determination that the account number associated with the co-brand payment card is within the account range associated with the private label merchant screening service;

manipulating the authorization request from an acquirer to include a private label identifier when the transaction is determined by the interchange network computer to have originated at one of the participating merchants; and

transmitting an authorization response to the acquirer after receiving the authorization response from an issuer, the authorization response including the private label identifier, the authorization response designating the transaction for processing as a private label transaction, the private label identifier used for clearing and settling the transaction.

31. A non-transitory computer readable medium according to claim 30 further comprising at least one code segment that, when executed by the computer, causes the computer to perform the step of populating a product code data field included with the authorization request with the private label identifier.

32. A non-transitory computer readable medium according to claim 31 further comprising at least one code segment that, when executed by the computer, causes the computer to perform the steps of:

transmitting the authorization request with the private label identifier to the issuer; and

receiving the authorization response generated by the issuer, the authorization response including the private label identifier and approval data, wherein the approval data includes confirmation from the issuer that the cardholder has sufficient funds to settle the transaction.

33. A non-transitory computer readable medium according to claim 30 further comprising at least one code segment that, when executed by the computer, causes the computer to perform the step of:

receiving settlement data from the acquirer corresponding to the transaction, the settlement data including the private label identifier for identifying the settlement data for processing as a private label transaction, wherein the settlement data represents monetary funds being transferred between the issuer, the acquirer and the participating merchant for completing the transaction.

34. A non-transitory computer readable medium according to claim 33 further comprising at least one code segment that, when executed by the computer, causes the computer to perform the steps of:

determining that the settlement data received from the acquirer is identified as being associated with a private label transaction;

determining a private label interchange rate for the private label transaction; and

processing the private label transaction at the private label interchange rate.

35. A non-transitory computer readable medium according to claim 33 further comprising at least one code segment that, when executed by the computer, causes the computer to perform the steps of:

determining that the settlement data received from the acquirer is identified as being associated with a private label transaction;

generating rewards program data for the private label transaction when the private label transaction is eligible for a private label rewards program; and

transmitting the settlement data along with the rewards program data to the issuer for processing.