Geography based transaction cost recovery

• US 9,087,330 B2
• Filed: 09/14/2012
• Issued: 07/21/2015
• Est. Priority Date: 09/14/2012
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Murphy, Matthew D., Weigman, Scott A.
• Primary Examiner(s): Wilder, Hunter
• Application Number:
  US13/619,015
• Publication Number:
  US 20140081779A1
• Time in Patent Office: 1,040 Days
• Field of Search: 705/16, 705/14.15, 705/17, 705/39, 705/402
• US Class Current: 1/1
• 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 20/4015 using location information

Abstract

Methods and apparatus for recovering a transaction cost in connection with a transaction between a customer and a merchant are provided. The transaction cost may be recovered from a selected region within a geographic area. The selected region may be a customer location. The selected region may be a merchant location. The selected region may be any suitable region. The transaction cost may be recovered utilizing central control over network of merchant locations. The transaction cost may be recovered during a selected time. Apparatus may include an application that allows a selection of a time and/or geographic region for recovery of the transaction cost.

Claims

1. An article of manufacture comprising a non-transitory computer usable medium having computer readable program code embodied therein, the computer readable program code when executed by a processor on a computer system, performs a method for recovering an interchange fee associated with a credit card payment made by a customer using a payment instrument, the interchange fee imposed on a merchant that accepts the credit card payment from the customer, the method comprising:

associating a geographic value with the credit card payment;

determining whether the geographic value satisfies a geographic criterion;

if the geographic value satisfies the geographic criterion;

determining a surcharge amount to be charged by the merchant to the customer, for the payment instrument, based on at least;

a sensitivity which indicates how the surcharge amount positively or negatively affects overall sales associated with the geographic criterion;

a net cost of the interchange fee imposed on the merchant being reduced by a pre-determined percentage when the surcharge amount is collected by the merchant; and

a net profit of the merchant being maintained above a pre-determined amount with respect to a plurality of credit card payments accepted by the merchant within the geographic criterion when the surcharge amount is collected by the merchant; and

transmitting an authorization request to charge a first amount to an account of the customer associated with the payment instrument, the first amount not less than a sum of a price and the surcharge amount; and

if the geographic value does not satisfy the geographic criterion, transmitting an authorization request to charge the account of the customer a second amount not less than the price.

2. The article of claim 1, wherein in the method, the geographic value is based on a billing address associated with the payment instrument.

3. The article of claim 1, wherein in the method, the geographic criterion comprises a region.

4. The article of claim 3, wherein in the method, the region corresponds to a state.

5. The article of claim 3, wherein in the method, the region corresponds to a county.

6. The article of claim 3, wherein in the method, the region corresponds to a municipality.

7. The article of claim 3, wherein in the method, the region corresponds to an area defined by a zip code.

8. The article of claim 1, wherein in the method, the geographic criterion comprises a roadway.

9. The article of claim 1, wherein in the method, the geographic criterion comprises an address.

10. The article of claim 9, wherein in the method, the geographic criterion comprises a radius extending away from the address.

11. The article of claim 1, wherein in the method, the geographic criterion comprises a map coordinate.

12. The article of claim 11, wherein in the method, the map coordinate is one of a plurality of map coordinates defining a region.

13. The article of claim 12, wherein in the method, the map coordinates are received from a graphical user interface.

14. The article of claim 1, wherein in the method, the surcharge amount is also determined based on a channel of commerce associated with the interchange fee.