LEAST COST ROUTING AND MATCHING

• US 20130054465A1
• Filed: 08/30/2012
• Published: 02/28/2013
• Est. Priority Date: 08/30/2011
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Sakata, Ross, Mori, Michael, Cracknell, Steve, Reed, Judson, Basu, Gourab
• Granted Patent: US 8,886,563 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06K 5/00 Methods or arrangements for verifying the correctness of markings on a record carrier; Column detection devices
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/00 Commerce
• 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: H04M 15/8044 Least cost routing
• CPC Class Codes: H04M 15/8055 Selecting cheaper transport technology for a given service

Abstract

Systems and methods are disclosed for routing a transaction based on an assessment of costs associated with multiple payment processing networks. A transaction broker server determines how to route a received authorization request message for a transaction based on a first cost associated with processing the transaction via a first payment processing network and a second cost associated with processing the transaction via a second payment processing network. If the first cost is less than or equal to the second cost, the authorization request message is routed to the first payment processing network. If the first cost exceeds the second cost, at least one rule is applied to determine whether the first cost is to be reduced. If the at least one rule is satisfied, the first cost is reduced and the authorization request message is routed to the first payment processing network.

Claims

1. A method for routing a transaction, comprising:

receiving an authorization request message for the transaction;

determining a first cost associated with processing the transaction via a first payment processing network;

determining a second cost associated with processing the transaction via a second payment processing network;

comparing the first cost with the second cost; and

if the first cost is less than or equal to the second cost, routing the authorization request message to the first payment processing network;

if the first cost exceeds the second cost, applying at least one rule to determine whether the first cost is to be reduced; and

if the at least one rule is satisfied;

reducing the first cost, and

routing the authorization request message to the first payment processing network; and

if the at least one rule is not satisfied, routing the authorization request message to the second payment processing network.

2. The method of claim 1, wherein applying the at least one rule includes determining whether excess network capacity exceeds a threshold capacity.

3. The method of claim 1, wherein:

if the network capacity is within a first range, a first reduction is applied to the first cost; and

if the network capacity is within a second range, a second reduction is applied to the first cost.

4. The method of claim 1, wherein applying the at least one rule includes determining whether a number of transactions that have been processed by the first payment processing network over a period of time exceeds a threshold number of transactions.

5. The method of claim 1, wherein applying the at least one rule includes determining whether a revenue value associated with processing transactions by the first payment processing network over a period of time exceeds a threshold revenue value.

6. The method of claim 1, wherein reducing the first cost comprises reducing an interchange fee.

7. The method of claim 1, wherein reducing the first cost comprises reducing a processing fee.

8. The method of claim 1, wherein reducing the first cost comprises reducing the first cost to match the second cost.

9. A method for routing a transaction, comprising:

receiving an authorization request message for the transaction;

determining a first cost associated with processing the transaction via a first payment processing network;

determining a second cost associated with processing the transaction via a second payment processing network;

comparing the first cost with the second cost; and

if the first cost is less than or equal to the second cost, routing the authorization request message to the first payment processing network;

if the first cost exceeds the second cost;

applying a first rule; and

if the first rule is satisfied;

determining whether the second cost is greater than or equal to a minimum fee associated with the first rule; and

if the second cost is greater than or equal to a minimum fee associated with the first rule;

reducing the first cost, and

routing the authorization request message to

the first payment processing network; and

if the second cost is less than the minimum fee associated with the first rule, routing the authorization request message to the second payment processing network.

10. The method of claim 9, wherein if the first rule is not satisfied, routing the transaction to the second payment processing network.

11. The method of claim 9, wherein reducing the first cost comprises reducing the first cost to match the second cost.

12. The method of claim 9, further comprising, wherein if the first rule is not satisfied:

applying a second rule; and

if the second rule is satisfied;

determining whether the second cost is greater than or equal to a minimum fee associated with the second rule; and

if the second cost is greater than or equal to a minimum fee associated with the second rule;

reducing the first cost, and

routing the transaction to the first payment processing network; and

if the second cost is less than to the minimum fee associated with the second rule, routing the authorization request message to the second payment processing network.

13. The method of claim 12, wherein reducing the first cost comprises reducing the first cost to match the second cost.

14. A system for routing a transaction, comprising:

a processor; and

a computer readable medium coupled to the processor, wherein the computer readable medium comprises code executable by the processor for implementing a method of routing transactions, the method comprising;

receiving an authorization request message for the transaction;

determining a first cost associated with processing the transaction via a first payment processing network;

determining a second cost associated with processing the transaction via a second payment processing network;

comparing the first cost with the second cost; and

if the first cost is less than or equal to second cost, routing the authorization request message to the first payment processing network;

if the first cost exceeds the second cost;

applying at least one rule to determine whether the first cost is to be reduced; and

if the at least one rule is satisfied;

reducing the first cost, and

routing the authorization request message to the first

payment processing network; and

if the at least one rule is not satisfied, routing the authorization request message to the second payment processing network.

15. The system of claim 14, wherein applying the at least one rule includes determining whether excess network capacity exceeds a threshold capacity.

16. The system of claim 14, wherein:

if the network capacity is within a first range, a first reduction is applied to the first cost; and

if the network capacity is within a second range, a second reduction is applied to the first cost.

17. The system of claim 14, wherein applying the at least one rule includes determining whether a number of transactions that have been processed by the first payment processing network over a period of time exceeds a threshold number of transactions.

18. The system of claim 14, wherein applying the at least one rule includes determining whether a revenue value associated with processing transactions by the first payment processing network over a period of time exceeds a threshold revenue value.

19. The system of claim 14, wherein reducing the first cost comprises reducing an interchange fee.

20. The system of claim 14, wherein reducing the first cost comprises reducing a processing fee.

21. The system of claim 14, wherein reducing the first cost comprises reducing the first cost to match the second cost.