U.S. patent application number 11/966724 was filed with the patent office on 2009-07-02 for methods and systems for applying promotion codes to payment transactions.
Invention is credited to Jonathan Robert Powell.
Application Number | 20090171777 11/966724 |
Document ID | / |
Family ID | 40799642 |
Filed Date | 2009-07-02 |
United States Patent
Application |
20090171777 |
Kind Code |
A1 |
Powell; Jonathan Robert |
July 2, 2009 |
METHODS AND SYSTEMS FOR APPLYING PROMOTION CODES TO PAYMENT
TRANSACTIONS
Abstract
A method for applying promotion codes to a payment transaction
is provided. The method uses at least one input device in
communication with a database. The payment transaction includes a
purchase made by a cardholder using a payment card over a payment
card network. The method includes storing promotion data within the
database including at least one merchant participating in the
payment card network, each promotional program offered by the at
least one merchant to the cardholder, and promotion codes
associated with each promotional program offered to the cardholder.
The method further includes accessing the promotion data using the
at least one input device, receiving a selected promotional program
from the cardholder using the at least one input device, and
automatically applying the promotion codes associated with the
selected promotional program to the payment transaction.
Inventors: |
Powell; Jonathan Robert;
(Rye Brook, NY) |
Correspondence
Address: |
DANIEL M. FITZGERALD (21652);ARMSTRONG TEASDALE LLP
ONE METROPOLITAN SQUARE, SUITE 2600
ST. LOUIS
MO
63102-2740
US
|
Family ID: |
40799642 |
Appl. No.: |
11/966724 |
Filed: |
December 28, 2007 |
Current U.S.
Class: |
705/14.1 |
Current CPC
Class: |
G06Q 20/20 20130101;
G06Q 20/387 20130101; G06Q 30/0207 20130101; G06Q 20/02 20130101;
G06Q 30/02 20130101 |
Class at
Publication: |
705/14 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00 |
Claims
1. A method for applying promotion codes to a payment transaction
using at least one input device in communication with a database,
the payment transaction including a purchase made by a cardholder
using a payment card over a payment card network, said method
comprising the steps of: storing promotion data within the
database, the promotion data including at least one merchant
participating in the payment card network, each promotional program
offered by the at least one merchant to the cardholder, and
promotion codes associated with each promotional program offered to
the cardholder; accessing the promotion data using the at least one
input device; receiving a selected promotional program from the
cardholder using the at least one input device; and automatically
applying the promotion codes associated with the selected
promotional program to the payment transaction.
2. A method according to claim 1 further comprising generating
accounting entries representing the payment transaction including
terms of the selected promotional program applied to the payment
transaction, and transmitting the accounting entries to the
merchant associated with the selected promotional program and
issuer associated with the cardholder.
3. A method according to claim 1 wherein storing promotion data
further comprises storing promotion data within the database for a
plurality of merchants participating in the payment card network,
the promotion data including at least one of a merchant name, a
merchant identification (ID) number, promotion identifiers,
transaction qualifications, terms of promotions, and promotion
codes.
4. A method according to claim 1 wherein storing promotion data
further comprises storing promotion data within the database
including a list of available promotional programs being offered by
a merchant to each cardholder.
5. A method according to claim 1 wherein receiving a selected
promotional program further comprises: displaying on the at least
one input device a list of at least one available promotional
program being offered by the at least one merchant to the
cardholder, the input device including at least one of a computer
system, a cellular telephone, a person digital assistant and a
point of sale device associated with the merchant; receiving a
selected promotional program included within the displayed list;
and storing selection data in the database, wherein the selection
data represents the selected promotional program.
6. A method according to claim 1 wherein the at least one input
device is in communication with a server system, and wherein
receiving a selected promotional program further comprises: pushing
promotion data from the server system to the at least one input
device including displaying on the at least one input device a list
of at least one available promotional program being offered by the
at least one merchant to the cardholder; receiving a selected
promotional program selected by the cardholder from the displayed
list; and transmitting selection data from the at least one input
device to the server system, wherein the selection data represents
the promotional program selected by the cardholder.
7. A method according to claim 1 wherein the at least one input
device is in communication with a server system, the server system
associated with the payment card network, and wherein automatically
applying the promotion codes further comprises: receiving at the
server system data representing the promotional program selected by
the cardholder; processing the payment transaction initiated by the
cardholder with the payment card; validating at the server system
that the payment transaction satisfies transaction qualifications
associated with the selected promotional program; and applying the
promotion codes associated with the selected promotional program to
the validated payment transaction such that terms of the selected
promotional program are applied to the payment transaction of the
cardholder.
8. A method according to claim 1 wherein the at least one input
device is in communication with a server system, the server system
associated with the payment card network, and wherein automatically
applying the promotion codes further comprises: receiving at the
server system data representing the promotional program selected by
the cardholder; interrogating the payment transaction at the server
system to determine whether the payment transaction satisfies
transaction qualifications associated with the selected promotional
program; applying the promotion codes associated with the selected
promotional program to the payment transaction if the transaction
qualifications are satisfied; and generating accounting entries
associated with the payment transaction including at least one of
crediting and debiting funds between merchant and issuer
accounts.
9. A network-based system for applying promotion codes to a payment
transaction including a purchase made by a cardholder using a
payment card over a payment card network, said system comprising: a
client system; a database for storing information; and a server
system configured to be coupled to said client system and said
database, said server further configured to: store promotional data
within the database including at least one merchant participating
in the payment card network, each promotional program offered by
the at least one merchant to the cardholder, and promotion codes
associated with each promotional program offered to the cardholder;
display the promotion data on the client system including each
promotional program offered by the at least one merchant to the
cardholder; receive selection data from the client system, the
selection data representing the promotional program selected by the
cardholder; and automatically apply the promotion codes associated
with the selected promotional program to the payment
transaction.
10. A system according to claim 9 wherein the server is further
configured to: generate accounting entries representing the payment
transaction including terms of the selected promotional program
applied to the payment transaction; and transmit the accounting
entries to the merchant associated with the selected promotional
program and issuer associated with the cardholder.
11. A system according to claim 9 wherein the promotion data
comprises at least one of a merchant name, a merchant
identification (ID) number, promotion identifiers, transaction
qualifications, terms of promotions, and promotion codes.
12. A system according to claim 9 wherein the promotion data
comprises a list of available promotional programs being offered by
a merchant to each cardholder.
13. A system according to claim 9 wherein the server is further
configured to: push the promotion data to the client system to
display on the client system a list of at least one available
promotional program being offered by the at least one merchant to
the cardholder; prompt the cardholder to select a promotional
program from the displayed list; and receive selection data from
the client system, wherein the selection data represents the
promotional program selected by the cardholder.
14. A system according to claim 9 wherein the server is associated
with the payment card network, and wherein the server is further
configured to: store transaction qualifications within the
database, wherein the transaction qualifications include terms a
payment transaction must include for a corresponding promotional
program to be applicable; validate the payment transaction
initiated by the cardholder with the payment card, wherein the
validation comprises determining whether the payment transaction
satisfies the transaction qualifications associated with the
selected promotional program; and apply the promotion codes
associated with the selected promotional program to the validated
payment transaction such that terms of the selected promotional
program are applied to the payment transaction of the
cardholder.
15. A system according to claim 9 wherein the server is associated
with the payment card network, and wherein the server is further
configured to: receive data representing the promotional program
selected by the cardholder; interrogate the payment transaction
initiated by the cardholder to determine whether the payment
transaction satisfies transaction qualifications associated with
the selected promotional program; apply the promotion codes
associated with the selected promotional program to the payment
transaction if the transaction qualifications are satisfied; and
generate accounting entries associated with the payment transaction
including at least one of crediting and debiting funds between
merchant and issuer accounts.
16. A computer coupled to a database for applying promotion codes
to a payment transaction performed by a cardholder using a payment
card over a payment card network, the computer in communication
with an input device, wherein the database stores promotional data
including each merchant participating in the payment card network,
each promotional program offered by each merchant to the
cardholder, and promotion codes associated with each promotional
program offered to the cardholder, and wherein the input device
accesses the database and displays the promotion data including
each promotional program offered by each merchant to the
cardholder, said computer programmed to: receive selection data
from the input device, the selection data representing the
promotional program selected by the cardholder for application to a
payment transaction initiated by the cardholder with the merchant
offering the selected promotional program; and automatically apply
the promotion codes associated with the selected promotional
program to the payment transaction.
17. A computer according to claim 16 wherein said computer
comprises a merchant screening module, a promotion code processing
module and a merchant accounting system module, wherein the
merchant accounting system module is programmed to generate
accounting entries representing the payment transaction including
terms of the selected promotional program applied to the payment
transaction, and transmits the accounting entries to the merchant
associated with the selected promotional program and issuer
associated with the cardholder.
18. A computer according to claim 17 wherein the input device
displays a list of available promotional programs being offered by
a merchant to the cardholder, and wherein the merchant screening
module is programmed to process the payment transaction initiated
by the cardholder with the payment card, and determine whether the
cardholder has selected a promotional program; and the promotion
code processing module is programmed to validate the payment
transaction including determining whether the payment transaction
satisfies transaction qualifications associated with the selected
promotional program, and apply the promotion codes associated with
the selected promotional program to the validated payment
transaction such that terms of the selected promotional program are
applied to the payment transaction of the cardholder.
19. A computer according to claim 17 wherein said merchant
accounting system module is programmed to process chargebacks and
adjustments for the payment transaction directly between the
merchant and issuer accounts.
20. A computer according to claim 16 wherein said computer is
further programmed to: interrogate the payment transaction
initiated by the cardholder to determine whether the payment
transaction satisfies transaction qualifications associated with
the selected promotional program; apply the promotion codes
associated with the selected promotional program to the payment
transaction if the transaction qualifications are satisfied; and
generate accounting entries associated with the payment transaction
including at least one of crediting and debiting funds between
merchant and issuer accounts.
21. A computer program embodied on a computer readable medium for
applying promotion codes to a payment transaction including a
purchase made by a cardholder using a payment card over a payment
card network, said program comprising at least one code segment
that: stores within a database promotion data including at least
one merchant participating in the payment card network, each
promotional program offered by the at least one merchant to the
cardholder, and promotion codes associated with each promotional
program offered to the cardholder; enables access to the promotion
data using at least one input device; receives selection data from
the at least one input device, the selection data representing a
promotional program selected by the cardholder; and applies the
promotion codes associated with the selected promotional program to
the payment transaction initiated by the cardholder.
22. A computer program in accordance with claim 21 further
comprising at least one code segment that: displays on the at least
one input device a list of at least one available promotional
program being offered by the at least one merchant to the
cardholder; receives a selected promotional program from the
displayed list; and stores selection data in the database, wherein
the selection data represents the promotional program selected by
the cardholder.
23. A computer program in accordance with claim 21 further
comprising at least one code segment that: pushes promotion data to
the at least one input device including displaying on the at least
one input device a list of at least one available promotional
program being offered by the at least one merchant to the
cardholder; prompts the cardholder to select a promotional program
from the displayed list; and receives selection data from the input
device, wherein the selection data represents the promotional
program selected by the cardholder.
24. A computer program in accordance with claim 21 further
comprising at least one code segment that: receives data
representing the promotional program selected by the cardholder;
processes the payment transaction initiated by the cardholder with
the payment card; validates the payment transaction including
confirming that the payment transaction satisfies transaction
qualifications associated with the selected promotional program;
and applies the promotion codes associated with the selected
promotional program to the validated payment transaction such that
terms of the selected promotional program are applied to the
payment transaction of the cardholder.
25. A computer program in accordance with claim 21 further
comprising at least one code segment that: receives data
representing the promotional program selected by the cardholder;
interrogates the payment transaction initiated by the cardholder to
determine whether the payment transaction satisfies transaction
qualifications associated with the selected promotional program;
applies the promotion codes associated with the selected
promotional program to the payment transaction if the transaction
qualifications are satisfied; and generates accounting entries
associated with the payment transaction including at least one of
crediting and debiting funds between merchant and issuer accounts.
Description
BACKGROUND OF THE INVENTION
[0001] This invention relates generally to applying promotion codes
to payment transactions and, more particularly, to network-based
methods and systems for applying promotion codes initiated by an
account holder to payment transactions conducted over a bankcard
network.
[0002] Historically, the use of "charge" cards for consumer
transaction payments was at most regional and based on
relationships between local credit issuing banks and various local
merchants. The payment card industry has since evolved with the
issuing banks forming associations (e.g., MasterCard) and involving
third party transaction processing companies (e.g., "Merchant
Acquirers") to enable cardholders to widely use charge cards at any
merchant's establishment, regardless of the merchant's banking
relationship with the card issuer.
[0003] For example, FIG. 1 of the present application shows an
exemplary multi-party payment card industry system for enabling
payment-by-card transactions in which the merchants and issuer do
not need to have a one-to-one special relationship. Yet, various
scenarios exist in the payment-by-card industry today, where the
card issuer has a special or customized relationship with a
specific merchant, or group of merchants. These special or
customized relationships may, for example, include private label
programs, co-brand programs, proprietary card brands, rewards
programs, and others. The special or customized issuer-merchant
relationships often require direct communications between the
parties for transaction authorization and/or clearing (e.g., for
financial transactions). Further, the issuer may be required to
maintain back office processes to manage the financial aspects of
these special or customized relationships. Alternatively, the
issuers may exploit communications through Merchant Acquirers to
facilitate indirect communications with the merchants.
[0004] Consideration is now being given to ways of improving
implementations of the special or customized issuer-merchant
relationships in the payment-by-card industry. In particular,
attention is being directed to utilizing legacy general purpose
bankcard infrastructure to support the transaction routing,
merchant accounting, and financial settlement for these special or
individualized relationships.
[0005] At least some known special or customized issuer-merchant
relationships include rewards programs or other special offers
(e.g., financing) that are applied to purchases made by account
holders or customers using a payment card over a bankcard network.
Typically, in these cases, the issuer is required to track and
apply rules representing the rewards programs or special offers to
purchases made by an account holder. Consideration is now being
given to ways to enable account holders to input promotion codes or
business rules that are then applied to payment transactions using
a payment card over a bankcard network, wherein the promotion codes
or business rules inputted by the account holders are associated
with a rewards program or a special offer being made by the
merchant.
BRIEF DESCRIPTION OF THE INVENTION
[0006] In one aspect, a method for applying promotion codes to a
payment transaction is provided. The method uses at least one input
device in communication with a database. The payment transaction
includes a purchase made by a cardholder using a payment card over
a payment card network. The method includes storing promotion data
within the database including at least one merchant participating
in the payment card network, each promotional program offered by
the at least one merchant to the cardholder, and promotion codes
associated with each promotional program offered to the cardholder.
The method further includes accessing the promotion data using the
at least one input device, receiving a selected promotional program
from the cardholder using the at least one input device, and
automatically applying the promotion codes associated with the
selected promotional program to the payment transaction.
[0007] In another aspect, a network-based system for applying
promotion codes to a payment transaction is provided. The payment
transaction includes a purchase made by a cardholder using a
payment card over a payment card network. The system includes a
client system, a database for storing information, and a server
system configured to be coupled to the client system and the
database. The server is configured to store promotional data within
the database including at least one merchant participating in the
payment card network, each promotional program offered by the at
least one merchant to the cardholder, and promotion codes
associated with each promotional program offered to the cardholder.
The server is further configured to display the promotion data on
the client system including each promotional program offered by the
at least one merchant to the cardholder, receive selection data
from the client system wherein the selection data represents the
promotional program selected by the cardholder, and automatically
apply the promotion codes associated with the selected promotional
program to the payment transaction.
[0008] In another aspect, a computer coupled to a database for
applying promotion codes to a payment transaction is provided. The
payment transaction is performed by a cardholder using a payment
card over a payment card network. The computer is in communication
with an input device. The database stores promotional data
including each merchant participating in the payment card network,
each promotional program offered by each merchant to the
cardholder, and promotion codes associated with each promotional
program offered to the cardholder. The input device accesses the
database and displays the promotion data including each promotional
program offered by each merchant to the cardholders. The computer
is programmed to receive selection data from the input device
wherein the selection data represents the promotional program
selected by the cardholder for application to a payment transaction
initiated by the cardholder with the merchant offering the selected
promotional program, and automatically apply the promotion codes
associated with the selected promotional program to the payment
transaction.
[0009] In another aspect, a computer program embodied on a computer
readable medium for applying promotion codes to a payment
transaction is provided. The payment transaction includes a
purchase made by a cardholder using a payment card over a payment
card network. The program includes at least one code segment that
stores within a database promotion data including at least one
merchant participating in the payment card network, each
promotional program offered by the at least one merchant to the
cardholder, and promotion codes associated with each promotional
program offered to the cardholder. The program further includes at
least one code segment that enables access to the promotion data
using at least one input device, receives selection data from the
at least one input device wherein the selection data represents a
promotional program selected by the cardholder, and applies the
promotion codes associated with the selected promotional program to
the payment transaction initiated by the cardholder.
BRIEF DESCRIPTION OF THE DRAWINGS
[0010] FIG. 1 is a schematic diagram illustrating an exemplary
multi-party payment card industry system for enabling ordinary
payment-by-card transactions in which the merchants and issuer do
not need to have a one-to-one special relationship.
[0011] FIG. 2 is a simplified block diagram of an exemplary
embodiment of a server architecture of a system in accordance with
one embodiment of the present invention.
[0012] FIG. 3 is an expanded block diagram of an exemplary
embodiment of a server architecture of a system in accordance with
one embodiment of the present invention.
[0013] FIG. 4 is schematic diagram illustrating an exemplary
process for implementing special or customized issuer-merchant
relationships in a payment-by-card system, in accordance with one
embodiment of the present invention.
[0014] FIG. 5 is a schematic diagram illustrating authorization
request process flows in the exemplary process shown in FIG. 4, in
accordance with one embodiment of the present invention.
[0015] FIG. 6 is a schematic diagram illustrating clearing process
flows in the exemplary process shown in FIG. 4, in accordance with
one embodiment of the present invention.
[0016] FIG. 7 is a schematic diagram illustrating settlement flows
in the exemplary process shown in FIG. 4, in accordance with one
embodiment of the present invention.
[0017] FIG. 8 is a schematic diagram illustrating chargeback and
adjustment flows in the exemplary process shown in FIG. 4, in
accordance with one embodiment of the present invention.
[0018] FIG. 9 is a flowchart illustrating exemplary processes
utilized by the system shown in FIG. 2, in accordance with one
embodiment of the present invention.
DETAILED DESCRIPTION OF THE INVENTION
[0019] Described in detail herein are exemplary embodiments of
systems and processes for implementing special or customized
issuer-merchant relationships in the payment-by-card industry. The
systems and processes include a cardholder that utilizes a payment
card to make a purchase from a merchant, wherein the merchant has
registered with a bankcard network such that the purchase made by
the cardholder using the payment card can be processed over the
bankcard network.
[0020] The systems and processes described herein facilitate
enabling a cardholder to select a promotion offered by a merchant
for enticing the cardholder to make a purchase from the merchant,
and then apply promotion codes associated with the selected
promotion to a purchase made by the cardholder from the merchant. A
promotion or promotional program, as described herein, is typically
a special offer made by a merchant to a cardholder, for example, 30
days same as cash, 90 days no interest, no payment due for 6
months, or a predetermined percentage (e.g., 10%) off the purchase
price of the product or service, etc., to entice the cardholder to
make a purchase from the merchant using the payment card.
[0021] More specifically, the systems and processes described
herein facilitate, for example, electronic submission of
information using a client system, automated extraction of
information, and web-based reporting for internal and external
system users. A technical effect of the systems and processes
described herein include at least one of (a) storing promotion data
in a promotion database for merchants participating in the bankcard
network including a merchant name, a merchant identification (ID)
number, promotion identifiers, transaction qualifications, terms of
promotions and promotion codes; (b) registering the promotion data
in a merchant accounting system, also known as a deferred payment
tracking system; (c) transmitting the promotion data from the
promotion database to a cardholder database including a displayable
list of available promotions for each cardholder; (d) selecting by
a cardholder at least one promotion from the list of available
promotions, the selecting is performed by the cardholder using an
input device such as a personal computer, a cellular telephone, a
personal digital assistant (PDA), or other web-based connectable
equipment in communication with the cardholder database; (e)
receiving the selected promotion data at the merchant screening
module including the associated transaction codes and transaction
qualifications; (f) transmitting the promotion codes associated
with the selected promotion data to the promotion code processing
module; and (g) applying at the promotion code processing module
the promotion codes to a transaction satisfying the transaction
qualifications after the cardholder makes a purchase from the
merchant using a payment card over the bankcard network.
[0022] After a cardholder selects an available promotion, also
known as a promotional program, and a transaction is submitted to
the bankcard network, the transaction is interrogated to determine
if the transacting merchant and issuer have a relationship that
corresponds to a registered program, which covers the transaction.
At the merchant screening module, the system determines whether the
cardholder has registered for a promotional program. If the
cardholder has not registered for a promotional program, the system
may bypass the promotion code processing module and continue with
the authorization process. If, however, the merchant screening
module determines that the cardholder has registered for a
promotional program, the system directs the transaction to the
promotion code processing module for validation including
determining whether the transaction is validated as covered or,
conversely, designated as not covered by a registered program. The
validation may involve the use of suitable algorithms to apply a
specific set of criteria which define the relationship or program.
The specific set of criteria may, for example, include transaction
parameters such as the merchant type and identity, the cardholder
identity, the nature of the transacted goods or services, and the
location, time and dollar value of the transaction. Next, at the
promotion code processing module, the validated transaction may be
flagged if it qualifies for special pricing under the registered
program. For the case where the transaction qualifies for special
pricing, the merchant accounting system module is configured to
calculate the differential between the special pricing for the
specific transaction under the program and the standard pricing of
a normal bankcard transaction (i.e., which is not covered by the
program). The merchant accounting system module is further
configured to summarize transaction activity using a number of
configurable variables, to report adjustments to the issuer's
interchange, to generate payment files to credit or debit
merchants' accounts on behalf of the issuer for the differential,
and to provide miscellaneous reports to both the issuer and
merchants to facilitate reconcilement. The settlement procedures
for the standard value of the transaction between the acquirer and
issuer are the same or similar to those used in a conventional
payment card program as shown in FIG. 1.
[0023] In one embodiment, a computer program is provided, and the
program is embodied on a computer readable medium and utilizes a
Structured Query Language (SQL) with a client user interface
front-end for administration and a web interface for standard user
input and reports. In an exemplary embodiment, the system is web
enabled and is run on a business-entity intranet. In yet another
embodiment, the system is fully accessed by individuals having an
authorized access outside the firewall of the business-entity
through the Internet. In a further exemplary embodiment, the system
is being run in a Windows.RTM. environment (Windows is a registered
trademark of Microsoft Corporation, Redmond, Wash.). The
application is flexible and designed to run in various different
environments without compromising any major functionality.
[0024] The systems and processes are not limited to the specific
embodiments described herein. In addition, components of each
system and each process can be practiced independent and separate
from other components and processes described herein. Each
component and process also can be used in combination with other
assembly packages and processes.
[0025] FIG. 1 is a schematic diagram 20 illustrating an exemplary
multi-party payment card industry system for enabling ordinary
payment-by-card transactions in which the merchants and issuer do
not need to have a one-to-one special relationship. The present
invention relates to a payment card system, such as a credit card
payment system using the MasterCard.RTM. interchange network. The
MasterCard.RTM. interchange network is a set proprietary
communications standards promulgated by MasterCard International
Incorporated.RTM. for the exchange of financial transaction data
and settlement funds between financial institutions that are
members of MasterCard International Incorporated.RTM.. (MasterCard
is a registered trademark of MasterCard International Incorporated
located in Purchase, New York).
[0026] In a typical payment card system, a financial institution
called the "issuer" issues a payment card, such as a credit card,
to a consumer, who uses the payment card to tender payment for a
purchase from a merchant. To accept payment with the payment card,
the merchant must normally establish an account with a financial
institution that is part of the financial payment system. This
financial institution is usually called the "merchant bank" or the
"acquiring bank" or "acquirer bank." When a consumer 22 tenders
payment for a purchase with a payment card (also known as a
financial transaction card), the merchant 24 requests authorization
from the merchant bank 26 for the amount of the purchase. The
request may be performed over the telephone, but is usually
performed through the use of a point-of-sale terminal, which reads
the consumer's account information from the magnetic stripe or chip
on the payment card and communicates electronically with the
transaction processing computers of the merchant bank.
Alternatively, a merchant bank may authorize a third party to
perform transaction processing on its behalf. In this case, the
point-of-sale terminal will be configured to communicate with the
third party. Such a third party is usually called a "merchant
processor" or an "acquiring processor" or a "third party
processor."
[0027] Using the interchange network 28, the computers of the
merchant bank or the merchant processor will communicate with the
computers of the issuer bank 30 to determine whether the consumer's
account is in good standing and whether the purchase is covered by
the consumer's available credit line. Based on these
determinations, the request for authorization will be declined or
accepted. If the request is accepted, an authorization code is
issued to the merchant.
[0028] When a request for authorization is accepted, the available
credit line of consumer's account 32 is decreased. Normally, a
charge for a credit transaction is not posted immediately to a
consumer's account because bankcard associations, such as
MasterCard International Incorporated.RTM., have promulgated rules
that do not allow a merchant to charge, or "capture," a transaction
until goods are shipped or services are delivered. However, with
respect to at least some debit card transactions, a charge may be
posted at the time of the transaction. When a merchant ships or
delivers the goods or services, the merchant captures the
transaction by, for example, appropriate data entry procedures on
the point-of-sale terminal. This may include bundling of approved
transactions daily for standard retail purchases. If a consumer
cancels a transaction before it is captured, a "void" is generated.
If a consumer returns goods after the transaction has been
captured, a "credit" is generated.
[0029] After a transaction is captured, the transaction is settled
between the merchant, the merchant bank, and the issuer. Settlement
refers to the transfer of financial data or funds between the
merchant's account, the merchant bank, and the issuer related to
the transaction. Usually, transactions are captured and accumulated
into a "batch," which are settled as a group. More specifically, a
transaction is typically settled between the issuer and the
interchange network, and then between the interchange network and
the merchant bank (also known as the acquirer bank), and then
between the merchant bank and the merchant.
[0030] Financial transaction cards or payment cards can refer to
credit cards, debit cards, and prepaid cards. These cards can all
be used as a method of payment for performing a transaction. As
described herein, the term "financial transaction card" or "payment
card" includes cards such as credit cards, debit cards, and prepaid
cards, but also includes any other devices that may hold payment
account information, such as mobile phones, personal digital
assistants (PDAs), and key fobs.
[0031] FIG. 2 is a simplified block diagram of an exemplary system
100 in accordance with one embodiment of the present invention. In
one embodiment, system 100 is a payment card system used for
implementing special or customized issuer-merchant relationships.
In another embodiment, system 100 is a payment card system, which
can be utilized by account holders for inputting promotion codes to
be applied to payment transactions.
[0032] More specifically, in the example embodiment, system 100
includes a server system 112, and a plurality of client
sub-systems, also referred to as client systems 114, connected to
server system 112. In one embodiment, client systems 114 are
computers including a web browser, such that server system 112 is
accessible to client systems 114 using the Internet. Client systems
114 are interconnected to the Internet through many interfaces
including a network, such as a local area network (LAN) or a wide
area network (WAN), dial-in-connections, cable modems and special
high-speed ISDN lines. Client systems 114 could be any device
capable of interconnecting to the Internet including a web-based
phone, personal digital assistant (PDA), or other web-based
connectable equipment. A database server 116 is connected to a
database 120 containing information on a variety of matters, as
described below in greater detail. In one embodiment, centralized
database 120 is stored on server system 112 and can be accessed by
potential users at one of client systems 114 by logging onto server
system 112 through one of client systems 114. In an alternative
embodiment, database 120 is stored remotely from server system 112
and may be non-centralized.
[0033] As discussed below, database 120 stores transaction data
generated as part of sales activities conducted over the bankcard
network including data relating to merchants, account holders or
customers, and purchases. Database 120 further includes data
relating to rewards programs and special offers including promotion
codes and business rules associated with the different rewards
programs and special offers.
[0034] FIG. 3 is an expanded block diagram of an exemplary
embodiment of a server architecture of a system 122 in accordance
with one embodiment of the present invention. Components in system
122, identical to components of system 100 (shown in FIG. 2), are
identified in FIG. 3 using the same reference numerals as used in
FIG. 2. System 122 includes server system 112 and client systems
114. Server system 112 further includes database server 116, an
application server 124, a web server 126, a fax server 128, a
directory server 130, and a mail server 132. A disk storage unit
134 is coupled to database server 116 and directory server 130.
Servers 116, 124, 126, 128, 130, and 132 are coupled in a local
area network (LAN) 136. In addition, a system administrator's
workstation 138, a user workstation 140, and a supervisor's
workstation 142 are coupled to LAN 136. Alternatively, workstations
138, 140, and 142 are coupled to LAN 136 using an Internet link or
are connected through an Intranet.
[0035] Each workstation, 138, 140, and 142 is a personal computer
having a web browser. Although the functions performed at the
workstations typically are illustrated as being performed at
respective workstations 138, 140, and 142, such functions can be
performed at one of many personal computers coupled to LAN 136.
Workstations 138, 140, and 142 are illustrated as being associated
with separate functions only to facilitate an understanding of the
different types of functions that can be performed by individuals
having access to LAN 136.
[0036] Server system 112 is configured to be communicatively
coupled to various individuals, including employees 144 and to
third parties, e.g., account holders, customers, auditors, etc.,
146 using an ISP Internet connection 148. The communication in the
exemplary embodiment is illustrated as being performed using the
Internet, however, any other wide area network (WAN) type
communication can be utilized in other embodiments, i.e., the
systems and processes are not limited to being practiced using the
Internet. In addition, and rather than WAN 150, local area network
136 could be used in place of WAN 150.
[0037] In the exemplary embodiment, any authorized individual
having a workstation 154 can access system 122. At least one of the
client systems includes a manager workstation 156 located at a
remote location. Workstations 154 and 156 are personal computers
having a web browser. Also, workstations 154 and 156 are configured
to communicate with server system 112. Furthermore, fax server 128
communicates with remotely located client systems, including a
client system 156 using a telephone link. Fax server 128 is
configured to communicate with other client systems 138, 140, and
142 as well.
[0038] FIG. 4 is schematic diagram 400 illustrating an exemplary
process for implementing special or customized issuer-merchant
relationships in a payment-by-card system 100 (shown in FIG. 2).
System 100 exploits legacy payment-by-card industry infrastructure
for implementing a special or customized issuer-merchant
relationship. The legacy payment-by-card industry infrastructure
includes traditional payment networks (e.g., general purpose
bankcard payment network 440), which links entities such as the
card issuer or bank (e.g., issuer 410), card acceptors (e.g.,
merchants 430), and third-party transaction processors (e.g.,
merchant acquirers 420). System 100 incorporates one or more
specific processing modules (e.g., merchant screening module 450,
promotion code processing module 460, and merchant accounting
system module 470) for processing special relationship transactions
in payment network 440.
[0039] In addition, system 100 includes promotion database 474,
cardholder database 476 and remote devices 478. System 100 may also
include merchant computer 480 in communication with merchant
database 482. As discussed in more detail in FIG. 9 below,
promotion database 474 is in communication with merchant screening
module 450, cardholder database 476, merchant database 482,
promotion code processing module 460 and merchant accounting system
470. Cardholder database 476 is in communication with remote
devices 478. In the example embodiment, merchant screening module
450, promotion code processing module 460, merchant accounting
systems module 470, promotion database 474, cardholder database
476, and merchant database 482 are all shown as separate modules or
units. In alternative embodiments, the structure and functions of
these modules or units can be easily merged in a single module or
partitioned into further modules. Furthermore, separate modules may
communicate information directly or indirectly through other
modules.
[0040] Remote devices 478, also known as input devices, include
such devices as a personal computer, a cellular telephone, a
personal digital assistant (PDA), or other web-based connectable
equipment that can be configured to communicate with cardholder
database 476. In one embodiment, remote device 478 may include a
computer or register located at the merchant or the point of sale
(POS), wherein at the time the purchase is made by the cardholder
the merchant is prompted to ask the cardholder whether the
cardholder would like to select a promotional program being offered
by the merchant to the cardholder for the corresponding
transaction.
[0041] In practice, an issuer 410 who has a special relationship or
program with specific merchants registers the program in merchant
database 482 through the bankcard network 440 for tracking card
transactions and associating features (e.g., benefits such as
special pricing) of the program with the card transactions. Card
transaction data ("transactions") from various merchant sites 430
may be collected in a conventional manner, for example, by merchant
acquirer 420 or other traditional entities who then submit the
transaction to network 440 for forwarding to issuer 410. The
transactions may be formatted in a conventional manner (e.g.,
according to any suitable payment industry standards used on
network 440). In another embodiment, a merchant, using merchant
computer 480, can transmit or upload promotional programs into
merchant database 482, which communicates with promotion database
474 such that the various cardholders can access the different
programs through cardholder database 476.
[0042] In the example embodiment, promotion database 474 receives
and stores promotion data from merchants participating in bankcard
network 440. The promotion data includes at least one of a merchant
name, a merchant identification (ID) number, promotion identifiers,
transaction qualifications, terms of promotions and promotion
codes. In other words, promotion database 474 stores data
describing the different promotions or programs that a merchant
registered with bankcard network 440 is offering to cardholders.
These promotions may include such programs as 30 days same as cash,
90 days no interest, no payment due for 6 months, or a
predetermined percentage (e.g., 10%) off the purchase price of the
product or service, etc., to entice the cardholder to make a
purchase from the merchant using the payment card.
[0043] After bankcard network 440 (e.g., MasterCard.RTM.) registers
a merchant to participate in system 100 and promotion data is
stored in promotion database 474, the promotion data is then
communicated and registered within merchant accounting system 470.
Merchant accounting system 470 is also referred to as a deferred
payment tracking system. The promotion data is also transmitted to
cardholder database 476 including a displayable list of available
promotions or programs that are being offered to each
cardholder.
[0044] In the example embodiment, a cardholder accesses cardholder
database 476 using a remote input device 478 such that promotion
data including the list of available promotions being offered to
the cardholder is displayed on remote device 478, or promotion data
including the list of available promotions being offered to the
cardholder can be requested or are automatically "pushed" from
promotion database 476 for display on remote devices 478. Once
displayed on remote device 478, the cardholder can then select one
or more of the promotions from the list of available promotions. By
selecting one of the promotions, the cardholder is then registered
within system 100 to receive the terms and conditions being offered
as part of the promotion upon making a purchase from the merchant
with a payment card over bankcard network 440. In an alternative
embodiment, a cardholder can register for a promotion within system
100 after making a purchase from a participating merchant with a
payment card over bankcard network 440 provided that the promotion
selection is completed prior to the transaction being cleared
through the bankcard network.
[0045] After a cardholder selects a promotion, the selected
promotion data is received at merchant screening module 450 for
indicating the merchant has a pending promotional program request.
The promotion codes associated with the promotion selected by the
cardholder are then transmitted to promotion code processing module
460 such that the transaction corresponding to the selected
promotion may be tagged for proper processing. Promotion code
processing module 460 is configured to apply the corresponding
promotion codes to the cardholder payment transaction when the
cardholder makes the purchase from the merchant that corresponds
with the selected promotion program. In other words, when the
cardholder purchases the product or service associated with the
cardholder selected promotion using a payment card over bankcard
network 440, promotion code processing module 460 applies the
appropriate promotion codes to the cardholder payment transaction
such that the selected promotion is applied to the cardholder
purchase.
[0046] More specifically, after a cardholder selects an available
promotion and a transaction is submitted to bankcard network 440,
the transaction is interrogated to determine if the transacting
merchant and issuer have a relationship that corresponds to a
registered program which covers the transaction and if the
cardholder has registered for a promotion that covers the
transaction. During an authorization, merchant screening module 450
determines whether the cardholder has registered for a promotional
program. If the cardholder has not registered for a promotional
program, the system may bypass promotion code processing module 460
and continue with the authorization process. If, however, merchant
screening module 450 determines that the cardholder has registered
for a promotional program, the system directs the transaction to
promotion code processing module 460 for validation including
determining whether the transaction is validated as covered or,
conversely, designated as not covered by a registered program and
if covered, may optionally include the promotion code on the
authorization request sent to issuer 410. During the clearing
process, merchant screening module 450 determines whether the
cardholder has registered for a promotional program and if so,
forwards the transaction to the promotion code processing module
460 for additional processing, including further processing in the
merchant accounting system module 470, as needed. The validation
may involve the use of suitable algorithms to apply a specific set
of criteria which define the relationship or program. The specific
set of criteria may, for example, include transaction parameters
such as the merchant type and identity, the cardholder identity,
the nature of the transacted goods or services, and the location,
time and dollar value of the transaction. Next, at promotion code
processing module 460, the validated transaction may be flagged if
it qualifies for special pricing under the registered program. For
the case where the transaction qualifies for special pricing,
merchant accounting system module 470 is configured to calculate
the differential between the special pricing for the specific
transaction under the program and the standard pricing of a normal
bankcard transaction (i.e., which is not covered by the program).
Merchant accounting system module 470 is further configured to
summarize transaction activity by a number of configurable
variables, to report adjustments to the Issuer's interchange, to
generate payment files to credit or debit merchants' accounts on
behalf of the issuer for the differential, and to provide
miscellaneous reports to both the Issuer and merchants to
facilitate reconcilement. The settlement procedures between the
acquirer and issuer are the same or similar to those used in a
conventional payment card program as shown in FIG. 1.
[0047] From the issuer's perspective in the context of implementing
special relationships, system 100 advantageously eliminates the
need to establish connectivity directly with merchants (and/or one
or more acquirers) to implement the special relationships. Further,
system 100 reduces back office processing requirements on the
issuer. System 100 also allows the issuer to independently manage
the special relationships with the merchants without third party
(e.g., an acquirer) involvement. The issuer can, for example,
independently manage proprietary pricing structures directly with
merchants without having to go through an acquirer. Further, system
100 allows the issuer to offer pricing plans that are not
transaction-based. System 100 allows the issuer to use the same
payment network infrastructure to process chargebacks and make
adjustments directly with merchants, and to establish rewards
programs with specific merchants without requiring any special
setup at merchant locations.
[0048] From the merchants' perspective, system 100 provides special
relationship processing, which is transparent to merchants'
acquirers. Further, system 100 improves settlement as all
transactions including those associated with the special
relationship are settled through the general purpose bankcard
process instead of ad hoc systems specific to the special
relationships. Merchants also may expect improved pricing from
issuers due to infrastructure efficiencies in system 100. System
100 also advantageously provides merchants with the ability to
offer reward program incentives to improve sales.
[0049] From the merchant acquirers' perspective, system 100
advantageously allows transparent passthrough of the special
relationship related processing without imposing any specific
coding or setup requirements related to the special relationships
on the acquirers. Yet, system 100 advantageously increases bankcard
transaction volume by including the special relationship
transactions in the acquirers' settlement with issuers.
[0050] From the bankcard network's perspective in the context of
implementing special relationships, system 100 advantageously
establishes special relationships between merchants and
cardholders. System 100 may also convert at least some private
label transactions into transactions using the payment card
associated with the bankcard network. System 100 also creates
opportunities for partnerships with cellular telephone companies
because system 100 enables cardholders to register for promotion
programs using cellular telephones, wherein these cardholder
initiated promotion programs are then applied to purchase
transactions made by the cardholder from a merchant. System 100
also provides incentive for acquirers and issuers to process
transactions through bankcard network 440. System 100 may also
generate new revenue streams between merchants and cardholders
directly.
[0051] Conventional card transaction data processing involves
clearing, authorization, chargebacks and adjustments, settlements,
and other front or back end processes. During the clearing process,
the acquirer provides the appropriate issuer data required to
identify the cardholder's account and the dollar amount of the
sales. When the issuing bank gets this data, the bank posts the
amount of the sale as a draw against the cardholder's available
credit and prepares to send payment to the acquirer. Authorization
involves the acknowledgment by the issuer that a particular account
may be charged for the amount of the sale. In the settlement
process, the issuer sends a record of money that is being
transferred from its account to that of the acquirer, who then pays
the merchant. Funds are settled between issuers and acquirers
through selected bank accounts. Chargebacks and adjustments
processes relate to a card transaction that is billed back to the
merchant after the sale has been settled. More specifically, a
transaction is typically settled between the issuer and the
interchange network, and then between the interchange network and
the merchant bank (also known as the acquirer bank), and then
between the merchant bank and the merchant.
[0052] The authorization, clearing, chargebacks and adjustments,
and settlements processes for card transactions in system 100 are
further described in more detail herein with reference to FIGS.
5-8, respectively.
[0053] FIG. 5 is a schematic diagram 500 illustrating authorization
request process flows in the exemplary process shown in FIG. 4.
Components shown in FIGS. 5-8 that are identical to components of
diagram 400 (shown in FIG. 4), are identified in FIGS. 5-8 using
the same reference numerals as used in FIG. 4. The authorization
requests may have the same format as standard general purpose
bankcard authorization requests. The authorization request is a
result of cardholder 510 using a payment card to complete a
transaction with merchant 430. The flow of these authorization
requests from merchant 430 via acquirer 420 to network 440 can
utilize existing flow paths established for ordinary card
transactions. Then, network 440 routes the authorization requests
to merchant screening module 450 for verification that the
requesting merchants are included in a registered program.
[0054] Merchant screening module 450 may be configured to process
the authorization requests, for example, to optionally
cross-reference merchant IDs, authorize, decline, or pass on the
request to issuer 410 systems for further processing. In some
embodiments of system 100 (shown in FIG. 2), merchant screening
module 450 may be further configured to route a specific card
number transaction to different issuer systems depending on
specific criteria met by the transaction (e.g., merchant number,
dollar amount, etc.). In the case of non-financial rewards
transactions, merchant screening module 450 may be configured to
capture and store transactions for later submission into a nightly
clearing process. Additionally, merchant screening module 450 could
be configured to pass a transaction onto module 460 to include the
appropriate promotion codes in the authorization request and then
communicate with the issuer so that the issuer can make the
appropriate decisions for example in the cases of transactions
involving installments or lines of credit.
[0055] FIG. 6 is a schematic diagram 550 illustrating clearing
process flows in the exemplary process shown in FIG. 4, in
accordance with one embodiment of the present invention. In the
example embodiment, payment card transaction data (i.e., clearing
records) may have the same format as standard general purpose
bankcard clearing records. Like the flow of the authorization
requests, the flow of these records from merchant 430 via acquirer
420 to network 440 can utilize existing flow paths and standard
interchange rates established for ordinary card transactions (i.e.,
non-special relationship transactions). Network 440 may route the
clearing records to merchant screening module 450 as part of
nightly clearing to include the appropriate cross referencing
merchant identifications (IDs), and to flag records from merchants
not included in the registered programs. Optionally, the merchant
screening module 450 may be a secondary process performed outside
of the clearing process.
[0056] Cardholder database 476 receives data relating to a
promotion selected by a cardholder. The promotion data is then
received by promotion database 474 from cardholder database 476.
Merchant screening module 450 receives the indicator that promotion
data is pending from promotion database 474. After merchant
screening module 450 determines that the merchant is registered
with network 440 and that the transaction is covered by the
promotion selected by the cardholder, network 440 then routes the
clearing records to promotion code processing module 460 to
generate the appropriate codes under registered programs so that
the appropriate discount differentials can be calculated for the
merchants covered by the programs. Next, network 440 routes the
clearing records to the merchant accounting system module 470 to
calculate the discount differential for individual clearing
records. The discount differential may be based on any number of
configurable variables. For example, the discount differential may
be based on discount rates, which may be listed in merchant account
records available on the network, and on the promotion codes, if
any. Further, in the case of a rewards program, merchant accounting
system module 470 may be configured to calculate the fees to be
charged to the merchant for participation in the rewards
program.
[0057] Next in the clearing process, merchant accounting system
module 470 forwards the clearing records to issuer 410, records
transactions and summarizes them by a number of configurable
variables to debit or credit differential to merchant accounts, and
provides reporting to the merchants and issuer 410.
[0058] FIG. 7 is a schematic diagram 600 illustrating settlement
flows in the exemplary process shown in FIG. 4, in accordance with
one embodiment of the present invention. Bankcard network 440
settles funds with acquirer 420 using standard interchange rates
and settlement processes. Similarly, issuer 410 settles funds with
bankcard network 440 using standard interchange rates and
settlement processes. It is noted that in system 100, merchant
accounting system module 470 can create payment files to move
debit/credit funds directly between the merchants' and issuer's
accounts for the differential amounts or the fees involved in
rewards programs or other programs.
[0059] FIG. 8 is a schematic diagram 650 illustrating chargeback
and adjustment flows in the exemplary process shown in FIG. 4, in
accordance with one embodiment of the present invention. In system
100, chargebacks and adjustments that conform to standard bankcard
policies are processed through existing flow paths with issuer 410
submitting records through the bankcard network 440 to acquirers
420. Similarly, acquirers 420 utilize existing process flow paths
back to merchants 430 for chargebacks and adjustments that conform
to standard bankcard policies.
[0060] However, as shown in FIG. 8, chargebacks and adjustments
that have unique properties because of the special relationship
between the Issuer 410 and merchants 430 are processed through
merchant accounting system module 470. Such chargebacks are
processed directly between issuer 410 and merchants 430. The
chargebacks can be for an entire amount of the transaction, or
strictly for the portion of the chargeback that exceeds standard
bankcard policies, as appropriate under specific programs.
Similarly, adjustments for any of the special programs are
processed directly with the merchant accounts in the same manner,
and can be included in the summarized transaction activity used to
credit/debit funds and provide reporting.
[0061] While the present application describes what are believed to
be the preferred embodiments of the present invention, those
skilled in the art will recognize that further changes and
modifications may be made thereto without departing from the spirit
of the invention, and it is intended to claim all such changes and
modifications that are within the spirit of the invention. For
example, in FIGS. 4-8 and the related description merchant
screening module 450, promotion code processing module 460,
merchant accounting systems module 470, promotion database 474 and
cardholder database 476 are shown as separate modules or units.
However, it is readily understood that the structure and functions
of these modules can be easily merged in a single module or
partitioned into further modules.
[0062] It also will be understood that the systems and methods of
the present invention can be implemented using any suitable
combination of hardware and software. The software (i.e.,
instructions) for implementing and operating the aforementioned
systems and methods can be provided on computer-readable media,
which can include without limitation, firmware, memory, storage
devices, micro controllers, microprocessors, integrated circuits,
ASICS, on-line downloadable media, and other available media.
[0063] FIG. 9 is a flowchart 700 illustrating exemplary processes
utilized by system 100 (shown in FIG. 2) for a cardholder to select
a promotional program offered by a merchant registered with a
bankcard network such that promotion codes associated with the
selected promotional program are automatically applied to the
cardholder's payment transaction with the merchant.
[0064] More specifically, the technical effect of the processes and
systems described herein is achieved by storing 702 promotion data
in a promotion database for merchants participating in the bankcard
network including a merchant name, a merchant identification (ID)
number, promotion identifiers, transaction qualifications, terms of
promotions and promotion codes. In one embodiment, the promotion
data is communicated to the promotion database using a merchant
computer. After the promotion data is stored in the promotion
database, the system registers 704 the promotion data in the
merchant accounting system module, and transmits 706 the promotion
data from the promotion database to a cardholder database. The
cardholder database is accessible by a plurality of cardholders
using remote input devices such a person computer, PDA, cellular
phone or a point of sale device at the merchant. The promotion data
stored in the promotion database includes a displayable list of
available promotions for each cardholder. The cardholder then
selects 708 at least one promotion from the list of available
promotions using an input device. The selected promotion data is
communicated from the cardholder database to the merchant screening
module. After receiving 710 the selected promotion data at the
merchant screening module including the associated transaction
codes and transaction qualifications, the promotion codes
associated with the selected promotion data are transmitted 712 to
the promotion code processing module for application to a payment
transaction satisfying the transaction qualifications.
[0065] In the example embodiment, after a cardholder selects an
available promotion, the cardholder then performs 714 a transaction
(i.e., purchases a good or service) with the merchant using a
payment card over the bankcard network, wherein the transaction
satisfies the transaction qualifications of the selected promotion.
The authorization for the transaction is interrogated 716 at the
merchant screening module to determine if the transacting merchant
and issuer have a relationship that corresponds to a registered
program which covers the transaction and if the cardholder has
registered for a promotion that covers the transaction. At the
merchant screening module, the system determines whether the
cardholder has registered for a promotional program. If the
cardholder has not registered for a promotional program, the system
may bypass the promotion code processing module and continue with
the authorization process. If, however, the merchant screening
module determines that the cardholder has registered for a
promotional program, the system directs the transaction to the
promotion code processing module for validation including
determining whether the transaction is validated as covered or,
conversely, designated as not covered by a registered program and
if covered, may optionally apply 718 the promotion code on the
authorization request forwarded 720 to the issuer. The validation
may involve the use of suitable algorithms to apply a specific set
of criteria which define the relationship or program. The specific
set of criteria may, for example, include transaction parameters
such as the merchant type and identity, the cardholder identity,
the nature of the transacted goods or services, and the location,
time and dollar value of the transaction.
[0066] During the clearing process, the clearing for the
transaction is submitted 722 by the merchant into the bankcard
network. The clearing for the transaction is interrogated 724 at
the merchant screening module to determine if the cardholder has
registered for a promotional program. If so, the merchant screening
module forwards the transaction to the promotion code processing
module for additional processing, including applying 726 promotion
codes and further processing in the merchant accounting system
module.
[0067] When the promotion code processing module applies the
promotion codes associated with the cardholder selected promotion
to the transaction, the selected promotion is applied to the
cardholder purchase transaction. For the case where the transaction
qualifies for special pricing, merchant accounting system module
calculates 728 the differential between the special pricing for the
specific transaction under the program and the standard pricing of
a normal bankcard transaction (i.e., which is not covered by the
program). The merchant accounting system module also summarizes 730
transaction activity by a number of configurable variables, to
report adjustments to the issuer's interchange, to generate payment
files to credit or debit merchants' accounts on behalf of the
issuer for the differential, and to provide miscellaneous reports
to both the issuer and merchants to facilitate reconcilement. The
system also forwards 732 the clearing for the transaction with
promotion codes to the issuer.
[0068] While the invention has been described in terms of various
specific embodiments, those skilled in the art will recognize that
the invention can be practiced with modification within the spirit
and scope of the claims.
* * * * *