Methods and systems for processing transactions

Abstract

Methods and systems are provided for processing a transaction between a first party and a second party. Information defining terms of the transaction and identifying a presentation instrument are received at a host system. Preference information associated with the presentation instrument is retrieved with the host system. The preference information specifies terms for an allocation of transaction amounts among multiple transaction types. An amount for the transaction is allocated among the transaction types in accordance with terms of the transaction and the terms for the allocation.

Description

CROSS-REFERENCES TO RELATED APPLICATIONS [0001] This application is a nonprovisional of U.S. Pat. Appl. No. 60 / 543,523, entitled “METHODS AND SYSTEMS FOR PROCESSING TRANSACTIONS,” filed Feb. 10, 2004 by SuZanne Rogers et al., the entire disclosure of which is incorporated herein by reference for all purposes. [0002] This application is also related to concurrently filed, commonly assigned U.S. patent application Ser. No. ______ entitled “METHODS AND SYSTEMS FOR PAYMENT-NETWORK ENROLLMENT,” by SuZanne Rogers et al., the entire disclosure of which is incorporated herein by reference for all purposes.BACKGROUND OF THE INVENTION [0003] This application relates generally to transaction processing. More specifically, this application relates to methods and systems that provide presentation instruments used in transactions with multiple functions. [0004] Currently, transaction processing is handled in a manner that is largely focused on the needs of financial institutions that may be invol...

AI Technical Summary

Benefits of technology

[0008] Embodiments of the invention make use of a host system having a capacity to interface with parties, such as with merchant systems and customers, through a variety of alternative mechanisms, and also to interface with financial institutions that may be involved in transactions. The host system maintains preferences information correlated with individual presentation instruments or individual customers to effect customer-specified ways of treating transactions. The manner in which such transactions are treated thus provides improved flexibility and choice to both customers and merchants, among other advantages that will be evident to those of skill in the art after reading this disclosure.

Problems solved by technology

Since this structure is focused on the needs of financial institutions, it is unsurprising that there are a number of disadvantages associated with it from the perspective of customers and merchants, who are the principal parties in transactions.

From a customer's perspective, the system is rigid, lacking in flexibility to provide significant choice in processing, and requiring that the customer maintain multiple instruments merely to be afforded the ability to engage in different types of transactions.

From the perspective of merchants, there are numerous transaction costs that must be borne and which vary depending on the level of risk that the transactions represent for the financial institutions, and merchants are also denied significant flexibility of choice.

The differences in risk to the financial institutions that these cost differences represent are generally associated with whether the transactions are guaranteed and the timing with which funds to support them are received.

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