Payment processing system, method and computer program product

Abstract

Embodiments of the present invention provide a method and computer program product for least cost routing in payment processing. In an embodiment of the invention, a payment processing method can include receiving a transaction profile for a proposed transaction as payment for a purchase by a purchaser from a merchant at a card processing terminal configured to identify a card number for a card. The method further can include computing a cost of processing the proposed transaction for each of multiple different payment processors based upon the received transaction profile. The method yet further can include selecting one of the different payment processors corresponding to a lowest cost of processing computed for the received transaction profile. Finally, the method can include routing the proposed transaction to the selected one of the different payment processors.

Description

BACKGROUND OF THE INVENTION[0001]1. Field of the Invention[0002]The present invention relates to the field of payment processing and more particularly to debit card and credit card processing of retail transactions.[0003]2. Description of the Related Art[0004]For centuries, the retail sale of goods and services has permitted not just payment in hard currency, but also payment by way of a promise to provide hard currency. Raw forms of credit result from a mere promise—an account or “tab”. Modern sophisticated forms of credit include credit accounts, such as those represented by a credit card. More recent advancements in payments systems include the notion of a debit account or debit account. Even more recent advancements in payment systems process gift cards and other accounts of stored value. Each of credit cards, debit cards and gift cards require the coordination of an intermediary merchant account in which credit and debit card payments can be accepted by a merchant, and a paymen...

AI Technical Summary

Benefits of technology

[0009]Embodiments of the present invention address deficiencies of the art in respect to payment processing and provide a novel and non-obvious method and computer program product for least cost routing in payment processing. In an embodiment of the invention, a payment processing method can include receiving a transaction profile for a proposed transaction as payment for a purchase by a purchaser from a merchant at a card processing terminal configured to identify a card number for

Problems solved by technology

Specifically, the use of a merchant account can result in the occurrence of a variety of fees, some periodic, and others charged on a per-item or percentage basis.

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