Estimating interchange fees for card payments

US10402807B1 · kind B1 · utility

Assignee

• INC SQUARE, CO., LTD · JP

Inventors

• Kalyani Iyer · San Francisco, US
• Mehmet Zahit Guneri · Sunnyvale, US
• Dennis Jarosch · Berkeley, US
• Michael Ward · San Francisco, US
• Kenji Kaneda · Cupertino, US

Key dates

• Filing date: Feb 28, 2017
• Grant date: Sep 3, 2019
• Expiry date: Feb 28, 2037

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q20/4093
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A payment processing system is configured to support purchase transactions generated by merchant point-of-sale (POS) devices. Information regarding the purchase transactions is archived and periodically analyzed using machine learning to create a predictive model relating transaction attributes to bank interchange fees. The predictive model is then used to estimate interchange fees that are later passed on to merchants. This allows more accurate settlement with merchants in situations where reports regarding actual interchange fees are not yet available.