System and method for merchant risk management
US8027912B1 · kind B1 · utility
Assignee
Inventor
Key dates
| Filing date | Apr 30, 2009 |
| Grant date | Sep 27, 2011 |
| Priority date | — |
| Expiry date | Dec 14, 2029 |
Classification
- Technology area (CPC G)Physics
- CPC primaryG06Q40/12
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
Systems and methods for quantifying and managing financial risks related to a processing agent or transaction acquiror's relationship to a merchant are described. Factor analysis may be utilized to determine one or more principal components from data associated with merchant credit transactions, and such principal components may be utilized in the calculation of cumulative distribution functions and the generation of probability values, which may be averaged and compared with predetermined thresholds to provide a quantitative basis for determining whether a risk management event related to one or more particular merchants should be triggered. Net estimated forward-looking liabilities for particular merchants and groups of merchants may be quantitatively assessed and acted upon.
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.