Intermediary payment method using interchange differential

1. A method for making payments using virtual payment cards without exposing a payor's payment card data, the method comprising the steps of:

vaulting the payor's payment card data, by an intermediary payment processor, the vaulted data including a card number, a security code and an expiration date in a secure computer data store, the payor's payment card having a predetermined, first interchange rate;

generating by a computing system communicatively coupled to the data store, a token ID that corresponds to the vaulted payment card data;

authenticating the payor's identity through an electronic user interface, the payor's identity associated with the token ID;

receiving authorization from the payor to make payment to a third party payee in an amount authorized by the payor through the electronic user interface;

generating a virtual payment card that is distinct from the payor's payment card, wherein the virtual payment card is generated electronically and not reduced to a physical card;

processing a first card transaction by a payment processor system communicatively coupled to the computing system, the payor's payment card data being processed for the authorized amount to a merchant account for the intermediary payment processor whereby the merchant account is credited the amount authorized by the payor less the first interchange rate for the first card transaction;

determining the first interchange rate for the first card transaction, wherein the first interchange rate is based on the inclusion or exclusion of interchange factors selected from the group comprising of card not present, enhanced data, debit personal identification number, address verification service, security code, and delayed settlement;

generating a card request by the computing system for the virtual payment card in the amount authorized by the payor to the payee, wherein the virtual payment card is configured to have a second interchange rate greater than the first interchange rate of the payor's payment card; and

transmitting to the payee by the computing system, the virtual payment card on behalf of the payor whereby upon the processing of the virtual payment card in a second card transaction, the intermediary payment processor receives at least a portion of a difference between the second interchange rate of the second transaction and the first interchange rate of the first transaction, and whereby the vaulted payor's payment card data is not exposed to the third party payee.

2. The method of claim 1 further comprising the steps of:

prior to processing the transaction, evaluating whether the second interchange rate chargeable through the second transaction is greater than the first interchange rate; and

rejecting the first transaction in the event the second interchange rate is less than or equal to the first interchange rate.

3. The method of claim 1 further comprising the step of rejecting payor card account types having interchange rates above a predetermined threshold.

4. The method of claim 1 wherein the step of transmitting to the payee the virtual payment card, the transmission medium selected from the group consisting of electronic transmission and hardcopy delivery of the virtual payment card data whereby the payee may enter the virtual payment card data into a merchant card terminal for the processing of the virtual payment card.

5. A method for making payments using virtual payment cards without exposing a payor's payment card data, the method comprising the steps of:

vaulting the payor's payment card data, by an intermediary payment processor, the vaulted data including a card number, a security code and an expiration date in a secure computer data store, the payor's payment card having a predetermined, first interchange rate;

generating by a computing system communicatively coupled to the data store, a token ID that corresponds to the vaulted payment card data;

authenticating the payor's identity through an electronic user interface, the payor's identity associated with the token ID;

receiving authorization from the payor to make payment to a third party payee in an amount authorized by the payor through the electronic user interface;

generating a virtual payment card that is distinct from the payor's payment card, wherein the virtual payment card is generated electronically and not reduced to a physical card;

processing a first card transaction by a payment processor system communicatively coupled to the computing system, the payor's payment card data being processed for the authorized amount to a merchant account for the intermediary payment processor whereby the merchant account is credited the amount authorized by the payor less the first interchange rate for the first card transaction;

determining the first interchange rate for the first card transaction, wherein the first interchange rate is based on the inclusion or exclusion of interchange factors selected from the group comprising of card not present, enhanced data, debit personal identification number, address verification service, security code, and delayed settlement;

generating a card request by the computing system for the virtual payment card in the amount authorized by the payor to the payee, wherein the virtual payment card is configured to have a second interchange rate greater than the first interchange rate of the payor's payment card;

transmitting to a merchant acquirer for the payee by the computing system, the virtual payment card data as a straight through transaction on behalf of the payor whereby upon the processing of the virtual payment card in a second transaction, the intermediary payment processor receives at least a portion of a difference between the second interchange rate of the second transaction and the first interchange rate of the first transaction, and whereby the vaulted payor's payment card data is not exposed to the third party payee;

electronically receiving a response by the computing system from the merchant acquirer that the payment has been successfully processed; and

notifying the payee of the payment to the merchant acquirer.

6. The method of claim 5 further comprising the steps of:

prior to processing the transaction, evaluating whether the second interchange rate chargeable through the second transaction is greater than the first interchange rate; and

rejecting the first transaction in the event the second interchange rate is less than or equal to the first interchange rate.

7. The method of claim 5 further comprising the step of rejecting payor card account types having interchange rates above a predetermined threshold.

8. A virtual card payment system for effecting virtual card payments without exposing a payor's payment card data, the system comprising:

a storage device;

a computer processor communicatively coupled to the storage device, wherein the computer processor executes application code instructions that are stored in the storage device to cause the system to:

vault the payor payment card data, by an intermediary payment processor, the vaulted data including a card number, a security code and an expiration date in a secure computer data store, the payor payment card having a predetermined, first interchange rate;

receive an authenticated payor identity through an electronic user interface communicatively coupled to the computer process, the payor identity corresponding to the vaulted payment card data;

receive authorization from the electronic user interface to make payment to a third party payee in an amount authorized by the payor;

generate a virtual payment card that is distinct from the payor's payment card, wherein the virtual payment card is generated electronically and not reduced to a physical card;

process a first card transaction by a payment processor system communicatively coupled to the computer processor, the payor payment card data being processed for the authorized amount to a merchant account for the intermediary payment processor whereby merchant account is credited the amount authorized by the payor less the first interchange rate deduction for the first card transaction;

determine the first interchange rate for the first card transaction, wherein the first interchange rate is based on the inclusion or exclusion of interchange factors selected from the group comprising of card not present, enhanced data, debit personal identification number, address verification service, security code, and delayed settlement;

generate a card request for a virtual payment card in the amount authorized by the payor to the payee, wherein the virtual payment card is configured to have a second interchange rate greater than the first interchange rate of the payor payment card; and

transmit to the payee or merchant acquirer of the payee by the computing system, the virtual payment card on behalf of the payor whereby upon the processing of the virtual payment card in a second card transaction, the intermediary payment processor receives at least a portion of a difference between the second interchange rate of the second transaction and the first interchange rate of the first transaction, and whereby the vaulted payor payment card data is not exposed to the third party payee.

9. The system of claim 8 further comprising application code instructions that are stored in the storage device to cause the system to:

prior to processing the transaction, evaluate whether the second interchange rate chargeable through the second transaction is greater than the first interchange rate; and

reject the first transaction in the event the second interchange rate is less than or equal to the first interchange rate.

10. The system of claim 8 further comprising application code instructions that are stored in the storage device to cause the system to reject payor card account types having interchange rates above a predetermined threshold.

11. The system of claim 8 further comprising application code instructions that are stored in the storage device to cause the system to deliver to the payee the virtual payment card, the delivery selected from the group consisting of electronic delivery and hardcopy delivery of the virtual payment card data whereby the payee may enter the virtual payment card data into a merchant card terminal for the processing of the virtual payment card.

12. The system of claim 8 wherein the transmission of the virtual payment card to the merchant acquirer is a straight through transaction and application code instructions that are stored in the storage device to cause the system to generate and transmit a notification to the payee of the straight through transaction date, amount and payor.

13. The system of claim 12 wherein the notification transmission is selected from the group consisting of hardcopy mailing, web portal, email, text message, fax and local client application integration.

14. A method for making payments using virtual payments cards without exposing a payor's payment card data, the method comprising the steps of:

vaulting the payor's payment card data, by an intermediary payment processor, the vaulted data including a card number, a security code and an expiration date in a secure computer data store, the payor's payment card having a predetermined, first interchange rate;

pre-authorizing by the payor, a future payment rule selected from the group consisting of a single payment amount and a reoccurring payment schedule;

receiving a request for payment to a third party payee in an amount;

validating the received request meets the future payment rule pre-authorized by the payor;

generating a virtual payment card that is distinct from the payor's payment card, wherein the virtual payment card is generated electronically and not reduced to a physical card;

responsive to successful validation, processing a first card transaction by a payment processor system communicatively coupled to the computing system, the payor's payment card data being processed for the authorized amount to a merchant account for the intermediary payment processor whereby merchant account is credited the amount authorized by the payor less the first interchange rate for the first card transaction;

determining the first interchange rate for the first card transaction, wherein the first interchange rate is based on the inclusion or exclusion of interchange factors selected from the group comprising of card not present, enhanced data, debit personal identification number, address verification service, security code, and delayed settlement;

generating a card request by the computing system for the virtual payment card in the amount authorized by the payor to the payee, wherein the virtual payment card is configured to have a second interchange rate greater than the first interchange rate of the payor's payment card; and

transmitting to the payee by the computing system, the virtual payment card on behalf of the payor whereby upon the processing of the virtual payment card in a second card transaction, the intermediary payment processor receives at least a portion of a difference between the second interchange rate of the second transaction and the first interchange rate of the first transaction and whereby the vaulted payor's payment card data is not exposed to the third party payee.

15. The method of claim 14 further comprising the step of responsive to unsuccessful validation, electronically requesting manual authorization for payment to the third party payee in an amount exceeding the future payment rule and responsive to receiving authorization paying the third party payee through the intermediary payment processor.

16. The method of claim 14 further comprising the step of embedding an alphanumeric description of third party payee on the statement of the payor for the first card transaction made to the intermediary payment processor wherein the payee may later reconcile the payment card charge to the intermediary as one satisfying the payment obligation to the third party payee.

17. The method of claim 16 further comprising the step of appending a description of services or goods received from the third party payee associated to the statement of the payor for the first card transaction.