Systems and methods for routing electronic transactions using network simulation and forecasting
Systems and methods are for routing electronic payment transactions to PIN-less networks using payment pseudo-networks and electronic transaction simulation. One method comprises: receiving transaction-related information from a merchant, the transaction-related information including a bank identification number (“BIN”), one or more available network IDs, one or more merchant categories, an issuer regulatory status, a transaction amount, and a preferred status; extracting routing criteria from the received transaction-related information; dynamically identifying one or more eligible networks based on extracted routing criteria; dynamically identifying one or more breakeven transaction amounts for each identified eligible network, each breakeven transaction amount defining a point at which two or more eligible networks have the same expenses for a given transaction amount; and routing signature debit transactions from the merchant to a least cost PIN-less network selected from the eligible networks based on identification of a desired breakeven transaction amount for the PIN-less network.
1. A computer-implemented method for routing electronic payment transactions to debit networks using a simulation transaction routing server, the method comprising:
receiving, by at least one processor of a transaction routing server, transaction-related information from a merchant via an electronic network;
identifying, by the at least one processor of the transaction routing server, a plurality of eligible payment networks based on transaction routing criteria associated with the transaction-related information;
dynamically identifying, by the at least one processor of the transaction routing server, one or more breakeven transaction amounts for each eligible payment network, the one or more breakeven transaction amounts defining a point at which two or more of the plurality of eligible payment networks have the same expenses for a given transaction amount;
dynamically sorting, by the at least one processor of the transaction routing server, the plurality of eligible payment networks to identify a least-cost PIN-less debit network;
selecting, by the at least one processor of the transaction routing server, the least cost PIN-less debit network from the two or more of the plurality of eligible payment networks based at least in part on the one or more breakeven transaction amounts; and
routing, by the at least one processor of the transaction routing server, the transaction-related information to the least cost PIN-less debit network.
2. The computer-implemented method of claim 1 , wherein the transaction related information further includes one or more of:
a primary account number;
an issuer identification number;
a payment card number;
a mode of payment including a swiping of a card, keying in an identification related to the payment network, a contactless mode of payment, or a mode of payment that utilizes a chip; and
whether an address verification system was utilized.
3. The computer-implemented method of claim 1 , wherein the dynamically sorting, by the at least one processor of the transaction routing server, the plurality of eligible payment networks comprises dynamically sorting the plurality of eligible payment networks according to the breakeven transaction amounts, absolute cost, availability of volume discount, and availability of preferred rates.
4. The computer-implemented method of claim 1 , further comprising:
receiving, by the at least one processor of the transaction routing server, an identification of a regulatory threshold or negotiated volume threshold; and
generating, by the at least one processor of the transaction routing server, one or more pseudo-networks corresponding to one or more of the plurality of eligible payment networks, each pseudo-network comprising a modification of a network to account for a change in regulatory exemption status or a change in preferred status, and wherein the dynamically sorting, by the at least one processor of the transaction routing server, the plurality of eligible payment networks comprises dynamically sorting the plurality of eligible payment networks and the one or more pseudo-networks to identify a least-cost network.
5. The computer-implemented method of claim 1 , further comprising:
generating, by the at least one processor of the transaction routing server, a display of routing and settlement across the plurality of eligible payment networks, and user-configurable displays of regulated vs. exempt issuers.
6. The computer-implemented method of claim 1 , further comprising:
generating, by the at least one processor of the transaction routing server, a display of a first grouping of the plurality of eligible payment networks to which a set of transactions were routed relative to a second grouping of the plurality of eligible payment networks to which the set of transactions could have been routed, for an overall cost savings to the merchant.
7. The computer-implemented method of claim 6 , further comprising:
generating, by the at least one processor of the transaction routing server, a plurality of user elements enabling the merchant to reveal a group of transaction routing decisions according to issuer, regulatory exemption status, and preference or preferred rate status.
8. A system for routing electronic payment transactions to PIN-less networks using payment pseudo-networks and electronic transaction simulation, the system comprising:
a data storage device storing instructions for routing electronic payment transactions to PIN-less networks using payment pseudo-networks and electronic transaction simulation in an electronic storage medium; and
at least one processor of a transaction routing server, configured to execute the instructions to perform a method including:
receiving, by at least one processor of a transaction routing server, transaction- related information from a merchant via an electronic network;
identifying, by the at least one processor of the transaction routing server, a plurality of eligible payment networks based on transaction routing criteria associated with the transaction-related information;
dynamically identifying, by the at least one processor of the transaction routing server, one or more breakeven transaction amounts for each eligible payment network, the one or more breakeven transaction amounts defining a point at which two or more of the plurality of eligible payment networks have the same expenses for a given transaction amount;
dynamically sorting, by the at least one processor of the transaction routing server, the plurality of eligible payment networks to identify a least-cost PIN-less debit network;
selecting, by the at least one processor of the transaction routing server, the least cost PIN-less debit network from the two or more of the plurality of eligible payment networks based at least in part on the one or more breakeven transaction amounts; and
routing, by the at least one processor of the transaction routing server, the transaction-related information to the least cost PIN-less debit network.
9. The system of claim 8 , wherein the transaction related information further includes one or more of:
a primary account number;
an issuer identification number;
a payment card number;
a mode of payment including a swiping of a card, keying in an identification related to the payment network, a contactless mode of payment, or a mode of payment that utilizes a chip; and
whether an address verification system was utilized.
10. The system of claim 8 , wherein the
dynamically sorting, by the at least one processor of the transaction routing server, the plurality of eligible payment networks comprises dynamically sorting the plurality of eligible payment networks according to the breakeven transaction amounts, absolute cost, availability of volume discount, and availability of preferred rates.
11. The system of claim 8 , wherein the system is further configured for:
receiving, by the at least one processor of the transaction routing server, an identification of a regulatory threshold or negotiated volume threshold; and
generating, by the at least one processor of the transaction routing server, one or more pseudo-networks corresponding to one or more of the plurality of eligible payment networks, each pseudo-network comprising a modification of a network to account for a change in regulatory exemption status or a change in preferred status, and wherein the dynamically sorting, by the at least one processor of the transaction routing server, the plurality of eligible payment networks comprises dynamically sorting the plurality of eligible payment networks and the one or more pseudo-networks to identify a least-cost network.
12. The system of claim 8 , wherein the system is further configured for:
generating, by the at least one processor of the transaction routing server, a display of routing and settlement across the plurality of eligible payment networks, and user-configurable displays of regulated vs. exempt issuers.
13. The system of claim 8 , wherein the system is further configured for:
generating, by the at least one processor of the transaction routing server, a display of a first grouping of the plurality of eligible payment networks to which a set of transactions were routed relative to a second grouping of the plurality of eligible payment networks to which the set of transactions could have been routed, for an overall cost savings to the merchant.
14. The system of claim 13 , wherein the system is further configured for:
generating, by the at least one processor of the transaction routing server, a plurality of user elements enabling the merchant to reveal a group of transaction routing decisions according to issuer, regulatory exemption status, and preference or preferred rate status.
15. A non-transitory machine-readable medium storing instructions that, when executed by the a computing system, causes the computing system to perform a method for routing electronic payment transactions to PIN-less networks using payment pseudo-networks and electronic transaction simulation, the method including:
receiving, by at least one processor of a transaction routing server, transaction- related information from a merchant via an electronic network;
identifying, by the at least one processor of the transaction routing server, a plurality of eligible payment networks based on transaction routing criteria associated with the transaction-related information;
dynamically identifying, by the at least one processor of the transaction routing server, one or more breakeven transaction amounts for each eligible payment network, the one or more breakeven transaction amounts defining a point at which two or more of the plurality of eligible payment networks have the same expenses for a given transaction amount;
dynamically sorting, by the at least one processor of the transaction routing server, the plurality of eligible payment networks to identify a least-cost PIN-less debit network;
selecting, by the at least one processor of the transaction routing server, the least cost PIN-less debit network from the two or more of the plurality of eligible payment networks based at least in part on the one or more breakeven transaction amounts; and
routing, by the at least one processor of the transaction routing server, the transaction-related information to the least cost PIN-less debit network.
16. The non-transitory machine-readable medium of claim 15 , wherein the
dynamically sorting, by the at least one processor of the transaction routing server, the plurality of eligible payment networks comprises dynamically sorting the plurality of eligible payment networks according to the breakeven transaction amounts, absolute cost, availability of volume discount, and availability of preferred rates.
17. The non-transitory machine-readable medium of claim 15 , the method further comprising:
receiving, by the at least one processor of the transaction routing server, an identification of a regulatory threshold or negotiated volume threshold; and
generating, by the at least one processor of the transaction routing server, one or more pseudo-networks corresponding to one or more of the plurality of eligible payment networks, each pseudo-network comprising a modification of a network to account for a change in regulatory exemption status or a change in preferred status, and wherein the dynamically sorting, by the at least one processor of the transaction routing server, the plurality of eligible payment networks comprises dynamically sorting the plurality of eligible payment networks and the one or more pseudo-networks to identify a least-cost network.