Systems and methods for routing electronic transactions using predicted authorization approval
A method for routing electronic payment transactions includes receiving transaction-related information from a merchant, extracting transaction routing criteria from the received transaction-related information, dynamically identifying one or more eligible payment networks based on extracted transaction routing criteria, predicting a likelihood of authorization acceptance for each identified network based on the transaction-related information, dynamically identifying one or more breakeven transaction amounts for each identified eligible payment network, each breakeven transaction amount defining a point at which two or more eligible payment networks have the same expenses for a given transaction amount, the expenses including costs associated with a low predicted likelihood of authorization acceptance, and routing signature debit transactions from the merchant to a least cost PIN-less debit network selected from the eligible payment networks based on identification of a desired breakeven transaction amount for the PIN-less debit network.
1 . A method comprising:
receiving transaction-related information from a merchant;
identifying one or more eligible payment networks based on the transaction-related information;
identifying one or more pseudo-networks corresponding to the one or more eligible payment networks;
selecting a payment network from among the one or more eligible payment networks based on the one or more pseudo-networks and based on a likelihood of authorization acceptance for each of the one or more eligible payment networks; and
routing a signature debit transaction from the merchant to a least cost PIN-less debit network using the selected payment network wherein the method improves the functioning of one or more transaction routing servers by routing the signature debit transaction to a least cost PIN-less debit network using the selected payment network, and wherein the one or more pseudo-networks are one or more artificial network configured to simulate routing options within one or more payment environments.
2 . The method of claim 1 , wherein the transaction-related information includes one or more of:
a bank identification number (“BIN”);
one or more available payment network IDs;
one or more merchant categories;
an issuer regulatory status;
a transaction amount;
a preferred status;
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 method of claim 1 wherein each pseudo-network comprises a modification of a network to account for a change in regulatory exemption status or a change in preferred status.
4 . The method of claim 1 , further comprising:
sorting the one or more eligible payment networks according to one or more of breakeven transaction amounts, absolute cost, availability of volume discount, and availability of preferred rates.
5 . The method of claim 1 , further comprising:
generating a display of routing and settlement across the one or more eligible payment networks, and user-configurable displays of regulated versus exempt issuers.
6 . The method of claim 1 , further comprising:
generating, for the merchant, a display of first grouping of networks to which a set of transactions were routed relative to a second grouping of networks to which the set of transactions could have been routed, for an overall cost savings to the merchant.
7 . The method of claim 6 , further comprising:
generating a plurality of user elements enabling a merchant user to reveal a group of transaction routing decisions according to issuer, regulatory exemption status, and preference or preferred rate status.
8 . A device comprising:
a memory configured to store instructions; and
one or more processors of a transaction routing server configured to execute the instructions to perform operations comprising:
receiving transaction-related information from a merchant;
identifying one or more eligible payment networks based on the transaction-related information;
identifying one or more pseudo-networks corresponding to the one or more eligible payment networks;
selecting a payment network from among the one or more eligible payment networks based on the one or more pseudo-networks and based on a likelihood of authorization acceptance for each of the one or more eligible payment networks; and
routing a signature debit transaction from the merchant to a least cost PIN-less debit network using the selected payment network wherein the operations improve the functioning of one or more transaction routing servers by routing the signature debit transaction to a least cost PIN-less debit network using the selected payment network, and wherein the one or more pseudo-networks are one or more artificial network configured to simulate routing options within one or more payment environments.
9 . The device of claim 8 , wherein the transaction-related information includes one or more of:
a bank identification number (“BIN”);
one or more available payment network IDs;
one or more merchant categories;
an issuer regulatory status;
a transaction amount;
a preferred status;
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 device of claim 8 , wherein each pseudo-network comprises a modification of a network to account for a change in regulatory exemption status or a change in preferred status.
11 . The device of claim 8 , wherein the operations further comprise:
sorting the one or more eligible payment networks according to one or more of breakeven transaction amounts, absolute cost, availability of volume discount, and availability of preferred rates.
12 . The device of claim 8 , wherein the operations further comprise:
generating a display of routing and settlement across the one or more eligible payment networks, and user-configurable displays of regulated versus exempt issuers.
13 . The device of claim 8 , wherein the operations further comprise:
generating, for the merchant, a display of first grouping of networks to which a set of transactions were routed relative to a second grouping of networks to which the set of transactions could have been routed, for an overall cost savings to the merchant.
14 . The device of claim 13 , wherein the operations further comprise:
generating a plurality of user elements enabling a merchant user to reveal a group of transaction routing decisions according to issuer, regulatory exemption status, and preference or preferred rate status.
15 . A non-transitory computer-readable medium storing instructions that, when executed by one or more processors of a device, cause the one or more processors to perform operations comprising:
receiving transaction-related information from a merchant;
identifying one or more eligible payment networks based on the transaction-related information;
identifying one or more pseudo-networks corresponding to the one or more eligible payment networks;
selecting a payment network from among the one or more eligible payment networks based on the one or more pseudo-networks and based on a likelihood of authorization acceptance for each of the one or more eligible payment networks; and
routing a signature debit transaction from the merchant to a least cost PIN-less debit network using the selected payment network wherein the operations improve the functioning of one or more transaction routing servers by routing the signature debit transaction to a least cost PIN-less debit network using the selected payment network, and wherein the one or more pseudo-networks are one or more artificial network configured to simulate routing options within one or more payment environments.
16 . The non-transitory computer-readable medium of claim 15 , wherein the transaction-related information includes one or more of:
a bank identification number (“BIN”);
one or more available payment network IDs;
one or more merchant categories;
an issuer regulatory status;
a transaction amount;
a preferred status;
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.
17 . The non-transitory computer-readable medium of claim 15 , wherein each pseudo-network comprises a modification of a network to account for a change in regulatory exemption status or a change in preferred status.
18 . The non-transitory computer-readable medium of claim 15 , wherein the operations further comprise:
sorting the one or more eligible payment networks according to one or more of breakeven transaction amounts, absolute cost, availability of volume discount, and availability of preferred rates.
19 . The non-transitory computer-readable medium of claim 15 , wherein the operations further comprise:
generating a display of routing and settlement across the one or more eligible payment networks, and user-configurable displays of regulated versus exempt issuers.
20 . The non-transitory computer-readable medium of claim 15 , wherein the operations further comprise:
generating, for the merchant, a display of first grouping of networks to which a set of transactions were routed relative to a second grouping of networks to which the set of transactions could have been routed, for an overall cost savings to the merchant; and
generating a plurality of user elements enabling a merchant user to reveal a group of transaction routing decisions according to issuer, regulatory exemption status, and preference or preferred rate status.