Patent Number: 6,169,974

Title: Method for closed loop processing of transactions utilizing bank card association

Abstract: A procedure for tracking transactions carried out between multiple cost centers and an in-house supply facility of a business entity is carried out by setting up the supply facility to function essentially in the same manner as an independent retail merchant through the existing bank card association. Transaction information is then transferred as a batch to a merchant accounting system which transfers the information to the bank card association to the card issuer. The card issuer then provides a funds payment that is transferred through the bank card network to the merchant accounting system and finally to the merchant acquirer. The merchant acquirer, however, then transfers the funds back to the credit card issuer to cancel out the original funds transfer and thereby provide a closed loop funds transfer. Periodically, the merchant accounting system provides a comprehensive collection of the transaction information performed by the stock room to the credit card issuer who in turn generates a transaction report that is provided to the business entity for updating its general ledger. At the close of a month, the totality of transactions for the stock room of the business entity is communicated to the credit card issuer which in turn determines the amount of interchange fees it has received from the merchant acquirer and pays a corresponding amount for the interchange fees back to the merchant acquirer, thus essentially zeroing out the interchange fees in a closed loop manner.

Inventors: Baumgartner; James W. (Park Cities, UT), Smith; Cynthia M. (Park Cities, UT)

Assignee: Paymentech, Inc.

International Classification: G06Q 20/00 (20060101); G06F 017/60 ()

Expiration Date: 01/02/2018