Methods and systems for providing guaranteed merchant transactions

Abstract

A network arrangement is provided for processing credit transactions. A financial network is used to route communications securely between interfaces with the financial network. Merchant systems are coupled with the interfaces, with each merchant system transmitting requests for authorization of credit transactions through the financial network. An issuer system authorizes credit transactions in response to receipt of requests that specify at least a credit account to be used to support a particular credit transaction and a transaction amount for the particular credit transaction. A guarantor system separate from the issuer system determines whether to guarantee credit transactions in response to the requests and transmits responses indicating whether specific credit transactions are to be guaranteed through the financial network to the merchant systems.

1 . A method for processing a credit transaction by a merchant, the method comprising: 
 receiving, with a merchant system, information defining a credit account to be used to support the credit transaction;    transmitting, with the merchant system over a financial network, a request for authorization of the credit transaction, the request including the information defining the credit account and a transaction amount for the transaction; and    receiving, with the merchant system over the financial network, a response to the request identifying whether an issuer of the credit account has authorized the credit transaction and whether a guarantor separate from the issuer has guaranteed payment of the transaction amount for the transaction to the merchant.    
     
     
         2 . The method recited in  claim 1  wherein receiving the response comprises receiving the response from a guarantor system controlled by the guarantor.  
     
     
         3 . The method recited in  claim 1  wherein receiving the response comprises receiving a first portion of the response from an issuer system controlled by the issuer and receiving a second portion of the response from a guarantor system controlled by the guarantor.  
     
     
         4 . The method recited in  claim 1  wherein receiving the information defining the credit account comprises reading the information from a credit card presented to the merchant.  
     
     
         5 . The method recited in  claim 1  wherein receiving the information defining the credit account comprises receiving the information over an interface to the merchant system from a customer located remotely from the merchant.  
     
     
         6 . The method recited in  claim 1  wherein transmitting the request comprises transmitting the request from the merchant system to an issuer system controlled by the issuer.  
     
     
         7 . A method for processing a credit transaction by a merchant, the method comprising: 
 receiving, with a guarantor system, a request for authorization of a credit transaction between the merchant and a customer, the request including an identification of a credit account used to support the credit transaction, a transaction amount for the transaction, and an authorization for the transaction provided by an issuer of the credit account;    determining, with the guarantor system, whether to provide a guarantee of payment of the transaction amount to the merchant; and    transmitting, from the guarantor system over a financial network, a response to the request indicating whether to guarantee payment of the transaction amount to the merchant.    
     
     
         8 . The method recited in  claim 7  wherein determining whether to provide the guarantee comprises determining a risk of repudiation of the transaction by a holder of the credit account.  
     
     
         9 . The method recited in  claim 7  wherein receiving the request for authorization comprises receiving the request for authorization over the financial network from an issuer system controlled by the issuer.  
     
     
         10 . The method recited in  claim 7  wherein receiving the request for authorization comprises receiving the request for authorization over the financial network from a merchant system controlled by the merchant.  
     
     
         11 . A network arrangement for processing credit transactions between merchants and customers, the network arrangement comprising: 
 a financial network adapted to route communications securely between interfaces with the financial network;    a plurality of merchant systems coupled with the interfaces, each such merchant system being adapted to transmit requests for authorization of credit transactions through the financial network;    an issuer system coupled with at least one of the interfaces, the issuer system being adapted to authorize credit transactions in response to receipt of requests specifying at least a credit account to be used to support a particular credit transaction and a transaction amount for the particular credit transactions; and    a guarantor system separate from the issuer system and coupled with at least one of the interfaces, the guarantor system being adapted to determine whether to guarantee credit transactions for merchants in response to the requests for authorization of credit transactions and to transmit responses indicating whether specific credit transactions are to be guaranteed through the financial network to the merchant systems.    
     
     
         12 . The network arrangement recited in  claim 11  wherein each such merchant system is adapted to transmit the requests for authorization through the financial network to the issuer system.  
     
     
         13 . The network arrangement recited in  claim 11  further comprising a merchant-bank system coupled with at least one of the interfaces, the merchant-bank system being controlled by a financial institution that holds a depository account on behalf of a merchant that controls at least one of the merchant systems.  
     
     
         14 . The network arrangement recited in  claim 11  wherein at least one the merchant systems is interfaced with a point-of-sale device adapted to read information defining the credit account from a credit card.  
     
     
         15 . The network arrangement recited in  claim 11  wherein at least one of the merchant systems is interfaced with a public network through which a customer may provide information defining the credit account.