Patent ID: 8266057

Claim:
A method for assigning an interchange rate to a financial transaction using at least one input device in communication with an interchange database over an interchange, the financial transaction initiated by a cardholder using a financial transaction card over the interchange, the card issued by an issuer bank, said method comprising the steps of: storing issuer data within the interchange database, the issuer data including whether the issuer bank has a predefined relationship with the interchange; receiving at the interchange, transaction data from the input device, wherein the transaction data includes bank identification data; accessing the interchange database; comparing, at a computer associated with the interchange, the bank identification data to the issuer data stored within the interchange database; determining, at the computer associated with the interchange, a type of predefined relationship between the issuer bank and the interchange; automatically assigning, at the computer associated with the interchange, an interchange rate to the transaction based on the determined type of predefined relationship, wherein the interchange rate is stored in the interchange database as either a credit or debit to a corresponding issuer bank and acquiring bank, and each financial transaction occurs through an acquiring bank; and summing debits and credits for a plurality of transactions involving the acquiring bank and the issuer bank, and transmitting a credit or debit to the acquiring bank and the issuer bank on a periodic basis.