Patent ID: 7676409

Claim:
An automated computer implemented method for settling a transaction at a variable discount rate, wherein the method is executed by a programmed computer processor which communicates with a user via a network, the method comprising the steps of: receiving an authorization record via the network for a transaction initiated by a customer over an open payment network, wherein the open payment network comprises a card association and a card acquirer; identifying payment plan data associated with the transaction and specific to a merchant, using the programmed computer processor, wherein the payment plan data comprises data associated with one or more financing plans to finance the transaction; creating a settlement record based at least in part on the authorization record and the payment plan data, using the programmed computer processor; applying a discount rate for the settlement record wherein the discount rate is a variable discount rate based at least in part on a combination of transaction type, transaction amount, customer ability to pay and the identified payment plan data, using the programmed computer processor; and settling with the merchant for the transaction at the variable discount rate, wherein the variable discount rate comprises at least a variable percentage rate of an amount of the transaction which is charged to the merchant by one or more of the card association and the card acquirer for processing the transaction.