Patent ID: 8725642

Claim:
A method for deferring settlement of a transaction, the method comprising: receiving, at a server computer, an authorization request message for a transaction from an acquirer or merchant; receiving, at the server computer, an authorization response message for the transaction from an issuer, wherein based on the authorization response message the server computer determines a risk level for fraud or default for the transaction; inserting, via the server computer, the risk level into the authorization response message; transmitting the authorization response message including the risk level to the acquirer or merchant; and receiving, at the server computer, a deferred settlement indicator for the transaction from the acquirer or merchant, wherein the deferred settlement indicator indicates that the risk level is acceptable such that the transaction is to be settled using a deferred settlement process, and wherein the deferred settlement process comprises a deferred settlement for the transaction and a lowered transaction fee, wherein the deferred settlement indicator is part of a clearing record.