Patent ID: 7925583

Claim:
An automated computer implemented method for dynamically adjusting discount rates for a card transaction, wherein the method is executed by a programmed computer processor, the computer implemented method comprising the steps of: identifying credit worthiness of at least one consumer, at an issuing module using the programmed computer processor; assigning a credit level to a line of credit associated with a credit product for the at least one consumer, at the issuing module using the programmed computer processor, wherein the credit product is accepted at an identified one or more merchants, wherein at least one of the identified one or more merchants is within a closed loop network; assigning a financing charge to the line of credit, at the issuing module using the programmed computer processor; determining a discount rate for at least one transaction based at least in part on the credit worthiness of the at least one consumer and based at least in part on merchant-related data, using the programmed computer processor; and applying the discount rate when the at least one transaction is made with the credit product at the identified one or more merchants within the closed loop network, at the rate determining module using the programmed computer processor, wherein the discount rate is paid by the identified one or more merchants; wherein the discount rate is dynamically adjusted as the credit worthiness of the at least one consumer changes.