Invention Grant
- Patent Title: Estimating interchange fees for card payments
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Application No.: US15444898Application Date: 2017-02-28
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Publication No.: US10402807B1Publication Date: 2019-09-03
- Inventor: Kalyani Iyer , Mehmet Zahit Guneri , Dennis Jarosch , Michael Ward , Kenji Kaneda
- Applicant: Square, Inc.
- Applicant Address: US CA San Francisco
- Assignee: Square, Inc.
- Current Assignee: Square, Inc.
- Current Assignee Address: US CA San Francisco
- Agency: Lee & Hayes, P.C.
- Main IPC: G06Q20/20
- IPC: G06Q20/20 ; G06N5/04 ; G06Q20/34 ; G06N20/00

Abstract:
A payment processing system is configured to support purchase transactions generated by merchant point-of-sale (POS) devices. Information regarding the purchase transactions is archived and periodically analyzed using machine learning to create a predictive model relating transaction attributes to bank interchange fees. The predictive model is then used to estimate interchange fees that are later passed on to merchants. This allows more accurate settlement with merchants in situations where reports regarding actual interchange fees are not yet available.
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