Abstract: A method of extending credit to a merchant establishing a transaction processing relationship with the merchant and extending credit to the merchant contingent on the transaction processing relationship. Extending credit includes a right to collateralize funds resulting from the transaction processing relationship, otherwise due the merchant, if the merchant defaults on a payment due in the course of extending credit to the merchant.

Abstract: A method of processing a presentation instrument transaction for a merchant. includes, at a host computer system, receiving transaction information from the merchant for a presentation instrument transaction to process. The transaction information includes a ticket amount. The method also includes, at the host computer system, determining a settlement amount to pay the merchant for the transaction. The settlement amount is less than the ticket amount and the difference between the ticket amount and the settlement amount is based, at least in part, on a fee. The method further includes remitting a payment to the merchant. The payment includes the settlement amount. The method also includes further processing the transaction to thereby obtain reimbursement. The fee is determined, at least in part, by calculating an expected loss specific to the merchant. The expected loss is based, at least in part, on a probability of default specific to the merchant and a gross exposure specific to the merchant.

Abstract: This invention relates to methods and systems for determining a credit card applicant's creditworthiness wherein the applicant is allowed a period following the initial review and rejection of his or her credit card application in which the applicant may cure the credit deficiencies and receive automatic reconsideration of his or her improved application. In the event that upon reconsideration the application is deemed approvable, the process will automatically approve the application and provide notice to the applicant accordingly.