System and method for redeeming a reward

• US 10,242,382 B1
• Filed: 09/20/2005
• Issued: 03/26/2019
• Est. Priority Date: 09/20/2005
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Inventors: Lambert, Gregory Willard, Spiegel, Philip John
• Primary Examiner(s): Dagnew, Saba
• Application Number:
  US11/232,257
• Time in Patent Office: 4,935 Days
• Field of Search: 705 14, 705 141, 705 1449, 705 1424, 705 1425, 705 1427, 705 1451, 705 1452, 705 1453, 705 1461, 705 1433, 707748
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0251 Targeted advertisements
• CPC Class Codes: G06Q 30/0254 based on statistics
• CPC Class Codes: G06Q 30/0255 based on user history

Abstract

Systems and methods for redeeming a reward held by an individual are described. A method for redeeming a reward includes determining threshold criteria for provision of a targeted reward redemption offer, identifying at least one individual based upon the threshold criteria, determining the targeted reward redemption offer, and providing the targeted reward redemption offer to the identified individual. A response to the provided targeted reward redemption offer may be received, and an account of the identified individual may be adjusted in accordance with the targeted reward redemption offer and the received response.

Claims

1. A computer-implemented method for improved timing of a personalized targeted reward redemption offer to an individual based on reward units held by the individual, comprising:

receiving account holder information associated with a plurality of individuals transmitted by external systems via a network, the account holder information including transaction history data, the transaction history data including at least one of transaction item identifier information, transaction item type information, transaction merchant identification information, transaction merchant type information, transaction date information, transaction time information, transaction location information, transaction value information, transaction frequency information, and reward holding period information;

determining, using a processor, threshold criteria, based on one or more factors including an average quantity of reward units, a median quantity of reward units and date information, wherein the threshold criteria includes a threshold quantity of reward units held by at least one individual within a predetermined period of time that entitle the at least one individual to participate in a targeted reward redemption program, wherein the date information includes one or more of the following;

one or more time periods of levels of consumer activity, a periodic, recurring schedule and a shopping season;

parsing the account holder information, using the processor, to identify at least one individual that meets an individualized dynamically adjusted threshold criteria based on the account holder information for each respective individual, each individualized dynamically adjusted threshold criteria being determined by adjusting the threshold criteria based on one or more individualized details including;

a length of time of holding the reward units by each individual, the transaction history data of the individual, individual transaction frequency information, information associated with lengths of time between transactions of the individual, information associated with average and median transaction values of the individual, individual transaction location information, transaction account and reward account establishment date information, individual demographic information, or individual financial asset information, wherein the processor identifies the at least one individual by searching at least one database containing information associated with the identified individual using the individualized dynamically adjusted threshold criteria, the at least one database also containing transaction history archive information;

determining, using the processor, a targeted reward redemption offer based on at least the individualized dynamically adjusted criteria, the levels of consumer activity, geographical distribution of transactions and/or demographic information associated with the plurality of individuals;

determining, using the processor, a probability of acceptance by the identified individual of the targeted reward redemption offer based on the transaction history data, the transaction history archive information, and/or redemption history of the identified individual, the transaction history archive information of the at least one database corresponding to one or more historical records of a transaction performed by the individual, and the transaction history archive information of the at least one database being categorized by;

dividing the transaction history archive information temporally or geographically, and

indexing the divided information in one or more tables or charts;

processing, using the processor, the one or more tables or charts to determine patterns of transaction activity in determining the probability of acceptance of the targeted reward redemption offer;

adjusting, using the processor, the targeted reward redemption offer based on the determined probability of acceptance;

transmitting, using the processor via a network, an electronic communication to a device, wherein the electronic communication comprises the targeted reward redemption offer in an inactive state;

receiving, at the processor via the network, a response from the device, wherein the response indicates an acceptance of the provided targeted reward redemption offer confirming that the identified individual has redeemed the targeted reward redemption offer at a merchant system;

determining, via the processor, a reward account of the identified individual associated with a transaction account; and

adjusting, via the processor, the reward account of the identified individual in accordance with the targeted reward redemption offer and the received response.

2. The computer-implemented method of claim 1, wherein the adjusting the reward account of the identified individual in accordance with the targeted reward redemption offer and the received response includes:

adjusting, via the processor, at least one of merchandise reward units, service reward units, airline reward units, lodging reward units, gift certificate reward units, and cash reward units.

3. The computer-implemented method of claim 1, wherein the searching the at least one database includes:

evaluating, in the at least one database, at least one of individual identification information, individual transaction account balance information, individual reward account balance information, individual credit limit information, individual financial asset information, the transaction history data, individual financial history information, and individual employment information.

4. The computer-implemented method of claim 3, wherein the individual identification information includes one or more of individual age information, individual residence address information, individual gender information, and individual family status information.

5. The computer-implemented method of claim 4, wherein the processor when determining the targeted reward redemption offer performs the following:

processing at least one of date information, the transaction history data of the individual, and the individual information associated with the individual.

6. The computer-implemented method of claim 1, wherein the processor when determining the targeted reward redemption offer performs the following:

determining a date of expiration of the reward held by the individual.

7. The computer-implemented method of claim 6, wherein

the processor provides the targeted reward redemption offer to the identified individual based on the date of expiration of the reward held by the identified individual.

8. The computer-implemented method of claim 1, wherein the targeted reward redemption offer includes at least one of an offer to redeem a predetermined quantity of the reward for at least one of an item, a service, and cash.

9. The computer-implemented method of claim 1, wherein the targeted reward redemption offer includes at least one of a cash card, a debit card, a stored-value card, a smart card, a coupon, and a check.

10. The computer-implemented method of claim 1, wherein the targeted reward redemption offer is one of finite in duration or indefinite in duration.

11. The computer-implemented method of claim 1, wherein the targeted reward redemption offer includes an allowable acceptance time period and wherein the receiving the response includes:

receiving acceptance of the provided targeted reward redemption offer via SMS after an expiration of the allowable acceptance time period.

14. The computer-implemented method of claim 1, wherein the targeted reward redemption offer includes a transaction instrument in an inactive state which is unredeemable by the identified individual until the identified individual takes an affirmative action to communicate an explicit acceptance of the targeted reward redemption offer.

12. A rewards redemption system for improved timing of a personalized targeted reward redemption offer to an individual based on reward units held by the individual, comprising:

data storage storing information rewards accounts and transaction history archive information;

a central reward redemption processor connected to the data storage, the central reward redemption processor configured to;

receive account holder information associated with a plurality of individuals transmitted by external systems via a network, the account holder information including transaction history data, the transaction history data including at least one of transaction item identifier information, transaction item type information, transaction merchant identification information, transaction merchant type information, transaction date information, transaction time information, transaction location information, transaction value information, transaction frequency information, and reward holding period information;

evaluate the account holder information to determine threshold criteria based on one or more factors including an average quantity of reward units, a median quantity of reward units, and date information, wherein the threshold criteria includes a threshold quantity of reward units held by at least one individual within a predetermined period of time that entitles the at least one individual to participate in a targeted reward redemption program, wherein the date information includes one or more of the following, one or more time periods of levels of consumer activity, a periodic, recurring schedule and a shopping season;

parsing the account holder information to identify at least one individual that meets an individualized dynamically adjusted threshold criteria based on the account holder information for each respective individual, each individualized dynamically adjusted threshold criteria being determined by adjusting the threshold criteria based on one or more individualized details including;

a length of time of holding the reward units by each individual, the transaction history data of the individual, individual transaction frequency information, information associated with lengths of time between transactions of the individual, information associated with average and median transaction values of the individual, individual transaction location information, transaction account and reward account establishment date information, individual demographic information, or individual financial asset information, wherein the identifying the at least one individual includes searching the data storage containing information associated with the identified individual using the individualized dynamically adjusted threshold criteria;

determine a targeted reward redemption offer based on at least the individualized dynamically adjusted criteria, the levels of consumer activity, geographical distribution of transactions and/or demographic information associated with the plurality of individuals;

determine a probability of acceptance by the identified individual of the targeted reward redemption offer based on the transaction history data, the transaction history archive information, and/or redemption history of the identified individual, the transaction history archive information of the data storage corresponding to one or more historical records of a transaction performed by the individual, and the transaction history archive information of the data storage being categorized by;

dividing the transaction history archive information temporally or geographically, and

indexing the divided information in one or more tables or charts;

processing, using the processor, the one or more tables or charts to determine patterns of transaction activity in determining the probability of acceptance of the targeted reward redemption offer;

adjust the targeted reward redemption offer based on the determined probability of acceptance;

transmit, via the network, an electronic communication to a device, wherein the electronic communication comprises the targeted reward redemption offer in an inactive state;

receive, via the network, a response from the device, wherein the response indicates an acceptance of the provided targeted reward redemption offer confirming that the identified individual has redeemed the targeted reward redemption offer at a merchant system;

determine a reward account of the identified individual associated with a transaction account managed by a same entity; and

adjust the reward account of the identified individual in accordance with the targeted reward redemption offer and the received response.

13. A computer-implemented method for redeeming rewards held by respective individuals, comprising:

receiving account holder information associated with a plurality of individuals transmitted by external systems via a network, the account holder information including transaction history data, the transaction history data including at least one of transaction item identifier information, transaction item type information, transaction merchant identification information, transaction merchant type information, transaction date information, transaction time information, transaction location information, transaction value information, transaction frequency information, and reward holding period information;

determining, using a processor, threshold criteria, based on one or more factors including an average quantity of reward units, a median quantity of reward units, and date information, wherein the threshold criteria includes a threshold quantity of reward units held by at least one individual within a predetermined period of time that entitles the at least one individual to participate in a targeted reward redemption program, wherein the date information includes one or more of the following;

one or more time periods of levels of consumer activity, a periodic, recurring schedule and a shopping season;

accessing, via the processor, data stored in a memory;

parsing the account holder information, using the processor, to identify at least one individual that meets an individualized dynamically adjusted threshold criteria based on the account holder information for each respective individual, each individualized dynamically adjusted threshold criteria being determined by adjusting the threshold criteria based on one or more individualized details including;

a length of time of holding the reward units by each individual, the transaction history data of the individual, individual transaction frequency information, information associated with lengths of time between transactions of the individual, information associated with average and median transaction values of the individual, individual transaction location information, transaction account and reward account establishment date information, individual demographic information, or individual financial asset information wherein the processor identifies the at least one individual by searching at least one database containing information associated with the identified individual using the individualized dynamically adjusted threshold criteria, the at least one database also containing transaction history archive information;

enrolling, using the processor, the identified individual with the targeted reward redemption program;

determining, using the processor, a targeted reward redemption offer based on at least the individualized dynamically adjusted threshold criteria, the levels of consumer activity, geographical distribution of transactions and/or demographic information associated with the plurality of individuals;

determining, using the processor, a probability of acceptance by the identified individual of the targeted reward redemption offer based on the transaction history data, the transaction history archive information, and/or redemption history of the identified individual, the transaction history archive information of the at least one database corresponding to one or more historical records of a transaction performed by the individual, and the transaction history archive information of the at least one database being categorized by;

dividing the transaction history archive information temporally or geographically, and

indexing the divided information in one or more tables or charts;

processing, using the processor, the one or more tables or charts to determine patterns of transaction activity in determining the probability of acceptance of the targeted reward redemption offer;

adjusting, using the processor, the targeted reward redemption offer based on the determined probability of acceptance;

transmitting, using the processor via a network, an electronic communication to a device, wherein the electronic communication comprises the targeted reward redemption offer in an inactive state;

receiving, at the processor via the network, a response from the device, wherein the response indicates an acceptance of the targeted reward redemption offer confirming that the identified individual has redeemed the targeted reward redemption offer at a merchant system,

determining, via the processor, a reward account of the identified individual associated with a transaction account managed by a same entity;

adjusting, via the processor, the reward account of the identified individual in accordance with the targeted reward redemption offer when the processor receives a response from the device indicating an acceptance of the targeted reward redemption offer.