Methods and systems for applying promotion codes to payment transactions

• US 10,565,574 B2
• Filed: 10/29/2018
• Issued: 02/18/2020
• Est. Priority Date: 12/28/2007
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Powell, Jonathan Robert
• Primary Examiner(s): Macasiano, Marilyn G
• Application Number:
  US16/173,982
• Publication Number:
  US 20190066074A1
• Time in Patent Office: 477 Days
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates

Abstract

A method for applying promotion codes to a payment transaction is provided. The method uses at least one input device in communication with a database. The payment transaction includes a purchase made by a cardholder using a payment card over a payment card network. The method includes storing promotion data within the database including at least one merchant participating in the payment card network, each promotional program offered by the at least one merchant to the cardholder, and promotion codes associated with each promotional program offered to the cardholder. The method further includes accessing the promotion data using the at least one input device, receiving a selected promotional program from the cardholder using the at least one input device, and automatically applying the promotion codes associated with the selected promotional program to the payment transaction.

Claims

1. A method implemented by a payment card network for applying a promotional program to a payment card transaction, the payment card transaction including a purchase made by a cardholder from a card acceptor using a payment card over the payment card network, said method implemented on at least one server coupled to a database, the at least one server including at least one legacy transaction processing module, a database interface module, a merchant screening module, a promotion code processing module, and a merchant accounting system module, said method comprising the steps of:

storing, in the database, promotion data including (i) a plurality of promotional programs offered by at least one merchant participating in the payment card network and (ii) promotion codes corresponding to each of the plurality of promotional programs;

receiving, at the database interface module from a cardholder-controlled computing device, an input identifying a selected one of the promotional programs;

transmitting, from the database interface module to the merchant screening module in response to the received input, a registration of an account of the cardholder for the selected promotional program;

transmitting, from the database interface module to the promotion code processing module, the promotion codes corresponding to the selected promotional program;

receiving, by the at least one legacy transaction processing module subsequent to receiving the input identifying the selected promotional program, an authorization request for the payment card transaction, the authorization request formatted according to payment card industry standards and including transaction data, the transaction data including a merchant identifier associated with the card acceptor and a transaction amount of the payment card transaction;

routing, by the at least one legacy transaction processing module, the authorization request to the merchant screening module;

determining, by the merchant screening module, that the authorization request corresponds to the registration;

routing, in response to the determination that the authorization request corresponds to the registration, the authorization request to the promotion code processing module;

validating, by the promotion code processing module, that the transaction data qualifies for the selected promotional program;

routing, by the promotion code processing module, the authorization request to an issuer computing device associated with an issuer of the payment card;

receiving, by the at least one legacy transaction processing module from the issuer computing device, an authorization response from the issuer, the authorization response indicating that the account of the cardholder is in good standing and covers the transaction amount;

routing, by the at least one legacy transaction processing module, the authorization response to a merchant computing device;

receiving, by the at least one legacy transaction processing module subsequent to the authorization of the payment card transaction, a clearing record from the merchant computing device, the clearing record formatted according to payment card industry standards and including at least a portion of the transaction data;

routing, by the at least one legacy transaction processing module, the clearing record to the merchant screening module;

determining, by the merchant screening module, that the clearing record corresponds to the registration;

routing, in response to the determination that the clearing record corresponds to the registration, the clearing record to the promotion code processing module;

applying, by the promotion code processing module, the promotion codes associated with the selected promotional program to at least the portion of the transaction data, wherein the application of the promotion codes results in a special price for the payment card transaction;

routing, subsequent to the application of the promotion codes, the clearing record to the merchant accounting system module;

calculating, by the merchant accounting system module, a differential between the transaction amount and the special price;

generating, by the merchant accounting system module, payment files configured to debit or credit funds corresponding to the differential directly between an account of the card acceptor and an account of the issuer; and

settling, by the at least one legacy transaction processing module, the transaction amount between an acquiring bank of the card acceptor and the issuer.

2. The method according to claim 1, wherein storing the promotion data further comprises storing, for each promotional program, at least one of a merchant name, a merchant identification (ID) number, a promotion identifier, a transaction qualification, and terms of the promotion.

3. The method according to claim 1, wherein receiving the input identifying the selected one of the promotional programs further comprises:

pushing promotion data from the database interface module to the cardholder-controlled computing device, causing the cardholder-controlled computing device to display a list of at least one available promotional program being offered by the at least one merchant to the cardholder; and

receiving the input as a selection by the cardholder from the displayed list.

4. The method according to claim 1, wherein validating that the transaction data qualifies for the selected promotional program comprises comparing, by the promotion code processing module, at least one of a merchant type, a merchant identity, a cardholder identity, a category of the transacted goods or services, a location of the transaction, a time of the transaction, and the transaction amount to the promotion data.

5. A method implemented by a payment card network for applying a promotional program to a payment card transaction, the payment card transaction including a purchase made by a cardholder from a card acceptor using a payment card over the payment card network, said method implemented on at least one server coupled to a database, the at least one server including at least one legacy transaction processing module, a merchant screening module, a promotion code processing module, and a merchant accounting system module, said method comprising the steps of:

storing, in the database, promotion data including (i) a plurality of promotional programs offered by at least one merchant participating in the payment card network and (ii) promotion codes corresponding to each of the plurality of promotional programs;

receiving, at the merchant screening module, a registration of an account of the cardholder for a selected one of the promotional programs;

receiving, at the promotion code processing module, the promotion codes corresponding to the selected promotional program;

processing, by the at least one legacy transaction processing module subsequent to receiving the registration, an authorization request for the payment card transaction, the authorization request formatted according to payment card industry standards and including transaction data, the transaction data including a merchant identifier associated with the card acceptor and a transaction amount of the payment card transaction;

routing, by the at least one legacy transaction processing module, an authorization response to a merchant computing device, the authorization response indicating that an issuer computing device associated with an issuer of the payment card has determined that the account of the cardholder is in good standing and covers the transaction amount;

receiving, by the at least one legacy transaction processing module subsequent to the authorization of the payment card transaction, a clearing record from the merchant computing device, the clearing record formatted according to payment card industry standards and including at least a portion of the transaction data;

routing, by the at least one legacy transaction processing module, the clearing record to the merchant screening module;

determining, by the merchant screening module, that the clearing record corresponds to the registration;

routing, in response to the determination that the clearing record corresponds to the registration, the clearing record to the promotion code processing module;

applying, by the promotion code processing module, the promotion codes associated with the selected promotional program to at least the portion of the transaction data, wherein the application of the promotion codes results in a special price for the payment card transaction;

routing, subsequent to the application of the promotion codes, the clearing record to the merchant accounting system module;

calculating, by the merchant accounting system module, a differential between the transaction amount and the special price;

generating, by the merchant accounting system module, payment files configured to debit or credit funds corresponding to the differential directly between an account of the card acceptor and an account of the issuer; and

settling, by the at least one legacy transaction processing module, the transaction amount between an acquiring bank of the card acceptor and the issuer.

6. The method according to claim 5, wherein storing the promotion data further comprises storing, for each promotional program, at least one of a merchant name, a merchant identification (ID) number, a promotion identifier, a transaction qualification, and terms of the promotion.

7. The method according to claim 5, wherein receiving the registration comprises receiving, at a database interface module of the at least one server from a cardholder-controlled computing device, an input identifying a selected one of the promotional programs.

8. The method according to claim 7, wherein receiving the input identifying the selected one of the promotional programs further comprises:

pushing promotion data from the database interface module to the cardholder-controlled computing device, causing the cardholder-controlled computing device to display a list of at least one available promotional program being offered by the at least one merchant to the cardholder; and

receiving the input as a selection by the cardholder from the displayed list.

9. The method according to claim 5, further comprising:

routing, by the at least one legacy transaction processing module, the authorization request to the merchant screening module; and

determining, by the merchant screening module, that the authorization request corresponds to the registration.

10. The method according to claim 9, further comprising validating, by the promotion code processing module, that the transaction data qualifies for the selected promotional program.

11. The method according to claim 10, wherein validating that the transaction data qualifies for the selected promotional program comprises comparing, by the promotion code processing module, at least one of a merchant type, a merchant identity, a cardholder identity, a category of the transacted goods or services, a location of the transaction, a time of the transaction, and the transaction amount to the promotion data.

12. The method according to claim 5, further comprising:

calculating, by the merchant accounting system module, a fee to be charged to the card acceptor for participation in the promotional program; and

generating, by the merchant accounting system module, the payment files further configured to debit or credit funds corresponding to the fee directly between the account of the card acceptor and the account of the issuer.

13. A network-based system for applying a promotional program to a payment card transaction, the payment card transaction including a purchase made by a cardholder using a payment card over a payment card network, the payment card transaction including a purchase made by a cardholder from a card acceptor using a payment card over the payment card network, said system comprising:

a database for storing information; and

at least one server coupled to said database and including at least one legacy transaction processing module, a merchant screening module, a promotion code processing module, and a merchant accounting system module, said server system further configured to;

store, in the database, promotion data including (i) a plurality of promotional programs offered by at least one merchant participating in the payment card network and (ii) promotion codes corresponding to each of the plurality of promotional programs;

receive, at the merchant screening module, a registration of an account of the cardholder for a selected one of the promotional programs;

receive, at the promotion code processing module, the promotion codes corresponding to the selected promotional program;

process, by the at least one legacy transaction processing module subsequent to receiving the registration, an authorization request for the payment card transaction, the authorization request formatted according to payment card industry standards and including transaction data, the transaction data including a merchant identifier associated with the card acceptor and a transaction amount of the payment card transaction;

route, by the at least one legacy transaction processing module, an authorization response to a merchant computing device, the authorization response indicating that an issuer computing device associated with an issuer of the payment card has determined that the account of the cardholder is in good standing and covers the transaction amount;

receive, by the at least one legacy transaction processing module subsequent to the authorization of the payment card transaction, a clearing record from the merchant computing device, the clearing record formatted according to payment card industry standards and including at least a portion of the transaction data;

route, by the at least one legacy transaction processing module, the clearing record to the merchant screening module;

determine, by the merchant screening module, that the clearing record corresponds to the registration;

route, in response to the determination that the clearing record corresponds to the registration, the clearing record to the promotion code processing module;

apply, by the promotion code processing module, the promotion codes associated with the selected promotional program to at least the portion of the transaction data, wherein the application of the promotion codes results in a special price for the payment card transaction;

route, subsequent to the application of the promotion codes, the clearing record to the merchant accounting system module;

calculate, by the merchant accounting system module, a differential between the transaction amount and the special price;

generate, by the merchant accounting system module, payment files configured to debit or credit funds corresponding to the differential directly between an account of the card acceptor and an account of the issuer; and

settle, by the at least one legacy transaction processing module, the transaction amount between an acquiring bank of the card acceptor and the issuer.

14. The system according to claim 13 wherein the at least one server is further configured to store the promotion data including, for each promotional program, at least one of a merchant name, a merchant identification (ID) number, a promotion identifier, a transaction qualification, and terms of the promotion.

15. The system according to claim 13, wherein the at least one server is further configured to receive the registration at a database interface module of the at least one server from a cardholder-controlled computing device, the registration including an input identifying a selected one of the promotional programs.

16. The system according to claim 15, wherein the at least one server is further configured to:

push promotion data from the database interface module to the cardholder-controlled computing device, causing the cardholder-controlled computing device to display a list of at least one available promotional program being offered by the at least one merchant to the cardholder; and

receive the input as a selection by the cardholder from the displayed list.

17. The system according to claim 13, wherein the at least one server is further configured to:

route, by the at least one legacy transaction processing module, the authorization request to the merchant screening module; and

determine, by the merchant screening module, that the authorization request corresponds to the registration.

18. The system according to claim 17, wherein the at least one server is further configured to validate, by the promotion code processing module, that the transaction data qualifies for the selected promotional program.

19. The system according to claim 18, wherein the at least one server is further configured to validate that the transaction data qualifies for the selected promotional program by comparing, by the promotion code processing module, at least one of a merchant type, a merchant identity, a cardholder identity, a category of the transacted goods or services, a location of the transaction, a time of the transaction, and the transaction amount to the promotion data.

20. The system according to claim 13, wherein the at least one server is further configured to:

calculate, by the merchant accounting system module, a fee to be charged to the card acceptor for participation in the promotional program; and

generate, by the merchant accounting system module, the payment files further configured to debit or credit funds corresponding to the fee directly between the account of the card acceptor and the account of the issuer.