System and method for exchanging loyalty points for acquisitions

• US 20030225618A1
• Filed: 09/30/2002
• Published: 12/04/2003
• Est. Priority Date: 05/28/2002
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Rappleyea, Andrew W., Sanoff, Julie, Silverstein, Andrea N., Hessburg, Matthew Benedict, Rodriguez, Sunen
• Granted Patent: US 7,680,688 B2
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 10/02 Reservations, e.g. for tickets, services or events
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 30/0237 at kiosk
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Systems and methods are provided for facilitating an acquisition from a merchant, whereby payment for the acquisition is made at least partially through automated redemption of loyalty points from a loyalty account. In particular, information is received at a loyalty point exchange system from the merchant. The information may include loyalty data indicating that the acquisition was paid for using a transaction card account that is to be reimbursed using loyalty points from the loyalty account. The loyalty account is debited by an amount equal to a currency value of the acquisition and the transaction card account is credited the amount charged for the acquisition. Loyalty points may, alternatively, be used to directly pay for purchases without the steps of charging and crediting a transaction card.

Claims

1. A computer implemented method for facilitating an acquisition from a merchant, wherein payment for the acquisition is made at least partially from automated redemption of loyalty points from at least one loyalty account, the method comprising the automated steps of:

receiving information at an exchange system from the merchant, wherein said information comprises loyalty data, and wherein said loyalty data indicates that the acquisition was at least partially paid for using at least one transaction card account that is to be at least partially reimbursed using loyalty points from the at least one loyalty account;

authenticating said information;

debiting said at least one loyalty account by a total amount equal to a currency value of said acquisition; and

crediting said at least one transaction card account.

2. The computer implemented method of claim 1 wherein the acquisition is the purchase of an event ticket and wherein the merchant is a ticket agent.

3. The computer implemented method of claim 2 wherein said event tickets are purchased from an exchange.

4. The computer implemented method of claim 3 wherein said information in said receiving step further comprises an identifier of the purchase price of the event ticket, an identifier of said at least one transaction card, and an identifier of the at least one loyalty account.

5. The computer implemented method of claim 1 wherein the at least one loyalty account is associated with said at least one transaction card account.

6. The computer implemented method of claim 1 wherein said transaction card account is associated with at least one of:

a credit card, debit card, smart card, stored value card, and a digital wallet.

7. A method for automating the at least partial exchange of loyalty points in at least one loyalty account for acquisition costs charged to at least one transaction card account by a merchant, the method comprising the steps of:

a merchant offering an option of paying for the acquisition at least partially using the loyalty points from the at least one loyalty account;

said merchant transmitting transaction data to a transaction account system configured to charge at least one transaction card account for the purchase;

said merchant transmitting loyalty data to an exchange system configured to;

debit said at least one loyalty account; and

credit said at least one transaction card account by an amount equal to the currency value of the acquisition.

8. The method of claim 7, wherein said exchange system is configured to reject non-qualifying requests for payment using loyalty points.

9. The method of claim 7 wherein said offering and receiving steps involve communication between said participant and at least one of the following:

a live customer service representative, an interactive voice response system, and a web based system.

10. A loyalty system for facilitating the purchase of an event ticket from a merchant, wherein said merchant offers a selection of tickets for purchase using at least one transaction card account, and wherein the merchant offers the option of paying for the event ticket using at least partially loyalty points from at least one loyalty account, comprising:

an exchange system configured to receive loyalty data from the merchant, wherein said loyalty data comprises a purchase price of the event ticket and an identifier of the at least one loyalty account and the at least one transaction card account; and

wherein said exchange system is configured to convert said purchase price of the event ticket to equivalent loyalty points;

a transaction account system comprising at least a first computerized database system for managing the at least one transaction card account; and

a loyalty accounts system comprising at least a second computerized database system for managing the at least one loyalty program account, wherein said loyalty accounts system is configured to receive said loyalty data from said exchange system and to facilitate the exchange of account data between said at least one loyalty account and said at least one transaction card account.

11. The loyalty system of claim 10, wherein said loyalty accounts system is further configured to:

debit said at least one loyalty program account by said equivalent loyalty points; and

credit said at least one transaction card account by said purchase price of the event ticket.

12. The loyalty system of claim 10, wherein said identifier of the at least one loyalty account and the at least one transaction card account comprises a scrambled loyalty account card number, and wherein said exchange system is configured to descramble said scrambled loyalty account card number.

13. The computer implemented method of claim 10 further comprising the step of charging said at least one transaction card account for the event tickets.

14. A loyalty system for facilitating the purchase of an event ticket from a merchant, wherein said merchant offers a selection of tickets for purchase, and wherein the merchant offers the option of paying for the event ticket using at least partially loyalty points from at least one loyalty account, comprising:

an exchange system configured to receive loyalty data from the merchant, wherein said loyalty data comprises a purchase price of the event ticket and an identifier of the at least one loyalty account; and

wherein said exchange system is configured to convert said purchase price of the event ticket to equivalent loyalty points; and

a loyalty accounts system comprising at least a first computerized database system for managing the at least one loyalty program account, wherein said loyalty accounts system is configured to receive said loyalty data from said exchange system, to debit said at least one loyalty program account by said equivalent loyalty points, and pay the merchant said purchase price of the event ticket.

15. The loyalty system of claim 14, wherein said identifier of the at least one loyalty account is an associated transaction card account.