Method and system for aggregation of reward points for payment of auctioned items

• US 20040039644A1
• Filed: 08/25/2003
• Published: 02/26/2004
• Est. Priority Date: 06/23/1999
• Status: Active Grant

• Current Assignee: Signature Systems LLC
• Original Assignee: Signature Systems LLC
• Inventors: Postrel, Richard
• Granted Patent: US 6,829,586 B2
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/22 Payment schemes or models
• CPC Class Codes: G06Q 20/343 Cards including a counter
• 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
• CPC Class Codes: G06Q 30/0208 Trade or exchange of goods or services in exchange for incentives or rewards
• CPC Class Codes: G06Q 30/0209 Incentive being awarded or redeemed in connection with the playing of a video game
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0223 based on inventory
• CPC Class Codes: G06Q 30/0225 Avoiding frauds
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0227 Frequent usage incentive value reconciliation between diverse systems
• CPC Class Codes: G06Q 30/0228 On-line clearing houses
• CPC Class Codes: G06Q 30/0229 Multi-merchant loyalty card systems
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/06 : Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 : Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G07F 17/3255 : Incentive, loyalty and/or promotion schemes, e.g. comps, gaming associated with a purchase, gaming funded by advertisements

Abstract

A system and method for operating a reward points accumulation and redemption program wherein a user earns reward points from a plurality of reward points issuing entities, each of the reward points issuing entities tracking the user'"'"'s earned reward points in a user reward point account stored on a rewards server. A trading server accumulates the user'"'"'s earned reward points from each of the reward servers interconnected over a network in association with consideration provided by the reward servers to the trading server and credits the accumulated points into a reward exchange account associated with the user. The user may then select an item for purchase from a merchant computer interconnected to the network. The merchant computer provides the item to the user in exchange for consideration received from said trading server, and the trading server reduces the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

Claims

30. (NEW) A method of operation an aution wherein accumulated reward points are redeemed for an item won in the aution comprising the steps of:

a) a user establishing a reward account directly with each of a plurality of reward points issuing entities,

wherein each of said reward point accounts is stored on a reward server associated with the reward point issuing entity, and

wherein each of said reward points accounts tracks points earned by the user for transactions between the user and the associated reward points issuing entity, and

wherein each of the reward points issuing entitied enables the user to selectivly redeem ponts from the reward point account associated with the user for an item selected by the user,

b) the user earning reward points from each of the plurality of reward points issuing entities, each of said reward points issuing entities tracking the user'"'"'s earned reward points in the user'"'"'s reward point account stored on the rewards server associated with the reward points issuing entity,

c) the user establishing a reward exchange account on a trading server, said trading server selectively interconnected over a network with each of the plurality of reward servers,

d) the user designation at least some of said earned reward points from one or more of said user'"'"'s reward point accounts for trading into the reward exchange account,

e) the trading server accumulating the user'"'"'s designated earned reward points from each of said designated reward point accounts into the reward exchange account associated with the user, and

f) the user interacting with the trading server to redeem accumulated points from the user'"'"'s reward exchange account for an item won in an auction;

whereby portions of available reward points may be selected from selected reward points accounts for accumulation into the user'"'"'s reward exchange account on the trading server, and optionally leave other portions of available reward points remaining in said selected reward points accounts for subsequent redemption with the assocaiated reward points issuing entity or for subsequent accumulation into the user'"'"'s reward exchange account.

31. (NEW) The method of claim 30 wherein the step of the user interacting with the trading server to redeem accumulated points from the user'"'"'s reward exchange account for an item won in an auction comprises the steps of:

the user bidding for an item from a merchant computer interconnected to the network,

the merchant computer providing the item to the user in exchange for consideration received from said trading server, and

the trading server reducing the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

32. (NEW) The method of claim 31 in which the reduction in points in the user'"'"'s reward exchange account stored on the trading server is higher than the number of points needed to pay for the requested item.

33. (NEW) The method of claim 31 in which the purchase may be accomplished with a combination of points from the user'"'"'s reward exchange account stored on the trading server and other consideration.

34. (NEW) The method of claim 33 wherein said other consideration is provided by the user.

35. (NEW) The method of claim 31 in which the item bid for on a merchant computer is obtained from a manufacturer'"'"'s overstocked inventory at a reduced price.

36. (NEW) The method of claim 31 in which the item bid for on a merchant computer is obtained from an inventory of timeshare properties available for exchange.

37. (NEW) The method of claim 31 in which the item bid for on a merchant computer is obtained from duty free or other restricted access goods.

38. (NEW) The method of claim 30 in which the reward points issuing entities are selected from the group comprising an airline reward issuing entity, a credit and reward issuing entity, a hotel reward issuing entity, and a rental car reward issuing entity.

39. (NEW) The method oc claim 30 in which the trading server transfers a user'"'"'s accummulated rewrd points to a smart card associated with the user.

40. (NEW) The method of claim 39 in which the user pays for the item bid for from a merchant directly by utilizing the smart card to exchange stored accumulated reward points with the merchant for the auctioned item.

41. (NEW) The method of claim 30 in which the user'"'"'s accumulated reward points are used to pay for entertainment services.

42. (NEW) The method of claim 30 in which the number of points in a user'"'"'s reward point account fluctuates as a function of the performance of the assocaiated reward points issuing entity.

43. (NEW) The method of claim 31 wherein the item bid for by the user has discount associated therewith.

44. (NEW) The method of claim 30 wherein the user designates which points are redeemed from the reward point account associated with the user.

45. (NEW) The method of claim 30 wherein the user designates which accumulated points are redeemed from the user'"'"'s reward exchange account.

46. (NEW) The method of claim 30 further comprising the step of each reward issuing entity providing consideration to the trading server in exchange for the trading server accumulating the user'"'"'s reward points from the reward point account into the reward exchange account.

47. (NEW) The method of claim 46 in which the consideration provided to the trading server by the reward issuing entity has a value higher that the value of the user'"'"'s earned reward points that are exchanged for said consideration.

48. (NEW) The method of claim 30 wherein the step of the user interacting with the trading server to redeem accumulated points from the user'"'"'s reward exchange account for an item won in an auction comprises the steps of:

the user bidding for an item being auctioned by linking from the trading server over the network to an associated merchant computer for providing the item to the user in exchange for consideration received from the trading server, and

the trading server reducing the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

49. (NEW) The method of claim 30 wherein the step of the user interacting with the trading server to redeem accumulated points from the user'"'"'s reward exchange account for an item won in an auction comprises the steps of:

the user bidding for an item being auctioned from a list of products available from a merchant computer provided to the user by the trading server, for providing the item to the user in exchange for consideration received from the trading server, and

the trading server reducing the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

50. (NEW) The method of claim 30 wherein the step of the user interacting with the trading server to redeem accumulated points from the user'"'"'s reward exchange account for an item won in an auction comprises the steps of:

the user bidding for an item being auctioned from a list of available items provided by the trading server to the user over the network, wherein the list of available items comprises identification of items available directly from the trading server, and

the trading server reducing the number of points in the user'"'"'s reward exchange account in accordance with the item selected by the user.

51. (NEW) The mehtod of claim 30 wherein the step of the user designating at least some of said earned reward points from one or more of said user reward points accounts for trading into the reward exchange account is performed by a user interfacing with the trading server with a user computer interconnected to the network.

52. (NEW) The method of claim 30 wherein the step of the user interacting with the trading server to redeem accumulated points from the user'"'"'s reward exchange account for an item won in an auction is performed by a user interfacing with the trading server with a user computer interconnented to the network.

53. (NEW) The method of claim 30 in which the value of the points in a user'"'"'s reward point account fluctuates as a function of the performance of the associated reward points issuing entity.

54. (NEW) An auction and reward points accumulation and redemption system comprising:

a. a plurality of rewards servers,

i. wherein each of said reward servers is associated with a reward points issuing entity, and

ii.wherein each of said reward servers comprises data storage means for storing a plurality of reward point accounts,

iii. wherein each of said reward point accounts is associated with a user and is configured to;

1. track reward points earned by the associated user for transactions between the associated user and the associated reward point issuing entity; and

2. enable the user to selectively redeem reward points from the reward point account associated with the user for an item selected by the user; and

b. a trading server selectively interconnected over a network to each of the plurality of reward servers,

i. wherein the trading server comprises data storage means for storing a plurality of reward exchange accounts, each of said reward exchange accounts associated with a user;

ii. wherein the trading server is configured to enable a user to designate at least some reward points from one or more of reward point