Network centric loyalty system

• US 20040054581A1
• Filed: 03/27/2003
• Published: 03/18/2004
• Est. Priority Date: 09/13/2002
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Redford, Liane, Nguyen, Loc, Hammad, Ayman, Shimko, Bryan
• Granted Patent: US 8,626,577 B2
• Time in Patent Office: Days
• US Class Current: 705/14
• 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 30/0222 During e-commerce, i.e. online transactions
• 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 30/0229 Multi-merchant loyalty card systems
• CPC Class Codes: G06Q 30/0237 at kiosk
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G06Q 30/0267 Wireless devices

Abstract

A network centric system that enables participation by any number of entities including sponsors, issuers, merchants, portable devices, and acceptance point devices in one or more loyalty programs is provided. Any combination of entities may be specified for different loyalty programs.

Claims

1. A system for providing a loyalty program for a plurality of merchants and a plurality of issuers, the system comprising:

a host configured to maintain an issuer identifier for each of the plurality of issuers and to maintain a plurality of loyalty parameters for the loyalty program, the plurality of loyalty parameters associated with at least one issuer identifier;

a portable device associated with an issuer in the plurality of issuers, wherein the portable device includes one or more portable device parameters and a portable device identifier associated with the corresponding issuer identifier of the associated issuer of the portable device; and

an acceptance point device associated with a merchant in the plurality of merchants, the acceptance point device including each issuer identifier maintained by the host and one or more of the plurality of maintained loyalty parameters maintained by the host;

wherein the acceptance point device is configured to communicate with the portable device to determine the portable device identifier and associate the determined portable device identifier with the corresponding issuer identifier for the associated issuer of the portable device; and

wherein the acceptance point device is further configured to associate the one or more portable device parameters with the one or more of the plurality of maintained loyalty parameters associated with the associated issuer identifier.

2. The system of claim 1, wherein the plurality of loyalty parameters comprise a first card group number.

3. The system of claim 2, wherein the one or more portable device parameters that comprise a second card group number, the first card group number matching the second card group number.

4. The system of claim 1, wherein the plurality of loyalty parameters comprise parameters used to process a loyalty transaction for the loyalty program.

5. The system of claim 1, wherein the issuer identifier and the plurality of loyalty parameters link back to an issuer.

6. The system of claim 1, wherein the host comprises a root credential and wherein an issuer credential is derived so that it can be associated with the root credential and a portable device credential is derived so that it can be associated with the issuer credential and root credential;

and

wherein the acceptance point device uses the issuer credential downloaded from the host to authenticate the portable device credential associated with the portable device.

7. The system of claim 1, wherein the portable device comprises at least one of a smartcard, smartmedia card, a cellular phone, a personal digital assistant (PDA), a pager, a payment card, a security card, a transponder, and an access card.

8. The system of claim 1, wherein the acceptance point device comprises at least one of a point of sale (POS) device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, an electronic cash register (ECR), an automated teller machine (ATM), a virtual cash register (VCR), a security system, and an access system.

9. The system of claim 1, wherein the host is configurable to store the portable device identifiers for the plurality of portable devices.

10. The system of claim 1, wherein the host is configurable to communicate the issuer identifiers to the acceptance point device.

11. The system of claim 1, wherein the host is configurable to communicate the one or more of the plurality of loyalty parameters to the acceptance point device.

12. A method for providing a loyalty program for a plurality of merchants and a plurality of issuers, the method comprising:

providing an issuer identifier to an issuer in the plurality of issuers, the issuer identifier usable to generate a portable device identifier for a portable device issued by the issuer; and

providing the issuer identifier and one or more loyalty parameters associated with the issuer identifier to an acceptance point device associated with a merchant in the plurality of merchants;

wherein the issuer identifier enables the acceptance point device to associate the portable device identifier for the portable device with the issuer when the portable device identifier is determined from communications between the portable device and the acceptance point device; and

wherein the one or more loyalty parameters enable the acceptance point device to determine if the portable device is eligible for the loyalty program.

13. The method of claim 12, further comprising:

receiving a record of a loyalty transaction processed at the acceptance point device; and

associating the loyalty transaction with the issuer identifier.

14. The method of claim 12, further comprising receiving the one or more loyalty parameters for the loyalty program, the parameters including the issuer identifier for the issuer.

15. The method of claim 12, further comprising receiving the portable device identifier for the portable device.

16. The method of claim 12, further comprising:

providing an issuer credential to the issuer that is derived so that it can be associated with a root credential, wherein a portable device credential for the portable device is derived so that it can associated with the issuer credential and root credential; and

wherein the portable device credential associated with the portable device enable the acceptance point device to authenticate and associate the portable device using the issuer credential that was provided to it by a host associated with the root credential.

17. A system for providing one or more loyalty programs for a plurality of merchants, a plurality of issuers, and a plurality of portable devices, wherein each portable device includes a portable device identifier and one or more portable device parameters, the system comprising:

an acceptance point device associated with a merchant in the plurality of merchants, the acceptance point device including an issuer identifier for each issuer in the plurality of issuers and one or more loyalty parameters associated with at least one issuer identifier;

wherein the acceptance point device is configured to determine a portable device identifier from a portable device in the plurality of portable devices and associate the determined portable device identifier with an issuer identifier for an issuer in the plurality of issuers; and

wherein the acceptance point device is further configured to determine one or more portable device parameters and associate the one or more portable device parameters with the one or more loyalty parameters associated with the associated issuer identifier.

18. The system of claim 17, wherein the one or more loyalty parameters comprise a first card group number.

19. The system of claim 18, wherein the one or more portable device parameters comprise a second card group number, the first card group number matching the second card group number.

20. The system of claim 17, wherein the one or more loyalty parameters comprise parameters used to process a loyalty transaction for the loyalty program.

21. The system of claim 17, wherein the issuer identifier and one or more loyalty parameters correspond to an issuer.

22. The system of claim 17, wherein an issuer credential is derived so that it can be associated with a root credential and a portable device credential is derived so that it can associated with the issuer credential and root credential;

and

wherein the acceptance point device uses the issuer credential downloaded from a host associated with the root credential to authenticate the portable device credential associated with the portable device.

23. The system of claim 17, wherein the portable device comprises at least one of a smartcard, smartmedia card, a cellular phone, a personal digital assistant (PDA), a pager, a payment card, a security card, a transponder, and an access card.

24. The system of claim 17, wherein the acceptance point device comprises at least one of a point of sale (POS) device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, an electronic cash register (ECR), an automated teller machine (ATM), a virtual cash register (VCR), a security system, and an access system.

25. A method for providing one or more loyalty programs for a plurality of issuers and a plurality of merchants using an acceptance point device associated with a merchant in the plurality of merchants, the acceptance point device including a plurality of identifiers and one or more loyalty parameters for each loyalty program in the one or more loyalty programs, the plurality of identifiers including an identifier for each of the plurality of issuers and the one or more loyalty parameters for each loyalty program associated with at least one identifier in the plurality of identifiers, the method comprising:

determining, at the acceptance point device, information from a portable device, the portable device associated with an issuer in the plurality of issuers;

associating the received information with an identifier in the plurality of identifiers;

associating the received information with one or more loyalty parameters associated with a loyalty program associated with the associated identifier; and

processing, for the portable device, a loyalty transaction for the loyalty program associated with the one or more loyalty parameters.

26. The method of claim 25, further comprising authenticating the portable device using the associated identifier and received information.

27. The method of claim 25, wherein the received information comprises a portable device identifier for the portable device, the portable device identifier corresponding to an identifier in the plurality of identifiers.

28. The method of claim 25, wherein the received information comprises one or more portable device parameters for the portable device, wherein the one or more portable device parameters correspond to at least one of the one or more loyalty parameters.

29. The method of claim 28, wherein the one or more portable device parameters comprise a card group number in the portable device and the one or more loyalty parameters comprise a card group number in the one or more loyalty parameters, the method further comprising:

matching the portable device card group number with the loyalty card group number.

30. The method of claim 25, further comprising collecting information about the loyalty transaction.

31. The method of claim 30, further comprising sending the collected information to a host.

32. The method of claim 25, further comprising determining incentives for the portable device based on the one or more loyalty parameters.

33. The method of claim 32, further comprising sending the incentives to the portable device.

34. The method of claim 25, further comprising:

determining a portable device credential for the portable device that is derived so that it can be associated with an issuer credential and a root credential; and

authenticating the portable device using the portable device credential associated with the portable device and the issuer credential that was provided to it by a host associated with the root credential.

35. The method of claim 25, wherein the portable device comprises at least one of a smartcard, smartmedia card, a cellular phone, a personal digital assistant (PDA), a pager, a payment card, a security card, a transponder, and an access card.

36. The method of claim 25, wherein the acceptance point device comprises at least one of a point of sale (POS) device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, an electronic cash register (ECR), an automated teller machine (ATM), a virtual cash register (VCR), a security system, and an access system.

37. A method for providing a plurality of loyalty programs for a plurality of issuers and a plurality of merchants using an acceptance point device associated with a merchant in the plurality of merchants, the method comprising:

providing an issuer identifier to an issuer in the plurality of issuers, the issuer identifier usable to generate a portable device identifier for a portable device issued by the issuer, the portable device identifier including portable device parameters for the portable device;

providing a plurality of identifiers and one or more loyalty parameters for each of the plurality of loyalty programs to the acceptance point device, the plurality of identifiers including an identifier for each of the plurality of issuers, wherein the one or more loyalty parameters for each of the plurality of loyalty programs are associated with at least one identifier in the plurality of identifiers;

determining, at the acceptance point device, the portable device identifier from the portable device;

associating the portable device identifier with an identifier in the plurality of identifiers;

determining, at the acceptance point device, the portable device parameters for the portable device;

associating the portable device parameters with one or more loyalty parameters associated with the associated identifier; and

processing a loyalty transaction for the loyalty program associated with the one or more loyalty parameters for the portable device.

38. The method of claim 37, wherein the one or more portable device parameters comprise a portable device card group number and the one or more loyalty parameters comprise a loyalty card group number, the method further comprising:

matching the portable device card group number with the loyalty card group number.

39. The method of claim 37, further comprising collecting information about the loyalty transaction.

40. The method of claim 39, further comprising sending the collected information to a host.

41. The method of claim 37, further comprising determining incentives for the portable device based on the one or more loyalty parameters.

42. The method of claim 41, further comprising sending information for the incentives to the portable device.

43. The method of claim 37, further comprising:

providing an issuer credential to the issuer that is derived so that it can be associated with a root credential, wherein a portable device credential for the portable device is derived so that it can associated with the issuer credential and root credential; and

authenticating the portable device using the portable device credential associated with the portable device and the issuer credential that was provided to it by a host associated with the root credential.

44. The method of claim 37, wherein the portable device comprises at least one of a smartcard, smartmedia card, a cellular phone, a personal digital assistant (PDA), a pager, a payment card, a security card, a transponder, and an access card.

45. The method of claim 37, wherein the acceptance point device comprises at least one of a point of sale (POS) device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, an electronic cash register (ECR), an automated teller machine (ATM), a virtual cash register (VCR), a security system, and an access system.

46. A system for managing a loyalty program, the system comprising:

a host configured to maintain loyalty program information, the loyalty program information including information pertaining to sponsors of the loyalty program, the sponsors including an issuer and an acceptance point device owner;

a plurality of portable devices issued by the issuer and registered with the host as being eligible to participate in the loyalty program, the loyalty program information further including registration information pertaining to the plurality of portable devices, each of the plurality of portable devices having its associated portable device parameters; and

a plurality of acceptance point devices associated with the acceptance point device owner;

wherein the host downloads some or all of the loyalty program information to each of the plurality of acceptance point devices, the downloaded information including the registration information and loyalty parameters that are used to facilitate determination of eligibility and calculation of a loyalty incentive under the loyalty program;

wherein upon a portable device contacting an acceptance point device for a transaction, the associated portable device parameters for the portable device being determined by the acceptance point device; and

wherein the acceptance point device checks the portable device parameters against the downloaded information to determine whether the portable device is eligible to participate in the loyalty program.

47. The system of claim 46, wherein only selected ones of the plurality of portable devices are eligible for participation in the loyalty program.

48. The system of claim 46, wherein the sponsors include a credit card association, a product manufacturer, and a merchant.

49. The system of claim 46, wherein the host periodically updates the downloaded information stored in the plurality of acceptance point devices.

50. The system of claim 46, wherein the host comprises a root credential and wherein an issuer credential is derived so that it can be associated with the root credential and a portable device credential is derived so that it can associated with the issuer credential and root credential;

and

wherein the acceptance point device uses an issuer credential downloaded from the host associated with the root credential to authenticate the portable device credential associated with the portable device.

51. The system of claim 46, wherein the registration information includes an identifier issued to the issuer;

wherein the identifier is used to generate corresponding portable device identifiers for the plurality of portable devices; and

wherein the portable device parameters associated with the portable device include the corresponding portable device identifier.

52. The system of claim 46, wherein upon determining that the portable device is eligible to participate in the loyalty program, the acceptance point device uses the loyalty parameters to calculate the loyalty incentive for the transaction under the loyalty program;

and

wherein the acceptance point device updates the portable device with information relating to the loyalty incentive.

53. The system of claim 46, wherein the portable device comprises at least one of a smartcard, smartmedia card, a cellular phone, a personal digital assistant (PDA), a pager, a payment card, a security card, a transponder, and an access card.

54. The system of claim 46, wherein the acceptance point device comprises at least one of a point of sale (POS) device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, an electronic cash register (ECR), an automated teller machine (ATM), a virtual cash register (VCR), a security system, and an access system.

55. A system for managing a plurality of loyalty programs, the system comprising:

a host configured to maintain loyalty program information for each of the plurality of loyalty programs, the loyalty program information including information pertaining to corresponding sponsors of the plurality of loyalty programs, each loyalty program having two or more sponsors;

a plurality of portable devices including groups of portable devices respectively associated with a plurality of issuers, each of the plurality of portable devices registered with the host as being eligible to participate in one or more of the plurality of loyalty programs, each of the plurality of portable devices having its associated portable device parameters, the loyalty program information further including registration information pertaining to the plurality of portable devices; and

a plurality of acceptance point devices including groups of acceptance point devices respectively associated with a plurality of acceptance point device owners;

wherein for a first loyalty program sponsored by a first issuer and a first acceptance point device owner, the host downloads some or all of the loyalty program information corresponding to the first loyalty program to the group of acceptance point devices associated with the first acceptance point device owner, the downloaded information including the corresponding registration information relating to the group of portable devices issued by the first issuer and loyalty parameters that are used to facilitate determination of eligibility in connection with the group of portable devices issued by the first issuer and calculation of loyalty incentive under the first loyalty program;

wherein upon a portable device contacting an acceptance point device associated with the first acceptance point device owner for a transaction, the acceptance point device determines the associated portable device parameters for the portable device; and

wherein the contacted acceptance point device checks the determined portable device parameters against the downloaded information to determine whether the portable device is eligible to participate in the first loyalty program.

56. The system of claim 55, wherein the two or more sponsors include at least one issuer and at least one acceptance point device owner.

57. The system of claim 56, wherein the two or more sponsors further include a credit card association.

58. The system of claim 55, wherein the host periodically updates the downloaded information stored in the group of acceptance point devices associated with the first acceptance point device owner.

59. The system of claim 55, wherein the registration information pertaining to the plurality of portable devices includes a plurality of identifiers issued respectively to the plurality of issuers;

wherein each identifier is used by an associated issuer to generate corresponding portable device identifiers for the group of portable devices associated with that issuer; and

wherein the portable device parameters associated with each of the plurality of portable devices include the corresponding portable device identifier.

60. The system of claim 55, wherein upon determining that the portable device is eligible to participate in the first loyalty program, the contacted acceptance point device uses the loyalty parameters to calculate the loyalty incentive for the transaction under the first loyalty program;

and

wherein the contacted acceptance point device updates the portable device with information relating to the loyalty incentive.

61. The system of claim 55, wherein upon a second issuer becoming a sponsor of the first loyalty program, the host updates the downloaded information stored in the group of acceptance point devices associated with the first acceptance point device owner, the updated downloaded information including the corresponding registration information relating to the group of portable devices issued by the second issuer and updated loyalty parameters that are used to facilitate determination of eligibility in connection with the group of portable devices issued by the second issuer.

62. The system of claim 55, wherein the host comprises a root credential and wherein an issuer credential is derived so that it can be associated with the root credential and a portable device credential is derived so that it can associated with the issuer credential and root credential;

and

wherein the contacted acceptance point device uses an issuer credential downloaded from the host associated with the root credential to authenticate the portable device credential associated with the portable device.

63. The system of claim 55, wherein the portable device comprises at least one of a smartcard, smartmedia card, a cellular phone, a personal digital assistant (PDA), a pager, a payment card, a security card, a transponder, and an access card.

64. The system of claim 55, wherein the acceptance point device comprises at least one of a point of sale (POS) device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, an electronic cash register (ECR), an automated teller machine (ATM), a virtual cash register (VCR), a security system, and an access system.

65. An acceptance point device comprising:

a storage area configured to maintain corresponding loyalty program information for a plurality of loyalty programs, wherein for each loyalty program, the corresponding loyalty program information includes registration information pertaining to a plurality of portable devices that are eligible to participate in that loyalty program and loyalty parameters that are used to facilitate determination of eligibility in connection with the plurality of portable devices and calculation of a loyalty incentive under that loyalty program; and

control logic configured to communicate with a portable device in connection with a transaction and determine whether the portable device is eligible to participate in any one of the plurality of loyalty programs.

66. The acceptance point device of claim 65, wherein the acceptance point device determines portable device parameters associated with the portable device;

and

wherein the determination as to whether the portable device is eligible to participate in any one of the plurality of loyalty programs is performed by checking the portable device parameters against the corresponding loyalty program information for the plurality of loyalty programs.

67. The acceptance point device of claim 65, further comprising:

control logic configured to use the loyalty parameters corresponding to the loyalty program in which the portable device is eligible to participate to calculate the loyalty incentive for the transaction under that loyalty program; and

control logic configured to update the portable device with information relating to the loyalty incentive.

68. The acceptance point device of claim 66, wherein the plurality of portable devices are respectively issued by one or more issuers.

69. The acceptance point device of claim 68, wherein the registration information pertaining to the plurality of portable devices includes a plurality of identifiers issued respectively to the one or more issuers;

wherein each identifier is used by an associated issuer to generate corresponding portable device identifiers for a group of portable devices issued by that issuer; and

wherein the portable device parameters associated with the portable device includes the corresponding portable device identifier.

70. The acceptance point device of claim 65, wherein the corresponding loyalty program information for the plurality of loyalty programs is periodically updated.

71. The acceptance point device of claim 65, further comprising:

a storage area for an issuer credential, wherein the issuer credential is used to authenticate a portable device credential associated with the portable device, wherein the portable device credential is derived so that it can associated with the issuer credential and a root credential.

72. The acceptance point device of claim 65, wherein the acceptance point device includes at least one of a point of sale (POS) device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, an electronic cash register (ECR), a virtual cash register (VCR), a security system, and an access system.