Discount-instrument methods and systems

• US 20040068437A1
• Filed: 10/08/2002
• Published: 04/08/2004
• Est. Priority Date: 10/08/2002
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Baumgartner, David, McGee, Christopher R., Schwaner, Tanya
• Granted Patent: US 7,319,977 B2
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0225 Avoiding frauds
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]

Abstract

Methods and systems are provided to apply a discount to a transaction. An identifier is extracted from a discount instrument and is transmitted to a host system. A validation is received from the host system for the discount instrument and a cost of the transaction is reduced in accordance with a discount arrangement associated with the discount instrument.

Claims

1. A method for applying a discount to a transaction, the method comprising:

extracting an identifier from a discount instrument at a point of sale;

transmitting the identifier to a host system;

receiving a validation for the discount instrument from the host system; and

modifying the transaction in accordance with a discount arrangement associated with the discount instrument.

2. The method recited in claim 1 wherein extracting the identifier from the discount instrument comprises reading a magnetic strip on the discount instrument.

3. The method recited in claim 1 wherein transmitting the identifier to the host system comprises executing an authorization function for the discount instrument.

4. The method recited in claim 3 wherein the authorization function comprises a balance-inquiry function.

5. The method recited in claim 1 further comprising extracting discounting information from the discount instrument.

6. The method recited in claim 5 wherein extracting discounting information from the discount instrument comprises reading a bar code from the discount instrument.

7. The method recited in claim 1 further comprising receiving discounting information from the host system.

8. The method recited in claim 1 wherein modifying the transaction in accordance with the discount arrangement comprises reducing the cost of the transaction by a predetermined percentage.

9. The method recited in claim 1 wherein modifying the transaction in accordance with the discount arrangement comprises deducting a full cost of at least one item comprised by the transaction.

10. The method recited in claim 1 wherein modifying the transaction in accordance with the discount arrangement comprises reducing the cost of the transaction by a predetermined fixed amount.

11. The method recited in claim 1 wherein the discount instrument comprises a plastic card having an encoded magnetic strip.

12. The method recited in claim 1 wherein the discount arrangement corresponds to a fundraising arrangement.

13. The method recited in claim 1 further comprising generating a usage report identifying the transaction.

14. A method for applying a discount to a transaction, the method comprising:

extracting information relating a discount arrangement from a discount instrument at a point of sale, wherein the information comprises information defining a rules implementation of the discount arrangement;

modifying the transaction in accordance with the discount arrangement; and

updating the information relating to the discount arrangement on the discount instrument.

15. The method recited in claim 14 wherein extracting information relating to the discount arrangement comprises reading information from a chip on the discount instrument.

16. The method recited in claim 15 wherein updating the information relating to the discount arrangement comprises writing information onto the chip.

17. The method recited in claim 14 wherein modifying the transaction in accordance with the discount arrangement comprises reducing the cost of the transaction by a predetermined percentage.

18. The method recited in claim 14 wherein modifying the transaction in accordance with the discount arrangement comprises deducting a full cost of at least one item comprised by the transaction.

19. The method recited in claim 14 wherein modifying the transaction in accordance with the discount arrangement comprises reducing a cost of the transaction by a predetermined fixed amount.

20. The method recited in claim 14 wherein the discount arrangement corresponds to a fundraising arrangement.

21. A method for managing a discount arrangement, the method comprising:

maintaining information relating to the discount arrangement;

receiving an identifier for a discount instrument presented at a point of sale during a transaction;

determining whether the identifier identifies an active discount instrument; and

transmitting information for the discount arrangement to identify the discount instrument as an active discount instrument.

22. The method recited in claim 21 wherein the discount arrangement defines a reduction in cost of the transaction by a predetermined percentage.

23. The method recited in claim 22 further comprising transmitting the predetermined percentage for application during the transaction.

24. The method recited in claim 21 wherein the discount arrangement defines a reduction of a full cost of at least one item of a transaction.

25. The method recited in claim 21 wherein the discount arrangement defines a reduction in cost of the transaction by a predetermined fixed amount.

26. The method recited in claim 24 further comprising transmitting an identification of the at least one item.

27. The method recited in claim 21 further comprising receiving transaction information related to a transaction executed with the discount instrument.

28. The method recited in claim 21 further comprising updating the information relating to the discount arrangement.

29. The method recited in claim 21 wherein the discount arrangement corresponds to a fundraising arrangement.

30. The method recited in claim 21 further comprising generating a usage report identifying the transaction.

31. A point-of-sale device comprising:

a housing having a display screen;

a data-entry device;

a memory;

a communications device; and

a processor coupled with the data-entry device, the memory, and the communications device,

wherein the point-of-sale device is configured to extract an identifier from a discount instrument at a point of sale, to transmit the identifier to a host system, to receive a validation for the discount instrument from the host system, and to modify the transaction in accordance with a discount arrangement associated with the discount instrument.

32. The point-of-sale device recited in claim 31 wherein the identifier is extracted from the discount instrument by reading a magnetic strip on the discount instrument.

33. The point-of-sale device recited in claim 31 wherein the identifier is transmitted to the host system as part of a authorization function for the discount instrument.

34. The point-of-sale device recited in claim 31 wherein the point-of-sale device is further configured to extract discounting information from the discount instrument.

35. The point-of-sale device recited in claim 34 wherein the discounting information is extracted from the discount instrument by reading a bar code from the discount instrument.

36. The point-of-sale device recited in claim 31 wherein the transaction is modified by reducing a cost of the transaction by a predetermined percentage.

37. The point-of-sale device recited in claim 31 wherein the transaction is modified by deducting a full cost of at least one item comprised by the transaction.

38. The point-of-sale device recited in claim 31 wherein the transaction is modified by reducing a cost of the transaction by a predetermined fixed amount.

39. The point-of-sale device recited in claim 31 wherein the data-entry device comprises a magnetic-strip reader.

40. The point-of-sale device recited in claim 31 wherein the data-entry device comprises a chip-card reader.

41. A computer system comprising:

a storage device;

a communications device;

a processor in communication with the storage device and the communications device; and

a memory coupled with the processor, the memory comprising a computer-readable storage medium having a computer-readable program embodied therein for operating the computer system to manage a discount arrangement, the computer readable program including;

instructions for maintaining information relating to the discount arrangement on the storage device;

instructions for receiving an identifier for a discount instrument presented at a point of sale during a transaction with the communications device;

instructions for determining whether the identifier identifies an active discount instrument; and

instructions for transmitting information for the discount arrangement to identify the discount instrument as an active discount instrument with the communications device.

42. The computer system recited in claim 41 wherein the discount arrangement defines a reduction in cost of the transaction by a predetermined percentage.

43. The computer system recited in claim 42 wherein the computer-readable program further includes instructions for transmitting the predetermined percentage with the communications device for application during the transaction.

44. The computer system recited in claim 41 wherein the discount arrangement defines a reduction of a full cost of at least one item of a transaction.

45. The computer system recited in claim 44 wherein the computer-readable program further includes instructions for transmitting an identification of the at least one item with the communications device.

46. The computer system recited in claim 41 wherein the computer-readable program further includes instructions for updating the information relating to the discount arrangement on the storage device.

47. The computer system recited in claim 41 wherein the computer-readable program further includes instructions for generating a usage report identifying the transaction.