Fully funded reward program

• US 20040215507A1
• Filed: 07/03/2002
• Published: 10/28/2004
• Est. Priority Date: 07/03/2002
• Status: Abandoned Application

• Current Assignee: Rewards Systems Incorporated
• Original Assignee: Rewards Systems Incorporated
• Inventors: Smith, Gary J., Levitt, Roger A., Aynsley, Peter R.
• Application Number:
  US10/189,859
• Publication Number:
  US 20040215507A1
• 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 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0216 Investment accounts
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems

Abstract

Fully funded reward program that rewards businesses that purchase goods and services from member merchants by depositing a portion of the purchase price in a bank account which may only be used to fund travel for the business. A method includes establishing a network of sellers and buyers in which the buyers receive a sales based reward and the sellers pay a sales based commission to an administrator. The administrator is unaffiliated with either the buyers or the sellers. The sales based commission is divided between a buyer component, which becomes the sales based reward, and an administrative component. The buyer component is deposited into a segregated reward bank account such that the balance in the reward bank account is fully funded.

Claims

1. A method comprising:

establishing a network of sellers and buyers in which the buyers receive a sales based reward and the sellers pay a sales based commission to an administrator, the administrator being unaffiliated with either the buyers or the sellers;

receiving the sales based commission to be divided between a buyer component which becomes the sales based reward and an administrative component; and

depositing the buyer component into a segregated member rewards bank account such that a balance in the reward bank account is fully funded.

2. The method of claim 1 wherein establishing comprises:

registering the sellers; and

processing applications from the buyers.

3. The method of claim 1 wherein at least some of the sellers are the exclusive or preferred provider of a particular good or service.

4. The method of claim 1 wherein the member rewards bank account may solely be used to purchase travel from a nominated travel agent.

5. The method of claim 1 further comprising:

forwarding a buyer authorization to transfer a sum from the segregated member rewards bank account to a travel agent trust account to fund a buyer'"'"'s travel reservation.

6. The method of claim 1 wherein the member rewards bank account is maintained by a third party unaffiliated with the administrator.

7. The method of claim 1 further comprising:

facilitating buyers purchasing goods and services from sellers by providing an Internet web site that includes a virtual mall of sellers.

8. The method of claim 7 wherein the virtual mall includes links to Internet web sites of the sellers from which the buyer may purchase goods and services.

9. The method of claim 1 further comprising:

facilitating buyers purchasing goods and services from sellers by instituting a marketing campaign targeting the buyers.

10. The method of claim 1 further comprising:

providing buying pattern analysis to the buyers based on transaction information provided by sellers.

11. The method of claim 10 wherein the providing buying pattern analysis is delivered via an Internet web site.

12. The method of claim 1 further comprising:

providing purchase recommendations to the buyers based on the buying habits of the buyers.

13. The method of claim 1 further comprising:

supplying the buyers a membership card; and

ghosting a payment card with the membership card such that rewards transaction may be directly conducted without the payment card.

14. A method comprising:

establishing a block of sellers through which buyers receive a reward based on purchases made from the sellers and the sellers pay a commission to a program administrator based on the purchases, the program administrator being unaffiliated with the buyers and the sellers; and

retaining an unaffiliated third party to process the sales based contribution by dividing the sales based contribution between a buyer component which becomes the reward and an administrative component, and to deposit the buyer component into a member rewards bank account that may only be accessed by the buyer such that a reward value is fully funded and secure.

15. The method of claim 14 wherein the member rewards bank account may solely be used to purchase travel from a nominated travel agent.

16. The method of claim 14 further comprising:

forwarding a buyer authorization to transfer a sum from the member rewards bank account to a travel agent trust account to fund a buyer'"'"'s travel reservation.

17. A method comprising:

registering a plurality of members;

registering a plurality of participating merchants; and

receiving from a participating merchant a member transaction report including a financial value of purchases made by a plurality of individuals affiliated with one of the members and a deposit data specifying a participation contribution based on purchases made by the plurality of individuals affiliated with the member that was deposited in a reward program holding bank account.

18. The method of claim 17 comprising:

reconciling a bank entry in the holding bank account with the deposit data and the transaction data.

19. The method of claim 17 comprising:

retaining an unaffiliated third party to manage the reward program holding bank account, including instructing the unaffiliated third party to transfer a portion of the participation contribution from the reward program holding bank account to a member rewards bank account whenever any of the participating merchants deposits the participation contribution into the reward program holding bank account.

20. The method of claim 19 wherein retaining the unaffiliated third party further includes instructing the unaffiliated third party to debit the member rewards bank account balance based on a travel purchase made by another individual affiliated with the member entity reported by and made through a nominated travel agent.

21. The method of claim 19 wherein retaining the unaffiliated third party further includes instructing the unaffiliated third party to transfer a second portion of the participation contribution from the reward program holding bank account to a reward program administration bank account.

22. A system comprising:

a member interface to provide member rewards bank account information and member transaction information, and to receive travel payment authorization from a plurality of individuals affiliated with a member entity;

a merchant interface to receive transaction reports from a plurality of participating merchants;

a travel agent interface to provide funds transfer notices to a nominated travel agent;

a bank interface to receive from a bank member account summaries and merchant deposit summaries; and

an unaffiliated third party interface to forward the travel payment authorization to the unaffiliated third party.

23. The system of claim 22 further comprising:

a mall interface to present links to Internet web site of participating merchants.

24. The system of claim 22 wherein the member interface further provides buying habit analysis.

25. The system of claim 22 wherein the member interface further provides recommendations as to how to more effectively use the reward program.

26. A machine readable medium having instructions stored thereon which when executed by a processor cause the processor to perform operations comprising:

establishing a network of sellers and buyers in which the buyers receive a sales based reward and the sellers pay a sales based commission to an administrator, the administrator being unaffiliated with either the buyers or the sellers;

receiving the sales based commission to be divided between a buyer component which becomes the sales based reward and an administrative component; and

depositing the buyer component into a segregated member rewards bank account such that a balance in the member rewards bank account is fully funded.

27. The machine readable medium of claim 26 wherein at least some of the sellers are the exclusive or preferred provider of a particular good or service.

28. The machine readable medium of claim 26 wherein the member rewards bank account may solely be used to purchase travel from a nominated travel agent.

29. The machine readable medium of claim 26 having further instructions which when executed by the processor cause the processor to perform further operations comprising:

forwarding to an unaffiliated third party a buyer authorization to transfer a sum from the segregated member rewards bank account to a travel agent trust account to fund a buyer'"'"'s travel reservation.

30. The machine readable medium of claim 26 having further instructions which when executed by the processor cause the processor to perform further operations comprising:

facilitating buyers purchasing goods and services from sellers by instituting a marketing campaign targeting the buyers.

31. The machine readable medium of claim 26 having further instructions which when executed by the processor cause the processor to perform further operations comprising:

providing buying pattern analysis to the buyers based on transaction information provided by sellers.

32. The machine readable medium of claim 26 having further instructions which when executed by the processor cause the processor to perform further operations comprising:

providing purchase recommendations to the buyers based on the buying habits of the buyers.

33. A method comprising:

providing a user interface of a virtual mall through which e-commerce activities may be conducted;

renting space in the virtual mail to a plurality of merchants; and

hosting a database storing offerings from the plurality of merchants.

34. The method of claim 33 wherein the user interface is consistant across the plurality of merchants.

35. The method of claim 33 comprising:

authorizing access to a rented portion of the database to each merchant to permit the merchant to update its offerings.

36. The method of claim 33 wherein renting space in the virtual mall requires no independent on-line presence by the merchant.

37. The method of claim 33 wherein a portion of savings achieved by the merchants from renting space in the virtual mall is distributed to members of a rewards program administered by a virtual landlord.