Method and system for using multi-function cards for storing, managing and aggregating reward points

• US 20050021400A1
• Filed: 04/28/2004
• Published: 01/27/2005
• 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 7,716,080 B2
• Time in Patent Office: Days
• US Class Current: 705/14.240
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G06Q 20/34 using cards, e.g. integrated circuit [IC] cards or magnetic cards
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/3572 Multiple accounts on card
• CPC Class Codes: G06Q 20/3574 Multiple applications on card
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/00 Commerce
• 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 30/0223 based on inventory
• CPC Class Codes: G06Q 30/0224 based on user history
• 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 30/0231 Awarding of a frequent usage incentive independent of the monetary value of a good or service purchased, or distance travelled
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 30/0238 : at point-of-sale [POS]
• CPC Class Codes: G06Q 30/0239 : Online discounts or incentives
• CPC Class Codes: G06Q 40/00 : Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: H04L 67/306 : User profiles

Abstract

A system and method for operating a reward points accumulation and redemption program wherein a user earns reward points from a plurality of independent reward points issuing entities, with each tracking the user'"'"'s earned reward points in a user reward point account stored on a multi-function card (such as a frequent flyer account or a credit card loyalty account). The multi-function card is adapted to aggregate some or all of the user'"'"'s earned reward points from the reward accounts and credit the aggregated points into a single reward exchange account on the multi-function card. The user may then select an item for purchase with the accumulated reward points from the multi-function card. The item is provided to the user in exchange for a subset or all of the reward points from the multi-function card.

Claims

1. A method of using a multi-function card comprising the steps of:

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

wherein each of said reward point accounts is stored on a multi-function card, and

wherein each of said reward point 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 entities enables the user to selectively redeem points 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 storing the user'"'"'s earned reward points in the user'"'"'s reward point account stored on the multi-function card,

c) the user establishing a reward exchange account on the multi-function card,

d) the user designating 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 multi-function card 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 using the multi-function card to redeem accumulated points from the user'"'"'s reward exchange account on the multi-function card for an item selected by the user;

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

2. The method of claim 1 wherein the step of the user using the multi-function card to redeem accumulated points from the user'"'"'s reward exchange account for an item selected by the user comprises the steps of:

the user selecting an item for purchase from a merchant,

the merchant providing the item to the user in exchange for consideration received from said multi-function card, and

the multi-function card reducing the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant.

3. The method of claim 2 in which the reduction in points in the user'"'"'s reward exchange account stored on the multi-function card is higher than the number of points needed to pay for the requested item.

4. The method of claim 2 in which the purchase may be accomplished with a combination of points from the user'"'"'s reward exchange account stored on the multi-function card and other consideration.

5. The method of claim 4 wherein said other consideration is provided by the user.

6. The method of claim 2 in which the item selected for purchase by the user is obtained from a manufacturer'"'"'s overstocked inventory at a reduced price.

7. The method of claim 2 in which the item selected for purchase by the user is obtained from an inventory of timeshare properties available for exchange.

8. The method of claim 2 in which the item selected for purchase by the user is obtained from duty free or other restricted access goods.

9. The method of claim 1 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.

10. The method of claim 1 in which the user'"'"'s accumulated reward points are used to pay for entertainment services.

11. The method of claim 1 in which the number of points in a user'"'"'s reward point account fluctuates as a function of the performance of the associated reward points issuing entity.

12. The method of claim 1 wherein the user designates which points are redeemed from the reward point account associated with the user.

13. The method of claim 1 wherein the user designates which accumulated points are redeemed from the user'"'"'s reward exchange account.

14. The method of claim 1 further comprising the step of each reward issuing entity providing consideration to the multi-function card in exchange for the multi-function card accumulating the user'"'"'s reward points from the reward point account into the reward exchange account.

15. The method of claim 14 in which the consideration provided to the multi-function card by the reward issuing entity has a value higher than the value of the user'"'"'s earned reward points that are exchanged for said consideration.

16. The method of claim 1 wherein the step of using the multi-function card to redeem accumulated points from the user'"'"'s reward exchange account for an item selected for purchase comprises the steps of:

the user selecting an item for purchase by linking from the multi-function card to an associated merchant computer for providing the item to the user in exchange for consideration received from the multi-function card, and

the multi-function card reducing the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

17. The method of claim 1 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.

18. A reward points accumulation system comprising a multi-function card, said multi-function card comprising:

data storage means for storing a reward exchange account and a plurality of reward point accounts, each of said reward points accounts associated with a reward points issuing entity,

wherein the multi-function card is adapted to

track reward points earned by an associated user for transactions between the associated user and the associated reward points issuing entity;

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

enable a user to designate at least some reward points from one or more of reward point accounts for trading into the reward exchange account;

wherein the multi-function card further comprises;

means for accumulating the reward points designated by the user from each of said reward point accounts into the reward exchange account, and

means for redeeming accumulated reward points from the reward exchange account for an item selected for purchase;

whereby the multi-function card enables the selection of portions of available reward points from selected reward point accounts for accumulation into the user'"'"'s reward exchange account, and optionally leave other portions of available reward points remaining in said selected reward points accounts for subsequent redemption with the associated reward points issuing entity or for subsequent accumulation into the user'"'"'s reward exchange account.

19. The system of claim 18 further comprising:

c) a user computer interconnected to the network for allowing a user to select an item for purchase from a merchant computer interconnected to the network,

d) a merchant computer for providing the item to the user in exchange for consideration received from said multi-function card, and

e) means for the multi-function card to reduce the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

20. The system of claim 19 in which the reduction in points in the user'"'"'s reward exchange account stored on the multi-function card is higher than the number of points needed to pay for the requested item.

21. The system of claim 19 in which the purchase may be accomplished with a combination of reward points exchanged by the multi-function card and other consideration provided by the user.

22. The system of claim 19 in which the item selected for purchase on a merchant computer is obtained from a manufacturer'"'"'s overstocked inventory at a reduced price.

23. The system of claim 19 in which the item selected for purchase on a merchant computer is obtained from an inventory of timeshare properties available for exchange.

24. The system of claim 19 in which the item selected for purchase on a merchant computer is obtained from duty free or other restricted access goods.

25. The system of claim 18 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.

26. The system of claim 18 in which the user'"'"'s accumulated reward points are used to pay for entertainment services.

27. The system of claim 18 in which the number of points in a user'"'"'s reward point account fluctuates as a function of the performance of the associated reward points issuing entity.

28. The system of claim 18 wherein the user designates which points are redeemed from the reward point accounts.

29. The system of claim 18 wherein the user designates which accumulated points are redeemed from the user'"'"'s reward exchange account.

30. The system of claim 18 wherein consideration is provided by the reward issuing entity to the multi-function card in exchange for the multi-function card accumulating the user'"'"'s reward points from the reward point account into the reward exchange account.

31. The system of claim 30 in which the consideration provided to the multi-function card by the reward issuing entity has a value higher than the value of the user'"'"'s earned reward points that are exchanged for said consideration.

32. The system of claim 18 further comprising:

c) a user computer interconnected to the network for allowing a user to select an item for purchase by linking from the multi-function card over the network to an associated merchant computer for providing the item to the user from the merchant computer in exchange for consideration received from said multi-function card

d) a merchant computer for providing the item to the user in exchange for consideration received from said multi-function card, and

e) means for the multi-function card to reduce the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

33. The system of claim 18 further comprising:

c) a user computer interconnected to the network for allowing a user to select an item for purchase from a list of available items from a merchant computer over the network for providing the item to the user from the merchant computer in exchange for consideration received from said multi-function card;

d) a merchant computer for providing the item to the user in exchange for consideration received from said multi-function card, and

e) means for the multi-function card to reduce the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

34. The system of claim 18 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.