Credit card mileage rewards program, system and method

• US 20050234773A1
• Filed: 03/31/2005
• Published: 10/20/2005
• Est. Priority Date: 04/15/2004
• Status: Abandoned Application

• Current Assignee: Citicorp Credit Services Incorporated (Citigroup Incorporated)
• Original Assignee: Citicorp Credit Services Incorporated (Citigroup Incorporated)
• Inventors: Miller, Jacqueline, Hall, Parris, Hirst, Alexis, Bhattacharya, Jayastu, Atal, Vikram, Freiberg, Steven
• Application Number:
  US11/096,116
• Publication Number:
  US 20050234773A1
• Time in Patent Office: Days
• US Class Current: 705/14.130
• 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 20/387 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 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G07C 5/085 using electronic data carriers

Abstract

A system and method for enhancing the value and desirability of a financial relationship between a customer and a bank or other financial institution through a rewards program which provides the customer with a benefit based on not only qualifying financial activity but on miles driven in a vehicle associated with the customer.

Claims

1. A computerized method for rewarding use of a payment product by the payment product holder, the method comprising the steps of:

issuing a payment product from an issuer to a holder, said payment product representing funds available to said holder, said payment product providing means of payment for at least one transaction by said holder,

storing in at least one database information concerning a vehicle associated with said holder in associative relationship with information concerning said payment product, said vehicle information including a benchmark mileage of said vehicle,

automatically calculating a reward redeemable by said holder based on said at least one transaction and on miles traveled in said vehicle in excess of said benchmark mileage.

2. The method according to claim 1, further comprising the step of determining whether said at least one transaction using said payment product is a qualifying transaction in compliance with pre-defined rewards eligibility criteria of said issuer, and wherein said step of calculating a reward is effected only when said at least one transaction using said payment product is a qualifying transaction.

3. The method according to claim 1, further comprising the step of providing for redemption by said holder of at least a portion of said calculated reward.

4. The method according to claim 3, wherein the step of providing for redemption of at least a portion of said calculated reward includes presenting at least one benefit for selection by said holder in a catalog including at least one of goods and services.

5. The method according to claim 4, wherein said catalog is presented over a computer network.

6. The method according to claim 4, further comprising the step of fulfilling a request by said holder to redeem at least a portion of said calculated reward for said at least one benefit.

7. The method according to claim 6, wherein said step of fulfilling a request by said holder to redeem at least a portion of said calculated reward for said at least one benefit is effected by at least one of said issuer and a fulfillment representative of said issuer.

8. The method according to claim 6, wherein said calculated reward is accruable in an accrued rewards balance for said holder representing rewards earned by said holder less rewards redeemed by said holder, and wherein said step of fulfilling a request by said holder to redeem at least a portion of said calculated reward for said at least one benefit is effected when said accrued rewards balance is at least one of equal to and greater than a preselected threshold amount associated with said at least one benefit.

9. The method according to claim 1, further comprising the step of automatically calculating an additional reward based on said at least one transaction and on miles traveled in said vehicle in excess of said benchmark mileage redeemable by said holder when said at least one transaction includes the purchase of at least one of goods and services from a provider thereof preselected by at least one of said issuer and a fulfillment representative of said issuer.

10. The method according to claim 1, wherein said miles traveled in said vehicle in excess of said benchmark mileage is accruable in an accrued mileage balance for said holder.

11. The method according to claim 10, further comprising the step of updating said mileage balance based on an odometer reading for said vehicle associated with at least one of a service of said vehicle and an inspection of said vehicle.

12. The method according to claim 11, wherein said step of calculating a reward redeemable by said holder includes multiplying a monetary amount of said at least one transaction by a first percentage multiplier preselected by said issuer to yield a first reward component, multiplying said accrued mileage balance by a per mile monetary value preselected by said issuer to yield a second reward component, and multiplying said at least one transaction amount by a second preselected percentage multiplier proportional to said per mile monetary value to yield a second reward component cap, said reward equaling said second reward component up to said second reward component cap added to said first reward component.

13. The method according to claim 1, wherein said payment product is at least one of a credit card, a charge card, a debit card, a bank card, a smart card, and an automated teller machine card.

14. The method according to claim 1, wherein said vehicle information further includes at least one of a vehicle identification number, vehicle type, vehicle manufacturer, vehicle model, vehicle model year and license plate number.

15. The method according to claim 1, further comprising the step of providing said calculated reward to said holder in the form of a rebate payment.

16. The method according to claim 15, wherein said rebate payment is in the form of at least one of a check forwarded to said holder and a credit to a current account balance of said holder associated with said payment product.

17. The method according to claim 1, wherein said at least one transaction includes at least one of (i) cash advances made to said holder from said issuer, (ii) transfers of credit balances of said holder to a current account balance of said holder associated with said payment product, and (iii) finance charges incurred.

18. The method according to claim 1, wherein said step of calculating said reward is effected on a periodic basis.

19. The method according to claim 1, further comprising the step of verifying said benchmark mileage of said vehicle.

20. The method according to claim 1, further comprising the step of verifying said miles traveled in said vehicle in excess of said benchmark mileage.

21. The method according to claim 1, wherein said at least one transaction is a vehicle fuel purchase and said miles traveled in said vehicle in excess of said benchmark mileage is accruable in an accrued mileage balance for said holder, and further comprising the step of automatically updating said mileage balance based on said fuel purchase transaction.

22. The method according to claim 21, wherein said vehicle information further includes a fuel economy value for said vehicle, and said step of automatically updating said mileage balance based on said fuel purchase transaction includes dividing a fuel purchase total for said transaction by a price of fuel purchased to yield a quantity of fuel purchased, multiplying said calculated quantity of fuel purchased by said fuel economy value to yield vehicle miles driven since a previous fuel purchase and adding said calculated miles driven to said mileage balance.

23. The method according to claim 22, wherein said price of fuel purchased is obtained from a transaction detail of said fuel purchase transaction.

24. The method according to claim 22, wherein said price of fuel purchased is a surrogate amount set by said issuer.

25. The method according to claim 22, wherein said vehicle information further includes a fuel type of said vehicle and said price of fuel purchased is a national average fuel price for said fuel type.

26. The method according to claim 22, wherein said fuel economy value is a surrogate amount set by said issuer.

27. The method according to claim 22, wherein said fuel economy value is a national average fuel economy value.

28. A computerized system for rewarding use of a payment product by the payment product holder, comprising:

a payment product provided by an issuer to a holder, said payment product representing funds available to said holder, said payment product providing means of payment for at least one transaction by said holder,

database storage means for storing information concerning a vehicle associated with said holder in associative relationship with information concerning said payment product, said vehicle information including a benchmark mileage of said vehicle,

means for automatically calculating a reward redeemable by said holder based on said at least one transaction and on miles traveled in said vehicle in excess of said benchmark mileage.

29. The system according to claim 28, further comprising means for determining whether said at least one transaction using said payment product is a qualifying transaction in compliance with pre-defined rewards eligibility criteria of said issuer, and wherein said means for automatically calculating a reward is effected only when said at least one transaction using said payment product is a qualifying transaction.

30. The system according to claim 28, further comprising means for providing for redemption by said holder of at least a portion of said calculated reward.

31. The system according to claim 30, further comprising means for accruing said calculated reward in an accrued rewards balance for said holder representing rewards earned by said holder less rewards redeemed by said holder, and means for fulfilling a request by said holder to redeem at least a portion of said calculated reward for at least one benefit when said accrued rewards balance is at least one of equal to and greater than a preselected threshold amount associated with said at least one benefit.

32. The system according to claim 28, further comprising means for automatically calculating an additional reward based on said at least one transaction and on miles traveled in said vehicle in excess of said benchmark mileage redeemable by said holder when said at least one transaction includes the purchase of at least one of goods and services from a provider thereof preselected by at least one of said issuer and a fulfillment representative of said issuer.

33. The system according to claim 28, further comprising means for accruing said miles traveled in said vehicle in excess of said benchmark mileage in an accrued mileage balance for said holder.

34. The system according to claim 33, further comprising means for updating said mileage balance based on an odometer reading for said vehicle associated with at least one of a service of said vehicle and an inspection of said vehicle.

35. The system according to claim 34, wherein said means for calculating a reward redeemable by said holder includes means for multiplying a monetary amount of said at least one transaction by a first percentage multiplier preselected by said issuer to yield a first reward component, means for multiplying said accrued mileage balance by a per mile monetary value preselected by said issuer to yield a second reward component, and means for multiplying said at least one transaction amount by a second preselected percentage multiplier proportional to said per mile monetary value to yield a second reward component cap, said reward equaling said second reward component up to said second reward component cap added to said first reward component.

36. The system according to claim 28, wherein said payment product is at least one of a credit card, a charge card, a debit card, a bank card, a smart card, and an automated teller machine card.

37. The system according to claim 28, wherein said vehicle information further includes at least one of a vehicle identification number, vehicle type, vehicle manufacturer, vehicle model, vehicle model year, and license plate number.

38. The system according to claim 28, further comprising means for providing said calculated reward to said holder in the form of a rebate payment.

39. The system according to claim 38, wherein said rebate payment is in the form of at least one of a check forwarded to said holder and a credit to a current account balance of said holder associated with said payment product.

40. The system according to claim 28, wherein said at least one transaction includes at least one of (i) cash advances made to said holder from said issuer, (ii) transfers of credit balances of said holder to a current account balance of said holder associated with said payment product, and (iii) finance charges incurred.

41. The system according to claim 28, further comprising means for verifying said benchmark mileage of said vehicle.

42. The system according to claim 28, further comprising means for verifying said miles traveled in said vehicle in excess of said benchmark mileage.

43. The system according to claim 28, wherein said at least one transaction is a vehicle fuel purchase and said miles traveled in said vehicle in excess of said benchmark mileage is accruable in an accrued mileage balance for said holder, and further comprising means for automatically updating said mileage balance based on said fuel purchase transaction.

44. The system according to claim 43, wherein said vehicle information further includes a fuel economy value for said vehicle, and said means for automatically updating said mileage balance based on said fuel purchase transaction includes means for dividing a fuel purchase total for said transaction by a price of fuel purchased to yield a quantity of fuel purchased, means for multiplying said calculated quantity of fuel purchased by said fuel economy value to yield vehicle miles driven since a previous fuel purchase and means for adding said calculated miles driven to said mileage balance.

45. The system according to claim 44, wherein said price of fuel purchased is obtained from a transaction detail of said fuel purchase transaction.

46. The system according to claim 44, wherein said price of fuel purchased is a surrogate amount set by said issuer.

47. The system according to claim 44, wherein said vehicle information further includes a fuel type of said vehicle and said price of fuel purchased is a national average fuel price for said fuel type.

48. The system according to claim 44, wherein said fuel economy value is a surrogate amount set by said issuer.

49. The system according to claim 44, wherein said fuel economy value is a national average fuel economy value.

50. A computerized method for rewarding financial services activity by a customer of a provider of financial services, the method comprising the steps of:

maintaining a financial services relationship between a financial service provider and a customer,

storing in at least one database information concerning a vehicle associated with said customer in associative relationship with information concerning said financial services relationship, said vehicle information including a benchmark mileage of said vehicle,

automatically calculating a reward redeemable by said customer based on at least one service associated with said financial services relationship and on miles traveled in said vehicle in excess of said benchmark mileage.

51. The method according to claim 50, further comprising the step of determining whether said at least one service is a qualifying service in compliance with pre-defined rewards eligibility criteria of said services provider, and wherein said step of calculating a reward is effected only when said at least one service is a qualifying service.

52. The method according to claim 50, further comprising the step of providing for redemption by said customer of at least a portion of said calculated reward.

53. The method according to claim 50, wherein said miles traveled in said vehicle in excess of said benchmark mileage is accruable in an accrued mileage balance for said customer.

54. The method according to claim 50, further comprising the step of updating said mileage balance based on an odometer reading for said vehicle associated with at least one of a vehicle service and a vehicle inspection.

55. The method according to claim 50, wherein said at least one service is associated with a monetary loan by said financial services provider to said customer.

56. The method according to claim 55, further comprising the step of providing said calculated reward to said customer in the form of a reduced rate on said loan.

57. The method according to claim 50, wherein said at least one service is associated with investment servicing by said financial services provider for said customer.

58. The method according to claim 57, further comprising the step of providing said calculated reward to said customer, and wherein said calculated reward is in the form of a reduced charge for said investment servicing.

59. The method according to claim 50, wherein said step of calculating said reward is effected on a periodic basis.

60. The method according to claim 50, further comprising the step of verifying said benchmark mileage of said vehicle.

61. The method according to claim 50, further comprising the step of verifying said miles traveled in said vehicle in excess of said benchmark mileage.

62. A computerized system for rewarding financial services activity by a customer of a provider of financial services, comprising:

means for storing information concerning a vehicle associated with said customer in associative relationship with information concerning said financial services, said vehicle information including a benchmark mileage of said vehicle, and

means for automatically calculating a reward redeemable by said customer based on at least one service associated with said financial services and on miles traveled in said vehicle in excess of said benchmark mileage.

63. The system according to claim 62, further comprising means for determining whether said at least one service is a qualifying service in compliance with pre-defined rewards eligibility criteria of said services provider, and wherein said reward is calculated only when said at least one service is a qualifying service.

64. The system according to claim 62, further comprising means for providing for redemption by said customer of at least a portion of said calculated reward.

65. The system according to claim 62, further comprising means for accruing said miles traveled in said vehicle in excess of said benchmark mileage in an accrued mileage balance for said customer.

66. The system according to claim 62, further comprising means for automatically updating said mileage balance based on an odometer reading for said vehicle associated with at least one of a vehicle service and a vehicle inspection.

67. The system according to claim 62, wherein said at least one service is associated with a monetary loan by said financial services provider to said customer.

68. The system according to claim 67, wherein said calculated reward to said customer is in the form of a reduced rate on said loan.

69. The system according to claim 62, wherein said at least one service is associated with investment servicing by said financial services provider for said customer.

70. The system according to claim 69, wherein said calculated reward to said customer is in the form of a reduced charge for said investment servicing.

71. The system according to claim 62, further comprising means for verifying said benchmark mileage of said vehicle.

72. The system according to claim 62, further comprising means for verifying said miles traveled in said vehicle in excess of said benchmark mileage.

73. A computerized method for rewarding financial services activity by a customer of a provider of financial services, the method comprising the steps of:

maintaining a financial services relationship between a financial service provider and a customer, and

automatically calculating a reward redeemable by said customer based on at least one service associated with said financial services relationship and on miles traveled in a vehicle by said customer.

74. The method according to claim 73, further comprising the step of determining whether said at least one service is a qualifying service in compliance with pre-defined rewards eligibility criteria of said services provider, and wherein said step of calculating a reward is effected only when said at least one service is a qualifying service.

75. The method according to claim 73, wherein said calculated reward is accruable in an accrued rewards balance for said customer representing rewards earned by said customer less rewards redeemed by said customer.

76. The method according to claim 73, wherein said miles traveled in said vehicle is accruable in an accrued mileage balance for said customer.

77. The method according to claim 76, further comprising the steps of storing in at least one database information concerning a benchmark mileage of said vehicle in associative relationship with information concerning said customer, and updating said mileage balance based on an odometer reading for said vehicle associated with at least one of a service of said vehicle and an inspection of said vehicle.

78. The method according to claim 76, further comprising the step of updating said mileage balance based on a vehicle fuel purchase transaction by said customer.

79. The method according to claim 73, further comprising the step of providing for redemption by said customer of at least a portion of said calculated reward.

80. The method according to claim 79, further comprising the step of providing at least a portion of said calculated reward to said customer in the form of a rebate payment.

81. The method according to claim 80, wherein said rebate payment is in the form of at least one of a check forwarded to said customer and a credit to a financial account balance of said customer.

82. The method according to claim 79, further comprising the step of providing at least a portion of said calculated reward to said customer in the form of at least one of (i) a reduced rate on a loan by said financial services provider to said customer and (ii) a reduced charge for investment servicing by said financial services provider for said customer.

83. The method according to claim 73, wherein said financial services relationship between said financial services provider and said customer is that of a payment product issuer and a payment product holder, said payment product being at least one of a credit card, a charge card, a debit card, a bank card, a smart card, and an automated teller machine card.

84. A computerized system for rewarding financial services activity by a customer of a provider of financial services, comprising means for automatically calculating a reward redeemable by said customer based on at least one service associated with said financial services activity and on miles traveled in a vehicle by said customer.

85. The system according to claim 84, further comprising means for determining whether said at least one service is a qualifying service in compliance with pre-defined rewards eligibility criteria of said services provider, and wherein said reward is calculated only when said at least one service is a qualifying service.

86. The system according to claim 84, wherein said calculated reward is accruable in an accrued rewards balance for said customer representing rewards earned by said customer less rewards redeemed by said customer.

87. The system according to claim 84, wherein said miles traveled in said vehicle is accruable in an accrued mileage balance for said customer.

88. The system according to claim 87, further comprising database means for storing information concerning a benchmark mileage of said vehicle in associative relationship with information concerning said customer, and means for updating said mileage balance based on an odometer reading for said vehicle associated with at least one of a service of said vehicle and an inspection of said vehicle.

89. The system according to claim 87, further comprising means for updating said mileage balance based on a vehicle fuel purchase transaction by said customer.

90. The system according to claim 84, wherein at least a portion of said calculated reward to said customer is in the form of a rebate payment.

91. The system according to claim 90, wherein said rebate payment is in the form of at least one of a check forwarded to said customer and a credit to a financial account balance of said customer.

92. The system according to claim 84, wherein at least a portion of said calculated reward to said customer is in the form of at least one of (i) a reduced rate on a loan by said financial services provider to said customer and (ii) a reduced charge for investment servicing by said financial services provider for said customer.

93. The system according to claim 84, wherein said financial services provider is a payment product issuer and said customer is a holder of said payment product, said payment product being at least one of a credit card, a charge card, a debit card, a bank card, a smart card, and an automated teller machine card.