Cardholder loyalty program with rebate

• US 20050240477A1
• Filed: 04/25/2005
• Published: 10/27/2005
• Est. Priority Date: 04/23/2004
• Status: Abandoned Application

• Current Assignee: InfiStar Corp. (First National Bank of Omaha), Maritz Incorporated
• Original Assignee: Bank of Novia Scotia, InfiStar Corp. (First National Bank of Omaha), Martiz Incorporated
• Inventors: Castle, Ann D., Madden, Rhonda B., Leece, Richard C., Turnbull, Anne E., Pearce, Gayle A., Friday, Gregg E., Panayotopoulos, Christina M., Snyder, Lise M.
• Application Number:
  US11/113,842
• Publication Number:
  US 20050240477A1
• Time in Patent Office: Days
• US Class Current: 705/14.330
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0273 Determination of fees for advertising

Abstract

A system and method for implementing a program such as a loyalty program. An account (e.g., card) system includes a plurality of participating account holders (e.g., cardholders), a plurality of non-participating account holders (e.g., cardholders), a plurality of non-preferred merchants and a plurality of preferred merchants. A processor executes the program including evaluating transactions to identify qualifying transactions involving both a participating account holders (e.g., cardholders) and a preferred merchant. Rebates are provided for identified, qualifying transactions.

Claims

1. A system for implementing a program comprising:

a payment system including a plurality of participating account holders, a plurality of non-participating account holders, a plurality of non-preferred merchants and a plurality of preferred merchants;

a program processor for executing a program including the plurality of participating account holders and the plurality of preferred merchants, said program being administered by an entity;

a database identifying the plurality of participating account holders and the plurality of preferred merchants;

said program processor evaluating transactions to identify transactions involving both a participating account holders included in said database and a preferred merchant included in said database; and

said program processor executing instructions implementing the program in response to identifying a qualifying transaction in which one of the participating account holders purchased goods or services from one of the preferred merchants for a purchase price.

2. The system of claim 1 wherein said program processor executes instructions which result in:

the preferred merchant of an identified, qualified transaction paying an incentive;

part of the incentive being provided to the participating account holder of an identified, qualified transaction; and

optionally, part of the incentive being provided to the administering entity.

3. The system of claim 2 wherein said program processor evaluates transactions to identify transactions involving non-participating account holders and a preferred merchant included in said database;

said processor, in response to identifying a non-qualifying transaction in which one of the non-participating account holders purchased goods or services from one of the preferred merchants for a purchase price, executing instructions which result in;

the non-participating account holder of an identified, non-qualified transaction being provided a notification that the non-qualified transaction would have resulted in a rebate to the non-participating account holder if the non-participating account holder was a participating account holder.

4. The system of claim 2 wherein the incentive is a rebate and wherein the participating account holder is charged for the transaction and is separately paid their part of the rebate.

5. The system of claim 2 wherein the incentive is a rebate and wherein the preferred merchant is paid for the transaction via an acquirer and separately pays the rebate.

6. The system of claim 5 wherein the preferred merchant is paid by the acquirer for the transaction purchase price.

7. The system of claim 1 wherein the program obtains transactions directly from the payment system.

8. A system for implementing a program comprising:

a payment system including a plurality of participating account holders, a plurality of non-participating account holders, a plurality of non-preferred merchants and a plurality of preferred merchants;

said payment system including a processor for executing a program including the plurality of participating account holders and the plurality of preferred merchants, said program being administered by an entity;

said processor evaluating transactions to identify transactions involving both a participating account holders and a preferred merchant;

said processor executing instructions implementing the program in response to identifying a qualifying transaction in which one of the participating account holders purchased goods or services from one of the preferred merchants for a purchase price; and

wherein said processor executes instructions which result in;

the preferred merchant of an identified, qualified transaction paying a rebate;

at least part of the rebate being provided to the participating account holder of an identified, qualified transaction; and

optionally, part of the rebate being provided to the administering entity.

9. The system of claim 8 further comprising a database identifying the plurality of participating account holders and identifying the plurality of preferred merchants and wherein said processor evaluates transactions to identify transactions involving both a participating account holder included in said database and a preferred merchant included in said database.

10. The system of claim 9 wherein said program processor evaluates transactions to identify transactions involving a non-participating account holders and a preferred merchant included in said database;

said processor, in response to identifying a non-qualifying transaction in which one of the non-participating account holders purchased goods or services from one of the preferred merchants for a purchase price, executing instructions which result in;

the non-participating account holder of an identified, non-qualified transaction being provided a notification that the non-qualified transaction would have resulted in a rebate to the non-participating account holder if the non-participating account holder was a participating account holder.

11. The system of claim 9 wherein the incentive is a rebate and wherein the participating account holder is charged for the transaction and is separately paid their part of the rebate.

12. The system of claim 9 wherein the incentive is a rebate and wherein the preferred merchant is paid for the transaction via an acquirer and separately pays the rebate.

13. The system of claim 12 wherein the preferred merchant is paid by the acquirer for the transaction the purchase price less administrative fees.

14. The system of claim 8 wherein the program obtains transactions directly from the payment system.

15. A system for implementing a program comprising:

a payment system including a plurality of participating account holders, a plurality of non-participating account holders, a plurality of non-preferred merchants and a plurality of preferred merchants;

a processor separate from or integral with the payment system, said processor for executing a program including the plurality of participating account holders and the plurality of preferred merchants, said program being administered by an entity;

said processor evaluating transactions to identify transactions involving both a participating account holders and a preferred merchant;

said processor executing instructions implementing the program in response to identifying a qualifying transaction in which one of the participating account holders purchased goods or services from one of the preferred merchants for a purchase price; and

wherein said processor evaluates transactions to identify transactions involving a non-participating account holders and a preferred merchant;

said processor, in response to identifying a non-qualifying transaction in which one of the non-participating account holders purchased goods or services from one of the preferred merchants for a purchase price, executing instructions which result in;

the non-participating account holder of an identified, non-qualified transaction being provided a notification that the non-qualified transaction would have resulted in a rebate to the non-participating account holder if the non-participating account holder was a participating account holder.

16. The system of claim 15 wherein said program processor executes instructions which result in:

the preferred merchant of an identified, qualified transaction paying an incentive;

part of the incentive being provided to the participating account holder of an identified, qualified transaction; and

optionally, part of the incentive being provided to the administering entity.

17. The system of claim 16 wherein the incentive is a rebate and wherein the participating account holder is charged for the transaction and is separately paid their part of the rebate.

18. The system of claim 16 wherein the incentive is a rebate and wherein the preferred merchant is paid for the transaction via an acquirer and separately pays the rebate.

19. The system of claim 18 wherein the preferred merchant is paid by the acquirer for the transaction the purchase price less administrative fees.

20. The system of claim 15 wherein the program obtains a daily file of transactions directly from the payment system.

21. A system for encouraging consumers to purchase goods or services via card-based payments, comprising:

a payment system comprising a card system having a plurality of cardholders and merchants, each authorized to complete transactions via the payment system, wherein at least a portion of the cardholders are participating cardholders that participate in a loyalty program and at least a portion of the merchants are preferred merchants that participate in the loyalty program, the loyalty program comprising an incentive for encouraging the participating cardholders to complete transactions with the preferred merchants via the payment system; and

a card issuer operative to issue cards of the card system to the cardholders and to administer operation of the payment system,

the card issuer further operative to administer the loyalty program by evaluating the transactions completed via the payment system to identify qualifying transactions involving one of the participating cardholders and one of the preferred merchants and, for each qualifying transaction, issuing at least a portion of the incentive to the participating cardholder,

whereby the participating cardholder receives the at least a portion of the incentive based on actions taken exclusively by the card issuer.

22. The system of claim 21, wherein the card issuer obtains consideration for the incentive from the preferred merchant.

23. The system of claim 21, wherein the card issuer maintains a database identifying the participating cardholders and preferred merchants and operates a processor executing a software program for administering the loyalty program.

24. The system of claim 21, wherein the card issuer is further operative to evaluate the transactions conducted via the payment system to identify non-qualifying transactions involving a preferred merchant and non-participating card holders, the non-participating card holders comprising a portion of the cardholders that have declined to participate in the loyalty program.

25. The system of claim 24, wherein the card issuer, in response to identifying one of the non-qualifying transactions, is operative to contact the non-participating card holder with a notification that the non-qualified transaction would have resulted in the incentive if the non-participating card holder participated in the loyalty program.

26. The system of claim 21 wherein the incentive comprises a rebate and the card issuer is further operative to bill the participating card holder for the full amount of a purchase price associated with the transaction completed via the payment system and to separately issue a portion of the rebate to the participating cardholder.

27. The system of claim 26, wherein the card issuer obtains a payment for the rebate from the preferred merchant.

28. The system of claim 27, wherein the card issuer retains a portion of the payment for the rebate provided by the preferred merchant in the form of an administrative fee.

29. The system of claim 21 wherein the card issuer obtains a daily file of the transactions directly from the payment system to support timely processing issuance of the incentive to each participating cardholder associated with one of the qualifying transactions.