Method and apparatus for a reward system for merchants for credit card processing and merchant cash advances

• US 20080033825A1
• Filed: 07/20/2007
• Published: 02/07/2008
• Est. Priority Date: 07/20/2006
• Status: Abandoned Application

• Current Assignee: David Goldin
• Original Assignee: David Goldin
• Inventors: Goldin, David
• Application Number:
  US11/880,406
• Publication Number:
  US 20080033825A1
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 30/00 Commerce
• CPC Class Codes: G06Q 30/0219 based on funds or budget
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems

Abstract

A method and apparatus for implementation of a reward system for merchants for credit card processing or merchant cash advances is presented. The reward system is implemented by application of a pre-determined algorithmic formula to purchase transaction volumes and/or merchant cash advance contracted amounts. The purchase transaction volumes are garnered in the normal course of business by merchants and/or vendors in the processing of customer purchase transactions via credit cards, or other ID transaction cards, for merchandise or services. Such purchase transaction volumes are tabulated for a specific time period and then sent to the credit card processor. The merchant cash advance contracted amounts can rely on accruals based on size of the cash advance, payoff amounts, time or dollar intervals, or full payoff. Upon application of the pre-determined algorithmic formula to the credit card purchase transaction volumes or merchant cash advance contracted amounts, a determination of a reward to be transferred, sent or paid out to the merchant is made. Such rewards may be in the form of cash back, specific merchandise or accumulation of points for later redemption.

Claims

1. A method for providing an incentive reward to a merchant for the utilization of a card processing service, the method comprising the steps of:

processing of at least one card transaction through the card processing service;

determining whether the merchant qualifies for the incentive reward based on a volume of processing of the at least one card transaction through the card processing service; and

providing the merchant with the incentive reward.

2. The method according to claim 1, further comprising the step of:

determining the volume of processing of the at least one card transaction through the card processing service.

3. The method according to claim 2, further comprising the step of:

determining the incentive reward to be provided to the merchant through application of a formula utilizing the determined volume of processing.

4. The method according to claim 1, further comprising the step of:

providing funding to the merchant through a funding program,

wherein the funding program is based on or includes at least one of;

the volume of processing of the at least one card transaction through the card processing service, and

a repayment of the funding via processing of the at least one card transaction through the card processing service.

5. The method according to claim 4, further comprising the step of:

determining the incentive reward to be provided to the merchant based on the funding program.

6. The method according to claim 4, further comprising the step of:

providing information regarding the repayment of the funding.

7. The method according to claim 4, wherein repayment of the finding comprises at least one of the steps of:

a payment consisting of the total amount of the at least one card transaction;

a payment consisting of a percentage amount of the at least one card transaction; and

a payment coming directly from the merchant'"'"'s financial account.

8. The method according to claim 1, wherein the volume of processing of the at least one card transaction through the card processing service is tabulated based on at least one of a time period and a number threshold.

9. The method according to claim 1, wherein the step of providing the merchant with the incentive reward comprises:

an award program comprising of at least one of;

an award based on an accumulation of points,

a cash back award, and

an award of merchandise.

10. The method according to claim 1, wherein the step of providing the merchant with the incentive reward comprises at least one of the further steps of:

allowing the merchant to redeem an accumulation of points;

providing the merchant with cash back; and

allowing the merchant to select merchandise.

11. A method for a merchant reward system, the method comprising the steps of:

providing an incentive to a merchant to utilize a card transaction processing service, the incentive comprising at least one of;

a cash advance,

financing, and

an award; and

determining whether the merchant qualifies for the incentive based on a volume of processing of at least one card transaction through the card transaction processing service.

12. The method according to claim 11, further comprising the step of:

determining the volume of processing of the at least one card transaction through the card transaction processing service.

13. The method according to claim 12, further comprising the step of:

determining the incentive award to be provided to the merchant through application of a formula utilizing the determined volume of processing.

14. The method according to claim 13, wherein the incentive award comprises at least one of:

cash back; and

merchandise.

15. The method according to claim 11, further comprising the step of:

providing to the merchant through a funding program at least one of the cash advance incentive and the financing incentive,

wherein the funding program is based on or includes at least one of;

the volume of processing of the at least one card transaction through the card transaction processing service, and

a repayment of the at least one of the cash advance incentive and the financing incentive via processing of the at least one card transaction through the card transaction processing service.

16. The method according to claim 15, further comprising the step of:

determining the incentive to be provided to the merchant based on the funding program.

17. The method according to claim 15, further comprising the step of:

providing information regarding the repayment of the incentive.

18. The method according to claim 15, wherein repayment of the incentive comprises at least one of the steps of:

a payment consisting of the total amount of the at least one card transaction;

a payment consisting of a percentage amount of the at least one card transaction; and

a payment coming directly from the merchant'"'"'s financial account.

19. The method according to claim 11, wherein the volume of processing of the at least one card transaction through the card transaction processing service is tabulated based on at least one of a time period and a currency threshold.

20. The method according to claim 11, wherein the step of providing the merchant with the award incentive comprises:

an award program comprising of at least one of;

an award based on an accumulation of points,

a cash back award, and

an award of merchandise.

21. The method according to claim 11, wherein the step of providing the merchant with the award incentive reward comprises at least one of the further steps of:

allowing the merchant to redeem an accumulation of points;

providing the merchant with cash back; and

allowing the merchant to select merchandise.