Redemption of Credit Card Rewards at a Point of Sale

• US 20080103968A1
• Filed: 10/31/2006
• Published: 05/01/2008
• Est. Priority Date: 10/31/2006
• Status: Active Grant

• Current Assignee: DFS Services LLC (Discover Financial Services)
• Original Assignee: Discover Financial Services LLC (Discover Financial Services)
• Inventors: Hawley, Bradford P., Bies, Maureen J.
• Granted Patent: US 8,682,791 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• 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 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02

Abstract

Systems and methods are described for redeeming rewards at a merchant'"'"'s point-of-sale. The reward redemption takes place in real time and can be accomplished without the active participation of the merchant. A single credit card with no additional information may be used with a single swipe from the consumer to access both credit and rewards accounts, such that a single authorization request is made to encompass both rewards and credit. Merchants can be fully compensated for transactions by the issuer despite the customer'"'"'s choice to redeem rewards.

Claims

1. A method for enabling a customer to pay for goods or services at a merchant'"'"'s point of sale using a combination of monetary funds and/or reward funds, the method comprising:

receiving a request from a terminal device located at the point of sale to authorize a transaction to be funded with a combination of zero or more monetary funds and one or more reward funds, the monetary funds and reward funds each being associated with a single customer, the monetary funds being further associated with a credit or debit account, and the reward funds being further associated with a reward funds account;

determining, in response to the request, the maximum amount of reward funds that can be used for the transaction;

decrementing, in response to the request, the total available monetary funds associated with the credit or debit account; and

sending to the terminal device a single response approving for the transaction, monetary funds in the decremented amount and a reward funds charge in the held amount.

2. The method of claim 1 wherein the terminal device is a cash register.

3. The method of claim 1 wherein the terminal device is a computing device.

4. The method of claim 1 further comprising:

receiving a notification subsequent to the sending step indicating an amount to be charged to the credit or debit account and an amount to be deducted from the reward funds account.

5. The method of claim 4 wherein the amounts to be charged and deducted from the respective credit or debit account and reward funds account are allocated by the customer at the point of sale using the terminal device.

6. The method of claim 4 further comprising:

causing the merchant to be compensated for the full amount of the transaction independent of the allocation made by the customer.

7. The method of claim 4 wherein the notification occurs via a transaction processing network.

8. The method of claim 4 further comprising:

holding from the customer'"'"'s reward funds account the maximum amount of reward funds that can be used for the transaction;

determining that the amount to be deducted from the reward funds account is less than the determined maximum amount of reward funds that can be used for the transaction; and

releasing the balance of the held reward funds.

9. The method of claim 5 wherein the amount to be deducted from the reward funds account is less than the amount allocated by the customer at the point of sale.

10. The method of claim 1 wherein the customer effectuates the complete transaction using a card and only one set of indicia contained on the card.

11. A method for redeeming reward funds at a merchant'"'"'s point of sale in real time in conjunction with a transaction for the purchase of goods or services, the reward funds stored in a reward funds account and associated with a credit or debit account of a customer belonging to an issuing financial institution, the method comprising:

presenting a card containing the credit or debit account indicia to a terminal device;

receiving an approval notice via the terminal device, the approval notice reflecting at least in part an approved reward funds charge amount;

indicating, in response to the approval notice, a first amount of the purchase price to be paid from the reward funds account, the first amount being equal to or less than the approved reward funds charge amount; and

causing to be stored a transaction report indicating that the first amount is to be paid from the reward funds account and that the remainder of the purchase price is to be paid from other than the reward funds account.

12. The method of claim 11 wherein at least a portion of the remainder of the purchase prices is to be paid from the credit account.

13. The method of claim 11 wherein the indicating step is performed without the merchant'"'"'s concurrent knowledge.

14. The method of claim 11 further comprising:

receiving a notification via the terminal device that reward funds are worth additional value for transactions with the merchant.

15. The method of claim 11 wherein the approval notice comprises:

a notification that insufficient credit or funding is available in the credit or debit account; and

an instruction that alternative form of payment is required.

16. The method of claim 15 further comprising choosing amongst a plurality of alternative payment form options presented on the terminal device.

17. The method of claim 11 wherein the approval notice is received over a transaction processing network, the transaction processing network in connection with the terminal device.

18. A system for allowing a customer to pay for a transaction of goods or services at a merchant'"'"'s point of sale using a combination of credit or debit funds and reward funds, the system comprising:

a credit or debit account for the customer held by an issuer;

a reward funds account for the customer;

an account number corresponding to both the credit or debit account and the reward funds account of the customer;

a terminal device located at the point of sale for receiving the account number;

an authorization request initiated by the terminal device, for requesting authorization for the transaction from the issuer, wherein the request comprises;

a request for authorization of credit or debit from the issuer in an amount corresponding to the transaction value, and

a request for authorization of reward funds in amount less than or equal to the lesser of the transaction value and the balance of the reward funds account;

a network in connection with the terminal device and the issuer; and

an authorization processor residing on the network for processing the authorization request and for communicating to the terminal device whether the request has been approved by the issuer.

19. The system of claim 18 further comprising a card containing the account number indicia and for being read by the terminal device.

20. The system of claim 18 wherein the authorization processor resides at the issuer.

21. The system of claim 18 further comprising a reward funds processor in connection with the issuer for processing the portion of the transaction payment to be made from the reward funds account.

22. The system of claim 18 wherein the point of sale is a computing device at the location of the customer, and wherein the network is in further connection with a transaction processing system associated with the merchant.

23. The system of claim 22 wherein the computing device displays a Web interface.

24. A system for allowing a customer to pay for a transaction of goods or services at a merchant'"'"'s point of sale using a combination of credit or debit funds and reward funds over a transaction processing network, the system comprising a data structure, the data structure comprising:

a reward funds amount field for storing a value less than or equal to the amount of the total transaction; and

a credit or debit amount field for storing the difference between the total transaction amount and the value stored in the reward funds amount field.

25. The system of claim 24 further comprising a network in connection with a terminal device at the point of sale and further in connection with an issuing financial institution, wherein the network transports data in the form of the data structure.

26. The system of claim 25 wherein data stored in the reward funds amount field is input from the terminal device.