POINT-OF-SALE PURCHASE SYSTEM AND METHOD WITH OPTION OF PAYMENT USING LOYALTY POINTS

• US 20100057551A1
• Filed: 08/28/2008
• Published: 03/04/2010
• Est. Priority Date: 08/28/2008
• Status: Abandoned Application

• Current Assignee: US Bank National Association (US Bancorp)
• Original Assignee: US Bank National Association (US Bancorp)
• Inventors: Blaisdell, Beth A.
• Application Number:
  US12/200,589
• Publication Number:
  US 20100057551A1
• Time in Patent Office: Days
• US Class Current: 705/14.270
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

One representative embodiment provides for the use of frequent flyer miles awarded to a customer by an airline as currency/alternative card type at the point-of-sale. For example, a customer dining at a restaurant can be given the option of paying with frequent flyer miles in addition to other traditional payment types. In such an implementation, the merchant swipes the frequent flyer card at the point-of-sale; the ‘conversion’ of the cost of the goods/services into frequent flyer miles is displayed for the customer; and the customer has the choice of completing the payment by frequent flyer miles or other traditional payment types. Settlement then occurs between merchant and a card processor and the card processor and the airline, respectively.

Claims

1. A method for method for managing loyalty accounts, the method comprising:

receiving from a point-of-sale device an account identifier and a purchase identifier;

determining a rewards value corresponding to units in a loyalty account associated with account identifier and deemed necessary to purchase an item identified by the purchase identifier;

communicating the rewards value to the point-of-sale device;

receiving from a point-of-sale device an authorization to use at least a portion of the reward value for at least a portion of a purchase price in a purchase transaction; and

processing the purchase transaction.

2. The method of claim 1, wherein communicating the rewards value to the point-of-sale device comprises communicating frequent flyer miles necessary to purchase the item identified by the purchase identifier.

3. The method of claim 1, wherein processing the purchase transaction comprises performing a first payment settlement with a merchant associated with the point-of-sale device and performing a second payment settlement with a vendor associated with the loyalty account.

4. The method of claim 1, wherein processing the purchase transaction comprises deducting the rewards value from the loyalty account

5. The method of claim 1, wherein the purchase transaction is processed using a credit card account upon receipt of an indication to use a credit card.

6. The method of claim 1, wherein the purchase transaction is processed using the rewards value in the loyalty account for a first portion of the purchase transaction and a credit card account for a second portion of the purchase transaction upon receipt of instruction for partial payment of the item identified by the purchase identifier with a portion of the rewards value.

7. A system for managing loyalty accounts, the system comprising:

a communication interface which receives an account identifier and a purchase identifier from a point-of-sale device;

a database including loyalty account information for a loyalty account associated with the account identifier; and

a processor programmed to determine a rewards value corresponding to units in the loyalty account and deemed necessary to purchase an item identified by the purchase identifier, and the processor further programmed to process a purchase transaction upon receiving from the point-of-sale device an authorization to use at least a portion of the reward value for at least a portion of a purchase price in the purchase transaction.

8. The system of claim 7, wherein the loyalty account is a frequent flyer account.

9. The system of claim 7, wherein the processor processes the purchase transaction by performing a first payment settlement with a merchant associated with the point-of-sale device and performing a second payment settlement with a vendor associated with the loyalty account.

10. The system of claim 9, wherein the processor processes the purchase transaction by deducting the rewards value from the loyalty account.

11. The system of claim 7, wherein the purchase transaction is processed using a credit card account upon receipt of an indication to use a credit card.

12. The system of claim 7, wherein the purchase transaction is processed using the rewards value in the loyalty account for a first portion of the purchase transaction and a credit card account for a second portion of the purchase transaction upon receipt of instruction for partial payment of the item identified by the purchase identifier with a portion of the rewards value.

13. The system of claim 7, wherein the rewards value corresponding to units in the loyalty account and deemed necessary to purchase an item identified by the purchase identifier is determined based on a conversion factor of units to currency.

14. The system of claim 7, wherein the rewards value corresponding to units in the loyalty account and deemed necessary to purchase an item identified by the purchase identifier is determined based on a conversion factor of units to currency and an account status.

15. The system of claim 14, wherein the account status includes an indication of one of a plurality of levels of customer loyalty.

16. A method for managing a frequent flyer account, the method comprising:

receiving from a point-of-sale device an account identifier for a frequent flyer account and a purchase identifier;

determining a rewards value corresponding to frequent flyer miles in the frequent flyer account and deemed necessary to purchase an item identified by the purchase identifier;

communicating the rewards value and a total account miles value to the point-of-sale device;

receiving from a point-of-sale device an authorization to use at least a portion of the reward value for at least a portion of a purchase price in a purchase transaction; and

processing the purchase transaction including deducting the rewards value needed for the purchase transaction from the frequent flyer account.

17. The method of claim 16, wherein processing the purchase transaction comprises performing a first payment settlement with a merchant associated with the point-of-sale device and performing a second payment settlement with a vendor associated with the loyalty account.

18. The method of claim 16, wherein the purchase transaction is processed using a credit card account upon receipt of an indication to use a credit card.

19. The method of claim 16, wherein the account identifier is identified as corresponding to the frequent flyer account by determining that the account identifier falls within a range of numbers corresponding to frequent flyer accounts.

20. The method of claim 16, wherein the purchase identifier comprises information on a product or service and a corresponding price.