System and Method for Performing a Real Time Redemption Transaction by Leveraging a Payment Network
First Claim
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1. A computer-implemented method for performing a redemption transaction in real-time, the method comprising:
- receiving, from an acquirer financial message generation system, a financial transaction message comprising transaction data, said transaction data comprising an account identifier and a transaction amount;
detecting that said account identifier is associated with a redemption card;
communicating a redemption transaction message to a rewards system processor;
identifying by said rewards system processor at least one loyalty points account associated with said redemption card;
determining a loyalty points equivalent to said transaction amount;
querying a database associated with said at least one loyalty points account to determine if the balance of loyalty points associated with said account is at least as large as said loyalty points equivalent and, if the result is that sufficient points are present, deducting said loyalty points equivalent from said at least one loyalty points account;
determining a secondary payment mechanism to settle said redemption transaction;
initiating a secondary payment transaction against said secondary payment mechanism in an amount sufficient to satisfy said transaction amount;
receiving a secondary response to said initiating said secondary payment transaction; and
transmitting a financial transaction response message to said financial transaction message indicating that said financial transaction is authorized, in response to said receiving said secondary response.
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Abstract
A method and system for performing a redemption transaction by leveraging a payment network provides a way to conduct redemption transaction without requiring changes to merchant or acquirer infrastructure. The cardholder initiates a transaction using a redemption card. An intermediary receives the transaction data, determines whether the loyalty points account associated with the redemption card has sufficient points to cover the transaction, and initiates a secondary payment transaction against a secondary payment account. Alternatively, these functions may be performed by the issuer.
205 Citations
36 Claims
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1. A computer-implemented method for performing a redemption transaction in real-time, the method comprising:
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receiving, from an acquirer financial message generation system, a financial transaction message comprising transaction data, said transaction data comprising an account identifier and a transaction amount; detecting that said account identifier is associated with a redemption card; communicating a redemption transaction message to a rewards system processor; identifying by said rewards system processor at least one loyalty points account associated with said redemption card; determining a loyalty points equivalent to said transaction amount; querying a database associated with said at least one loyalty points account to determine if the balance of loyalty points associated with said account is at least as large as said loyalty points equivalent and, if the result is that sufficient points are present, deducting said loyalty points equivalent from said at least one loyalty points account; determining a secondary payment mechanism to settle said redemption transaction; initiating a secondary payment transaction against said secondary payment mechanism in an amount sufficient to satisfy said transaction amount; receiving a secondary response to said initiating said secondary payment transaction; and transmitting a financial transaction response message to said financial transaction message indicating that said financial transaction is authorized, in response to said receiving said secondary response. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 23, 24, 25, 26, 27, 28, 29, 30, 33, 34, 35)
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19. A points bank apparatus for performing a redemption transaction in real time, the apparatus comprising:
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a rewards system processor; a receiver for receiving, from an acquirer financial message generation system, a financial transaction message comprising transaction data, said transaction data comprising an account identifier and a transaction amount, said receiver further configured to receive a secondary response to the initiation of a secondary payment transaction; a routing unit, coupled to said receiver and to said rewards system processor, configured to detect that said account identifier is associated with a redemption card and to communicate a redemption transaction message to a rewards system processor; a database, coupled to said rewards system processor, associated with at least one loyalty points account associated with said redemption card; and a transmitter, coupled to said routing unit, configured to transmit a financial transaction response message to said financial transaction message indicating that said financial transaction is authorized in response to receiving said secondary response; wherein said rewards system processor is configured to; identify said at least one loyalty points account associated with said redemption card; determine a loyalty points equivalent to said transaction amount; query said database to determine if the balance of loyalty points associated with said account is at least as large as said loyalty points equivalent and, if the result is that sufficient points are present, deduct said loyalty points equivalent from said at least one loyalty points account; determine a secondary payment mechanism to settle said redemption transaction; and initiate said second payment transaction against said secondary payment mechanism in an amount sufficient to satisfy said transaction amount. - View Dependent Claims (20, 21, 22, 31, 32, 36)
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Specification