SYSTEM AND METHOD FOR USING LOYALTY REWARDS AS CURRENCY

• US 20120035998A1
• Filed: 09/23/2011
• Published: 02/09/2012
• Est. Priority Date: 04/14/2000
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Chien, Emily, Sanchez, Trish, Saunders, Daniela, Wiseman, Jill, Kinderknecht, Al, Parson, Jon W., Preston, Ray, Balagopal, C.R.
• Granted Patent: US 8,265,993 B2
• Time in Patent Office: Days
• US Class Current: 705/14.17
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 30/0267 Wireless devices

Abstract

The present invention involves spending loyalty points over a computerized network to facilitate a transaction. With this system, a loyalty program participant is able to use an existing transaction card to purchase an item over a computerized network, while at the same time offsetting the cost of that transaction by converting loyalty points to a currency value credit and having the credit applied to the participant'"'"'s financial transaction account. Currency credit from converted loyalty points may also be applied to stored value cards, online digital wallet accounts and the like. Further, currency credit may also be applied to other accounts to effect a gift or donation.

Claims

1. A method comprising:

receiving, by a computer for converting loyalty points and through a webpage, a selection to apply said loyalty points as a monetary value to a first transaction, wherein said first transaction is a previously executed charge and appears on a billing statement including a plurality of transactions of previously executed charges;

displaying, by said computer and through said webpage, a finable form to provide transaction information in response to said selection from said participant to apply said loyalty points as said monetary value;

receiving, by said computer, a first merchant name, a transaction account type, and a transaction amount level via said fillable form;

identifying, by said computer, said first transaction based on said merchant name, said transaction account type, and said transaction amount level;

performing, by said computer, an analysis of said first transaction identified in said fillable form to determine a conversion ratio based on a second merchant identifier, and said transaction account type;

applying, by said computer in real time, said currency value as a credit for said first transaction to a financial account; and

offsetting, by said computer and over said web interface and in real time, said previously executed charge with said currency value.

2. The method of claim 1, further comprising:

receiving, by said computer, a payment authorization request related to an available credit for a full purchase amount of a first transaction, wherein said payment authorization request includes a first merchant identifier associated with a first merchant; and

approving, by said computer, said payment authorization request for any of said full purchase amount up to said available credit associated with a transaction account code such that said first transaction is completed.

3. The method of claim 1, further comprising applying said currency value as a credit to at least one of a financial transaction account of a third party, a stored value account of a third party and an online digital wallet account of a third party.

4. The method of claim 3, further comprising the step of applying said currency value as a credit to at least one of a gift product and a secondary transaction number.

5. The method of claim 1, further comprising increasing, by said computer, a balance of loyalty points associated with a transaction account code to obtain an increased balance of loyalty points, subsequent to approving a payment authorization request, and based upon loyalty program rules for earning loyalty points.

6. The method of claim 1, further comprising providing, by said computer and over a web interface, said webpage disclosing said first transaction and said purchase amount in a first section of said webpage, and a balance of loyalty points in a second section of said webpage.

7. The method of claim 1, further comprising said webpage disclosing a device for enabling application of a currency value of at least a portion of said loyalty points to said purchase amount in a previously executed charge.

8. The method of claim 1, wherein said previously executed charge is provided in an online billing statement.

9. The method of claim 1, further comprising retrieving, by said computer, information from a loyalty program database, including an amount of at least a portion of said loyalty points accumulated.

10. The method of claim 1, further comprising increasing, by said computer and in real time, available credit based upon said offset of said previously executed charge.

11. The method of claim 1, wherein said financial account is stored on a second database system.

12. The method of claim 1, wherein an indicator of available credit is associated with said first transaction and comprises said first merchant name.

13. The method of claim 1, further comprising:

presenting, by said computer, a first request to approve said conversion ratio subsequent to determining said conversion ratio;

receiving, by said computer, an indicator of at least one of;

an approval and disapproval of said conversion ratio from said participant; and

cancelling, by said computer, said conversion ratio in response to said indicator being a disapproval of said conversion ratio.

14. The method of claim 13, further comprising:

receiving a second request, by said computer over a web interface and based on said approval of said conversion ratio, from said participant to convert said loyalty points already existing in said loyalty program database to said currency value using said conversion ratio;

retrieving, by said computer in real time, said loyalty points from said loyalty program database system, wherein said loyalty points include points from a second merchant associated with the second merchant identifier, in response to receiving said second request; and

converting, by said computer in real time, said amount of said loyalty points to said currency value using a computerized conversion processor in response to receiving said approval, wherein said conversion is based on said conversion ratio.

15. The method of claim 1, further comprising:

registering, at said computer based system, for the use of a loyalty program, wherein said loyalty program comprises said loyalty program database system;

establishing, by said computer based system, said loyalty account, wherein said loyalty account information is stored within said loyalty program database system; and

authenticating, at said computer based system, the use of said loyalty program.

16. The method of claim 1, wherein said loyalty program is operated by a third party.

17. A system comprising:

a processor for converting loyalty points,

a tangible, non-transitory memory configured to communicate with said processor,

the tangible, non-transitory memory having instructions stored thereon that, in response to execution by said processor, cause said processor to perform operations comprising;

receiving, by said processor and through a webpage, a selection to apply said loyalty points as a monetary value to a first transaction, wherein said first transaction is a previously executed charge and appears on a billing statement including a plurality of transactions of previously executed charges;

displaying, by said processor and through said webpage, a fillable form to provide transaction information in response to said selection from said participant to apply said loyalty points as said monetary value;

receiving, by said processor, a first merchant name, a transaction account type, and a transaction amount level via said fillable form;

identifying, by said processor, said first transaction based on said merchant name, said transaction account type, and said transaction amount level;

performing, by said processor, an analysis of said first transaction identified in said fillable form to determine a conversion ratio based on a second merchant identifier, and said transaction account type;

applying, by said processor in real time, said currency value as a credit for said first transaction to a financial account; and

offsetting, by said processor and over said web interface and in real time, said previously executed charge with said currency value.

18. An article of manufacture including a non-transitory, tangible computer readable medium having instructions stored thereon that, in response to execution by a computer for converting loyalty points, cause said computer to perform operations comprising:

receiving, by said computer and through a webpage, a selection to apply said loyalty points as a monetary value to a first transaction, wherein said first transaction is a previously executed charge and appears on a billing statement including a plurality of transactions of previously executed charges;

displaying, by said computer and through said webpage, a fillable form to provide transaction information in response to said selection from said participant to apply said loyalty points as said monetary value;

receiving, by said computer, a first merchant name, a transaction account type, and a transaction amount level via said fillable form;

identifying, by said computer, said first transaction based on said merchant name, said transaction account type, and said transaction amount level;

performing, by said computer, an analysis of said first transaction identified in said fillable form to determine a conversion ratio based on a second merchant identifier, and said transaction account type;

applying, by said computer in real time, said currency value as a credit for said first transaction to a financial account; and

offsetting, by said computer and over said web interface and in real time, said previously executed charge with said currency value.