METHOD AND SYSTEM FOR USING REWARD POINTS TO LIQUIDATE PRODUCTS

• US 20120041812A1
• Filed: 08/29/2011
• Published: 02/16/2012
• Est. Priority Date: 06/23/1999
• Status: Active Grant

• Current Assignee: Signature Systems LLC
• Original Assignee: Signature Systems LLC
• Inventors: Postrel, Richard
• Granted Patent: US 8,117,126 B1
• Time in Patent Office: Days
• US Class Current: 705/14.27
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• 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 30/0228 On-line clearing houses
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A user selects a product to be liquidated from a product provider and then designates to the transacting entity that reward points are to be used towards the purchase of the liquidated product. The transacting entity acts to decrease the number of reward points in the user'"'"'s reward account by the required number of points. The reward account holder conveys consideration to the transacting entity equivalent to the par value of the reward points consumer obtains the product in exchange for reward points having a retail value equivalent to what he would have otherwise paid for the product, while the reward account holder is required to convey only the par value of the points. The product provider is able to liquidate the product and obtain payment equivalent to what it would otherwise have obtained in a prior art liquidation process, auction or trading environment.

Claims

1-15. -15. (canceled)

16. A computer-implemented method of a reward server computer executing a product liquidation transaction comprising the steps of:

a. a reward server computer operated by a reward account holder offering a product for sale from a product provider at an advertised reference price,

b. the reward server computer receiving from a user computer operated by a user a purchase request to execute a purchase transaction for the product, the product to be sold at a liquidation price that is substantially less than the advertised reference price, the product being offered for sale in exchange for a quantity of rewards, the rewards being stored in a reward account on the reward server computer, the reward account comprising rewards previously awarded to the user, the rewards having;

(i) a par value established by the reward account holder equivalent to an amount that the reward account holder is willing to convey for redemption of the rewards, and

(ii) a retail value equivalent to an amount that the user is willing to accept for redemption of the rewards, said retail value being substantially higher than said par value;

c. the reward server computer redeeming at least some of the rewards from the reward account, the rewards being redeemed having a par value substantially equal to the liquidation price and a retail value substantially equal to the reference price, and

d. the reward server computer conveying to the product provider the par value of the redeemed rewards so that the product provider computer will cause the product to be conveyed to the user.

17. The method of claim 16 wherein the reward account holder is a single reward issuing entity.

18. The method of claim 16 wherein the reward account holder is an aggregator, and the reward account is an exchange account comprising rewards obtained as a result of exchanging rewards from different reward accounts stored in different reward server computers in association with different reward issuing entities.

19. The method of claim 16 wherein the rewards comprise frequent flyer miles.

20. The method of claim 16 wherein the rewards comprise a rebate.

21. The method of claim 16 wherein the rewards comprise reward points.

22. The method of claim 16 wherein the rewards comprise a credit.

23. The method of claim 16 wherein the rewards comprise any value awarded to the user.

24. The method of claim 16 wherein the rewards comprise cash-back value.

25. A reward server computer operated by a reward account holder for executing a product liquidation transaction, the reward server computer interoperative over a computer network with a user computer operated by a user and a product provider computer operated by a product provider, the reward server computer comprising:

data storage for storing a reward account associated with the user, the reward account comprising rewards previously awarded to the user, the rewards having;

(i) a par value established by the reward account holder equivalent to an amount that the reward account holder is willing to convey for redemption of the rewards, and

(ii) a retail value equivalent to an amount that the user is willing to accept for redemption of the rewards, said retail value being substantially higher than said par value;

the reward server computer programmed to;

a. offer a product for sale from the product provider at an advertised reference price,

b. receive from the user computer a purchase request to execute a purchase transaction for the product, the product to be sold at a liquidation price that is substantially less than the advertised reference price, the product being offered for sale in exchange for a quantity of rewards from the reward account associated with the user,

c. redeem at least some of the rewards from the reward account, the rewards being redeemed having a par value substantially equal to the liquidation price and a retail value substantially equal to the reference price, and

d. convey to the product provider the par value of the redeemed rewards so that the product provider computer will cause the product to be conveyed to the user.

26. The reward server computer of claim 25 wherein the reward account holder is a single reward issuing entity.

27. The reward server computer of claim 25 wherein the reward account holder is an aggregator, and the reward account is an exchange account comprising rewards obtained as a result of exchanging rewards from different reward accounts stored in different reward server computers in association with different reward issuing entities.

28. The reward server computer of claim 25 wherein the rewards comprise frequent flyer miles.

29. The reward server computer of claim 25 wherein the rewards comprise a rebate.

30. The reward server computer of claim 25 wherein the rewards comprise reward points.

31. The reward server computer of claim 25 wherein the rewards comprise a credit.

32. The reward server computer of claim 25 wherein the rewards comprise any value awarded to the user.

33. The reward server computer of claim 25 wherein the rewards comprise cash-back value.

34. A system for executing a product liquidation transaction comprising:

A) a product provider server computer selectively interconnected over a computer network and associated with a product provider;

B) a user computer selectively interconnected over the computer network and associated with a user; and

C) a reward server computer selectively interconnected over the computer network and operated by a reward account holder, the reward server computer comprising;

data storage for storing a reward account associated with the user, the reward account comprising rewards previously awarded to the user, the rewards having;

(i) a par value established by the reward account holder equivalent to an amount that the reward account holder is willing to convey for redemption of the rewards, and

(ii) a retail value equivalent to an amount that the user is willing to accept for redemption of the rewards, said retail value being substantially higher than said par value;

the reward server computer programmed to;

a. offer a product for sale from the product provider at an advertised reference price,

b. receive from the user computer a purchase request to execute a purchase transaction for the product, the product to be sold at a liquidation price that is substantially less than the advertised reference price, the product being offered for sale in exchange for a quantity of rewards from the reward account associated with the user,

c. redeem at least some of the rewards from the reward account, the rewards being redeemed having a par value substantially equal to the liquidation price and a retail value substantially equal to the reference price, and

d. convey to the product provider the par value of the redeemed rewards so that the product provider computer will cause the product to be conveyed to the user.

35. The system of claim 34 wherein the reward account holder is a single reward issuing entity.

36. The system of claim 34 wherein the reward account holder is an aggregator, and the reward account is an exchange account comprising rewards obtained as a result of exchanging rewards from different reward accounts stored in different reward server computers in association with different reward issuing entities.

37. The system of claim 34 wherein the rewards comprise frequent flyer miles.

38. The system of claim 34 wherein the rewards comprise a rebate.

39. The system of claim 34 wherein the rewards comprise reward points.

40. The system of claim 34 wherein the rewards comprise a credit.

41. The system of claim 34 wherein the rewards comprise any value awarded to the user.

42. The system of claim 34 wherein the rewards comprise cash-back value.