ONLINE REWARD POINT EXCHANGE METHOD AND SYSTEM WITH USER BIDS OF REWARDS FOR PURCHASE OF A PRODUCT

• US 20120303437A1
• Filed: 06/13/2012
• Published: 11/29/2012
• Est. Priority Date: 01/14/2009
• Status: Active Grant

• Current Assignee: Signature Systems LLC
• Original Assignee: Signature Systems LLC
• Inventors: Postrel, Richard David
• Granted Patent: US 8,510,159 B2
• Time in Patent Office: Days
• US Class Current: 705/14.29
• 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: Y02P 90/02 Total factory control, e.g. smart factories, flexible manufacturing systems [FMS] or integrated manufacturing systems [IMS]

Abstract

An online reward exchange system and method of operation, which includes an exchange computer that interoperates via a computer network with user computers, reward point issuer computers, and merchant computers. The merchants'"'"' products may be purchased by a user by requesting an issuer(s) to redeem reward points in exchange for payment to the merchant for the product. The exchange computer is the gateway to the system and manages various transactions such as providing online product catalogs to users that list the merchants products, as well as displaying to the user the reward points he has available in his reward programs with the issuers. Once a user selects a desired product the exchange computer can mediate or manage the purchase transaction in which reward points are redeemed by the selected issuer and consideration is conveyed to the merchant in exchange for the merchant providing the product to the user.

Claims

1. A method of an exchange computer executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, comprising:

an exchange computer receiving from a user computer a selection of a product for purchase from a merchant computer, the item to be purchased from the merchant computer at least partially by the redemption of reward points from a user reward account stored on an issuer computer;

the exchange computer receiving from the user computer a selection of a user reward account stored on an issuer computer and previously registered in the exchange computer; and

the exchange computer receiving from the user computer a bid comprising a quantity of reward points from the user reward account offered for redemption towards purchase of the item from the merchant computer.

2. The method of claim 1 further comprising

the exchange computer submitting the bid to the merchant computer;

and

the exchange computer receiving a rejection of the bid from the merchant computer.

3. The method of claim 1 further comprising

the exchange computer submitting the bid to the merchant computer;

and

the exchange computer receiving an acceptance of the bid from the merchant computer.

4. The method of claim 3 further comprising

the exchange computer, in response to receiving the acceptance of the bid from the merchant computer, executing a purchase transaction for the item from the merchant computer using reward points from the user reward account stored on the issuer computer by the steps of

the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points bid by the user for redemption towards purchase of the item from the merchant computer and convey consideration to the exchange computer corresponding to the quantity of reward points reduced in the user reward account, and

the exchange computer conveying consideration

to the merchant computer towards purchase of the item from the merchant computer.

5. The method of claim 3 further comprising

the exchange computer, in response to receiving the acceptance of the bid from the merchant computer, executing a purchase transaction for the item from the merchant computer using reward points from the user reward account stored on the issuer computer by the steps of

the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points bid by the user for redemption towards purchase of the item from the merchant computer and convey consideration to the merchant computer corresponding to the quantity of reward points reduced in the user reward account towards purchase of the item from the merchant computer.

6. The method of claim 1 further comprising

the exchange computer submitting the bid to the issuer computer;

and

the exchange computer receiving a rejection of the bid from the issuer computer.

7. The method of claim 1 further comprising

the exchange computer submitting the bid to the issuer computer;

and

the exchange computer receiving an acceptance of the bid from the issuer computer.

8. The method of claim 7 further comprising

the exchange computer, in response to receiving the acceptance of the bid from the issuer computer, executing a purchase transaction for the item from the merchant computer using reward points from the user reward account stored on the issuer computer by the steps of

the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points bid by the user for redemption towards purchase of the item from the merchant computer and convey consideration to the exchange computer corresponding to the quantity of reward points reduced in the user reward account, and

the exchange computer conveying consideration to the merchant computer towards purchase of the item from the merchant computer.

9. The method of claim 7 further comprising

the exchange computer, in response to receiving the acceptance of the bid from the issuer computer, executing a purchase transaction for the item from the merchant computer using reward points from the user reward account stored on the issuer computer by the steps of

the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points bid by the user for redemption towards purchase of the item from the merchant computer and convey consideration to the merchant computer corresponding to the quantity of reward points reduced in the user reward account towards purchase of the item from the merchant computer.

10. An exchange computer for executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, the exchange computer programmed to:

receive from a user computer a selection of a product for purchase from a merchant computer, the item to be purchased from the merchant computer at least partially by the redemption of reward points from a user reward account stored on an issuer computer;

receive from the user computer a selection of a user reward account stored on an issuer computer and previously registered in the exchange computer; and

receive from the user computer a bid comprising a quantity of reward points from the user reward account offered for redemption towards purchase of the item from the merchant computer.

11. The exchange computer of claim 10 further programmed to

submit the bid to the merchant computer;

and

receive a rejection of the bid from the merchant computer.

12. The exchange computer of claim 10 further programmed to

submit the bid to the merchant computer;

and

receive an acceptance of the bid from the merchant computer.

13. The exchange computer of claim 12 further programmed to

execute, in response to receiving the acceptance of the bid from the merchant computer, a purchase transaction for the item from the merchant computer using reward points from the user reward account stored on the issuer computer by the steps of

the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points bid by the user for redemption towards purchase of the item from the merchant computer and convey consideration to the exchange computer corresponding to the quantity of reward points reduced in the user reward account, and

the exchange computer conveying consideration to the merchant computer towards purchase of the item from the merchant computer.

14. The exchange computer of claim 12 further programmed to

execute, in response to receiving the acceptance of the bid from the merchant computer, a purchase transaction for the item from the merchant computer using reward points from the user reward account stored on the issuer computer by the steps of

the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points bid by the user for redemption towards purchase of the item from the merchant computer and convey consideration to the merchant computer corresponding to the quantity of reward points reduced in the user reward account towards purchase of the item from the merchant computer.

15. The exchange computer of claim 10 further programmed to

submit the bid to the issuer computer;

and

receive a rejection of the bid from the issuer computer.

16. The exchange computer of claim 10 further programmed to

submit the bid to the issuer computer;

and

receive an acceptance of the bid from the issuer computer.

17. The exchange computer of claim 16 further programmed to

execute, in response to receiving the acceptance of the bid from the issuer computer, a purchase transaction for the item from the merchant computer using reward points from the user reward account stored on the issuer computer by the steps of

the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points bid by the user for redemption towards purchase of the item from the merchant computer and convey consideration to the exchange computer corresponding to the quantity of reward points reduced in the user reward account, and

the exchange computer conveying consideration

to the merchant computer towards purchase of the item from the merchant computer.

18. The exchange computer of claim 16 further programmed to

execute, in response to receiving the acceptance of the bid from the issuer computer, a purchase transaction for the item from the merchant computer using reward points from the user reward account stored on the issuer computer by the steps of

the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points bid by the user for redemption towards purchase of the item from the merchant computer and convey consideration to the merchant computer corresponding to the quantity of reward points reduced in the user reward account towards purchase of the item from the merchant computer.