SYSTEM AND METHOD FOR CARD LINKED REWARD EXCHANGE ACCOUNT

• US 20130282467A1
• Filed: 05/23/2013
• Published: 10/24/2013
• 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 8,612,290 B2
• Time in Patent Office: Days
• US Class Current: 705/14.27
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/22 Payment schemes or models
• CPC Class Codes: G06Q 20/343 Cards including a counter
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 30/0208 Trade or exchange of goods or services in exchange for incentives or rewards
• CPC Class Codes: G06Q 30/0209 Incentive being awarded or redeemed in connection with the playing of a video game
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0223 based on inventory
• CPC Class Codes: G06Q 30/0225 Avoiding frauds
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0227 Frequent usage incentive value reconciliation between diverse systems
• CPC Class Codes: G06Q 30/0228 On-line clearing houses
• CPC Class Codes: G06Q 30/0229 Multi-merchant loyalty card systems
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/06 : Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 : Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G07F 17/3255 : Incentive, loyalty and/or promotion schemes, e.g. comps, gaming associated with a purchase, gaming funded by advertisements

Abstract

A system and method for operating a reward points accumulation and redemption program wherein a user earns rewards from a plurality of independent reward issuing entities, with each tracking the user'"'"'s earned rewards. A trading server accumulates some or all of the user'"'"'s earned rewards from the reward servers and credits the accumulated points rewards into a single reward exchange account associated with the user. The user may then select an item for purchase with the accumulated rewards. The item is provided to the user in exchange for a subset or all of the rewards. Reward points may also be redeemed in exchange for services, such as the playing of a video game or Internet access.

Claims

1. A method of operating a reward exchange computer comprising the steps of

a reward exchange computer determining, by accessing a reward server computer, reward points previously stored on behalf of a user in a reward account;

the reward exchange computer transmitting to a user computing device (i) a display of the reward points determined to be previously stored in the reward account and (ii) computer-based controls for a user via the user computing device to designate a quantity of the reward points from the reward account for exchange into a reward exchange account stored on the reward exchange computer;

the reward exchange computer receiving instructions from the user operating the user computing device that designate the reward points from the reward account to be exchanged into the reward exchange account;

the reward exchange computer exchanging, in real time response to receiving the instructions, the designated reward points from the reward account into the reward exchange account by

causing the reward server computer on which the reward account is stored to decrease the reward account by the designated reward points,

increasing the reward exchange account by a corresponding number of reward points based on a predetermined rate of exchange, and

receiving consideration conveyed by the reward server computer corresponding to the number of reward points decreased in the reward account;

the reward exchange computer receiving a payment request from a merchant computer for payment for a transaction with the user, the payment request including information for a portable token linked to the reward exchange account and presented by the user to the merchant computer for payment in the transaction, and

the reward exchange computer, in response to the payment request, redeeming reward points from the reward exchange account and sending consideration to the merchant computer in response to the payment request.

2. The method of claim 1 wherein the portable token is a credit card.

3. The method of claim 1 wherein the portable token is a debit card.

4. The method of claim 1 wherein the portable token is a stored value card.

5. The method of claim 1 further comprising the step of using a credit card infrastructure with the portable token to link to the user'"'"'s reward exchange account.

6. The method of claim 5 wherein the credit card infrastructure comprises the reward exchange computer with the reward exchange account.

7. A reward exchange computer comprising processing means programmed to:

determine, by accessing a reward server computer, the reward points previously stored on behalf of a user in a reward account;

transmit to a user computing device (i) a display of the reward points determined to be previously stored in the reward account and (ii) computer-based controls for a user via the user computing device to designate a quantity of reward points from the reward account for exchange into a reward exchange account stored on the reward exchange computer;

receive instructions from the user operating the user computing device that designate reward points from the reward account to be exchanged into the reward exchange account;

exchange, in real time response to receiving the instructions, the designated reward points from the reward account into the reward exchange account by

causing the reward server computer on which the reward account is stored to decrease the reward account by the designated reward points,

increasing the reward exchange account by a corresponding number of reward points based on a predetermined rate of exchange, and

receiving consideration conveyed by the reward server computer corresponding to the number of reward points decreased in the reward account;

receive a payment request from a merchant computer for payment for a transaction with the user, the payment request including information for a portable token linked to the reward exchange account and presented by the user to the merchant computer for payment in the transaction, and

in response to the payment request, redeem reward points from the reward exchange account and send consideration to the merchant computer in response to the payment request.

8. The reward exchange computer of claim 7 wherein the portable token is a credit card.

9. The reward exchange computer of claim 7 wherein the portable token is a debit card.

10. The reward exchange computer of claim 7 wherein the portable token is a stored value card.

11. The reward exchange computer of claim 7 further programmed to use a credit card infrastructure with the portable token to link to the user'"'"'s reward exchange account.

12. The reward exchange computer of claim 11 wherein the credit card infrastructure comprises the reward exchange computer with the reward exchange account.

13. A method of a user executing a purchase transaction with a merchant computer comprising the steps of:

a user operating a user computing device receiving from a reward exchange computer;

(i) a display of reward points determined by the reward exchange computer to have been previously stored in a reward account, and

(ii) computer-based controls for the user via the user computing device to designate a quantity of reward points from the reward account for exchange into a reward exchange account stored on the reward exchange computer,

the user computing device sending to the reward exchange computer instructions that designate reward points from the reward account to be exchanged into the reward exchange account by the reward exchange computer causing the reward server computer on which the reward account is stored to decrease the reward account by the designated reward points, increasing the reward exchange account by a corresponding number of reward points based on a predetermined rate of exchange, and receiving consideration conveyed by the reward server computer corresponding to the number of reward points decreased in the reward account; and

the user presenting to a merchant computer for payment for a transaction a portable token linked to the reward exchange account to cause the merchant computer to send to the reward exchange computer a payment request including information for the portable token for payment for the transaction, which causes the reward exchange computer to redeem reward points from the reward exchange account for use as consideration in the transaction, the reward points previously exchanged in real time response to receiving the instructions from the user computing device.

14. The method of claim 13 wherein the portable token is a credit card.

15. The method of claim 13 wherein the portable token is a debit card.

16. The method of claim 13 wherein the portable token is a stored value card.

17. The method of claim 13 further comprising the step of using a credit card infrastructure with the portable token to link to the user'"'"'s reward exchange account.

18. The method of claim 17 wherein the credit card infrastructure comprises the reward exchange computer with the reward exchange account.

19. A user computing device comprising processing means programmed to execute a purchase transaction with a merchant computer by:

receiving from a reward exchange computer;

(i) a display of reward points determined by the reward exchange computer to have been previously stored in a reward account, and (ii) computer-based controls for the user via the user computing device to designate a quantity of reward points from the reward account for exchange into a reward exchange account stored on the reward exchange computer;

sending to the reward exchange computer instructions that designate reward points the reward account to be exchanged into the reward exchange account by the reward exchange computer causing the reward server computer on which the reward account is stored to decrease the reward account by the designated reward points, increasing the reward exchange account by a corresponding number of reward points based on a predetermined rate of exchange, and receiving consideration conveyed by the reward server computer corresponding to the number of reward points decreased in the reward account; and

presenting to a merchant computer for payment for a transaction a portable token linked to the reward exchange account to cause the merchant computer to send to the reward exchange computer a payment request including information for the portable token for payment for the transaction, which causes the reward exchange computer to redeem reward points from the reward exchange account for use as consideration in the transaction, the reward points previously exchanged in real time response to receiving the instructions from the user computing device.

20. The user computing device of claim 19 wherein the portable token is a credit card.

21. The user computing device of claim 19 wherein the portable token is a debit card.

22. The user computing device of claim 19 wherein the portable token is a stored value card.

23. The user computing device of claim 19 further comprising the step of using a credit card infrastructure with the portable token to link to the user'"'"'s reward exchange account.

24. The user computing device of claim 23 wherein the credit card infrastructure comprises the reward exchange computer with the reward exchange account.