System and method for administration of an incentive award system having a delayed award payment using a credit instrument

• US 6,222,914 B1
• Filed: 09/02/1998
• Issued: 04/24/2001
• Est. Priority Date: 09/02/1998
• Status: Expired due to Term

• Current Assignee: Meridian Enterprises Corporation
• Original Assignee: John L. Mcmullin
• Inventors: McMullin, John L.
• Primary Examiner(s): Kuntz, Curtis
• Assistant Examiner(s): TIEU, BINH KIEN
• Application Number:
  US09/145,447
• Time in Patent Office: 965 Days
• Field of Search: 379/111, 379/112, 379/114, 379/116, 379/121, 379/123, 379/124, 379/143, 379/144, 379/154, 705/14, 705/26, 705/27, 705/7, 705/10, 705/21, 235/375, 235/376, 235/379, 235/383, 364/401, 364/402, 382/100, 382/137, 382/139
• US Class Current: 379/144.01
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G07G 1/0036 Checkout procedures
• CPC Class Codes: H04M 15/68 Payment of value-added services
• CPC Class Codes: H04M 17/00 Prepayment of wireline communication systems, wireless communication systems or telephone systems using a coded card to authorise calls from a telephone set H04M1/675
• CPC Class Codes: H04M 17/10 Account details or usage
• CPC Class Codes: H04M 17/106 using commercial credit or debit cards
• CPC Class Codes: H04M 17/20 with provision for recharging the prepaid account or card, or for credit establishment
• CPC Class Codes: H04M 2017/14 using commercial credit/debit cards, e.g. VISA, AMEX
• CPC Class Codes: H04M 2215/0192 Sponsored, subsidised calls via advertising, e.g. calling cards with ads or connecting to special ads, free calling time by purchasing goods
• CPC Class Codes: H04M 2215/0196 Payment of value-added services, mainly when their charges are added on the telephone bill, e.g. payment of non-telecom services, e-commerce, on-line banking

Abstract

A system and method for administration of an incentive award program wherein award points are earned in response to certain actions by the Participants and then credited to the Participant'"'"'s credit card, but only after a predetermined time delay. Furthermore, the Participant must still be a customer in good standing with the credit card Sponsor at the end of this predetermined delay period in order to receive the awarded points. As used herein, the term “credit card” is intended to encompass traditional credit cards, debit cards, smart cards, etc. which are commonly accepted as payment for purchases in place of cash or bank checks. The system of the present invention therefore creates an incentive for the Participant to purchase the Sponsor'"'"'s goods and/or services in order to earn award points, and further creates an incentive for the Participant to remain a loyal customer of the Sponsor in order to receive and redeem these award points at some point in the future. Each award point therefore serves a double function as a reward for using the Sponsor'"'"'s products and/or services and also as an incentive for customer loyalty to the Sponsor.

Claims

1. A method for administration of an incentive award system, comprising the steps of:

a) bank issuing a credit card account to a Participant;

b) selling goods and/or services of a Sponsor to said Participant;

c) charging said sales to said credit card account;

d) determining an award amount based at least in part upon said charges;

e) waiting a predetermined length of time;

f) determining if said Participants still a customer in good standing of said Sponsor after said predetermined length of time; and

g) if said Participant is determined at step (f) to be a customer in good standing, crediting said award amount to said credit card amount.

2. The method of claim 1, wherein step (b) comprises selling long-distance telephone services to said Participant.

3. The method of claim 1, wherein step (c) comprises charging said sales to said credit card account once per billing cycle of said credit card account.

4. The method of claim 1, wherein step (d) comprises utilizing computer data processing means to calculate said award amount based at least in part upon said charges.

5. The method of claim 1, wherein step (d) comprises determining an award amount as a predetermined percentage of said charges.

6. The method of claim 1, wherein step (e) comprises waiting two billing cycles of said credit card account.

7. The method of claim 2, wherein step (f) comprises determining if said Participant is still contracting with said Sponsor for provision of long-distance telephone services after said predetermined length of time.

8. The method of claim 1, wherein step (f) comprises determining if said credit card account is current after said predetermined length of time.

9. The method of claim 1, wherein step (g) comprises crediting said award amount to said credit card account, wherein said award amount may only be used against said Participant'"'"'s charges of said Sponsor'"'"'s goods and/or services made during a current billing cycle of said credit card account.

10. The method of claim 1, wherein step (g) comprises crediting said award amount to said credit card account, wherein said award amount may only be used against said Participant'"'"'s charges of said Sponsor'"'"'s goods and/or services made during a text billing cycle of said credit card account.

11. The method of claim 1, wherein said Participant forfeits said award amount if said Participant is determined at step (f) not to be a customer in good standing of said Sponsor after said predetermined length of time.

12. A method for administration of an incentive award system, comprising the steps of:

a) causing a credit provider to issue a credit card account to a Participant;

b) creating a database containing information about said credit card account;

c) selling goods and/or services of a Sponsor to said Participant;

d) charging said sales to said credit card account;

e) using computer data processing means to calculate an award amount based at least in part upon said charges;

f) waiting a predetermined length of time;

g) determining if said Participant is still a customer in good standing of said Sponsor after said predetermined length of time; and

h) causing said award amount to be credited to said credit card account information if said Participant is determined at step (g) to be a customer in good standing.

13. The method of claim 12, wherein step (c) comprises selling long-distance telephone services to said Participant.

14. The method of claim 12, wherein step (d) comprises charging said sales to said credit card account once per billing cycle of said credit card account.

15. The method of claim 12, wherein step (e) comprises determining an award amount as a predetermined percentage of said charges.

16. The method of claim 12, wherein step (f) comprises waiting two billing cycles of said credit card account.

17. The method of claim 13, wherein step (g) comprises determining if said Participant is still contracting with said Sponsor for provision of long-distance telephone services after said predetermined length of time.

18. The method of claim 12, wherein step (g) comprises examining said database information to determine if said credit card account is current after said predetermined length of time.

19. The method of claim 12, wherein step (h) comprises causing said award amount to be credited to said credit card account information, wherein said award amount may only be used against said Participant'"'"'s charges of said Sponsor'"'"'s goods and/or services made during a current billing cycle of said credit card account.

20. The method of claim 12, wherein step (h) comprises causing said award to be credited to said credit card account information, wherein said award amount may only be used against said Participant'"'"'s charges of said Sponsor'"'"'s goods and/or services made during a next, billing cycle of said credit card account.

21. The method of claim 12, wherein said Participant forfeits said award amount if said Participant is determined at step (g) not to be a customer in good standing of said Sponsor after said predetermined length of time.

22. A method for administration of an incentive award system, comprising the steps of:

a) issuing a credit card account to a Participant;

b) selling goods and/or services to said Participant;

c) charging said sales to said credit card account;

d) determining an award amount based at least in part upon said charges;

e) waiting a predetermined length of time;

f) determining if said Participant is still a customer in good standing of a Sponsor of said award system after said predetermined length of time; and

g) if said Participant is determined at step (f) to be a customer in good standing, crediting said award amount to said credit card amount.