Method and system for implementing a loyalty merchant component

• US 6,920,611 B1
• Filed: 03/27/2003
• Issued: 07/19/2005
• Est. Priority Date: 11/25/2002
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Creighton, Adam, Spaeth, Paul, Jones, Douglas
• Primary Examiner(s): Kincaid, Kristine
• Assistant Examiner(s): PESIN, BORIS M
• Application Number:
  US10/402,917
• Time in Patent Office: 845 Days
• Field of Search: 345/745, 345/700, 705/39, 705/14, 235/735, 713/185, 707/104.1, 718/101
• US Class Current: 715/700
• 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 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0237 at kiosk

Abstract

A loyalty merchant component for facilitating communications amongst cardholder systems, merchant servers and a loyalty host for purposes of processing loyalty transactions is provided. The loyalty merchant component performs a number of interface functions between the loyalty host and the merchant systems and the cardholder systems.

Claims

1. A system for processing a transaction under a loyalty program, comprising:

a loyalty host configured to maintain rules and logic relating to the loyalty program;

a cardholder system configured to retrieve and forward a device image from a portable device, the device image including portable device information and loyalty program information relating to a cardholder;

a merchant server configured to provide transaction information relating to the transaction;

an open programming engine (OPE) configured to retrieve the rules and logic relating to the loyalty program based on the transaction information and determine a loyalty amount for the transaction using the rules and logic and the device image; and

a loyalty merchant component (LMC) configured to facilitate interactions amongst the OPE, the cardholder system and the merchant server for purposes of processing the transaction under the loyalty program, wherein the LMC is configured to receive the transaction information from the merchant server and forward the transaction information to the OPE and configured to receive the device image from the cardholder system and forward the device image to the OPE.

2. The system of claim 1 wherein the LMC is further configured to:

receive the transaction information from the merchant server via the cardholder system;

forward the transaction information to the OPE to allow the OPE to generate a transaction ID linked to the transaction information;

forward the transaction ID from the OPE to the cardholder system to allow the device image to be linked to the transaction ID; and

forward the device image and the transaction ID from the cardholder system to the OPE to allow the OPE to match the transaction information to the device image.

3. The system of claim 2 wherein the LMC is further configured to forward information relating to the loyalty amount and the device image from the OPE to the merchant server to allow the merchant server to seek approval of the transaction from the cardholder system by displaying some or all of the forwarded information to the cardholder.

4. The system of claim 3 wherein the LMC is further configured to forward processed payment information from the merchant server to the OPE to allow the OPE to instruct the cardholder system to update the portable device.

5. The system of claim 1 wherein the portable device includes at least one of a smartcard, a cellular phone, a personal digital assistant, a pager, a payment card, a security card, an access card, smart media and a transponder.

6. The system of claim 1 wherein the cardholder system includes at least one of a point-of-sale device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, a security system, and an access system.

7. A system for processing transactions under a plurality of loyalty programs, comprising:

a loyalty host configured to maintain corresponding rules and logic relating to the plurality of loyalty programs;

a plurality of cardholder systems, each cardholder system configured to retrieve and forward respective device images from a plurality of portable devices, each device image including portable device information and loyalty program information relating to a cardholder;

a plurality of merchant servers, each merchant server configured to provide respective transaction information relating to an associated transaction;

a plurality of open programming engines (OPEs) configured to retrieve the corresponding rules and logic relating to the plurality of loyalty programs based on the respective transaction information relating to the transactions associated with one or more merchant servers and determine respective loyalty amounts for the transactions using the corresponding rules and logic and the respective device images; and

a plurality of loyalty merchant components (LMCs) configured to facilitate interactions amongst the plurality of OPEs, the plurality of cardholder systems and the plurality of merchant servers for purposes of processing the transactions under the plurality of loyalty programs, wherein a first LMC is configured to receive the transaction information from the merchant server and forward the transaction information to the OPE and configured to receive the device image from the cardholder system and forward the device image to the OPE.

8. The system of claim 7 wherein at least one OPE is further configured to communicate with one or more LMCs.

9. The system of claim 7 wherein the first LMC is further configured to:

receive a first transaction information for a first transaction from a first merchant server via a first cardholder system;

forward the first transaction information to a first OPE to allow the first OPE to generate a transaction ID linked to the first transaction information;

forward the transaction ID from the first OPE to the first cardholder system to allow a first device image to be linked to the transaction ID; and

forward the first device image and the transaction ID from the first cardholder system to the first OPE to allow the first OPE to match the first transaction information to the first device image.

10. The system of claim 9 wherein the first LMC is further configured to forward information relating to a first loyalty amount and the first device image from the first OPE to the first merchant server to allow the first merchant server to seek approval of the first transaction from the first cardholder system by displaying some or all of the forwarded information to a first cardholder.

11. The system of claim 10 wherein the first LMC is further configured to forward processed payment information from the first merchant server to the first OPE to allow the first OPE to instruct the first cardholder system to update a first portable device having the first device image.

12. The system of claim 7 wherein the plurality of portable devices include at least one of a smartcard, a cellular phone, a personal digital assistant, a pager, a payment card, a security card, an access card, smart media and a transponder.

13. The system of claim 7 wherein the plurality of cardholder systems include at least one of a point-of-sale device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, a security system, and an access system.

14. A method for processing a transaction in connection with a loyalty program using a system having a loyalty host, an open programming engine (OPE), a loyalty merchant component (LMC), a cardholder system and a merchant server, the method comprising:

directing the merchant server to communicate with the cardholder system to determine whether a cardholder is eligible to participate in the loyalty program, the cardholder having a portable device, the portable device having stored thereon a device image, the device image including portable device information and loyalty program information relating to the cardholder;

upon determining that the cardholder is eligible to participate in the loyalty program, directing the merchant server to forward transaction information to the cardholder system and redirect the cardholder system to communicate with the LMC and pass the transaction information to the LMC;

passing the transaction information from the LMC to the OPE;

directing the OPE to generate a transaction ID and linking the transaction ID to the transaction information;

passing the transaction ID to the LMC;

directing the LMC to forward a processing page to the cardholder system, the processing page including the transaction ID;

directing the cardholder system to establish communication with the OPE using the processing page;

directing the cardholder system to forward the device image retrieved from the portable device and the transaction ID to the OPE via the LMC;

directing the OPE to match the transaction information with the device image using the transaction ID;

directing the OPE to retrieve rules and logic pertaining to the loyalty program from the loyalty host based on the transaction information; and

directing the OPE to use the rules and logic to determine a loyalty amount for the transaction based on the transaction information and the device image.

15. The method of claim 14 further comprising:

directing the OPE to forward information relating to the loyalty amount and the device image to the merchant server via the LMC;

directing the merchant server to seek approval of the transaction from the cardholder by displaying some or all of the forwarded information to the cardholder; and

directing the merchant server to process payment for the transaction upon receiving approval from the cardholder.

16. The method of claim 15 further comprising:

once payment is processed, directing the merchant server to forward processed payment information to the OPE via the LMC; and

directing the OPE to instruct the cardholder system to update the portable device.

17. The method of claim 16 further comprising:

directing the cardholder system to display information relating to the updated portable device to the cardholder.

18. The method of claim 15 further comprising:

directing the merchant server to retrieve the device image from the cardholder system, the device image retrieved from the portable device offered by the cardholder for payment for the transaction; and

directing the merchant server to compare some or all of the device image retrieved from the cardholder system with some or all of the device image forwarded by the OPE to ensure that the portable device offered for payment for the transaction is the same as the portable device determined to be eligible to participate in the loyalty program.

19. The method of claim 14 wherein determining whether the cardholder is eligible to participate in the loyalty program further comprises:

checking whether the cardholder system includes a client loyalty component relating to the loyalty program.

20. The method of claim 14 wherein directing the merchant server to forward the transaction information to the cardholder system and redirect the cardholder system to communicate with the LMC and pass the transaction information to the LMC further comprises:

directing the merchant server to forward a call to the cardholder system; and

using the call to establish a communication session between the cardholder system and the LMC;

wherein the call includes the transaction information.

21. The method of claim 20 wherein the call includes a script.

22. The method of claim 14 wherein the transaction information includes item purchased by the cardholder in the transaction, purchase amount and merchant identification information relating to a merchant associated with the merchant server.

23. The method of claim 14 further comprising:

if the cardholder is determined to be eligible for two or more loyalty programs, directing the OPE to request the cardholder system to elect which one or more of the two or more loyalty programs are to apply for the transaction.

24. The method of claim 14 wherein the portable device includes at least one of a smartcard, a cellular phone, a personal digital assistant, a pager, a payment card, a security card, an access card, smart media and a transponder.

25. The method of claim 14 wherein the cardholder system includes at least one of a point-of-sale device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, a security system, and an access system.

26. A method for handling a transaction in connection with a loyalty program using a system having a loyalty host, an open programming engine (OPE), a loyalty merchant component (LMC), a cardholder system and a merchant server, comprising:

directing the cardholder system to communicate with the LMC upon determining that a cardholder is eligible to participate in the loyalty program, the cardholder having a portable device, the portable device having stored thereon a device image, the device image including loyalty program information relating to the cardholder;

directing the cardholder system to forward transaction information relating to the transaction to the LMC;

forwarding the transaction information to the OPE;

directing the OPE to generate a transaction ID and linking the transaction ID to the transaction information;

using the LMC to pass the transaction ID from the OPE to the cardholder system;

directing the cardholder system to link the transaction ID received from the OPE with the device image retrieved from the portable device;

using the LMC to forward the linked transaction ID and device image from the cardholder system to the OPE;

directing the OPE to match the transaction information with the device image using the transaction ID;

directing the OPE to retrieve rules and logic pertaining to the loyalty program from the loyalty host based on the transaction information; and

directing the OPE to use the rules and logic to determine a loyalty amount for the transaction based on the transaction information and the matched device image.

27. The method of claim 26 further comprising:

using the LMC to forward information relating to the loyalty amount and the device image from the OPE to the merchant server;

directing the merchant server to seek approval of the transaction from the cardholder by displaying some or all of the forwarded information to the cardholder; and

directing the merchant server to process payment for the transaction upon receiving approval from the cardholder.

28. The method of claim 27 further comprising:

once payment is processed, using the LMC to forward processed payment information from the merchant server to the OPE; and

directing the OPE to instruct the cardholder system to update the portable device.

29. The method of claim 28 further comprising:

directing the cardholder system to display information relating to the updated portable device to the cardholder.

30. The method of claim 27 further comprising:

directing the merchant server to retrieve the device image from the cardholder system, the device image retrieved from the portable device offered by the cardholder for payment for the transaction; and

directing the merchant server to compare some or all of the device image retrieved from the cardholder system with some or all of the device image forwarded by the OPE to ensure that the portable device offered for payment for the transaction is the same as the portable device determined to be eligible to participate in the loyalty program.

31. The method of claim 26 wherein determining the cardholder is eligible to participate in the loyalty program further comprises:

checking whether the cardholder system includes a client loyalty component relating to the loyalty program.

32. The method of claim 26 wherein directing the cardholder system to forward transaction information relating to the transaction to the LMC further comprises:

directing the merchant server to forward a call to the cardholder system, the call including the transaction information;

using the call to establish a communication session between the cardholder system and the LMC; and

forwarding the transaction information from the cardholder system to the LMC during the communication session.

33. The method of claim 32 wherein the call includes a script.

34. The method of claim 26 wherein the transaction information includes item purchased by the cardholder in the transaction, purchase amount and merchant identification information relating to a merchant associated with the merchant server.

35. The method of claim 26 further comprising:

if the cardholder is determined to be eligible for two or more loyalty programs, directing the OPE to request the cardholder system to elect which one or more of the two or more loyalty programs are to apply for the transaction.

36. The method of claim 26 wherein the portable device includes at least one of a smartcard, a cellular phone, a personal digital assistant, a pager, a payment card, a security card, an access card, smart media and a transponder.

37. The method of claim 26 wherein the cardholder system includes at least one of a point-of-sale device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, a security system, and an access system.

38. A system for processing a transaction under a loyalty program, comprising:

a loyalty host configured to maintain rules and logic relating to the loyalty program;

a cardholder system configured to retrieve and forward a device image from a portable device, the device image including portable device information and loyalty program information relating to a cardholder;

a merchant server configured to provide transaction information relating to the transaction;

an open programming engine (OPE) configured to retrieve the rules and logic relating to the loyalty program based on the transaction information and determine a loyalty amount for the transaction using the rules and logic and the device image; and

a loyalty merchant component (LMC) configured to facilitate interactions amongst the OPE, the cardholder system and the merchant server for purposes of processing the transaction under the loyalty program, wherein the OPE, cardholder system and merchant server are separate entities from each other and interact through the LMC.

39. The system of claim 38 wherein the LMC is further configured to:

receive the transaction information from the merchant server via the cardholder system;

forward the transaction information to the OPE to allow the OPE to generate a transaction ID linked to the transaction information;

forward the transaction ID from the OPE to the cardholder system to allow the device image to be linked to the transaction ID; and

forward the device image and the transaction ID from the cardholder system to the OPE to allow the OPE to match the transaction information to the device image.

40. The system of claim 38 wherein the LMC is further configured to forward information relating to the loyalty amount and the device image from the OPE to the merchant server to allow the merchant server to seek approval of the transaction from the cardholder system by displaying some or all of the forwarded information to the cardholder.

41. The system of claim 40 wherein the LMC is further configured to forward processed payment information from the merchant server to the OPE to allow the OPE to instruct the cardholder system to update the portable device.

42. The system of claim 38 wherein the portable device includes at least one of a smartcard, a cellular phone, a personal digital assistant, a pager, a payment card, a security card, an access card, smart media and a transponder.

43. The system of claim 38 wherein the cardholder system includes at least one of a point-of-sale device, a cellular phone, a PDA, a computer, a handheld specialized reader, a set-top box, a kiosk, a security system, and an access system.