System and method for redeeming rewards and incentives

• US 7,090,138 B2
• Filed: 12/18/2003
• Issued: 08/15/2006
• Est. Priority Date: 12/18/2003
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Rettenmyer, Jessica Ann, Greenberg, Robert Jerome, Jain, Chitra
• Primary Examiner(s): Le, Thien M.
• Application Number:
  US10/740,707
• Publication Number:
  US 20050133590A1
• Time in Patent Office: 971 Days
• Field of Search: 235/493, 235/449, 235/380, 235/381, 235/383, 235/375, 235/382, 235/492
• US Class Current: 235/493
• CPC Class Codes: G06K 19/08 using markings of different kinds or more than one marking of the same kind in the same record carrier, e.g. one marking being sensed by optical and the other by magnetic means
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0216 Investment accounts
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered

Abstract

Transaction card comprising a substrate having a front face and a back face, a first magnetic stripe for storing data associated with a credit account, the first magnetic stripe being located along an edge of the back face, a second magnetic stripe for storing data associated with a rewards account, the second magnetic stripe being located along another edge of the back face, and account information located on the front face, the account information being associated with the credit account and the rewards account.

Claims

1. A transaction card, comprising:

a substrate having a first face and a second face;

a first magnetic stripe for storing data associated with a credit account, the first magnetic stripe being located along an edge of the second face;

a second magnetic stripe for storing data associated with a rewards account, the second magnetic stripe being located along another edge of the second face and operable for redeeming at least one reward unit; and

account information located on the first face, the account information being associated with the credit account and the rewards account.

2. The transaction card as set forth in claim 1, wherein

the second magnetic stripe includes a plurality of data fields, data stored in at least one of the plurality of data fields identifying the second magnetic stripe as being associated with the rewards account.

3. The transaction card as set forth in claim 1, wherein

the second magnetic stripe includes a plurality of data fields, no data stored in at least one of the plurality of data fields identifying the second magnetic stripe as being associated with the rewards account.

4. The transaction card as set forth in claim 1, wherein

the rewards account is operable as a debit account.

5. The transaction card as set forth in claim 4, wherein

the rewards account has a balance equal to a number of accumulated reward units, the at least one reward unit operable as currency.

6. The transaction card as set forth in claim 5, wherein

the at least one reward unit is one of a plurality of points or a plurality of miles.

7. The transaction card as set forth in claim 5, wherein

the balance of the rewards account is increased one reward unit per dollar spent using the credit account.

8. The transaction card as set forth in claim 5, wherein

the balance of the rewards account is increased a portion of a reward unit per dollar spent using the credit account.

9. The transaction card as set forth in claim 5, wherein

the balance of the rewards account is increased one reward unit for a plurality of dollars spent using the credit account.

10. The transaction card as set forth in claim 5, wherein

the balance of the rewards account is increased one reward unit per dollar spent using another account.

11. The transaction card as set forth in claim 5, wherein

the balance of the rewards account is increased a portion of a reward unit per dollar spent using another account.

12. The transaction card as set forth in claim 1, wherein

the reward account is operable as a cash back account, a balance of the rewards account increasing by an amount equal to a predetermined percentage of an amount of a purchase using the credit account.

13. The transaction card as set forth in claim 1, wherein

the reward account is operable as a cash back account, a balance of the rewards account increasing by an amount equal to a predetermined percentage of an amount of a purchase using the another account.

14. The transaction card as set forth in claim 1, wherein

the at least one reward unit is a credit, a saving or a certificate, and

the rewards account includes data indicating a value the credit, the saving or the certificate, the value being redeemable with at least one of plurality of merchants using the second magnetic stripe.

15. The transaction card as set forth in claim 1, wherein

the substrate is constructed of at least one transparent material.

16. The transaction card as set forth in claim 1, wherein

the substrate is constructed of at least one translucent material.

17. A transaction card, comprising:

a substrate having a first face and a second face;

a first magnetic stripe for storing data associated with a credit account, the first magnetic stripe being located along an edge of the second face; and

a second magnetic stripe for storing data associated with a rewards account, the second magnetic stripe being located along another edge of the face and operable for redeeming at least one reward unit, the second magnetic stripe including a plurality of data fields, data stored or no data being stored in at least one of the plurality of data fields identifying the second magnetic stripe as being associated with the rewards account, wherein

account information is located on the first face, the account information being associated with the credit account and the rewards account, and

the rewards account has a balance equal to a number of accumulated reward units, the reward units operable as currency with at least one of a plurality of merchants using the second magnetic stripe.

18. A transaction card, comprising:

a substrate having a first face and a second face;

a first magnetic stripe for storing data associated with a credit account, the first magnetic stripe being located along an edge of the second face;

a second magnetic stripe for storing data associated with a rewards account, the second magnetic stripe being located along another edge of the second face and operable for redeeming at least one reward unit;

first account information located on the first face, the first account information being associated with the credit account; and

second account information located on the first face, the second account information being associated with the rewards account.

19. A method for processing a transaction initiated with a merchant using a transaction card having at least two magnetic stripes, the method comprising:

receiving data associated with the transaction, the data including a purchase amount;

determining according to the received data whether a first magnetic stripe or a second magnetic stripe was read at the merchant, the second magnetic stripe being associated with a rewards account and operable for redeeming at least one reward unit;

converting the purchase amount to an amount of reward units, if it is determined that the second magnetic stripe was read at the merchant; and

determining whether the rewards account has a balance of reward units at least equal to the amount of converted reward units.

20. The method as set forth in claim 19, further comprising:

authorizing the transaction if the balance of the rewards account is at least equal to the amount of converted reward units; and

decreasing the balance of the rewards account by at least the amount of converted reward units.

21. The method as set forth in claim 19, further comprising:

authorizing the transaction if the balance of the rewards account is less than the amount of converted reward units;

determining a difference amount by subtracting the amount of converted reward units from the balance of the rewards account;

decreasing the balance of the rewards account to a zero balance; and

at least one of increasing a credit line of a credit account associated with the rewards account by the difference amount or decreasing a balance of a debit account associated with the rewards account by the difference amount.

22. The method as set forth in claim 19, wherein

determining according to the received data whether the first magnetic stripe or the second magnetic stripe was read at the merchant includes

determining whether at least one predetermined data field includes data, wherein

if the at least one predetermined data field includes data, then the first magnetic stripe was read at the merchant, and

if the at least one predetermined data field does not include data, then the second magnetic stripe was read at the merchant.

23. The method as set forth in claim 19, wherein

determining according to the received data whether the first magnetic stripe or the second magnetic stripe was read at the merchant includes

determining whether at least one predetermined data field includes data, wherein

if the at least one predetermined data field includes data, then the second magnetic stripe was read at the merchant, and

if the at least one predetermined data field does not include data, then the first magnetic stripe was read at the merchant.

24. The method as set forth in claim 19, wherein

determining according to the received data whether the first magnetic stripe or the second magnetic stripe was read at the merchant includes

evaluating data stored in at least one predetermined data field.

25. The method as set forth in claim 19, wherein

converting the purchase amount to the amount of reward units includes

identifying the purchase amount,

determining a conversion rate associated with the rewards account, and

multiplying the purchase amount by the conversion rate.

26. The method as set forth in claim 19, wherein

determining whether the rewards account has the balance of reward units at least equal to the amount of converted reward units includes

determining the balance of reward units, and

comparing the balance of reward units to the amount of converted reward units.

40. The method as set forth in claim 19, further comprising:

authorizing the transaction if the balance of the rewards account is less than the amount of converted reward units;

determining a difference amount by subtracting the amount of converted reward units from the balance of the rewards account; and

one of increasing a credit line of the credit account by the difference amount or decreasing a balance of a debit account by the difference amount.

41. The method as set forth in claim 19, further comprising:

authorizing the transaction if the balance of the rewards account is less than the amount of converted reward units; and

one of increasing a credit line of the credit account by the amount of the converted reward units or decreasing a balance of a debit account by the amount of converted reward units.

42. The method as set forth in claim 19, further comprising:

authorizing the transaction if the balance of the rewards account is less than the amount of converted reward units;

determining a difference amount by subtracting the amount of converted reward units from the balance of the rewards account; and

one of increasing a credit line of another credit account by the difference amount or decreasing a balance of a debit account by the difference amount.

43. The method as set forth in claim 19, further comprising:

authorizing the transaction if the balance of the rewards account is less than the amount of converted reward units; and

one of increasing a credit line of another credit account by the amount of the converted reward units or decreasing a balance of a debit account by the amount of converted reward units.

27. A transaction card, comprising:

a substrate having a first face and a second face;

a first magnetic stripe for storing data associated with an account, the first magnetic stripe being located along an edge of the second face;

a second magnetic stripe for storing data associated with a rewards account, the second magnetic stripe being located along another edge of the second face and operable for redeeming at least one reward unit; and

account information located on the first face, the account information being associated with the account and the rewards account.

28. The transaction card as set forth in claim 27, wherein

the account and the rewards account are associated with different entities.

29. The transaction card as set forth in claim 28, wherein

the entity associated with the account and the entity associated with the reward account are financial institutions.

30. A transaction card, comprising;

a substrate having a first face and a second face;

a first magnetic stripe for storing data associated with an account, the first magnetic stripe being located along an edge of the second face;

a second magnetic stripe for storing data associated with a rewards account, the second magnetic stripe being located along another edge of the substrate and operable for redeeming at least one reward unit; and

account information located on the substrate, the account information being associated with the account and the rewards account.

31. The transaction card as set forth in claim 30, wherein

the account and the rewards account are associated with different entities.

32. The transaction card as set forth in claim 31, wherein

the entity associated with the account and the entity associated with the reward account are financial institutions.

33. A transaction card, comprising:

a substrate having a first face and a second face;

a first magnetic stripe for storing data associated with an account, the first magnetic stripe being located along an edge of the second face;

a second magnetic stripe for storing data associated with a rewards account, the second magnetic stripe being located along another edge of the substrate and operable for redeeming at least one reward unit; and

account information located on the substrate, the account information being associated with the account and the rewards account, wherein

the account and the reward account fund a transaction when the data on the second magnetic stripe is read.

34. The transaction card as set forth in claim 33, wherein

the account and the rewards account are associated with different entities.

35. The transaction card as set forth in claim 34, wherein

the entity associated with the account and the entity associated with the reward account are financial institutions.

36. A transaction card, comprising:

a substrate having a first face and a back face;

a first magnetic stripe for storing data associated with a first account, the first magnetic stripe being located along an edge of the back face;

a second magnetic stripe for storing data associated with a second account, the second account being a reward account, the second magnetic stripe being located along another edge of the substrate and the second magnetic stripe operable for redeeming a reward; and

account information located on the substrate, the account information being associated with the first account and the reward account, wherein

the reward account and a third account fund a transaction when the data on the second magnetic stripe is read.

37. The transaction card as set forth in claim 36, wherein

the account and the rewards account are associated with different entities.

38. The transaction card as set forth in claim 36, wherein

the reward account and the third account are associated with different entities.

39. The transaction card as set forth in claim 37, wherein

the entity associated with the account and the entity associated with the reward account are financial institutions.