Non-cash transaction incentive and commission distribution system
First Claim
1. A method of distributing commissions to promote use of a non-cash payment device, comprising the steps of:
- organizing an electronic database to contain member records, each member record identifying a bearer of the non-cash payment device;
establishing a hierarchy of relationships among the member records, and storing positional data in the electronic database in association with the member records;
operating a purchase processing terminal to record a purchase by one of the members bearing the non-cash payment device;
electronically transmitting transaction data from the purchase processing terminal to a commission management processor connected with the electronic database;
operating the commission management processor to determine, on the basis of the transaction data, a business volume value, and to record the business volume value in a member record identifying said one member;
determining a commission value for said one member on the basis of business volume values recorded in other member records and on the basis of the positional data relating said one member with the other members in the hierarchy; and
effecting a monetary payment in the amount of the commission value on behalf of one member to a designated sponsor.
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Accused Products
Abstract
An electronic fund transfer system is disclosed wherein commissions for point-of-sale purchase transactions are determined and distributed to members of an organizational network for promoting use of a non-cash payment device for effecting purchase transactions. Purchase data is electronically transmitted from the point-of-sale to an automated clearing house for effecting fund transfers to prepare the purchase, and also to a commission management system. The commission management system maintains an electronic database reflecting the structure of the organizational network, and further determines the distribution of purchase commissions according to a predetermined schedule of proportions relating to the position and business volume of each member of the network. The commission management system further comprises a payment processor for effecting commission payments to the members or to a designated sponsor on a scheduled basis.
88 Citations
21 Claims
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1. A method of distributing commissions to promote use of a non-cash payment device, comprising the steps of:
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organizing an electronic database to contain member records, each member record identifying a bearer of the non-cash payment device; establishing a hierarchy of relationships among the member records, and storing positional data in the electronic database in association with the member records; operating a purchase processing terminal to record a purchase by one of the members bearing the non-cash payment device; electronically transmitting transaction data from the purchase processing terminal to a commission management processor connected with the electronic database; operating the commission management processor to determine, on the basis of the transaction data, a business volume value, and to record the business volume value in a member record identifying said one member; determining a commission value for said one member on the basis of business volume values recorded in other member records and on the basis of the positional data relating said one member with the other members in the hierarchy; and effecting a monetary payment in the amount of the commission value on behalf of one member to a designated sponsor. - View Dependent Claims (2, 3, 4, 5, 7, 12, 13, 14, 15)
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6. A method of distributing commissions to promote use of a non-cash payment device, comprising the steps of:
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organizing an electronic database to contain member records, each member record identifying a bearer of the non-cash payment device; establishing a hierarchy of relationships among the member records, and storing positional data in the electronic database in association with the member records; operating a purchase processing terminal to record a purchase by one of the members bearing the non-cash payment device by the steps of;
(a) establishing an internet connection between a user terminal and a merchant server;
(b) entering purchase data into the user terminal; and
(c) transmitting the purchase data via the merchant server to an authorization processor;electronically transmitting transaction data from the purchase processing terminal to a commission management processor connected with the electronic database; operating the commission management processor to determine, on the basis of the transaction data, a business volume value, and to record the business volume value in a member record identifying said one member; determining a commission value for said one member on the basis of business volume values recorded in other member records and on the basis of the positional data relating said one member with the other members in the hierarchy; and effecting a monetary payment in the amount of the commission value on behalf of one member to a designated sponsor. - View Dependent Claims (16, 17)
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8. A method of promoting a non-cash payment device, comprising the steps of establishing hierarchical relationships among a plurality of members bearing non-cash payment devices;
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recording the hierarchical relationships established among the members as positional data within an electronic database maintained by a commission management processor; conducting electronic purchase transactions by the members using the non-cash payment devices via an internet connection to a merchant server, and electronically transmitting purchase data to the commission management processor; determining by the commission management processor, a commission value for each member on the basis of (i) the purchase data pertaining to the electronic purchase transactions made by other members, and (ii) the positional data relating each member to the other members in the electronic database; and effecting a monetary payment in the amount of the commission value. - View Dependent Claims (9, 10, 18, 19)
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11. A method of distributing commissions to promote use of a non-cash payment device, comprising the steps of:
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organizing an electronic database to contain member records, each member record identifying a bearer of the non-cash payment device; establishing a hierarchy of relationships among the member records, and storing positional data in the electronic database in association with the member records; establishing an internet connection between a member terminal and a merchant server; operating the merchant server to record a purchase by one of the members bearing the non-cash payment device; electronically transmitting transaction data from the merchant server to a commission management processor connected with the electronic database; operating the commission management processor to determine, on the basis of the transaction data, a business volume value, and to record the business volume value in a member record identifying said one member; determining a commission value for said one member on the basis of business volume values recorded in other member records and on the basis of the positional data relating said one member with the other members in the hierarchy; and effecting a monetary payment in the amount of the commission value to said one member. - View Dependent Claims (20, 21)
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Specification