Private label promotion card system, program product, and associated computer-implemented methods

• US 8,306,912 B2
• Filed: 12/18/2008
• Issued: 11/06/2012
• Est. Priority Date: 12/19/2007
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Galit, Scott
• Primary Examiner(s): Kyle, Charles
• Assistant Examiner(s): Liu, Jennifer
• Application Number:
  US12/338,497
• Publication Number:
  US 20090164368A1
• Time in Patent Office: 1,419 Days
• Field of Search: 705 35- 45
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/357 Cards having a plurality of specified features
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0229 Multi-merchant loyalty card systems
• CPC Class Codes: G06Q 30/0603 Catalogue ordering

Abstract

Embodiments of the present invention provide a private label promotion card as a bank product, being issued and managed by the bank and using an open payment network for purchase authorization and payments. A bank computer processes activation information for a promotion card and receives finds into an account at the bank on behalf of a retailer for payment for the promotion card, perhaps at a discount to a customer value of the promotion card. The bank computer authorizes purchase requests to use one or more activated promotion cards as payment for a consumer purchase from the retailer via an open payment network and transfers funds to the open payment network to satisfy the authorized consumer purchase. Upon expiration, the bank computer sweeps the account of the remaining value for expired promotion cards to thereby establish a credit for the bank.

Claims

1. A computer associated with a bank to define a bank computer to manage a plurality of promotion cards, the computer comprising:

one or more processors;

an input and output unit in communication with the one or more processors and adapted to communicate with an open payment network and a plurality of second computers associated with a plurality of retailers to define a plurality of retailer computers; and

non-transitory computer-readable medium encoded with computer program operable by the one or more processors, the computer program comprising a set of instructions that, when executed by the one or more processors, cause the one or more processors to perform the operations of;

issuing, by the one or more processors, a plurality of cards configured to be used only with one of the one or more retailers in association with one or more promotions to define a plurality of promotion cards, one or more of the plurality of retailers having an obligation to pay a predetermined discount amount to a bank for the plurality of promotion cards issued by the bank;

activating, by the one or more processors, one or more of the plurality of promotion cards to have a redemption value responsive to a receipt of an indication from one or more of a plurality of retail computers that one or more retail customers are eligible for the one or more promotions with one or more of the plurality of retailers, the bank having an obligation to fund from bank'"'"'s funds one or more authorized transactions associated with the one or more of the plurality of promotion cards up to the redemption value, the predetermined discount amount being less than the redemption value;

authorizing, by the one or more processors, one or more transaction payment requests associated with one or more of the plurality of promotion cards activated by the one or more processors to define one or more authorized transactions, the authorizing being responsive to a value of the one or more transaction payment requests being less than the redemption value of the one or more of the plurality of promotion cards so that the one or more of the plurality of promotion cards have a remaining redemption value;

transferring, by the one or more processors, funds in an amount of the value of the one or more transaction payments request from the bank computer to the one or more of the plurality of retail computers via an open payment network so that the bank meets the obligation to fund the one or more authorized transactions;

receiving via the open payment network funds in a first amount from the one or more of the plurality of retail computers, the first amount being a value of the predetermined discounted amount of the one or more authorized transactions; and

receiving via the open payment network funds in a second amount from the one or more of the plurality of retail computers responsive to expiration of the one or more of the plurality of promotion card, the second amount being a value of the predetermined discount amount of the remaining redemption value upon expiration.

2. A bank computer as defined in claim 1, wherein the one or more promotion is a coupon for one or more purchases with the one of the plurality of retailers so that the one or more of the plurality of activated promotion cards are coupon-type cards.

3. A bank computer as defined in claim 1, wherein the one or more promotion is a rebate so that the one or more of the plurality of activated promotion cards are rebate-type cards.

4. A bank computer as defined in claim 1, wherein the activating is made via a proprietary network, and wherein the authorizing is made via the open payment network.

5. A bank computer as defined in claim 1, wherein the funds being received from the one or more of the plurality of retail computers are made via an Automated Clearing House (ACH) network, wherein the one or more purchase request is made by using a point of sale terminal;

wherein the activating is made via a proprietary network, and wherein the authorizing is made via the open payment network.

6. A bank computer as defined in claim 1, wherein the bank is a federally-charted bank, and wherein the activating step is complete prior to delivery of the one or more of the plurality of promotion cards to the one or more retail customers.

7. A bank computer as defined in claim 1, wherein the one or more of the plurality of activated promotion cards is in variable denominations.

8. A bank computer as defined in claim 6, wherein the funds being received from the one or more of the plurality of retail computers are made via an Automated Clearing House (ACH) network, wherein the one or more purchase request is made by using a point of sale terminal;

wherein the activating is made via a proprietary network;

wherein the authorizing is made via the open payment network; and

wherein the one or more of the plurality of activated promotion cards is in variable denominations.

9. Non-transitory computer-readable medium encoded with computer program operable by a computer associated with a bank to define a bank computer, the computer program comprising a set of instructions that, when executed by the bank computer, cause the bank computer to perform the operations of:

issuing, by a computer associated with a bank to define a bank computer, a plurality of cards configured to be used only with one or more of a plurality of retailers in association with one or more promotions to define a plurality of promotion cards, one or more of the plurality of retailers having an obligation to pay a predetermined discount amount to the bank for the plurality of promotion cards issued by the bank;

activating, by the bank computer, one or more of the plurality of promotion cards to have a redemption value responsive to a receipt of an indication from one or more of a plurality of retail computers that one or more retail customers are eligible for the one or more promotions with one or more of the plurality of retailers, the bank having an obligation to fund from bank'"'"'s funds one or more authorized transactions associated with the one or more of the plurality of promotion cards up to the redemption value, the predetermined discount amount being less than the redemption value;

authorizing, by the bank computer, one or more transaction payment requests associated with one or more of the plurality of promotion cards activated by the bank computer to define one or more authorized transactions, the authorizing being responsive to a value of the one or more transaction payment requests being less than the redemption value of the one or more of the plurality of promotion cards so that the one or more of the plurality of promotion cards have a remaining redemption value;

transferring, by the bank computer, funds in an amount of the value of the one or more transaction payments request from the bank computer to the one or more of the plurality of retail computers via an open payment network so that the bank meets the obligation to fund the one or more authorized transactions;

receiving via an open payment network funds in a first amount from the one or more of the plurality of retail computers, the first amount being a value of the predetermined discounted amount of the one or more authorized transactions; and

receiving via the open payment network funds in a second amount from the one or more of the plurality of retail computers responsive to expiration of the one or more of the plurality of promotion card, the second amount being a value of the predetermined discount amount of the remaining redemption value upon expiration.

10. Non-transitory memory as defined in claim 9, wherein the one or more promotion is a coupon for one or more purchases with the one of the plurality of retailers so that the one or more of the plurality of activated promotion cards are coupon-type cards.

11. Non-transitory memory as defined in claim 9, wherein the one or more promotion is a rebate so that the one or more of the plurality of activated promotion cards are rebate-type cards.

12. Non-transitory memory as defined in claim 9, wherein the activating is made via a proprietary network, and wherein the authorizing is made via the open payment network.

13. A computer-implemented method to manage a plurality of promotion cards, the method comprising:

issuing, by a computer associated with a bank to define a bank computer, a plurality of cards configured to be used only with one of a plurality of retailers in association with one or more promotions to define a plurality of promotion cards, one or more of the plurality of retailers having an obligation to pay a predetermined discount amount to the bank for the plurality of promotion cards issued by the bank;

activating, by the bank computer, one or more of the plurality of promotion cards to have a redemption value responsive to a receipt of an indication from one or more of a plurality of retail computers that one or more retail customers are eligible for the one or more promotions with one or more of the plurality of retailers, the bank having an obligation to fund from bank'"'"'s funds one or more authorized transactions associated with the one or more of the plurality of promotion cards up to the redemption value, the predetermined discount amount being less than the redemption value;

authorizing, by the bank computer, one or more transaction payment requests associated with one or more of the plurality of promotion cards activated by the bank computer to define one or more authorized transactions, the authorizing being responsive to a value of the one or more transaction payment requests being less than the redemption value of the one or more of the plurality of promotion cards so that the one or more of the plurality of promotion cards have a remaining redemption value;

transferring, by the bank computer, funds in an amount of the value of the one or more transaction payments request from the bank computer to the one or more of the plurality of retail computers via an open payment network so that the bank meets the obligation to fund the one or more authorized transactions;

receiving via an open payment network funds in a first amount from the one or more of the plurality of retail computers, the first amount being a value of the predetermined discounted amount of the one or more authorized transactions; and

receiving via the open payment network funds in a second amount from the one or more of the plurality of retail computers responsive to expiration of the one or more of the plurality of promotion card, the second amount being a value of the predetermined discount amount of the remaining redemption value upon expiration.

14. A computer-implemented method as defined in claim 13, wherein the one or more promotion is a coupon for one or more purchases with the one of the plurality of retailers so that the one or more of the plurality of activated promotion cards are coupon-type cards.

15. A computer-implemented method as defined in claim 13, wherein the one or more promotion is a rebate so that the one or more of the plurality of activated promotion cards are rebate-type cards.

16. A computer-implemented method as defined in claim 13, wherein the funds being received from the one or more of the plurality of retail computers are made via an Automated Clearing House (ACH) network, wherein the one or more purchase request is made by using a point of sale terminal;

wherein the activating is made via a proprietary network;

wherein the authorizing is made via the open payment network; and

wherein the one or more of the plurality of activated promotion cards is in variable denominations.

17. A computer-implemented method as defined in claim 16, wherein the bank is a federally-charted bank, and wherein the activating step is complete prior to delivery of the one or more of the plurality of promotion cards to the one or more retail customers.

18. A computer-implemented method as defined in claim 13, wherein the funds received from the one or more of the plurality of retail computers are made via an Automated Clearing House (ACH) network, and wherein the one or more purchase request is made by using a point of sale terminal.

19. A computer-implemented method as defined in claim 13, wherein the one or more of the plurality of activated promotion cards is in variable denominations.

20. A computer-implemented method as defined in claim 13, wherein the activating is made via a proprietary network, and wherein the authorizing is made via the open payment network.