Pre-existing liability payment and reward system and method of use

• US 8,401,895 B2
• Filed: 06/05/2008
• Issued: 03/19/2013
• Est. Priority Date: 06/05/2008
• Status: Active Grant

• Current Assignee: Patented Rewards Cards LLC
• Original Assignee: Patented Rewards Cards LLC
• Inventors: Weingarden, Eliyahu
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US12/156,922
• Publication Number:
  US 20090083153A1
• Time in Patent Office: 1,748 Days
• Field of Search: 705 10- 44
• US Class Current: 705/14
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• 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 30/06 Buying, selling or leasing transactions

Abstract

A pre-existing liability payment and reward system including a user communication module in communication with a pre-existing liability holder; a merchant communication module that transacts with the user communication module and a processing communication module; a processing communication module that communicates with the merchant communication module and a provider communication module; a provider calculation module that determines a reward; a provider communication module in communication with the provider calculation module; a system calculation module that determines a reward and communicates with a system communication module; a system communication module in communication with a system calculation module; a holder calculation module managing a pre-existing liability holder user account; and a holder communication module in communication with a user communication module and the system communication module. A method of use is also provided.

Claims

1. A pre-existing liability payment and reward system (10) comprising:

a user communication module (12) in operative communication with each of a user (42), a pre-existing tax liability holder (14), and a merchant (16) associated therewith, wherein the user (42) owes a pre-existing liability (60) to the pre-existing tax liability holder (14), wherein the pre-existing tax liability holder (14) holds the pre-existing liability (60) that is a financial liability owed by the user (42) to the pre-existing liability holder (14) because of pre-existing relationship between the pre-existing liability holder (14) and the user (42), and wherein the pre-existing liability holder (14) has a plurality of pre-existing liability holder user accounts (40), with each respective pre-existing liability holder user account (40) including the the pre-existing liability (60) and wherein the user communication module (12) is in communication with a system provider (52) that provides credit to the user (42) and facilitates collection and payment of funds and rewards;

a merchant communication module (18) in communication with the merchant (16) that operates to transact with the user communication module (12) in operative communication with the user communication module (12) and a processing communication module (20) associated therewith, wherein the merchant (16) offers for sale, exchange, or barter, goods or services (46) to the user (42), and accepts a credit card as a form of payment for the goods or services (46);

said processing communication module (20) provided by a processing entity (50) that operates to communicate with the merchant communication module (18), and a processing calculation module (30) that processes information received from the merchant (16);

a provider calculation module (24) that operates to determine a reward resulting from information from the processing entity (50), wherein the processing entity (50) receives transaction information from the merchant communication module (18) resulting from a transaction (28) between the user (42) and the merchant (16) and is in operative communication with a provider communication module (22);

the provider communication module (22) in communication with the system provider (52) and in operative communication with each of the provider calculation module (24), and a system communication module (34);

a system calculation module (36) operates to determine a reward based on in received from the processing calculation module (30) resulting from the transaction (28) between the user (42) and the merchant (16) and is in operative communication with the system communication module (34);

the system communication module (34) in operative communication with each of the system calculation modules (36) and a holder communication module (38);

a holder calculation module (32) manages each pre-existing liability holder user account (40)and reduces the user'"'"'s (42) at least one pre-existing liability (60) by an amount corresponding to an amount of the reward and in operative communication with the holder communication module (38); and

the holder communication module (38) in operative communication with each of the user communication module (12) and the system communication module (34), wherein the holder communication module (38) communicates with the user communication module (12) to notify the user (42) of the reduction of the at least one pre-existing liability (60) owed by the user (42) to the pre-existing liability holder (14), and

wherein each of the user communication module (12), merchant communication module (18), processing communication module (20), provider communication module (22), provider calculation module (24), system communication module (34), system calculation module (36), holder calculation module (32), and holder communication module (38) includes a combination of hardware and software for processing or evaluating input data into or stored within each respective module.

2. The pre-existing liability payment and reward system of claim 1, further comprising:

the provider communication module (22) in operation communication with at least one holder communication module (38).

3. The pre-existing liability payment and reward system (10) of claim 1, wherein the pre-existing tax liability holder (14) comprises:

a municipality, a state, or a county.

4. The pre-existing liability payment and reward system (10) of claim 1, wherein the at least one pre-existing liability comprises:

at least one property tax associated with at least one parcel of property.

5. The pre-existing liability payment and reward system (10) of claim 1, further comprising:

a plurality of users, wherein each respective user of the plurality of users is a resident of a municipality having at least one parcel of property within the municipality.

6. A method of using a pre-existing liability payment and reward system (10) comprising:

establishing a rewards program (82);

enrolling, a pre-existing tax liability holder (14) in the rewards program, wherein the pre-existing tax liability holder (14) holds at least one pre-existing liability (60) that is a financial liability owed by a user (42) to the pre-existing tax liability holder (14) because of a pre-existing relationship between the pre-existing tax liability holder (14) and the user (42), and wherein the pre-existing tax liability holder (14) has a plurality of pre-existing liability holder user accounts (40), with each respective pre-existing liability holder user account (40) including, the at least one pre-existing liability (60);

enrolling the user (42) in the rewards program using one or more modules that include a combination of hardware and software for processing or evaluating input data into or stored within each respective module wherein the user (42) receives credit from a system provider (52) that provides credit and facilitates collection and payments of funds and rewards;

transacting for goods or services (46) in a transaction (28) between the user (42) and the merchant (16) wherein the merchant (16) offers for sale, exchange, or barter, goods or services (46) to the user (42), and accepts credit from the user (42) as a form of payment for the goods or services (46);

providing rewards to the pre-existing liability holder (14) resulting from information received from a processing entity (50) as calculated by a system provider calculation module (24) based on the transaction (28) between the user (42) and the merchant (16) at a predetermined time after the transaction (28) for goods or services (46) is completed; and

using a holder calculation module (32) to manage each pre-existing liability holder user accounts (40); and

to reduce the at least one pre-existing liability (60) in the pre-existing liability holder user accounts (40) by an amount corresponding to an amount of the rewards.

7. The method of using as pre-existing liability payment reward system (10) of claim 6, wherein establishing a rewards program (82) further comprises:

forming rules that govern transactions, transaction fund, and rewards funds; and

enrolling a system provider (52) in the rewards program.

8. The method of using a pre-existing liability payment reward system (10) of claim 6, further comprising:

using the pre-existing tax liability holder (14) to establish the rewards program.

9. The method of using a pre-existing liability payment reward system (10) of claim 6, further comprising:

using the pre-existing liability holder (14), the system provider (52), a system administrator (56), or a processing entity (50) to establish the rewards program.

10. The method of using a pre-existing liability payment reward system (10) of claim 6, wherein enrolling at least one pre-existing tax liability holder (14) further comprises:

communicating with at least one holder communication module (38) to notify the pre-existing tax liability holder (14) of program availability; and

forming an agreement with the pre-existing tax liability holder (14), the agreement operating to establish pre-existing tax liability holder (14) obligations with respect to the rewards program.

11. The method of using a pre-existing liability payment reward system (10) of claim 6, wherein enrolling at least one user (42) further comprises:

notifying at least one potential user of rewards program availability;

receiving application materials from at least one potential user;

determining financial eligibility of at least one potential user (108); and

enrolling at least one financially eligible potential user in the rewards program to define the at least one financially eligible potential user as an enrolled user.

12. The method of using a pre-existing liability payment reward system (10) of claim 11, wherein notifying at least one user (42) of program availability further comprises:

notifying the at least one potential user of program availability via at least one property tax bill associated with the at least one user (42).

13. The method of using a pre-existing liability payment reward system (10) of claim 6, wherein transacting for goods or services (46) further comprises:

determining geographical eligibility of a transaction (112) within a municipality, a state, or a county.

14. The method of using a pre-existing liability payment reward system (10) of claim 13, wherein determining geographical eligibility of a transaction (112) further comprises:

defining a predefined geographical eligibility region (114);

comparing a geographical position of a transaction with the predefined geographical eligibility region (116) to determine whether the geographical position of the transaction is within the predefined geographical eligibility region;

determining whether the geographical position transaction (112) is within the predefined geographical eligibility region (120); and

determining a reward type for the transaction.

15. The method of using a pre-existing liability payment reward system (10) of claim 14, further comprising:

providing a standard reward if the transaction is not within he predefined geographical eligibility region; and

providing a premium reward if the transaction is within the predefined geographical eligibility region.

16. The method of using a pre-existing liability payment reward system (10) of claim 6, wherein providing the reward further comprises:

determining the amount of the transaction (128);

determining the reward amount as a function of the amount of the transaction (130); and

determining reward amount as a function of geographical eligibility of the transaction (132) within a municipality, a state, or a county.

17. The method of using a pre-existing liability payment reward system (10) of claim 16, wherein providing rewards to the pre-existing tax liability holder (14) further comprises:

providing funds from the transaction to the processing entity (50);

removing a predefined percentage of the funds corresponding to a predefined processing fee;

providing remaining funds to the provider communication module (22) provided system provider (52);

removing a predefined percentage of the funds corresponding to a predefined system provider fee;

providing funds to the system communication module (34) of a system administrator (56);

using the system calculation module (36) to associate the funds received from the system provider (52) with system administrator user accounts (58), whereafter the funds from the transaction become the rewards;

removing a predefined percentage of the user rewards corresponding to a predefined system administrator fee;

providing user rewards to the holder communication module (38) of the pre-existing liability (60) to the pre-existing tax liability holder (14); and

notifying the user (42) of the reduction of the at least one pre-existing tax liability of pre-existing liability holder user accounts (40).

18. A method of using a pre-existing liability payment and reward system (10) comprising:

establishing a rewards program (82);

enrolling a pre-existing liability holder (14) in the rewards program, wherein the pre-existing liability holder (14) holds at least one pre-existing liability that is a financial liability owed by a user (42) to the pre-existing liability holder (14) because of a pre-existing relationship between the pre-existing liability holder (14) and the user (42) that existed prior to the user'"'"'s enrollment in the rewards program, and wherein the pre-existing liability holder (14) has a plurality of pre-existing liability holder user accounts (40), with each respective pre-existing liability holder user account (40) including the at least one pre-existing liability;

enrolling the user (42) in the rewards program using one or more modules, wherein the user (42) receives credit from a system provider (52) that provides credit and facilitates collection and payments of funds and rewards;

transacting for goods or services (46) in a transaction (28) between the user (42) and a merchant (16) wherein the merchant (16), offers for sale, exchange, or barter, goods or services (46) to the user (42), and accepts the credit from user (42) provided by the system provider (52) as a form of payment for the goods or services (46);

providing rewards to the pre-existing liability holder (14) resulting from information received from a processing entity(50) as calculated by a system provider calculation module (24) based on the transaction (28) between the user (42) and the merchant (16) at a predetermined time after the transaction (28) for goods or services (46) is completed; and

using the holder calculation module (32) to manage each pre-existing liability holder user accounts (40); and

to reduce the pre-existing liability (60) in the pre-existing liability holder user accounts (40) by an amount corresponding to an amount of the rewards.

19. The method of using a pre-existing liability payment and reward system (10) of claim 18 comprising:

forming an agreement with the pre-existing liability holder (14), the agreement operating to establish pre-existing liability holder obligations with respect to the rewards program.

20. The method of using a pre-existing liability payment and reward system (10) of claim 18, wherein providing rewards to the pre-existing liability holder (14) further comprises:

comprising;

using a the pre-existing liability holder, the system provider (52), a system administrator (56), or a processing entity (50) to establish the rewards program;

providing funds from the transaction to the processing entity (50);

removing a predefined percentage of the funds corresponding to a predefined processing fee;

providing remaining funds to a provider communication module (22) provided by the system provider (52);

removing a predefined percentage of the funds corresponding to a predefined system provider fee;

providing funds to a system communication module (34) of a system administrator (56);

using the system calculation module (36) to associate the funds received from the system provider (52) with system administrator user accounts (58), whereafter the funds from the transaction become the rewards;

removing a predefined percentage of the user rewards corresponding to a predefined system administrator fee;

providing user rewards to the holder communication module (38) of the pre-existing liability to the pre-existing liability holder (14); and

notifying the user (42) of the reduction of the pre-existing liability (60) of the pre-existing liability holder user accounts (40).