Method and system for using reward points to liquidate products

• US 8,401,967 B1
• Filed: 09/13/2012
• Issued: 03/19/2013
• Est. Priority Date: 06/23/1999
• Status: Expired due to Fees

• Current Assignee: Signature Systems LLC
• Original Assignee: Signature Systems LLC
• Inventors: Postrel, Richard
• Primary Examiner(s): Havan, Thu Thao
• Application Number:
  US13/614,363
• Publication Number:
  US 20130085833A1
• Time in Patent Office: 187 Days
• Field of Search: 705 35- 40
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• 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 30/0228 On-line clearing houses
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A user selects a product to be liquidated from a product provider and then designates to the transacting entity that reward points are to be used towards the purchase of the liquidated product. The transacting entity acts to decrease the number of reward points in the user'"'"'s reward account by the required number of points. The reward account holder conveys consideration to the transacting entity equivalent to the par value of the reward points consumer obtains the product in exchange for reward points having a retail value equivalent to what he would have otherwise paid for the product, while the reward account holder is required to convey only the par value of the points. The product provider is able to liquidate the product and obtain payment equivalent to what it would otherwise have obtained in a prior art liquidation process, auction or trading environment.

Claims

1. A method of executing a product liquidation transaction comprising the steps of:

a. a user having a reward account held by a reward account holder comprising reward points awarded by a reward issuing entity to the user as part of a transaction, the reward points having a par value assigned by the reward account holder equivalent to the amount that the reward account holder will convey upon surrender of said reward points;

b. a product provider offering to sell a product at a liquidation price that is less than a reference price otherwise charged for the product;

c. the user requesting a transacting entity to facilitate the user in obtaining the product by surrendering at least some of the reward points to the reward account holder;

d. requesting the reward account holder to convey to a transacting entity the par value of the surrendered reward points;

e. the transacting entity conveying consideration to the product provider equivalent to the liquidation price of the product; and

f. the product provider causing the product to be conveyed to the user;

whereby the user receives the product from the product provider as a result of surrendering the reward points;

the reward points being surrendered with a retail value greater than the par value conveyed by the reward account holder.

2. The method of claim 1 further comprising the step of the transacting entity advertising the availability of the product in exchange for reward points.

3. The method of claim 2 wherein the liquidation price of the product is equivalent to the par value of the reward points needed to obtain the product.

4. The method of claim 2 wherein the liquidation price of the product is equivalent to the par value of the reward points and other consideration.

5. The method of claim 1 wherein the reward account holder is a single reward issuing entity.

6. The method of claim 1 wherein the reward account holder is an aggregator and the reward account is an exchange account comprising reward point value obtained as a result of exchanging reward points from at least one or more different reward issuing entities.

7. A system for executing a product liquidation transaction comprising:

a. a reward points server computer selectively interconnected over a computer network and associated with a reward account holder, comprising data storage means for storing a reward account associated with a user, the reward account configured to track reward points earned by the user for transactions between the user and a reward issuing entity, wherein the reward points have a par value assigned by the reward account holder equivalent to the amount that the reward account holder will convey upon surrender of said reward points;

b. a product provider server computer selectively interconnected over the computer network and associated with a product provider, comprising means for offering to sell a product at a liquidation price that is less than a reference price otherwise charged for the product;

c. a user computer selectively interconnected over the computer network and associated with a user, comprising means for requesting a transacting entity to facilitate the user in obtaining the product by surrendering at least some of the reward points to the reward account holder;

d. a transaction server computer selectively interconnected over the computer network and associated with a transacting entity, comprising;

i. means for requesting the reward account holder to convey to the transacting entity the par value of the surrendered reward points;

ii. means for conveying consideration to the product provider equivalent to the liquidation price of the product;

whereby the user receives the product from the product provider as a result of surrendering the reward points;

the reward points being surrendered with a retail value greater than the par value conveyed by the reward points issuing entity.

8. The system of claim 7 wherein the transaction server computer further comprises means for advertising the availability of the product in exchange for reward points.

9. The system of claim 8 wherein the liquidation price of the product is equivalent to the par value of the reward points needed to obtain the product.

10. The system of claim 8 wherein the liquidation price of the product is equivalent to the par value of the reward points and other consideration.

11. The system of claim 8 wherein a transaction fee is conveyed from the user to the transacting entity in exchange for executing the transaction.

12. The system of claim 8 wherein a transaction fee is conveyed from the reward account holder to the transacting entity in exchange for executing the transaction.

13. The system of claim 8 wherein a transaction fee is conveyed from the product provider to the transacting entity in exchange for executing the transaction.

14. The system of claim 7 wherein the reward account holder is a single reward issuing entity.

15. The system of claim 7 wherein the reward account holder is an aggregator and the reward account is an exchange account comprising reward point value obtained as a result of exchanging reward points from at least one or more different reward issuing entities.