Method and system for managing reward reversal after posting

• US 8,407,083 B2
• Filed: 09/30/2003
• Issued: 03/26/2013
• Est. Priority Date: 09/30/2003
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Bortolin, Corinne, Hammad, Ayman
• Primary Examiner(s): Lastra, Daniel
• Application Number:
  US10/678,030
• Publication Number:
  US 20050071228A1
• Time in Patent Office: 3,465 Days
• Field of Search: 705/14, 705/14.1
• US Class Current: 705/14.1
• 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 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G07G 1/12 electronically operated digital data processing aspects G06Q20/00

Abstract

A system for managing reward reversal is provided. The system includes a device that is capable of adjusting the accumulation and redemption levels of rewards after a purchase or return transaction.

Claims

1. A system for managing reward reversals in connection with a loyalty program, comprising:

a computer comprising

control logic configured to receive information relating to a previously completed transaction that is to be reversed including a total value being returned and a total value of the previously completed transaction, the previously completed transaction being associated with an account linked to the loyalty program governed by one or more rules including an expiration limit on when the previously completed transaction can be reversed and an override of the expiration limit, wherein the total value being returned is less than the total value of the previously completed transaction,

control logic configured to determine reversal information for the transaction to be reversed, wherein the reversal information determination includes

determining that the total value of the previously completed transaction had earned an accumulated reward,

determining a new total transaction value to account for the total value being returned, and

determining if the new total transaction value earns any accumulated reward,

control logic configured to use the reversal information to back out the accumulated reward earned for the previously completed transaction,

control logic configured to restore any reward that was redeemed as part of the previously completed transaction,

control logic configured use the reversal information to add any accumulated reward for the new total transaction value to the account,

control logic configured to determine whether the account has a negative reward value,

control logic configured to create an escrow account upon the reversal of the previously completed transaction, the escrow account having the negative reward value,

control logic configured to clear the escrow account upon one or more transactions completed after the reversal, and

control logic configured to use the reversal information to reverse the previously completed transaction and update the account.

2. The system of claim 1 further comprising control logic configured to determine whether the previously completed transaction that is to be reversed is eligible for reversal.

3. The system of claim 2 wherein the previously completed transaction was conducted with a portable device;

and

wherein the determination as to whether the previously completed transaction is eligible for reversal is made based on whether the portable device is presented for reversing the previously completed transaction.

4. The system of claim 3 wherein the wherein the portable device comprises an EEPROM.

5. The system of claim 1 further comprising control logic configured to determine whether the previously completed transaction that is to be reversed is eligible for reversal, wherein the determination as to whether the previously completed transaction is eligible for reversal is made based on the one or more rules governing the loyalty program.

6. The system of claim 5 wherein the one or more rules governing the loyalty program includes a limit on number of times transactions can be reversed under the account.

7. The system of claim 5 wherein the one or more rules governing the loyalty program includes a policy provided by a sponsor of the loyalty program.

8. The system of claim 1 wherein the control logic configured to use the reversal information to reverse the previously completed transaction and update the account includes:

control logic configured to update a reversal activity log after the previously completed transaction has been reversed.

9. The system of claim 1 wherein the computer is a point-of-sale device.

10. The system of claim 1, wherein the control logic configured to use the reversal information to reverse the previously completed transaction and update the account comprises:

control logic configured to determine a refund for the reversed transaction and store the history of the reversed transaction.

11. The system of claim 1, wherein the computer is configured to operate offline.

12. The system of claim 11, wherein the computer further comprises control logic configured use to the reversal information to restore any reward that was redeemed as part of the previously completed transaction.

13. The system of claim 1, further comprising control logic configured to record a purchase count, the purchase count corresponding to the value of stored rewards before and after the previously completed transaction.

14. A method for managing reward reversals in connection with a loyalty program governed by one or more rules, comprising:

receiving information at a computer relating to a previously completed transaction that is to be reversed including a total value being returned and a total value of the previously completed transaction, the previously completed transaction being associated with an account linked to the loyalty program, wherein the total value being returned is less than the total value of the previously completed transaction, and wherein the one or more rules governing the loyalty program include an expiration limit on when the previously completed transaction can be reversed and an override of the expiration limit;

using the computer to determine reversal information for the transaction to be reversed, wherein the reversal information determination includes

determining that the total value of the transaction had earned an accumulated reward,

determining a new total transaction value to account for the total value being returned, and

determining if the new total transaction value earns any accumulated reward;

using the reversal information and the computer to back out the accumulated reward earned for the previously completed transaction;

restoring any reward that was redeemed as part of the previously completed transaction;

using the reversal information and the computer to add any accumulated reward for the new total transaction value to the account;

determining whether the account has a negative reward value;

creating an escrow account upon the reversal of the previously completed transaction, the escrow account having the negative reward value;

clearing the escrow account upon one or more transactions completed after the reversal; and

using the reversal information and the computer to reverse the previously completed transaction and update the account.

15. The method of claim 14 further comprising:

using the computer to determine whether the previously completed transaction that is to be reversed is eligible for reversal.

16. The method of claim 15 wherein the determination as to whether the previously completed transaction is eligible for reversal is made based on the one or more rules governing the loyalty program.

17. The method of claim 16,

wherein the one or more rules governing the loyalty program includes a limit on number of times transactions can be reversed under the account.

18. The method of claim 16 wherein the one or more rules governing the loyalty program includes a policy provided by a sponsor of the loyalty program.

19. The method of claim 15 wherein the previously completed transaction was conducted with a portable device;

and

wherein the determination as to whether the previously completed transaction is eligible for reversal is made based on whether the portable device is presented for reversing the previously completed transaction.

20. The method of claim 19 wherein the portable device includes a redemption level and an accumulation level.

21. The method of claim 19 wherein the portable device is wirelessly connected to the computer.

22. The method of claim 14 wherein using the reversal information and the computer to reverse the previously completed transaction and update the account includes:

updating a reversal activity log after the previously completed transaction has been reversed.

23. The method of claim 14, wherein the one or more rules comprises a requirement of a purchase of six qualifying products for a reward of ten percent off a purchase.

24. The method of claim 14, further comprising the use of one count to continuously maintain the current purchase count while clearing the balance for return transactions by the use of a separate count.

25. The method of claim 14, further comprising using the computer to record a purchase count, the purchase count corresponding to the value of stored rewards before and after the previously completed transaction.

27. The method of claim 14,

wherein a coupon has been provided to a portable device associated with the account, wherein the coupon is configured to be redeemed during a subsequent transaction, the method further comprising:

removing the coupon from the portable device.

26. A point-of-sale device configured to use a method for managing reward reversals in connection with a loyalty program governed by one or more rules, the method comprising:

receiving information at a computer relating to a previously completed transaction that is to be reversed including a total value being returned and a total value of the previously completed transaction, the previously completed transaction being associated with an account linked to the loyalty program, wherein the total value being returned is less than the total value of the previously completed transaction, and wherein the one or more rules governing the loyalty program include an expiration limit on when the previously completed transaction can be reversed and an override of the expiration limit;

using the computer to determine reversal information for the transaction to be reversed, wherein the reversal information determination includes

determining that the total value of the transaction had accumulated rewards,

determining a new total transaction value to account for the total value being returned, and

determining if the new total transaction value earns any accumulated reward;

using the reversal information and the computer to back out the accumulated reward earned for the previously completed transaction;

using the reversal information and the computer to restore any reward that was redeemed as part of the previously completed transaction;

using the reversal information and the computer to add any accumulated reward for the new total transaction value to the account;

determining whether the account has a negative reward value;

using the reversal information and the computer to create an escrow account upon the reversal of the previously completed transaction, the escrow account having the negative reward value,

using the computer to clear the escrow account upon one or more transactions completed after the reversal; and

using the reversal information and the computer to reverse the previously completed transaction and update the account.

28. The point of sale device configured to use a method of claim 26, wherein the method further comprises using the reversal information and the computer to restore any reward that was redeemed as part of the previously completed transaction.

29. The point-of-sale device of claim 26, wherein the point-of-sale device is configured to operate offline, such that information is periodically transmitted from the point-of-sale device to a host through a communication medium.

30. The point of sale device of claim 26, wherein the account includes a purchase count to record the value of stored rewards before and after the previously completed transaction.