System and method for issuing rewards to card holders

• US 8,452,654 B1
• Filed: 06/16/2005
• Issued: 05/28/2013
• Est. Priority Date: 06/16/2005
• Status: Expired due to Fees

• Current Assignee: Rbs Nb
• Original Assignee: Rbs Nb
• Inventors: Wooters, D. Stephen, Power, David W.
• Primary Examiner(s): Wu, Rutao
• Assistant Examiner(s): MITTAL, KRISHAN K
• Application Number:
  US11/154,779
• Time in Patent Office: 2,903 Days
• Field of Search: 705/14, 705/26, 705/17, 705/21, 705/39, 705/35, 705/10, 705/44, 705/38, 235/375, 235/380, 235/381, 235/492
• US Class Current: 705/14.34
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase

Abstract

A system and method for issuing variable level rewards to card holders according to expenditures in transaction categories. Card transactions for a specified period of time are classified by codes and are assigned to one of several transaction categories such as entertainment, travel, dining, sporting goods, and electronics. A total amount of expenditures for each transaction category is determined. The transaction category with the largest value of expenditures is determined. The highest available reward is applied to the total amount of expenditures in the transaction category that has the largest value of expenditures. Consumers may take advantage of a high level or more valuable reward in a multi-level reward structure regardless of their spending habits or patterns because the more valuable reward is applied to the expenditures in the largest expenditure transaction category.

Claims

1. A variable level reward system comprising:

a transaction data computer for;

(a) receiving from a plurality of sources financial card transaction data for a plurality of card holders;

(b) organizing said financial card transaction data according to card holder accounts for said plurality of card holders; and

(c) storing said financial card transaction data organized according to said card holder accounts for said plurality of card holders; and

a reward computer for determining a reward for one of said plurality of card holders by;

(d) receiving from said transaction data computer financial card transaction data for said card holder, said financial card transaction data related to transactions occurring during a transactional time period;

(e) assigning each of said transactions to at least one of a plurality of transaction categories;

(f) determining an expenditure level for said transactions in each of said plurality of transaction categories;

(g) determining a transaction category having a highest expenditure level;

(h) applying a high-level reward rate to expenditures in said transaction category having a highest expenditure level to determine a first reward amount;

(i) applying a low-level reward rate to expenditures in at least one transaction category other than said transaction category having said highest expenditure level to determine a second reward amount; and

(j) determining a total reward amount based on said first reward amount and said second reward amount.

2. The system of claim 1 wherein said low-level reward rate is applied to expenditures in all financial transaction categories other than said financial transaction category with said highest expenditure level.

3. The system of claim 1 wherein said low-level reward rate is applied to expenditures in said financial transaction category with said second highest expenditure level.

4. The system of claim 1 wherein said transactional time period is a plurality of billing cycles.

5. The system of claim 1 wherein said transactional time period is selected from the group consisting of a week, a month, a fiscal year, and a calendar year.

6. The system of claim 1 wherein said total reward amount is issued to said card holder in the form of a reward selected from the group consisting of a gift certificate, a rebate, cash, merchandise, or a coupon.

7. The system of claim 1 wherein said plurality of financial transaction categories are selected from the group consisting of travel, dining, groceries, electronics, entertainment, clothing, sporting goods, home maintenance, lawn and garden, appliances, pets, and automotive.

8. The system of claim 1 wherein said transactions are assigned to one of said plurality of financial transaction categories according to a transaction code.

9. The system of claim 1 wherein said sources are selected from the group consisting of traditional retailers, online retailers, entertainment establishments, and travel companies.

10. A computerized method for determining a reward for a card holder, comprising the computer implemented steps of:

(a) setting a first reward rate and a second reward rate wherein said first reward rate is higher than said second reward rate;

(b) defining a plurality of financial transaction categories;

(c) entering in a computer said first and second reward rate and said plurality of financial transaction categories;

(d) receiving at said computer a plurality of financial card transactions for said card holder wherein each transaction comprises a transaction expenditure;

(e) executing at said computer instructions to;

(1) assign each of said financial card transactions to at least one of said plurality of financial transaction categories;

(2) determining a financial category having a largest total amount of transaction expenditures by calculating a total amount of transaction expenditures for said financial card transactions in each of said plurality of financial transaction categories and comparing said totals in each of said plurality of financial transaction categories;

(3) apply said first reward rate to expenditures in said financial transaction category having said largest total amount of transaction expenditures; and

(4) apply said second reward rate to expenditures in at least one financial transaction category other than said financial transaction category having said largest total amount of transaction expenditures.

11. The computerized method of claim 10 further comprising applying said first reward rate to expenditures in a financial transaction category with a second largest total amount of transaction expenditures.

12. The computerized method of claim 11 further comprising applying said first reward rate to expenditures in a financial transaction category with a third largest total amount of transaction expenditures.

13. The computerized method of claim 10 further comprising applying said second reward rate to all expenditures.

14. The computerized method of claim 10 wherein said financial card transactions are assigned to one of said plurality of financial transaction categories according to at least one transaction code in transaction data for said financial card transactions.