Systems and methods for providing flexible incentive rewards

• US 8,770,473 B2
• Filed: 03/17/2006
• Issued: 07/08/2014
• Est. Priority Date: 10/25/2005
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Bufford, Joshua, Landi, Christine, Lintvet, Jon
• Primary Examiner(s): WALSH, DANIEL I
• Application Number:
  US11/377,668
• Publication Number:
  US 20070094114A1
• Time in Patent Office: 3,035 Days
• Field of Search: 235/379, 235/380, 705/14.25, 705/14.27, 705/14.28, 705/14.32, 705/14.33, 705/14.43
• US Class Current: 235/379
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Systems and methods are disclosed for providing a financial account with incentives. In one implementation, a method is provided that includes receiving a selection of at least one identified merchant from a customer, the customer being associated with the financial account. The method also includes providing a first incentive to the financial account for one or more purchases made with the financial account at a merchant other than the identified merchant. Further, the method may include providing a second incentive to the financial account for one or more purchases made at the identified merchant with the financial account, wherein the first incentive is different than the second incentive.

Claims

1. A computer-implemented method to incentivize use of financial accounts, the method comprising:

establishing, by a computer processor, an electronic record for a financial account of a customer, the establishing including;

creating a network of preferred merchants according to at least a profitability grid and a profitability model formula,

determining a profitability for a financial account issuer associated with the financial account for a plurality of incentives for the financial account based upon at least the profitability grid, the profitability model formula, and historical data associated with financial accounts of the customer,

associating a first incentive with the financial account when a purchase transaction is made by the customer with the financial account with a merchant from the network of preferred merchants, and

associating a second incentive, which is different from the first incentive, with the financial account when a purchase transaction is made by the customer with the financial account with a non-network merchant that is not among the network of preferred merchants;

receiving, by the computer processor, a customer selection of at least one new merchant that is not among the network of preferred merchants to add to the network of preferred merchants;

updating, by the computer processor, the network of preferred merchants by adding the at least one new merchant to the network of preferred merchants based on the customer selection; and

providing the first incentive or second incentive to the customer based on purchase transactions made using the financial account.

2. The method of claim 1,

wherein the first incentive includes assigning a first amount of reward points to the financial account,

wherein the second incentive includes assigning a second amount of reward points to the financial account, and

wherein the first amount of reward points is higher than the second amount of reward points.

3. The method of claim 1,

wherein the first incentive includes a first cash-back offer and the second incentive includes a second cash-back offer, and

wherein the first cash-back offer is an offer for a cash-back amount that is larger than a cash-back amount for the second cash-back offer.

4. The method of claim 1,

wherein the first incentive includes assigning a first amount of traveler miles,

wherein the second incentive includes assigning a second amount of traveler miles, and

wherein the first amount of traveler miles is higher than the second amount of traveler miles.

5. The method of claim 1, further comprising:

collecting statistics associated with purchase transactions made at a merchant from the network of preferred merchants with the financial account;

providing the statistics to the merchant; and

requesting compensation for the purchases based on the statistics.

6. The method of claim 1, wherein at least one of the first incentive and the second incentive is a tiered incentive.

7. The method of claim 1, wherein the receiving the customer selection of the at least one new merchant comprises:

providing a list of merchants not among the network of preferred merchants to the customer; and

receiving the selection of the new merchant from the customer based on the provided list of merchants.

8. The method of claim 7, wherein the list of merchants includes one or more merchants that have previously performed a purchase transaction with the financial account.

9. A system to incentivize use of financial accounts, comprising:

a memory; and

a computer processor that implements a process comprising;

establishing an electronic record for the financial account of a customer, the establishing including;

creating a network of preferred merchants according to at least a profitability grid and profitability model formula,

determining a profitability for a financial account issuer associated with the financial account for a plurality of incentives for the financial account of the customer based upon at least the profitability grid, the profitability model formula, and historical data associated with financial accounts of the customer,

associating a first incentive with the financial account when a purchase transaction is made by the customer with the financial account with a merchant from the network of preferred merchants, and

associating a second incentive, which is different from the first incentive, with the financial account when a purchase transaction is made by the customer with the financial account with a non-network merchant that is not among the network of preferred merchants;

receiving a customer selection of at least one new merchant that is not among the network of preferred merchants to add to the network of preferred merchants;

updating the network of preferred merchants by adding the at least one new merchant to the network of preferred merchants based on the customer selection; and

providing the first incentive or second incentive to the customer based on purchase transactions made using the financial account.

10. The system of claim 9,

wherein the first incentive includes assigning a first amount of reward points to the financial account,

wherein the second incentive includes assigning a second amount of reward points to the financial account, and

wherein the first amount of reward points is higher than the second amount of reward points.

11. The system of claim 9,

wherein the first incentive includes a first cash-back offer and the second incentive includes a second cash-back offer, and

wherein the first cash-back offer is an offer for a cash-back amount that is larger than a cash-back amount for the second cash-back offer.

12. The system of claim 9,

wherein the first incentive includes assigning a first amount of traveler miles,

wherein the second incentive includes assigning a second amount of traveler miles, and

wherein the first amount of traveler miles is higher than the second amount of traveler miles.

13. The system of claim 9, wherein the process further comprises:

collecting statistics associated with purchase transactions made at a merchant from the network of preferred merchants with the financial account;

providing the statistics to the merchant; and

providing a request to the merchant for compensation for the purchases based on the statistics.

14. The system of claim 9, wherein at least one of the first incentive and the second incentive is a tiered incentive.

15. The system of claim 9, wherein receiving the customer selection of the at least one new merchant comprises:

providing a list of merchants not among the network of preferred merchants to the customer; and

receiving the selection of the new merchant from the customer based on the provided list of merchants.

16. The system of claim 15, wherein the list of merchants includes one or more merchants that have previously performed a purchase transaction with the financial account.

17. A non-transitory computer-readable medium storing a program for causing, when executed by a computer processor, a computer to perform operations comprising:

establishing an electronic record for a financial account, the establishing including;

creating a network of preferred merchants according to at least a profitability grid and profitability model formula,

determining a profitability for a financial account issuer associated with the financial account for a plurality of incentives for the financial account of the customer based upon at least the profitability grid, the profitability model formula, and historical data associated with financial accounts of the customer,

associating a first incentive with the financial account when a purchase transaction is made by the customer with the financial account with a merchant from the group of preferred merchants, and

associating a second incentive, which is different from the first incentive, with the financial account when a purchase transaction is made by the customer with the financial account with a non-network merchant that is not among the group of preferred merchants;

receiving a customer selection of at least one new merchant that is not among the group of preferred merchants to add to the group of preferred merchants;

updating the group of preferred merchants by adding the at least one new merchant to the group of preferred merchants based on the customer selection; and

providing the first incentive or second incentive to the customer based on purchase transactions made using the financial account.

18. The non-transitory computer-readable medium of claim 17,

wherein the first incentive includes assigning a first amount of reward points to the financial account,

wherein the second incentive includes assigning a second amount of reward points to the financial account, and

wherein the first amount of reward points is higher than the second amount of reward points.

19. The non-transitory computer-readable medium of claim 17,

wherein the first incentive includes a first cash-back offer and the second incentive includes a second cash-back offer, and

wherein the first cash-back offer is an offer for a cash-back amount that is larger than a cash-back amount for the second cash-back offer.

20. The non-transitory computer-readable medium of claim 17,

wherein the first incentive includes assigning a first amount of traveler miles,

wherein the second incentive includes assigning a second amount of traveler miles, and

wherein the first amount of traveler miles is higher than the second amount of traveler miles.

21. The non-transitory computer-readable medium of claim 17, wherein the method further comprises:

collecting statistics associated with purchase transactions made at a merchant from the group of preferred merchants with the financial account;

providing the statistics to the merchant; and

requesting compensation for the purchases based on the statistics.

22. The non-transitory computer-readable medium of claim 17, wherein at least one of the first incentive and the second incentive is a tiered incentive.

23. The non-transitory computer-readable medium of claim 17, wherein the receiving the customer selection of the at least one merchant comprises:

providing a list of merchants outside the group of preferred merchants to the customer; and

receiving the selection of the merchant from the customer based on the provided list of merchants.

24. The non-transitory computer-readable medium of claim 23, wherein the list of merchants includes one or more merchants that have previously performed a purchase transaction with the financial account.