Method and system for managing reward reversal after posting

• US 9,141,967 B2
• Filed: 03/01/2013
• Issued: 09/22/2015
• 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:
  US13/782,896
• Publication Number:
  US 20130179248A1
• Time in Patent Office: 935 Days
• Field of Search: 705/14.1
• US Class Current: 1/1
• 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 method for managing reward reversal in connection with a loyalty program, the method comprising:

receiving, at a computer, information relating to a previously completed transaction that is to be reversed, the previously completed transaction being associated with an account linked to the loyalty program;

determining, by the computer, reversal information for the previously completed transaction, the reversal information including a total value of the previously completed transaction, an accumulated reward, a new total transaction value, and a new accumulated reward;

reversing, by the computer, the accumulated reward earned from the previously completed transaction using the reversal information;

creating, by the computer, an escrow account upon the reversal of the previously completed transaction, the escrow account having a negative reward value, and the escrow account being created when the reversal of the previously completed transaction disqualifies redemption of the accumulated reward; and

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

2. The method of claim 1 further comprising:

determining, by the computer, whether the previously completed transaction that is to be reversed is eligible for reversal.

3. The method of claim 2 wherein the determination of whether the previously completed transaction is eligible for reversal is based on one or more rules governing the loyalty program.

4. The method of claim 3,

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

5. The method of claim 3 wherein the one or more rules governing the loyalty program includes a policy provided by a sponsor of the loyalty program.

6. The method 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.

7. The method of claim 1 wherein using the reversal information and the computer to reverse the previously completed transaction and update the associated account includes:

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

8. The method of claim 1 further comprising using the computer to record a purchase count, the purchase count corresponding to a value of stored rewards before and after the previously completed transaction.

9. The method of claim 1,

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

removing the coupon from the portable device.

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

receiving, at the point-of-sale device, information relating to a previously completed transaction that is to be reversed, the previously completed transaction being associated with an account linked to the loyalty program;

determining, by the point-of-sale device, reversal information for the previously completed transaction, the reversal information including a total value of the previously completed transaction, an accumulated reward, a new total transaction value, and a new accumulated reward;

reversing, by the point-of-sale device, the accumulated reward earned from the previously completed transaction using the reversal information;

creating, by a processor of the point-of-sale device, an escrow account upon the reversal of the previously completed transaction, the escrow account having a negative reward value, and the escrow account being created when the reversal of the previously completed transaction disqualifies redemption of the accumulated reward; and

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

11. The point-of-sale device configured to use the method of claim 10, wherein the previously completed transaction was conducted with a portable device, wherein the accumulated reward is reversed and the escrow account is created when a reward stored in the portable device is disqualified from redemption after a return from the previously completed transaction, and wherein the method further comprises using the reversal information and the processor to restore any reward that was redeemed as part of the previously completed transaction when the reward stored in the portable device qualifies for redemption after the return.

12. The point-of-sale device of claim 11, 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.

13. The point-of-sale device of claim 10, wherein the account linked to the loyalty program includes a purchase count to record a value of stored rewards before and after the previously completed transaction.

14. 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, the previously completed transaction being associated with an account linked to the loyalty program;

determine reversal information for the previously completed transaction, wherein the reversal information includes a total value of the previously completed transaction, an accumulated reward, a new total transaction value, and a new accumulated reward;

reverse the accumulated reward earned from the previously completed transaction using the reversal information;

create an escrow account upon the reversal of the previously completed transaction, the escrow account having a negative reward value, wherein the escrow account is created when the reversal of the previously completed transaction disqualifies redemption of the accumulated reward; and

use the reversal information to reverse the previously completed transaction and update the associated account.

15. The system of claim 14 further comprising control logic configured to determine whether the previously completed transaction that is to be reversed is eligible for reversal.

16. The system 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 system of claim 16 wherein the one or more rules governing the loyalty program includes a limit on a number of times transactions can be reversed under the account linked to the loyalty program.

18. The system of claim 14, further comprising control logic configured to record the purchase count, the purchase count corresponding to a value of stored rewards before and after the previously completed transaction.