Point of interaction loyalty currency redemption in a transaction

• US 10,430,774 B2
• Filed: 06/23/2017
• Issued: 10/01/2019
• Est. Priority Date: 02/13/2009
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Salmon, Diane C., Day, Meara, Amaro, Leigh
• Primary Examiner(s): Hayles, Ashford S
• Application Number:
  US15/632,098
• Publication Number:
  US 20170293907A1
• Time in Patent Office: 830 Days
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/206 comprising security or operator identification provisions, e.g. password entry
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0227 Frequent usage incentive value reconciliation between diverse systems
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Multiple different non-financial loyalty currencies held by different issuers are used by a consumer as financial tender for a transaction with a merchant. Each issuer pays to a primary issuer the financial currency value of the non-financial loyalty currencies being held in return for a corresponding reduction of the balance of non-financial loyalty currency. For each reduced balance, the primary issuer adds an equivalent primary loyalty currency to a primary loyalty account for the consumer. The primary issuer pays the merchant for the transaction in financial currency and makes an equivalent reduction in the balance of the primary loyalty currency. The financial value of each loyalty currency may be dependent upon its use in a transaction with a competitor of a merchant supplying loyalty currency to the consumer.

Claims

1. A computing apparatus configured on an electronic payment processing network, the computing apparatus comprising:

a database storing registration data associating;

a payment account controlled by a primary issuer on the electronic payment processing network to hold financial currencies for a user; and

a plurality of loyalty accounts controlled by a plurality of secondary issuers respectively to hold loyalty currencies for the user;

a processor; and

memory storing instructions which when executed by the processor cause the processor, in response to a point of service (POS) terminal making an authorization request in the electronic payment processing network for a payment transaction in the payment account, to;

determine a first redemption amount of funds to be applied to the payment transaction via redeeming loyalty currencies associated with the payment account identified in the authorization request;

compute, according to the registration data in the database, second redemption amounts respectively from the plurality of loyalty accounts that are associated with the payment account in the database;

communicate, by the computing apparatus in accordance with the second redemption amounts, with each respective issuer in the plurality of secondary issuers to cause;

the respective issuer to send to the primary issuer an equivalent financial currency value of a loyalty currency value of the user being held by the respective issuer, in exchange for a corresponding reduction of the loyalty currency value from a respective loyalty account controlled by the respective issuer, and

the primary issuer to add an equivalent primary loyalty currency value to a primary loyalty account of the user for the equivalent financial currency value received from the respective issuer; and

communicate, by the computing apparatus in accordance with the first redemption amount, with the primary issuer to cause the primary issuer to;

send, as financial tender for the payment transaction, at least a first financial currency value corresponding to a sum of loyalty currency values that are reduced in the plurality of loyalty accounts as a result of the computing apparatus communicating with each respective issuer in the plurality of secondary issuers; and

make a reduction in the primary loyalty account according to the first financial currency value sent as financial tender for the payment transaction.

2. The computing apparatus of claim 1, wherein in response to the point of service (POS) terminal making the authorization request in the electronic payment processing network for the payment transaction in the payment account, the instructions are further configured to cause the computing apparatus to communicate with the primary issuer, causing the primary issuer to deduct, from payment account a difference between:

a transaction amount requested in the authorization request for the payment transaction; and

the first financial currency value corresponding to the sum of the loyalty currency values that are reduced in the plurality of loyalty accounts as the result of the computing apparatus communicating with each respective issuer in the plurality of secondary issuers.

3. The computing apparatus of claim 1, wherein the instructions are further configured to cause the computing apparatus to receive identifiers of the loyalty accounts and generate the registration data stored in the database.

4. The computing apparatus of claim 1, wherein the instructions are further configured to cause the computing apparatus to communicate with the point of service (POS) terminal, causing the point of service (POS) terminal to present an acknowledgement that the primary loyalty of the user has a sufficient balance for the first redemption amount of funds.

5. The computing apparatus of claim 4, wherein the instructions are further configured to cause the computing apparatus to receive an identity of a merchant operating the point of service (POS) terminal to identify a conversion factor between the equivalent financial currency value and the loyalty currency value of the user being held by the respective issuer.

6. The computing apparatus of claim 1, wherein the instructions are further configured to cause the computing apparatus to communicate with the respective issuer, causing the respective issuer to clear and settle the equivalent financial currency value sent to the primary issuer.

7. The computing apparatus of claim 1, wherein the instructions are further configured to cause the computing apparatus to communicate with the primary issuer, causing the primary issuer to clear and settle the first financial currency value sent as financial tender for the payment transaction.

8. A non-transitory computer medium storing instructions which, when executed by a processor of a computing apparatus configured on an electronic payment processing network, cause the computing apparatus to:

store, in a database of the computing apparatus, registration data associating;

a payment account controlled by a primary issuer on the electronic payment processing network to hold financial currencies for a user; and

a plurality of loyalty accounts controlled by a plurality of secondary issuers respectively to hold loyalty currencies for the user; and

in response to a point of service (POS) terminal making an authorization request in the electronic payment processing network for a payment transaction in the payment account;

determine a first redemption amount of funds to be applied to the payment transaction via redeeming loyalty currencies associated with the payment account identified in the authorization request;

compute, according to the registration data in the database, second redemption amounts respectively from the plurality of loyalty accounts that are associated with the payment account in the database;

communicate, by the computing apparatus in accordance with the second redemption amounts, with each respective issuer in the plurality of secondary issuers to cause;

the respective issuer to send to the primary issuer an equivalent financial currency value of a loyalty currency value of the user being held by the respective issuer, in exchange for a corresponding reduction of the loyalty currency value from a respective loyalty account controlled by the respective issuer, and

the primary issuer to add an equivalent primary loyalty currency value to a primary loyalty account of the user for the equivalent financial currency value received from the respective issuer; and

communicate, by the computing apparatus in accordance with the first redemption amount, with the primary issuer to cause the primary issuer to;

send, as financial tender for the payment transaction, at least a first financial currency value corresponding to a sum of loyalty currency values that are reduced in the plurality of loyalty accounts as a result of the computing apparatus communicating with each respective issuer in the plurality of secondary issuers; and

make a reduction in the primary loyalty account according to the first financial currency value sent as financial tender for the payment transaction.

9. The non-transitory computer medium of claim 8, wherein in response to the point of service (POS) terminal making the authorization request in the electronic payment processing network for the payment transaction in the payment account, the instructions are further configured to cause the computing apparatus to communicate with the primary issuer, causing the primary issuer to deduct, from payment account a difference between:

a transaction amount requested in the authorization request for the payment transaction; and

the first financial currency value corresponding to the sum of the loyalty currency values that are reduced in the plurality of loyalty accounts as the result of the computing apparatus communicating with each respective issuer in the plurality of secondary issuers.

10. The non-transitory computer medium of claim 8, wherein the instructions are further configured to cause the computing apparatus to receive identifiers of the loyalty accounts and generate the registration data stored in the database.

11. The non-transitory computer medium of claim 8, wherein the instructions are further configured to cause the computing apparatus to communicate with the point of service (POS) terminal, causing the point of service (POS) terminal to present an acknowledgement that the primary loyalty of the user has a sufficient balance for the first redemption amount of funds.

12. The non-transitory computer medium of claim 11, wherein the instructions are further configured to cause the computing apparatus to receive an identity of a merchant operating the point of service (POS) terminal to identify a conversion factor between the equivalent financial currency value and the loyalty currency value of the user being held by the respective issuer.

13. The non-transitory computer medium of claim 8, wherein the instructions are further configured to cause the computing apparatus to communicate with the respective issuer, causing the respective issuer to clear and settle the equivalent financial currency value sent to the primary issuer.

14. The non-transitory computer medium of claim 8, wherein the instructions are further configured to cause the computing apparatus to communicate with the primary issuer, causing the primary issuer to clear and settle the first financial currency value sent as financial tender for the payment transaction.

15. A method implemented in a computing apparatus configured on an electronic payment processing network, the method comprising:

storing, in a database, registration data associating;

a payment account controlled by a primary issuer on the electronic payment processing network to hold financial currencies for a user; and

a plurality of loyalty accounts controlled by a plurality of secondary issuers respectively to hold loyalty currencies for the user; and

in response to a point of service (POS) terminal making an authorization request in the electronic payment processing network for a payment transaction in the payment account;

determining a first redemption amount of funds to be applied to the payment transaction via redeeming loyalty currencies associated with the payment account identified in the authorization request;

computing, according to the registration data in the database, second redemption amounts respectively from the plurality of loyalty accounts that are associated with the payment account in the database;

communicating, by the computing apparatus in accordance with the second redemption amounts, with each respective issuer in the plurality of secondary issuers, causing;

the respective issuer to send to the primary issuer an equivalent financial currency value of a loyalty currency value of the user being held by the respective issuer, in exchange for a corresponding reduction of the loyalty currency value from a respective loyalty account controlled by the respective issuer, and

the primary issuer to add an equivalent primary loyalty currency value to a primary loyalty account of the user for the equivalent financial currency value received from the respective issuer; and

communicating, by the computing apparatus in accordance with the first redemption amount, with the primary issuer, causing the primary issuer to;

send, as financial tender for the payment transaction, at least a first financial currency value corresponding to a sum of loyalty currency values that are reduced in the plurality of loyalty accounts as a result of the computing apparatus communicating with each respective issuer in the plurality of secondary issuers; and

make a reduction in the primary loyalty account according to the first financial currency value sent as financial tender for the payment transaction.

16. The method of claim 15, further comprising:

in response to the point of service (POS) terminal making the authorization request in the electronic payment processing network for the payment transaction in the payment account, communicating by the computing apparatus with the primary issuer, causing the primary issuer to deduct, from payment account a difference between;

a transaction amount requested in the authorization request for the payment transaction; and

the first financial currency value corresponding to the sum of the loyalty currency values that are reduced in the plurality of loyalty accounts as the result of the computing apparatus communicating with each respective issuer in the plurality of secondary issuers.

17. The method of claim 15, further comprising:

receiving, in the computing apparatus, identifiers of the loyalty accounts and generate the registration data stored in the database.

18. The method of claim 15, further comprising:

communicating, by the computing apparatus, with the point of service (POS) terminal, causing the point of service (POS) terminal to present an acknowledgement that the primary loyalty of the user has a sufficient balance for the first redemption amount of funds.

19. The method of claim 18, further comprising:

receiving, in the computing apparatus, an identity of a merchant operating the point of service (POS) terminal to identify a conversion factor between the equivalent financial currency value and the loyalty currency value of the user being held by the respective issuer.

20. The method of claim 15, further comprising:

communicating, by the computing apparatus with the respective issuer, causing the respective issuer to clear and settle the equivalent financial currency value sent to the primary issuer; and

communicating, by the computing apparatus with the primary issuer, causing the primary issuer to clear and settle the first financial currency value sent as financial tender for the payment transaction.