System for electronic barter, trading and redeeming points accumulated in frequent use reward programs

• US 20040098317A1
• Filed: 06/27/2003
• Published: 05/20/2004
• Est. Priority Date: 06/23/1999
• Status: Active Grant

• Current Assignee: Signature Systems LLC
• Original Assignee: Signature Systems LLC
• Inventors: Postrel, Richard
• Granted Patent: US 6,820,061 B2
• Time in Patent Office: Days
• US Class Current: 705/14.27
• 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/22 Payment schemes or models
• CPC Class Codes: G06Q 20/343 Cards including a counter
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 30/0208 Trade or exchange of goods or services in exchange for incentives or rewards
• CPC Class Codes: G06Q 30/0209 Incentive being awarded or redeemed in connection with the playing of a video game
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0223 based on inventory
• CPC Class Codes: G06Q 30/0225 Avoiding frauds
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0227 Frequent usage incentive value reconciliation between diverse systems
• CPC Class Codes: G06Q 30/0228 On-line clearing houses
• CPC Class Codes: G06Q 30/0229 Multi-merchant loyalty card systems
• CPC Class Codes: G06Q 30/0233 Method of redeeming a frequent usage reward
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/06 : Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 : Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G07F 17/3255 : Incentive, loyalty and/or promotion schemes, e.g. comps, gaming associated with a purchase, gaming funded by advertisements

Abstract

A system and method for operating a reward points accumulation and redemption program wherein a user earns reward points from a plurality of reward points issuing entities, each of the reward points issuing entities tracking the user'"'"'s earned reward points in a user reward point account stored on a rewards server. A trading server accumulates the user'"'"'s earned reward points from each of the reward servers interconnected over a network in association with consideration provided by the reward servers to the trading server and credits the accumulated points into a reward exchange account associated with the user. The user may then select an item for purchase from a merchant computer interconnected to the network. The merchant computer provides the item to the user in exchange for consideration received from said trading server, and the trading server reduces the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

Claims

15. A reward points accumulation and redemption system comprising:

a. a plurality of reward points issuing entities, each of said reward points issuing entities comprising means for tracking the user'"'"'s earned reward points in a user reward point account stored on a rewards server, and

b. a trading server accumulating the user'"'"'s earned reward points from each of said reward servers interconnected over a network in association with consideration provided by said reward servers to the trading server and crediting said accumulated points into a reward exchange account associated with the user.

1. A method of operating a reward points accumulation and redemption program comprising the steps of:

a) a user earning reward points from a plurality of reward points issuing entities, each of said reward points issuing entities tracking the user'"'"'s earned reward points in a user reward point account stored on rewards server, and

b) a trading server accumulating the user'"'"'s earned reward points from each of said reward servers interconnected over a network in association with consideration provided by said reward servers to the trading server and crediting said accumulated points into a reward exchange account associated with the user.

2. The method of claim 1 further comprising the steps of:

c) the user selecting an item for purchase from a merchant computer interconnected to the network,

d) the merchant computer providing the item to the user in exchange for consideration received from said trading server, and

e) the trading server reducing the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

3. The method of claim 1 in which the reward points issuing entities are selected from the group comprising an airline reward issuing entity, a credit and reward issuing entity, a hotel reward issuing entity, and a rental car reward issuing entity.

4. The method of claim 1 in which the consideration provided to the trading server by the reward issuing entity has a value higher than the value of the user'"'"'s earned reward points that are exchanged for said consideration.

5. The method of claim 1 in which the number of points in the user'"'"'s rewards server account is decreased by the number of points obtained by the trading system.

6. The method of claim 2 in which the reduction in points in the user'"'"'s account in the trading server is higher than the equivalent number of points needed to pay for the requested item whereby the trading server realizes a commission on the exchange of the user'"'"'s points for the purchased item.

7. The method of claim 2 in which the purchase may be accomplished with a combination of points exchange by the trading server and other consideration provided by the user.

8. The method of claim 2 in which the item for purchase from a merchant computer is obtained from a manufacturer'"'"'s overstocked inventory at a reduced price.

9. The method of claim 2 in which the item for purchase from a merchant computer is obtained from an inventory of timeshare properties available for exchange.

10. The method of claim 2 in which the item for purchase from a merchant computer is obtained from duty free or other restricted access goods.

11. The method of claim 1 in which the trading server transfers a user'"'"'s accumulated reward points to a smart card associated with the user.

12. The method of claim 11 in which the user may make a purchase with a merchant directly by utilizing the smart card to exchange stored accumulated reward points with the merchant for a desired item.

13. The method of claim 1 in which the user'"'"'s accumulated reward points are used to pay for entertainment services.

28. The method of claim 1 in which the number of earned points in a given user'"'"'s reward point account fluctuates as a function of the performance of the associated reward points issuing entity.

16. The system of claim 15 further comprising:

c) computer means for allowing a user to select an item for purchase from a merchant computer interconnected to the network,

d) a merchant computer for providing the item to the user in exchange for consideration received from said trading server, and

e) means for the trading server to reduce the number of points in the user'"'"'s reward exchange account in accordance with the consideration provided to the merchant computer.

17. The system of claim 15 in which the reward points issuing entities are selected from the group comprising an airline reward issuing entity, a credit and reward issuing entity, a hotel reward issuing entity, and a rental car reward issuing entity.

18. The system of claim 15 in which the consideration provided to the trading server by the reward issuing entity has a value higher than the value of the user'"'"'s earned reward points that are exchanged for said consideration.

19. The system of claim 15 in which the number of points in the user'"'"'s rewards server account is decreased by the number of points obtained by the trading system.

20. The system of claim 16 in which the reduction in points in the user'"'"'s account in the trading server is higher than the equivalent number of points needed to pay for the requested item whereby the trading server realizes a commission on the exchange of the user'"'"'s points for the purchased item.

21. The system of claim 16 in which the purchase may be accomplished with a combination of points exchange by the trading server and other consideration provided by the user.

22. The system of claim 16 in which the item for purchase from a merchant computer is obtained from a manufacturer'"'"'s overstocked inventory at a reduced price.

23. The system of claim 16 in which the item for purchase from a merchant computer is obtained from an inventory of timeshare properties available for exchange.

24. The system of claim 16 in which the item for purchase from a merchant computer is obtained from duty free or other restricted access goods.

25. The system of claim 15 in which the trading server transfers a user'"'"'s accumulated reward points to a smart card associated with the user.

26. The system of claim 25 in which the user may make a purchase with a merchant directly by utilizing the smart card to exchange stored accumulated reward points with the merchant for a desired item.

27. The system of claim 15 in which the user'"'"'s accumulated reward points are used to pay for entertainment services.

29. The method of claim 2 wherein the item selected for purchase by the user has a discount associated therewith.

28-1. The system of claim 15 in which the number of earned points in a given user'"'"'s reward point account fluctuates as a function of the performance of the associated reward points issuing entity.