Method and system for processing customized reward offers

• US 6,018,718 A
• Filed: 08/28/1997
• Issued: 01/25/2000
• Est. Priority Date: 08/28/1997
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Asset Management Limited Partnership
• Inventors: Weir-Jones, Toby, Jindal, Sanjay K., Walker, Jay S.
• Primary Examiner(s): Tkacs, Stephen R.
• Application Number:
  US08/921,868
• Time in Patent Office: 880 Days
• Field of Search: 705/14, 705/30, 705/34, 705/35, 705/38, 705/39, 705/40, 705/41
• US Class Current: 705/14.17
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

The present invention is a method is for providing and managing a customized reward offer to a holder of a financial account. The method includes the step of accessing historical account data associated with the financial account. The method further includes the step of determining a first performance target associated with the financial account. The method also includes the steps of selecting a reward offer having an associated reward description and transmitting the first performance target and the reward description to the account holder. The method continues with the steps of collecting transaction data associated with the financial account and evaluating the collected transaction data to determine a second performance target associated with the financial account. The collected transaction data is then compared to said first performance target. If the collected transaction data exceeds the first performance target, the financial account is updated to reflect the reward. A system is also provided to implement the steps of the method.

Claims

1. A device for providing and managing a customized reward offer to a holder of a financial account, said device comprising:

a memory storing;

historical account data associated with said financial account; and

transaction data associated with said financial account; and

a processor operatively connected to said memory, said processor programmed to;

access said historical account data;

determine a first performance target associated with said financial account;

select a reward offer having an associated reward description;

collect and evaluate said transaction data to determine a second performance target associated with said financial account;

compare said transaction data to said first performance target; and

update said financial account to reflect said reward offer based on the step of comparing; and

an output device operatively connected to said processor, said output device adapted to transmit said first performance target and said reward description to said account holder.

2. The device of claim 1 wherein said processor is further programmed to derive an average outstanding balance based on said historical data.

3. The device of claim 1 wherein said processor is further programmed to derive an average charge volume based on said historical data.

4. The device of claim 1 wherein said processor is further programmed to derive an average number of transactions over a predetermined period based on said historical data.

5. The device of claim 1 wherein said processor is further programmed to derive an account holder behavior score based on said historical data.

6. The device of claim 1 wherein said processor is further programmed to derive an account holder profitability score based on said historical data.

7. The device of claim 1 wherein said processor is further programmed to derive an account holder credit score based on said historical data.

8. The device of claim 1 wherein said processor is further programmed to derive an account holder performance score based on said historical data.

9. The device of claim 1 wherein said processor is further programmed to periodically transmit said transaction data to said account holder.

10. The device of claim 1 wherein said processor is further programmed to compare said collected transaction data to said historical account data.

11. The device of claim 1 wherein said processor is further programmed to compare said collected data to said first performance target.

12. The device of claim 1 wherein said processor is further programmed to compare said collected data and said historical data to said first performance target.

13. The device of claim 1 wherein said processor is further programmed to receive preference data generated by said account holder, said preference data representing reward preferences.

14. The device of claim 13 wherein said processor is further programmed to transmit a menu of reward options to said account holder.

15. The device of claim 1 wherein said output device is further adapted to print a periodic account statement.

16. The device of claim 1 wherein said processor is further programmed to update a database electronically accessible by said account holder.

17. The device of claim 1 wherein said processor is further programmed to modify an interest rate.

18. The device of claim 1 wherein said processor is further programmed to modify reward program point data.

19. The device of claim 18 wherein said point data represents frequent flyer miles accumulated by said account holder.

20. The device of claim 1 wherein said processor is further programmed to modify a minimum periodic payment parameter.

21. The device of claim 1 wherein said processor is further programmed to process a rebate.

22. A system for providing and managing a customized reward offer to a holder of a financial account, said system comprising:

means for accessing historical account data associated with said financial account;

means for determining a first performance target associated with said financial account;

means for selecting a reward offer having an associated reward description;

means for transmitting said first performance target and said reward description to said account holder;

means for collecting transaction data associated with said financial account;

means for evaluating said collected transaction data to determine a second performance target;

means for comparing said collected transaction data to said first performance target; and

means for updating said financial account to reflect said reward based on the step of comparing.

23. The system of claim 22 wherein said means for accessing historical account data derives an average outstanding balance.

24. The system of claim 22 wherein said means for accessing historical account data derives an average charge volume.

25. The system of claim 22 wherein said means for accessing historical account data derives an average number of transactions over a predetermined period.

26. The system of claim 22 wherein the means for accessing historical account data derives an account holder behavior score.

27. The system of claim 22 wherein the means for accessing historical account data derives an account holder profitability score.

28. The system of claim 22 wherein the means for accessing historical account data derives an account holder credit score.

29. The system of claim 22 wherein the means for accessing historical account data derives an account holder performance score.

30. The system of claim 22 wherein the means for selecting includes receiving preference data generated by said account holder, said preference data representing reward preferences.

31. The system of claim 30 wherein the means for selecting includes transmitting a menu of reward options to said account holder.

32. The system of claim 22 wherein the means for transmitting includes printing a periodic account statement.

33. The system of claim 22 wherein the means for transmitting includes updating a database electronically accessible by said account holder.

34. The system of claim 22 wherein the means for collecting includes periodically transmitting said transaction data to said account holder.

35. The system of claim 22 wherein the means for evaluating includes comparing said collected transaction data to said historical account data.

36. The system of claim 22 wherein the means for evaluating includes comparing said collected data to said first performance target.

37. The system of claim 22 wherein the means for evaluating includes comparing said collected data and said historical data to said first performance target.

38. The system of claim 22 further comprising the means for comparing said collected transaction data to said first performance target.

39. The system of claim 22 further comprising the means for updating said financial account to reflect said reward based on the means for comparing.

40. The system of claim 22 wherein the means for updating includes modifying an interest rate.

41. The system of claim 22 wherein the means for updating includes modifying reward program point data.

42. The system of claim 41 wherein said point data represents frequent flyer miles accumulated by said account holder.

43. The system of claim 22 wherein the means for updating includes modifying a minimum periodic payment parameter.

44. The system of claim 22 wherein the means for updating includes processing a rebate.

45. A device for providing and managing a customized reward offer associated with a credit card account, said device comprising:

a memory storing;

historical account data associated with said credit card account; and

transaction data associated with said credit card account; and

a processor operatively connected to said memory, said processor programmed to;

access historical account data;

determine a first performance target associated with said credit card account;

collect transaction data associated with said credit card account; and

evaluate said collected transaction data to determine a second performance target associated with said credit card account; and

an output device operatively connected to said processor, said output device adapted to transmit said first performance target and said reward description to said account holder.

46. A computer-readable storage medium encoded with processing instructions for implementing a method for providing a customized reward offer with a credit card account, said processing instructions for directing a computer to perform the steps of:

accessing historical account data associated with said credit card account;

determining a first performance target associated with said credit card account;

collecting transaction data associated with said credit card account; and

evaluating said collected transaction data to determine a second performance target associated with said credit card account.