Point of interaction loyalty currency redemption in a transaction

• US 9,721,238 B2
• Filed: 02/11/2010
• Issued: 08/01/2017
• Est. Priority Date: 02/13/2009
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Salmon, Diane, Dey, Meara Day, Amaro, Leigh
• Primary Examiner(s): Hayles, Ashford S
• Application Number:
  US12/704,445
• Publication Number:
  US 20100211469A1
• Time in Patent Office: 2,728 Days
• Field of Search: 705 16
• 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 method, comprising:

providing, by a web site via a web page to a web-enable client, a user interface for a network of computers comprising;

a transaction handler configured in an electronic payment processing network that connects separate computers, including;

computers of merchants configured to generate authorization requests for payment transactions between merchants and users in payment accounts issued by issuers;

computers of acquirers of the merchants;

computers of the issuers controlling the payment accounts; and

the transaction handler interconnecting the computers of the acquirers and the computers of the issuers, wherein the electronic payment processing network has a predetermined communication protocol configured for the separate computers to process the payment transactions initiated using the payment accounts, including a payment account of a consumer;

a loyalty aggregator coupled with the transaction handler;

a database coupled with the loyalty aggregator; and

memory storing instructions which when executed by the transaction handler causes the transaction handler to perform the method;

receiving, from the consumer via the user interface, registration data associating the payment account of the consumer and a plurality of loyalty accounts of the consumer;

storing, in the database, the registration data;

receiving, in the transaction handler configured in the electronic payment processing network, an authorization request for a payment transaction initiated on a point of service (POS) terminal of a merchant using the payment account issued by a primary issuer to hold financial currency, wherein the authorization request identifies, in accordance with the predetermined communication protocol,

the payment account,

a transaction amount to be authorized for the payment transaction in the payment account, and

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;

wherein the registration data stored in the database indicates that the consumer has multiple different non-financial loyalty currencies held in the loyalty accounts by a plurality of different loyalty issuers, and

wherein the plurality of loyalty issuers include the primary issuer and second issuers; and

in response to the authorization request identifying the first redemption amount,

communicating by the transaction handler the first redemption amount and the payment account to the loyalty aggregator;

in response to the transaction handler communicating the first redemption amount and the payment account to the loyalty aggregator, computing, by the loyalty aggregator using the registration data in the database, second redemption amounts from the loyalty accounts associated with the payment account;

based on a result of the computing by the loyalty aggregator, communicating by the transaction handler, in accordance with the second redemption amounts, with each respective issuer in the second issuers to cause;

the respective issuer to pay to the primary issuer an equivalent financial currency value of a non-financial loyalty currency value of the customer being held by the respective issuer in return for a corresponding reduction of the non-financial loyalty currency value from a respective loyalty account issued by the respective issuer to the consumer, and

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

communicating by the transaction handler, in accordance with the first redemption amount, with the primary issuer to cause the primary issuer to;

send a first financial currency value corresponding to the non-financial loyalty currencies used as financial tender for the payment transaction, and

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

2. The method of claim 1, wherein the equivalent financial currency value of the non-financial loyalty currency value, paid by the respective issuer to the primary issuer, is dependent upon whether the merchant in the transaction is the respective issuer.

3. The method of claim 1, further comprising:

converting at least a portion of an account balance in the respective loyalty account, issued to the customer by the respective issuer, into the equivalent primary loyalty currency value in the primary loyalty account of the consumer, including;

collecting the equivalent financial currency value from the respective issuer of the respective loyalty account; and

adding, to the primary loyalty account of the consumer, the equivalent primary loyalty currency value corresponding to the portion of the account balance being converted;

wherein the sending of the first financial currency value and the making of the reduction in the primary loyalty account are in response to a determination that an account balance in the primary loyalty account has a value above a loyalty redemption amount for the transaction.

4. The method of claim 3, further comprising:

deducting from a financial currency account of the consumer a difference between a total amount for the transaction and the loyalty redemption amount in the transaction; and

tendering the difference for delivery to the acquirer for the merchant through the transaction handler for the transaction.

5. The method of claim 4, further comprising:

adding the equivalent financial currency value to the financial currency account.

6. The method of claim 3, further comprising:

receiving, in the transaction, the loyalty redemption amount in a financial currency to be converted from the primary loyalty account, wherein the communicating to cause the respective issuer to pay to the primary issuer is performed with one or more issuers until a balance of the primary loyalty account is no less than the loyalty redemption amount;

retrieving the account balance of the respective loyalty account and a conversion factor to convert from the respective loyalty account to the primary loyalty account; and

deriving the equivalent primary loyalty currency value using the conversion factor.

7. The method of claim 6, further comprising:

receiving an identifier of the consumer for the transaction; and

identifying the second issuers based on the identifier of the consumer for the converting from the respective loyalty account to the primary loyalty account.

8. The method of claim 6, further comprising:

sending an acknowledgment to a Point of Service terminal of the merchant when the balance of the primary loyalty account is no less than the loyalty redemption amount.

9. The method of claim 6, further comprising:

sending a message for clearing and settlement of the equivalent financial currency value.

10. The method of claim 6, further comprising:

receiving, from the acquirer for the merchant, an authorization request in the transaction, the authorization request identifying an amount that is the difference between a total amount for the transaction and the loyalty redemption amount; and

sending, by the computing device, the authorization request received from the acquirer to an issuer of a financial currency account of the consumer.

11. The method of claim 6, further comprising:

receiving an identifier of the merchant, wherein the conversion factor is based on the identifier of the merchant.

12. The method of claim 6, wherein the communicating includes:

sending, to the respective issuer of the respective loyalty account, an authorization request to use the respective loyalty account for the transaction; and

receiving, in response to the authorization request, an authorization response;

wherein the adding of the equivalent primary loyalty currency value to the primary loyalty account of the consumer is in response to a determination that the authorization response is affirmative.

13. The method of claim 12, further comprising:

receiving an identifier of the consumer; and

receiving identifiers of respective loyalty accounts using the identifier of the consumer.

14. The method of claim 12, further comprising:

sending a message for clearing and settlement of the equivalent financial currency value to the respective issuer if the authorization response is affirmative.

15. A non-transitory computer readable medium storing instructions configured to instruct a computing device to perform a method, the method comprising:

providing a user interface for a network of computers comprising;

a transaction handler configured in an electronic payment processing network that connects separate computers using a predetermined communication protocol to process payment transactions initiated using payment accounts, including a payment account of a consumer, the separate computers including;

computers of merchants configured to generate authorization requests for the payment transactions between merchants and users in the payment accounts issued by issuers;

computers of acquirers of the merchants;

computers of the issuers controlling the payment accounts; and

the transaction handler interconnecting the computers of the acquirers and the computers of the issuers;

a loyalty aggregator coupled with the transaction handler; and

a database coupled with the loyalty aggregator;

receiving, from the consumer via the user interface, registration data associating the payment account of the consumer and a plurality of loyalty accounts of the consumer;

storing, in the database, the registration data;

receiving, in the transaction handler configured in the electronic payment processing network, an authorization request for a payment transaction initiated on a point of service (POS) terminal of a merchant using the payment account issued by a primary issuer to hold financial currency, wherein the authorization request identifies, in accordance with the predetermined communication protocol,

the payment account,

a transaction amount to be authorized for the payment transaction in the payment account, and

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;

wherein the registration data stored in the database indicates that the consumer has multiple different non-financial loyalty currencies held in the loyalty accounts by a plurality of different loyalty issuers, and

wherein the plurality of loyalty issuers include the primary issuer and second issuers; and

in response to the authorization request identifying the first redemption amount,

communicating by the transaction handler the first redemption amount and the payment account to the loyalty aggregator;

in response to the transaction handler communicating the first redemption amount and the payment account to the loyalty aggregator, computing, by the loyalty aggregator using the registration data in the database, second redemption amounts from the loyalty accounts associated with the payment account;

based on a result of the computing by the loyalty aggregator, communicating by the transaction handler, in accordance with the second redemption amounts, with each respective issuer in the second issuers to cause;

the respective issuer to pay to the primary issuer an equivalent financial currency value of a non-financial loyalty currency value of the customer being held by the respective issuer in return for a corresponding reduction of the non-financial loyalty currency value from a respective loyalty account issued by the respective issuer to the consumer, and

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

communicating by the transaction handler, in accordance with the first redemption amounts, with the primary issuer to cause the primary issuer to;

send a first financial currency value corresponding to the non-financial loyalty currencies used as financial tender for the payment transaction, and

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

16. A system comprising:

a transaction handler configured in an electronic payment processing network that connects separate computers, including;

computers of merchants configured to generate authorization requests for payment transactions between merchants and users in payment accounts issued by issuers;

computers of acquirers of the merchants;

computers of the issuers controlling the payment accounts; and

the transaction handler interconnecting the computers of the acquirers and the computers of the issuers, wherein the electronic payment processing network has a predetermined communication protocol configured for the separate computers to process the payment transactions initiated using the payment accounts, including a payment account of a consumer;

a loyalty aggregator coupled with the transaction handler;

a database coupled with the loyalty aggregator; and

a web site configured to provide, via a web page to a web-enable client, a user interface configured to receive registration data associating a payment account of a consumer and a plurality of loyalty accounts of the consumer;

wherein the database stores the registration data;

wherein the transaction handler is configured to receive an authorization request for a payment transaction initiated on a point of service (POS) terminal of a merchant using the payment account issued by a primary issuer to hold financial currency, wherein the authorization request identifies, in accordance with the predetermined communication protocol,

the payment account,

a transaction amount to be authorized for the payment transaction in the payment account, and

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;

wherein the registration data stored in the database indicates that the consumer has multiple different non-financial loyalty currencies held in the loyalty accounts by a plurality of different loyalty issuers, and

wherein the plurality of loyalty issuers include the primary issuer and second issuers; and

wherein, in response to the authorization request identifying the first redemption amount,

the transaction handler communicates the first redemption amount and the payment account to the loyalty aggregator;

in response to the transaction handler communicating the first redemption amount and the payment account to the loyalty aggregator, the loyalty aggregator computes, using the registration data in the database, second redemption amounts from the loyalty accounts associated with the payment account;

based on a result of the computing by the loyalty aggregator, the transaction handler communicates, in accordance with the second redemption amounts, with each respective issuer in the second issuers to cause

the respective issuer to pay to the primary issuer an equivalent financial currency value of a non-financial loyalty currency value of the customer being held by the respective issuer in return for a corresponding reduction of the non-financial loyalty currency value from a respective loyalty account issued by the respective issuer to the consumer, and

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

the transaction handler communicates, in accordance with the first redemption amounts, with the primary issuer to cause the primary issuer to;

send a first financial currency value corresponding to the non-financial loyalty currencies used as financial tender for the payment transaction, and

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