WO1994004979A1 - Transaction processing system - Google Patents

Transaction processing system Download PDF

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Publication number
WO1994004979A1
WO1994004979A1 PCT/US1993/007533 US9307533W WO9404979A1 WO 1994004979 A1 WO1994004979 A1 WO 1994004979A1 US 9307533 W US9307533 W US 9307533W WO 9404979 A1 WO9404979 A1 WO 9404979A1
Authority
WO
WIPO (PCT)
Prior art keywords
subscriber
rebate
system according
investment
system
Prior art date
Application number
PCT/US1993/007533
Other languages
French (fr)
Inventor
Richard W. Hartt
Lewis S. Burger
C. Lloyd Mahaffey
Original Assignee
S.T.A.R.T., Inc.
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Priority to US92716292A priority Critical
Priority to US07/927,162 priority
Application filed by S.T.A.R.T., Inc. filed Critical S.T.A.R.T., Inc.
Publication of WO1994004979A1 publication Critical patent/WO1994004979A1/en

Links

Classifications

    • GPHYSICS
    • G06COMPUTING; CALCULATING; COUNTING
    • G06QDATA PROCESSING SYSTEMS OR METHODS, SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORY OR FORECASTING PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORY OR FORECASTING PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00Commerce, e.g. shopping or e-commerce
    • G06Q30/02Marketing, e.g. market research and analysis, surveying, promotions, advertising, buyer profiling, customer management or rewards; Price estimation or determination

Abstract

A purchase rebate system with investment plan allows subscribers to purchase goods and services from participating vendors and invest a portion of the purchase price in a personal investment program. A subscriber rebate is calculated for each subscriber from subscriber transaction information submitted by each participating vendor. Subscriber transaction information may include subscriber identification, a description of purchased goods and services, purchase price, and time and place of purchase for each transaction between a subscriber and participating vendor. The subscriber rebate is then transferred to an investment file. The transfer may be via an escrow account. The system may also provide for the recruitment of new subscribers, the recruitment of additional participating vendors, and the distribution of commissions to system representatives who also recruit new subscribers.

Description

TRANSACTIQN PROCESSING SYSTEM

BACKGROUND OF THE INVENTION

1. Field of the Invention

The invention relates to a transaction processing system and more particularly to a system with a deferred rebate feature.

2. Description of the Related Technology

A previous transactional system allowed subscriber-purchasers to receive goods or services from a vendor by ordering them from a purchasing system and paying the purchase price to an escrow agent or a purchase processing center. In U.S. Patent 4,750,119 Cohen et al., herein incorporated by reference, the escrow agent or a purchase processing center paid the vendor the wholesale price for the goods or services and used the remainder of the funds in escrow to purchase an aggregate annuity policy from an insurance company. The insurance company computed and reported a rebate factor which guaranteed a specific rebate amount in the future.

SUMMARY OF THE INVENTION

An object of the invention is to reduce participating vendor advertising costs. A further object is to provide a purchase rebate to subscribers. An additional object of the invention is to provide and manage a personal investment program for subscribers. Another object is to attract additional subscribers and participating vendors.

In a retail market where many vendors are selling equivalent products, consumers have little reason to remain loyal to any particular vendor. Vendors such as grocery stores, department stores, long distance phone service carriers, automobile dealerships, mortgage and real estate agents, hotels, travel agents, and airlines often resort to continual advertising to attract and retain customers. High cost and low effectiveness, however, are drawbacks to this continual advertising program. For vendors, the purchase rebate system with investment plan is an alternative to expensive advertising. Vendors do not have to purchase costly advertising to get a subscriber's business, because a subscriber rebate gives subscribers an incentive to purchase goods or services from participating vendors. This subscriber rebate is made up of a portion of the purchase price which can represent some of the participating vendors' savings in advertising costs. Subscriber rebates may be invested in a personal investment program or paid back to the subscriber. In addition, rebates may initially be placed in an escrow account and subsequently distributed to an investment program, for further purchases or to the subscriber. Each subscriber receives information regarding purchases made under the system, escrow account activity and balance, and investment account activity and balance. Additionally, the system may have a recruiting subsystem to recruit participating vendors, attract new subscribers and verify their applications, and provide incentives to system representatives who also attract new subscribers.

BRIEF DESCRIPTION OF THE DRAWINGS

Figure 1 shows a block diagram of the preferred embodiment of the system. Figure 2 shows a flow chart of the recruiting subsystem for recruiting new subscribers. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

A transaction between a buyer and a vendor occurs when a subscriber purchases goods and/or services from a participating vendor and pays a purchase price. According to a block diagram of the preferred embodiment shown in Figure 1, a system processor 1 receives subscriber transaction information 4, 5 from each participating vendor regarding each subscriber's purchases from that vendor. Alternatively, the transaction information may be received from the subscriber. Subscriber transaction information may include subscriber identification, a description of the purchased goods and services, the price of the goods or services, and the time and place of purchase. Subscriber transaction information may be transferred through media such as magnetic file, written records, or electronic data transfer. The processor calculates a subscriber rebate representing a_predetermined portion of each subscriber's purchase payment and transfers the subscriber rebate to an investment or pay-out system. According to one embodiment, the rebate may pass through an intermediate stage. The intermediate stage may be a holding area to allow the rebate amount to accumulate to a predetermined level before further processing or handling. The intermediate stage may be an escrow file 6.

The escrow file 6 may be divided into separate accounts, such as one account for each investment vehicle 6a, 6b and a separate account for subscribers who exercise the cash-back option 6c rather then choosing to invest their subscriber rebates. Each escrow account may have administrative allocations to identify each subscriber with funds in that account. Escrow funds can then be transferred to individual investment accounts.

Instead of transferring a subscriber rebate from a subscriber's escrow account to the subscriber's investment account individually, it is more cost efficient to transfer a larger amount of escrow funds at one time. Preferably, after a subscriber's escrow account has accumulated a threshold amount of subscriber rebate, such as $100, the escrow funds can be transferred to the subscriber's investment account. A polling device 10 may sequentially read each subscriber's escrow account, and if the escrow account is larger than the threshold amount when the account is polled, the polling device will trigger the transfer device 11 to transfer funds from the subscriber's escrow account to the subscriber's investment account. Alternatively, transfers from an escrow account to an investment account may be accomplished by setting a flag if a subscriber's escrow account reaches the threshold amount and transferring the funds when the flag is set.

Many investment vehicle options exist. For example, the system might allow a subscriber to choose to invest subscriber rebate funds in a fixed-rate annuity 2a, a variable-rate annuity 2b, an equity-based mutual fund, or a bond-based mutual fund. Alternatively, the subscriber may choose to receive the rebate amount in cash. Subscribers may also deposit funds directly into their investment accounts in addition to investing subscriber rebates. Periodic communications between the system and each subscriber may take the form of a periodic statement or letter 13 generated by a reporting device 12. This letter may include information regarding recent purchases made under the purchase rebate system with investment plan such as price, date, place, and description of purchased goods or services, escrow and investment account activity and balance, and a future payback forecast in the form of the investment account's projected value in a fixed amount of time, such as 20 or 30 years, or when the subscriber reaches a certain age, such as 65. New subscribers may be acquired directly through a recruiting subsystem or through a system representative as shown in Figure 2. The recruiting subsystem may distribute information and applications through the mail, or it may place newspaper, magazine, radio, television, or other media advertisements 1. Alternatively, a system representative may approach a person or a group of people such as a professional organization, a special interest group, or a business. By signing up new subscribers, system representatives can receive incentives. A system representative can be a single person, a group of people, a subscriber, or a non-subscriber such as a benefits broker.

A system representative successfully recruits new subscribers by providing a new subscriber's completed application to the recruiting subsystem 4 or providing a non-subscriber's mailing address to the recruiting subsystem 15 which results in a completed new subscriber's application. After receiving a non-subscriber's mailing address 2, the recruiting subsystem mails an application to the non-subscriber 3 and awaits the return of the completed application.

After an application is received by the recruiting subsystem 5, it checks the applications for completeness 6. If the application is incomplete, the recruiting subsystem returns the application to the applicant for further information 7. If the application is complete, the recruiting subsystem verifies the name and address of the applicant 8. If the name and address are invalid, the subsystem rejects the application 14. If the name and address are valid, the recruiting subsystem assigns the applicant a unique subscriber identification number 9. The recruiting subsystem then adds the new subscriber to the escrow and investment files 10.

Generally, the recruiting subsystem collects a periodic maintenance fee and a one-time new-subscriber fee from each subscriber. The system representative or recruiting subsystem, however, may offer a variety of subscriber incentives which waive a portion of either or both fees. For instance, as one person's subscriber incentive, the recruiting subsystem may waive collection of the new- subscriber fee and the first year of maintenance fees. A different subscriber incentive would be to waive all maintenance fees.

Recruiting incentives for system representatives take the form of a commission, distributed when a system representative signs up a new subscriber or when a new subscriber makes a purchase. For example, commissions may take the form of a flat rate when a new subscriber enrolls, a percentage of the new subscriber's purchases, or both. An agent receives credit for recruiting a new subscriber 13 when the agent provided the address or application 11. The recruiting subsystem may also recruit vendors for participation in the system. The recruiting subsystem provides a specially-tailored vendor inducement to a new participating vendor. For example, the vendor may transfers only a 3% rebate of each subscriber's purchase price to the escrow account for one year. If the vendor is satisfied with the system after the first year, the vendor transfers a full 6% rebate to the system in following years. The predetermined vendor rebate may be different for each participating vendor depending upon the vendor's willingness to participate in the system, and the size, prestige, and notoriety of the vendor. The scope of the invention is not to be limited by the description of the preferred embodiment. The embodiment described is by way of example and should not be construed as limiting of the claims. The claims below are set forth to define the scope of the invention.

Claims

WE CLAIM:
1. A purchase system with investment plan comprising: processing means for calculating and accumulating a subscriber rebate for each subscriber from subscriber transaction information obtained from at least one vendor, said subscriber transaction information including subscriber identification and purchase price for each transaction for goods or services between a subscriber and said vendor; transfer means, connected to said processing means, for transferring said subscriber rebate to an investment file; and reporting means, connected to said investment file and said processing means, for preparing a report for each subscriber containing subscriber transaction information, subscriber rebate, and transferred subscriber rebate.
2. A system according to claim 1 wherein said transfer means comprises a first transfer means for transferring each subscriber's said subscriber rebate to an escrow file and a second transfer means for transferring each subscriber's said subscriber rebate from said escrow file to said investment file under predetermined conditions.
3. A system according to claim 1 wherein said subscriber transaction information includes date of purchase, description of purchased goods or services, and vendor identification.
4. A system according to claim 2 wherein said second transfer means includes a polling means for obtaining subscriber rebate data from said escrow file and enabling said second transfer means under predetermined conditions.
5. A system according to claim 4 wherein said predetermined condition is when said subscriber rebate in said escrow file represents more than a predetermined amount.
6. A system according to claim 5 wherein said predetermined amount is $100.
7. A system according to claim 1 further comprising a recruiting subsystem for adding new subscribers which receives and verifies applications and provides recruiting incentives to system representatives.
8. A system according to claim 1 wherein said report further contains an investment forecast which estimates the value of the investment account in a predetermined amount of time.
9. A system according to claim 8 wherein said predetermined amount of time is 20 years.
10. A system according to claim 8 wherein said predetermined amount of time is 30 years.
11. A system according to claim 8 wherein said predetermined amount of time is when subscriber reaches a predetermined age.
12. A system according to claim 11 wherein said predetermined age is 65.
PCT/US1993/007533 1992-08-11 1993-08-11 Transaction processing system WO1994004979A1 (en)

Priority Applications (2)

Application Number Priority Date Filing Date Title
US92716292A true 1992-08-11 1992-08-11
US07/927,162 1992-08-11

Applications Claiming Priority (1)

Application Number Priority Date Filing Date Title
AU48061/93A AU4806193A (en) 1992-08-11 1993-08-11 Transaction processing system

Publications (1)

Publication Number Publication Date
WO1994004979A1 true WO1994004979A1 (en) 1994-03-03

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WO (1) WO1994004979A1 (en)

Cited By (18)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO1996036926A1 (en) * 1995-05-18 1996-11-21 Recognition Group Limited Multilevel marketing systems
WO1998021696A3 (en) * 1996-11-14 1998-10-01 Florin Emil Trifanescu Method of performance, evaluation and payment of the advertisement in the commercial technique and apparatus
WO2000014665A1 (en) * 1998-09-03 2000-03-16 Ownx, Inc. System for automatically calculating consumer earned equity
WO2001006427A1 (en) * 1999-07-19 2001-01-25 Savedaily.Com, Inc. On-line savings model
WO2001077925A1 (en) * 2000-04-03 2001-10-18 Kim Kee Woung Personalized investment consulting system implemented on network and method for the same
US6345261B1 (en) 1999-09-21 2002-02-05 Stockback Holdings, Inc. Customer loyalty investment program
JP2002189964A (en) * 2000-12-22 2002-07-05 Takamoto Onoda System for storing premium money in buying merchandise
US6663002B2 (en) * 2000-08-15 2003-12-16 James B. Glaser Apparatus and method for facilitating credit transactions
US6748365B1 (en) * 1999-09-15 2004-06-08 Chris Quinlan Method and system for redeeming product marketing rebates
WO2004075028A2 (en) * 2003-02-20 2004-09-02 Jerry Chen Systems and methods for variable rebate and incentive programs
US7499872B1 (en) * 2000-06-02 2009-03-03 Tuition Fund, Llc Methods and systems for applying rebates to higher education
US20090083153A1 (en) * 2008-06-05 2009-03-26 Eliyahu Weingarden Pre-existing liability payment and reward system and method of use
US7725391B1 (en) * 2008-09-29 2010-05-25 The Pnc Financial Services Group, Inc. Savings system based on time of transaction
US20130091076A1 (en) * 2000-05-24 2013-04-11 Richard P. Palmeri System for Electronic Re-Allocation of a Transaction Amount to an Investment
US8511553B1 (en) 2003-02-13 2013-08-20 Global Fulfillment Services, Inc. Method and processes for secure real time purchase validation award system
US8560382B2 (en) 1999-09-15 2013-10-15 The Ohana Companies, Inc. Method and system for redeeming product marketing rebates
US8589221B2 (en) 2000-02-02 2013-11-19 The Ohana Companies, Inc. Methods and systems for processing rebates
US10290051B1 (en) 2008-06-18 2019-05-14 The Pnc Financial Services Group, Inc. Savings system based on cent portion of transaction amount

Families Citing this family (1)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5297026A (en) * 1992-01-03 1994-03-22 Frank Hoffman System for promoting account activity

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EP0253240A1 (en) * 1986-07-03 1988-01-20 Omron Tateisi Electronics Co. POS Terminal device
US4750119A (en) * 1986-10-10 1988-06-07 Tradevest, Inc. Purchasing system with rebate feature
EP0308224A2 (en) * 1987-09-17 1989-03-22 Meridian Enterprises, Inc. Incentive award system
EP0370847A1 (en) * 1988-10-31 1990-05-30 Teraoka Seiko Co., Ltd. Sales-data-processing apparatus
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EP0253240A1 (en) * 1986-07-03 1988-01-20 Omron Tateisi Electronics Co. POS Terminal device
US4750119A (en) * 1986-10-10 1988-06-07 Tradevest, Inc. Purchasing system with rebate feature
EP0308224A2 (en) * 1987-09-17 1989-03-22 Meridian Enterprises, Inc. Incentive award system
EP0370847A1 (en) * 1988-10-31 1990-05-30 Teraoka Seiko Co., Ltd. Sales-data-processing apparatus
WO1991003789A1 (en) * 1989-08-29 1991-03-21 Citicorp Pos Information Services, Inc. Automated purchase reward accounting system and method
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Cited By (30)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO1996036926A1 (en) * 1995-05-18 1996-11-21 Recognition Group Limited Multilevel marketing systems
WO1998021696A3 (en) * 1996-11-14 1998-10-01 Florin Emil Trifanescu Method of performance, evaluation and payment of the advertisement in the commercial technique and apparatus
US6237961B1 (en) 1996-11-14 2001-05-29 Florin Emil Trifanescu Method of performance, evaluation and payment of the advertisement in the commercial technique and apparatus
WO2000014665A1 (en) * 1998-09-03 2000-03-16 Ownx, Inc. System for automatically calculating consumer earned equity
WO2001006427A1 (en) * 1999-07-19 2001-01-25 Savedaily.Com, Inc. On-line savings model
US8560382B2 (en) 1999-09-15 2013-10-15 The Ohana Companies, Inc. Method and system for redeeming product marketing rebates
US6748365B1 (en) * 1999-09-15 2004-06-08 Chris Quinlan Method and system for redeeming product marketing rebates
US8856025B2 (en) 1999-09-15 2014-10-07 The Ohana Companies, Inc. Method and system for redeeming product marketing rebates
US6345261B1 (en) 1999-09-21 2002-02-05 Stockback Holdings, Inc. Customer loyalty investment program
US8589221B2 (en) 2000-02-02 2013-11-19 The Ohana Companies, Inc. Methods and systems for processing rebates
WO2001077925A1 (en) * 2000-04-03 2001-10-18 Kim Kee Woung Personalized investment consulting system implemented on network and method for the same
US20130091076A1 (en) * 2000-05-24 2013-04-11 Richard P. Palmeri System for Electronic Re-Allocation of a Transaction Amount to an Investment
US8768813B2 (en) 2000-05-24 2014-07-01 Richard P. Palmeri System for electronic re-allocation of a transaction amount to an investment
US8589226B1 (en) 2000-06-02 2013-11-19 TuitionFund, LLC. Methods and systems for providing a merchant funded incentive rebate or awards program
US7653572B1 (en) 2000-06-02 2010-01-26 Tuitionfund, Llc Methods and systems for providing a rebate program
US7499872B1 (en) * 2000-06-02 2009-03-03 Tuition Fund, Llc Methods and systems for applying rebates to higher education
US7899704B1 (en) 2000-06-02 2011-03-01 TuitionFund, LLC. Methods and systems for providing a merchant funded rebate program
US8065183B1 (en) 2000-06-02 2011-11-22 Tuitionfund, Llc Methods and systems for providing a merchant funded rebate or rewards program
US8156000B1 (en) 2000-06-02 2012-04-10 TuitionFund, LLC. Methods and systems for providing a targeted merchant funded rebate or rewards program
US6663002B2 (en) * 2000-08-15 2003-12-16 James B. Glaser Apparatus and method for facilitating credit transactions
JP2002189964A (en) * 2000-12-22 2002-07-05 Takamoto Onoda System for storing premium money in buying merchandise
US8511553B1 (en) 2003-02-13 2013-08-20 Global Fulfillment Services, Inc. Method and processes for secure real time purchase validation award system
US9524508B2 (en) 2003-02-13 2016-12-20 Young America, Llc Method and processes for secure real time purchase validation award system
US9087342B2 (en) 2003-02-13 2015-07-21 Global Fulfillment Services, Inc. Method and processes for secure real time purchase validation award system
WO2004075028A3 (en) * 2003-02-20 2005-08-18 Jerry Chen Systems and methods for variable rebate and incentive programs
WO2004075028A2 (en) * 2003-02-20 2004-09-02 Jerry Chen Systems and methods for variable rebate and incentive programs
US20090083153A1 (en) * 2008-06-05 2009-03-26 Eliyahu Weingarden Pre-existing liability payment and reward system and method of use
US8401895B2 (en) * 2008-06-05 2013-03-19 Patented Rewards Cards, LLC Pre-existing liability payment and reward system and method of use
US10290051B1 (en) 2008-06-18 2019-05-14 The Pnc Financial Services Group, Inc. Savings system based on cent portion of transaction amount
US7725391B1 (en) * 2008-09-29 2010-05-25 The Pnc Financial Services Group, Inc. Savings system based on time of transaction

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