WO2002011034A1 - Systeme et procede pour emettre et rembourser les points de prime d'une carte de credit - Google Patents

Systeme et procede pour emettre et rembourser les points de prime d'une carte de credit Download PDF

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Publication number
WO2002011034A1
WO2002011034A1 PCT/US2001/023901 US0123901W WO0211034A1 WO 2002011034 A1 WO2002011034 A1 WO 2002011034A1 US 0123901 W US0123901 W US 0123901W WO 0211034 A1 WO0211034 A1 WO 0211034A1
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WIPO (PCT)
Prior art keywords
credit card
reward points
account
points
credit
Prior art date
Application number
PCT/US2001/023901
Other languages
English (en)
Inventor
Marc Solomon
Kanti Winters
Stephanie Russek
Conrad Stegner
Original Assignee
Capital One Financial Corporation
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
Application filed by Capital One Financial Corporation filed Critical Capital One Financial Corporation
Priority to AU2001283035A priority Critical patent/AU2001283035A1/en
Publication of WO2002011034A1 publication Critical patent/WO2002011034A1/fr

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    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q30/00—Commerce
    • G06Q30/02—Marketing; Price estimation or determination; Fundraising

Definitions

  • the present invention relates generally to credit card products . More particularly, the present invention relates to systems and methods for issuing and redeeming reward points for a credit card product, wherein accumulated reward points may be redeemed to facilitate the purchase of certain qualifying products or services.
  • Credit card products are so ubiquitous that they have fundamentally changed how financial transactions and dealings are conducted. Credit card products are most commonly represented by thin plastic card-like members that are offered and provided to customers through credit card issuers (such as banks and other financial institutions). With a credit card, a customer or authorized cardholder is capable of purchasing services and/or merchandise without an immediate, direct exchange of cash. With each purchase, the cardholder incurs debt which the cardholder pays (in foil or in part) upon receipt of a balance statement. The terms of a credit card, such as the credit limit, annual fees, interest rates and finance charges, are established by the issuer of the card.
  • a credit card reward and redemption system and method that permits a cardholder to accumulate reward points for all purchases and selected other types of transactions made using such a card.
  • the cardholder exercises significant control over the redemption process by permitting the cardholder to have complete freedom to select any merchant from which to purchase any goods or services, as long as they fall within the definition of qualifying items, and so long as the purchase of those items is made on the same credit card account. Earned reward points may be redeemed and applied as a credit on the credit card account for such purchased qualifying goods or services (up to the purchase price of the goods or services) .
  • Systems and methods consistent with the principles of the present invention address the needs and drawbacks of past attempts by enabling a cardholder to accumulate credits or points arising from the use of a specific credit card and redeem such points in a greatly enhanced manner. Further, systems and methods consistent with the principles of the present invention provide an increased response level by providing a credit card product with a reward points feature that allows customers to redeem points in a more flexible manner that is not constrained by a limited catalog of goods or services or by a specific merchant. Thus, the present invention offers a wider selection of goods and services than is present in past attempts.
  • systems and methods consistent with the invention provide reward points for a credit card transactions, wherein the reward points are credited to a cardholder's account for each period or billing cycle during which the cardholder makes a credit card transaction.
  • the cardholder may use the earned points to obtain a credit on their credit card account for a qualifying product or service previously purchased. For example, the cardholder may redeem his or her points for one or more qualifying purchases made using that same credit card, the redemption being in the form of an account credit.
  • a method for providing a credit card account with reward points includes posting the dollar amount of all of the purchases made by the cardholder. As purchases are posted, a number of reward points are earned by the cardholder according to a fixed ratio. For example, each dollar in purchases made and posted may earn one point. Reward points may also be earned when the cardholder transfers balances from another credit card account to the reward account. The cardholder may also use the credit card to make purchases of specific qualifying goods or services. The specific items eligible for an account credit are predefined or predetermined by the card issuer. Once points have been accumulated and a qualifying purchase has posted to the account, the cardholder may then request that the accumulated reward points be redeemed, in whole or in part, by applying the points against the purchase amount of the qualifying item.
  • a computer program product for providing a credit card account with reward points includes program code for determining the aggregate amount of purchases posted to a credit card account and issuing a predetermined number of reward points to the credit card account based on the aggregate amount of qualifying transactions.
  • a system for providing a reward credit card product includes means for issuing reward points to an account associated with the credit card product and means for redeeming a portion of the reward points to be applied as a credit against qualifying goods or services also purchased by using the same card.
  • the means for issuing reward points may further comprise means for crediting the account with a predetermined amount of reward points for purchases made and posted to the account during a billing cycle.
  • the means for issuing reward points may also comprise means for crediting the account with a predetermined amount of reward points for other types of credit card transactions charged to the account during the billing cycle.
  • a method for providing a credit card account with reward points includes determining whether reward points have been earned, which points may be applied against qualifying purchases also made on the account to reduce the outstanding balance of the credit card account.
  • a predetermined number of reward points is issued to the account when the account cycles.
  • the balance on the account is reduced by crediting the reward points, in a predetermined ratio, against the prices of the qualifying items purchased.
  • FIG. 1 illustrates an exemplary system environment in which the features of the present invention may be implemented
  • FIG. 2 is an exemplary flowchart of a process for tracking and issuing reward points for a credit card product, consistent with the principles of the present invention.
  • FIG.3 is an exemplary flowchart of a process for redeeming the reward points of a credit card product, in accordance with further principles of the invention.
  • DETAILED DESCRIPTION Systems and methods consistent with the present invention provide reward points for a credit card product of a cardholder who may desire to use a card which provides the ability to earn reward points with use of the card and to exchange accumulated points for specified classes or categories of goods or services purchased, thereby acquiring such items at little or no cost.
  • reward points are issued to the credit card for each purchase made utilizing the card and posted by the card issuer during a billing cycle. Reward points may also be issued for certain qualifying transactions performed by the cardliolder during the billing cycle.
  • the exact amount of reward points issued for each card purchase and/or transaction may vary according to the type of credit card product and the incentives that the credit card issuer wishes to provide. For example, for credit card products issued to preferred customers, the amount of reward points may be set at a higher level than for other classes of customers. Similarly, since specific classes or categories of goods or services are contemplated for redemption, the reward points issued may be correlated to the classes of items to be redeemed. For example, it may be desirable to issue cards which earn reward points that may be redeemed for computer-related goods. Thus, for these types of products, reward points may be earned at a rate of, for example, one (1) point for each dollar spent and posted. For other items, such as airline travel, cards may be issued in which the exchange rate may be higher or lower, say, for example, five (5) points to the dollar.
  • the cardholder may request to redeem the points to thereby credit qualifying purchases also made with the same card. For example, the cardholder may choose to apply the accumulated reward points to one or more items which have also been purchased using the same card, and which fall within the classes of goods or services authorized by the card issuer.
  • the reward points may be redeemed by filling out a coupon, sending a request via facsimile or regular mail, calling a customer service representative or an automated voice response unit, or completing an electronic form via an electronic link or on the Internet.
  • a credit card with reward points enables the cardholder to acquire qualifying items at little or no cost within a short time period (e.g., a few months).
  • a credit card issuer is capable of attracting a greater number of customers for a reward credit card product, including individuals who have not responded to credit card products marketed without any reward, or with reward programs that are limited in scope or impractical for many individuals.
  • the present invention also relates to computer readable media that include program instruction or program code for performing various computer-implemented operations based on the methods and processes of the invention.
  • the media and program instructions may be those specially designed and constructed for the purposes of the invention, or they may be of the kind well-known and available to those having skill in the computer software arts.
  • Examples of program instructions include both machine code, such as produced by compiler, and files containing a high level code that can be executed by the computer using an interpreter.
  • FIG. 1 illustrates a system environment 50 in which the features and principles of the present invention may be implemented.
  • FIG. 1 illustrates a system environment 50 in which the features and principles of the present invention may be implemented.
  • a cardholder and a cardholder's account for a credit card are generally referred to as a "customer” and a “customer's account. " These designations are used solely for purposes of illustration and should not be interpreted as any form of limitation. Further, while the various components of the system environment 50 in FIG. 1 are preferably owned and/or operated by a credit card issuer, these components of course can be owned and/or operated by any number of entities for the benefit of the credit card issuer and cardholders.
  • the system environment 50 preferably includes a rule system 100, a mediation system 200, a customer transaction system 300, a resource management and customer service system 500 and a communications network 400.
  • Mediation system 200 may be provided to mediate between rule system 100 and customer transaction system 300 and to facilitate modification of a customer's account.
  • requests by customers to redeem their earned reward points are received by resource management and customer service system 500 and transferred to rule system 100.
  • Rule system 100 is adapted to provide and implement the rules for managing the reward points associated with a customer's account. That is, rule system 100 increases and decreases the reward points associated with a customer's account according to a set of rules or instructions for monitoring points stored in memory.
  • rule system 100 may include a computing platform 110 and a database 120.
  • the reward points associated with each customer's account may be stored, in database 120.
  • Computing platform 110 provides the necessary functionality and computing capabilities to update (i.e., increment or decrement) the points associated with each customer's account when an a purchase is made and posted or redemption is made.
  • Computer platform 110 may be interfaced to various input and output devices (not shown), such as a keyboard, a mouse, a disk drive, read-only memory (ROM) devices or random access memory (RAM) devices, a display, a printer, etc. to facilitate data entry and output.
  • input and output devices such as a keyboard, a mouse, a disk drive, read-only memory (ROM) devices or random access memory (RAM) devices, a display, a printer, etc. to facilitate data entry and output.
  • computing platform 110 preferably comprises a personal computer (PC) or mainframe computer for performing various functions and operations of the invention.
  • Computing platforms 110 may be implemented, for example, by a general purpose computer selectively activated or reconfigured by a computer program stored in the computer, or may be a specially constructed computing platform for carrying-out the features and operations of the present invention.
  • Computing platform 110 may also be implemented or provided with a wide variety of components or subsystems including, for example, one or more of the following: one or more central processing units, a co-processor, memory, registers, and other data processing devices and subsystems.
  • Customer transaction system 300 is responsible for most of the main functions performed in system environment 50.
  • Customer transaction system 300 stores information regarding a customer's account, such as the terms of the account, the transactions on the account, the customer's address, etc.
  • customer transaction system 300 may include a computing platform 310 and a database 320.
  • Database 320 may contain information associated with a customer's account. Examples of such information include the credit card account number, the terms of the account, and the customer's mailing address and telephone number.
  • the customer's account information may also include transaction data indicating each item that has been charged by the customer during the life of the account, the amount and time each payment has been made, the number of reward points redeemed and the monetary equivalent thereof credited to the account, and a record stating the nature and time of each inquiry the customer has made to customer service.
  • Other relevant cardholder and account information may also be stored in database 320.
  • Computing platform 310 may be configured to update the items in database 320. For example, computing platform 310 may update the customer's account stored in database 320 upon receiving a request from mediation system 200. Similar to computing platform 110, computing platform 310 may be interfaced to various input and output devices (not shown) to facilitate data entry and output. Computing platform 310 may be implemented, for example, by a general purpose computer selectively activated or reconfigured by a computer program stored in the computer, or may be a specially constructed computing platform for carrying-out the features and operations of the present invention. Computing platform 310 may also be implemented or provided with a wide variety of components or subsystems including, for example, one or more of the following: one or more central processing units, a co-processor, memory, registers, and other data processing devices and subsystems.
  • mediation system 200 serves as an interface between rule system 100 and customer transaction service 300.
  • Mediation system 200 is responsible for notifying rule system 100 of a credit card transaction, and updating the status of a customer's account stored in customer transaction system 300 in response to a request from rule system 100.
  • mediation system 200 may include a computing platform 210 and a database 220.
  • database 220 the account numbers associated with each customer with a reward credit card may be stored.
  • Computing platform 210 provides the necessary functionality and computing capabilities to interface between the rule system 100 and the customer transaction system 300. For example, the computing platform 210 enables the mediation system 200 to check the customer transaction system 300 for credit card transactions, and to notify the rule system 100 if a timely payment or transaction was made.
  • Network 400 may comprise, alone or in any suitable combination, a telephony-based network (such as a PBX or POTS), a local area network (LAN), a wide area network (WAN), a dedicated intranet, and/or the Internet. Further, any suitable combination of wired and/or wireless components and systems may be incorporated into network 400.
  • a telephony-based network such as a PBX or POTS
  • LAN local area network
  • WAN wide area network
  • intranet such as a private intranet
  • Internet any suitable combination of wired and/or wireless components and systems may be incorporated into network 400.
  • the systems 100, 200, 300 and 500 may be distributed, as shown in FIG. 1, or combined onto one or more platforms.
  • the rule system 100 and mediation system 200 may be combined into one system, with the customer transaction system 300 remaining as a separate system.
  • each of the systems may be incorporated into one mainframe that has software configured to perform the functions of the rule system 100, the mediation system 200, the customer transaction system 300 and the resource management and customer service system 500.
  • an exemplary process for assigning reward points associated with a customer's account and for redeeming points will now be described with reference to FIGS. 2 and 3. The features and aspects of FIGS.
  • FIG. 2 is an exemplary flowchart, consistent with the principles of the present invention, of a process for issuing reward points to a customer's account.
  • the embodiment of FIG. 2 discloses a technique for issuing reward points based on purchases made by the customer and posted to the account.
  • the invention is not limited to this aspect and that the exemplary process of FIG. 2 may be modified so that reward points are issued to a customer's account based on other events (either alone or in combination), such as in return for specific types of credit card transactions performed by the customer during a billing cycle.
  • reward points may also be earned for specific events, for example, transferring balances from other credit card accounts.
  • reward points in the form of bonus points may also be credited for special events, such as opening the - account, timely payment history, high card usage during specified periods, and the like.
  • the exemplary process begins by checking the customer transaction system 300 for purchases made and posted to the account.
  • the merchant reports the transaction to the credit card issuer. Such reporting may be done via a real-time electronic system, using a dial-up phone link or dedicated computer connection. Some smaller merchants may forward the credit card paper receipts signed by the cardholder to the issuer, either directly or indirectly.
  • posting occurs when the transaction is reported to the card issuer who then records or "posts" the same on the cardholder's account for subsequent billing at the end of the current billing cycle.
  • mediation system 200 searches the customer transaction system 300 to determine whether any purchases and other transactions were posted for that cycle (step S .100).
  • points earned may be updated when those purchases and other transactions are posted by the card issuer, rather than at the end of the billing cycle.
  • the mediation system may search the system 300 daily so that points are updated more quickly and on a real-time basis.
  • mediation system 200 sends an indication to rule system 100 that a purchase was made.
  • Rule system 100 then credits the customer's account with a predetermined amount of reward points and stores the updated level of accumulated points in database 120 (step S .110) .
  • the customer receives a fixed amount of reward points for each purchase .
  • the customer may receive a variable number of points depending on any special incentives or bonus programs that might be in effect during the billing cycle.
  • mediation system 200 may send an indication to rule system 100 that the account is in bad standing or in default.
  • Rule system 100 then may suspend the privilege of redeeming points, or even decrease the total number of reward points associated with the account by a certain number of points.
  • customers may receive penalties for defaulting on their account and rewarded for on-time payments.
  • mediation system 200 may also check the customer transaction system 300 at the end of a customer's billing cycle for card activity (i.e., credit card transactions by the customer) . If a customer transaction has occurred for that cycle, the mediation system 200 sends an indication to the rule system 100 of such activity. The rule system 100 may then credit the customer's account with a fixed number of reward points for any card activity during the billing cycle. In such a case, reward points can be awarded to a customer's account for on-time payments, as well as for customer transactions. In this manner, a customer may be rewarded for not only using their credit card, but also making on-time payments.
  • card activity i.e., credit card transactions by the customer
  • a mailed periodic account statement may include a message ("account level message") indicating when and how many reward points have been credited during a previous cycle and the total point level accumulated by the customer to date.
  • the points reflected in the periodic statement may be one or two cycles behind current points totals based on applicable points calculators. Therefore, in accordance with another preferred embodiment of the invention, the customer may receive a separate notification by electronic mail that confirms, in real time, the points that have been added or accumu- lated.
  • the customer may call a customer service representative or a voice response unit (VRU) to check the current point level associated with their account.
  • VRU voice response unit
  • the customer may access their account information through an Internet Web page or via a dial-up telephone modem com ection to check the amount of available points. In this manner, the customer may know the current amount of points associated with their account without having to wait to receive his or her next account statement.
  • a customer may continue to accrue points associated with his account each month or billing period that he makes purchases.
  • a customer may earn, by way of example, one ( 1 ) reward point for each one dollar purchase amount.
  • the customer may then redeem all or part of the accumulated points to offset the cost of their purchase of certain qualifying goods or services.
  • a cardholder may use the card to purchase certain qualifying goods, such as, for example, computers and computer-related items. Card holders will have been advised of the specific types of goods or services that are considered qualifying by the card issuer when they applied for the card, by virtue of the promotional materials provided to customer prospects during marketing activities. Alternatively, existing card holders may be given an opportunity to avail themselves of the inventive reward program by the card issuer adopting such a program and announcing its availability to its customers.
  • the process begins when the credit card issuer receives a request from a cardholder for a redemption (step S .140).
  • the customer may request the redemption of points through several channels.
  • the customer may complete a coupon attached to their statement, send an email or complete a form on the Internet, or via a telephone modem dial-up connection, that is forwarded to the credit card issuer.
  • the customer could be given the option to telephone a customer service representative or an automated voice response unit (VRU).
  • VRU automated voice response unit
  • the customer is generally informed of the current number of points associated with their account by virtue of the information provided on their latest credit card account statement, enabling the customer to realize the reward for which they are eligible.
  • the customer may indicate the number of reward points they want credited by sending an email to the issuer or checking an appropriate reward listed on the coupon or Internet form and submitting the completed information to the issuer.
  • the customer may press a particular button on the telephone to send a DTMF tone associated with the desired reward.
  • the customer could also simply state the request when speaking with a customer service representative.
  • the redemption request provided by the customer can be handled by the credit card issuer in several ways.
  • the customer's redemption request may be received by resource management and customer service system 500.
  • System 500 contains various means of collecting redemption requests.
  • system 500 may include personnel to key the requests manually into spreadsheets.
  • System 500 also may include other systems for automatically collecting voice and electronic requests, such as those requests submitted by email, over the Internet or a VRU.
  • System 500 may upload the stored redemption requests to rule system 100. The requests may be uploaded to rule system 100 on a weekly or periodic basis.
  • rule system 100 may determine whether the customer has the necessary amount of points required to complete the redemption request (step S.150). If the amount of points associated with the customer's account is sufficient, rule system 100 forwards the redemption request to mediation system 200. If the points are not sufficient, a letter is generated to the customer indicating that the request will not be fulfilled (step S.160). Alternatively, if the customer has contacted the redemption program electronically, or by voice, the system may communicate non- eligibility on a near real-time basis by, for example, a computer-generated message, e- mail, recorded voice announcement or live response by a customer service representative.
  • mediation system 200 After receiving a redemption request from rule system 100, mediation system 200 checks customer transaction system 300 to determine whether the customer's account is in good standing (step S.170). In other words, mediation system 300 determines whether the customer is using the appropriate card for the particular reward program and whether he or she is currently late or delinquent in making a payment. If the customer is not using the correct card, or is late or delinquent (i.e., the customer's account is not in good standing) and thus in bad standing (No; step S.170), mediation system 200 provides an indication to rule system 100 that the redemption request is denied. In addition, a letter is generated to the customer stating that the request will not be fulfilled due to their account status (step S.180).
  • Such notification may be sent to the customer by a letter in the mail or over the Internet via electronic mail.
  • a customer service representative or an automated VRU may provide the notification to the customer.
  • a customer who is in bad standing can also return to good standing by, for example, making on-time payments (which include all past-due amounts).
  • a credit card issuer may decide not to issue any reward points to a customer who is in bad standing when an on-time payment or credit card transaction is performed. If, however, the customer is in good standing when the redemption request is received (Yes; step S.170), the points are not frozen and the customer may redeem them.
  • Mediation system 200 next determines whether the cardholder has made a qualifying purchase to which the customer wishes to apply the redeemed points.
  • a qualifying purchase must fall within one or more predefined or predetermined classes of goods or services established by the card issuer and communicated to the card holder. This requirement may be announced to the customer when the credit card is first applied for, or, in the case of already issued credit cards, through promotional mailings sent to cardholders.
  • Qualifying goods or services which fall within the scope of the invention may be broadly or narrowly established by the card issuer. For example, qualifying goods may fall within a broad definition of computer and computer-related products, such as computers, computer software, computer hardware (e.g., modems, monitors, scanners, etc.), but may exclude items such as computer games and general electronic merchandise.
  • qualifying goods and services might be narrowly defined, examples of which would be a particular make and model of automobile, or meals at a given restaurant. Furthermore, the qualifying purchase must also have been purchased using the same credit card as the card with which the reward points have been earned.
  • mediation system 200 determines that the purchase is, in fact, qualifying (Yes; step S.190), it sends a request to rule system 100 to reduce the points associated with the customer's account according to the reward requested.
  • Computing platform 110 of rule system 100 then reduces the points by the predetermined amount and stores the resulting quantity of points associated with the customer's account in database 140 (step S.210).
  • Computing platform 210 of mediation system 200 creates a file updating the customer's account to reflect the points redeemed. Since the redeemed points are applied as a credit against the purchase of qualifying items, the cardholder's account balance is reduced to the same extent as if a payment were remitted by the cardholder in the form of a check or money order. Thus, computing platform 210 also determines, by calculation, the equivalency between the number of points redeemed and their dollar value by using the conversion rate established previously by the card issuer (step S.220). Should the purchase not be qualifying, the customer is so notified (step S.200).
  • the updated file is sent to customer transaction system 300.
  • Computing platform 310 of the customer transaction system uses the file to change the information stored in database 120 to reflect the customer's new reward points balance (which may be as low as zero in cases where the cardholder has redeemed the entire balance) and financial account balance which are effective and applied immediately to the customer's account (step S.230).
  • the customer's new reward points balance which may be as low as zero in cases where the cardholder has redeemed the entire balance
  • financial account balance which are effective and applied immediately to the customer's account.
  • step S.230 Once the reward points and account balances have been changed in customer transaction system 300, typically the customer would be notified on the next card statement. Alternatively, a letter or another type of notification, including a statement by a customer service representative, indicating the updated status of their account may be generated and sent to the customer (step S.240).
  • a rule system may be provided that awards a fixed amount of points for account activity.
  • the cardholder may accrue the awarded points and redeem them to effectively purchase qualifying goods or services at little or no cost.
  • they can fill out a coupon attached to their statement, call a customer service representative or an automated voice response unit, or complete a form on the Internet and identify the qualifying items that they have purchased on the credit card.
  • a card issuer's program may offer the ability to credit reward points towards the purchase of computers and computer- related goods, such as, computer software, peripherals, modems, and accessories.
  • the cardholder would contact a representative of the card issuer and confirm their prior purchase of the computer goods with the card.
  • the representative checks the account file and verifies that such computer goods were purchased and the purchases have been posted. Then, the cardholder decides how many of the accumulated number of points he or she wishes to apply against the computer purchases. Thus, if a computer was purchased for $1,000 and the customer had previously earned 2,000 reward points, the customer may elect to apply 1,000 points as a credit in the amount of $1,000 to the cardholder's account, effectively reducing the cost of the computer to zero. The cardholder would then be left with a balance of 1,000 reward points which may be applied as a credit against other computer purchases. The amount of the statement credit would be the lesser of the purchase price of the item or the value of the points, expressed as a monetary equivalent, according to a fixed ratio. As a result, with the features of the present invention, the customer understands the process of taking advantage of the benefits associated with the credit card.
  • the redemption request provided by the customer can be handled by the credit card issuer in several ways.
  • the customer's redemption request may be received by a customer service system employing various means of interfacing with customers and processing redemption requests, such as telephone representatives to speak with cardholders and personnel to key the requests manually into spreadsheets (S.140).
  • the customer service system may determine whether the customer has the necessary amount of points required to fulfill a redemption request. Such determination may be facilitated by reference to a computer database.
  • the customer service system next determines whether the customer's account is in good standing (step S .170), by confirming that the appropriate card associated with the particular reward program is being used, and whether the cardholder is currently late or delinquent in making a payment. If the customer is not using the correct card, or is late or delinquent, that is, the customer's account is not in good standing (No; step S.170), the redemption request is denied.
  • the customer service system so notifies the customer stating that the request will not be fulfilled due to their account status (step S.180). Again, any problems may potentially be cleared up at this point.
  • the customer service system next determines whether the cardholder has made a qualifying purchase, as described above, to which the customer wishes to apply the redeemed points. If the purchase is, in fact, found to be qualifying (Yes; step S.190), the points associated with the customer's account are reduced by the amount chosen by the customer (up to and including the total number of reward points accumulated to that point in time). The customer's account file is updated to reflect the points redeemed (step S.180).
  • step S.210 Since the points redeemed are applied as a credit against the purchase of qualifying items, the cardholder's account balance is reduced to the same extent as if a payment were remitted by the cardholder in the form of a check or money order. A calculation is made to determine the equivalency between the number of points redeemed and their corresponding dollar value by using the conversion rate established previously by the card issuer (step S.220). Should the purchase not be qualifying, the customer is so notified (step S.200).
  • the updated file is used to change the information stored in a reward points database to reflect the customer's new reward points balance (which may be as low as zero in cases where the cardholder has redeemed the entire balance) and financial account balance which are effective and applied immediately to the customer's account (step S.230).
  • the customer would be notified on the next card statement.
  • a letter or another type of notification including a statement by a customer service representative, indicating the updated status of their account may be generated and sent to the customer (step
  • a rule system may be provided that awards a fixed amount of points for account activity.
  • the cardholder may accrue the awarded points and redeem them to effectively purchase qualifying goods or services at little or no cost.
  • they can fill out a coupon attached to their statement, call a customer service representative or an automated voice response unit, or complete a form on the Internet and identify the qualifying items that they have purchased on the credit card.
  • a card issuer's program may offer the ability to credit reward points towards the purchase of computers and computer- related goods, such as, computer software, peripherals, modems, and accessories.
  • the cardholder would contact a representative of the card issuer and confirm their prior purchase of the computer goods with the card.
  • the representative checks the account file and verifies that such computer goods were purchased and the purchases have been posted. Then, the cardholder decides how many of the accumulated number of points he or she wishes to apply against the computer purchases. Thus, if a computer was purchased for $ 1 ,000 and the customer had previously earned 2,000 reward points, the customer may elect to apply 1,000 points as a credit in the amount of $ 1 ,000 to the cardholder's account, effectively reducing the cost of the computer to zero. The cardholder would then be left with a balance of 1,000 reward points which may be applied as a credit against other computer purchases. The amount of the statement credit would be the lesser of the purchase price of the item or the value of the points, expressed as a monetary equivalent, according to a fixed ratio. As a result, with the features of the present invention, the customer understands the process of taking advantage of the benefits associated with the credit card.
  • a customer may be awarded bonus points for certain events, such as, signing up for the credit card product; anniversaries as a customer with the issuer; on the customer's birthday; and, certain "good behavior" including on-time payment for a certain number of consecutive months or not exceeding the credit limit of the card.
  • a credit card issuer may decrease points for a late payment or charge a one time set-up fee for the reward point program (if added to an existing credit card account).
  • the reward product has been described in terms of a credit card product, the reward product may be used with any credit or loan product.
  • an installment loan may award participants reward points for on-time payments, which the participants may then redeem in exchange for certain goods or services. Therefore, it is intended that the specification and examples be considered as exemplary only, with a true scope and spirit of the invention being indicated by the following claims.

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Abstract

L'invention porte sur un système et sur des procédés visant à générer des points de prime liés à une carte de crédit. Les points sont inscrits au crédit du compte du détenteur de la carte lors d'une transaction avec la carte de crédit. Le détenteur de la carte peut accumuler les points obtenus et se les faire rembourser (S.140) sous forme d'un crédit contre l'achat de types de marchandises ou services (S.190) prédéfinis effectués également au moyen de la carte de crédit. Les points sont remboursés sous forme d'un crédit monétaire qui est crédité au compte du détenteur de la carte conformément à une formule prédéfinie (S.220). Après traitement de la demande de remboursement du client, le nombre de points est ajusté (S.210) et le relevé d'opérations envoyé au détenteur de la carte (S.240) laisse apparaître le crédit monétaire en regard du solde (S.230).
PCT/US2001/023901 2000-07-31 2001-07-31 Systeme et procede pour emettre et rembourser les points de prime d'une carte de credit WO2002011034A1 (fr)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU2001283035A AU2001283035A1 (en) 2000-07-31 2001-07-31 System and method for issuing and redeeming credit card reward points

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US62982200A 2000-07-31 2000-07-31
US09/629,822 2000-07-31

Publications (1)

Publication Number Publication Date
WO2002011034A1 true WO2002011034A1 (fr) 2002-02-07

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PCT/US2001/023901 WO2002011034A1 (fr) 2000-07-31 2001-07-31 Systeme et procede pour emettre et rembourser les points de prime d'une carte de credit

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AU (1) AU2001283035A1 (fr)
WO (1) WO2002011034A1 (fr)

Cited By (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
TWI462041B (zh) * 2009-03-30 2014-11-21 Yuh-Shen Song 無卡金融交易系統
TWI470569B (zh) * 2005-10-24 2015-01-21 Citibank Na 藉助電腦管理交易卡客戶帳戶的方法及系統
US20160048864A1 (en) * 2014-08-13 2016-02-18 American Express Travel Related Services Company, Inc. Third party digital wallet pay with points
CN116846980A (zh) * 2023-08-31 2023-10-03 苏州盈天地资讯科技有限公司 一种积分发放和使用方法、系统及设备

Citations (3)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5537314A (en) * 1994-04-18 1996-07-16 First Marketrust Intl. Referral recognition system for an incentive award program
US5806045A (en) * 1994-02-04 1998-09-08 Cardone Development Company Method and system for allocating and redeeming incentive credits between a portable device and a base device
US6128599A (en) * 1997-10-09 2000-10-03 Walker Asset Management Limited Partnership Method and apparatus for processing customized group reward offers

Patent Citations (3)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5806045A (en) * 1994-02-04 1998-09-08 Cardone Development Company Method and system for allocating and redeeming incentive credits between a portable device and a base device
US5537314A (en) * 1994-04-18 1996-07-16 First Marketrust Intl. Referral recognition system for an incentive award program
US6128599A (en) * 1997-10-09 2000-10-03 Walker Asset Management Limited Partnership Method and apparatus for processing customized group reward offers

Cited By (5)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
TWI470569B (zh) * 2005-10-24 2015-01-21 Citibank Na 藉助電腦管理交易卡客戶帳戶的方法及系統
TWI462041B (zh) * 2009-03-30 2014-11-21 Yuh-Shen Song 無卡金融交易系統
US20160048864A1 (en) * 2014-08-13 2016-02-18 American Express Travel Related Services Company, Inc. Third party digital wallet pay with points
CN116846980A (zh) * 2023-08-31 2023-10-03 苏州盈天地资讯科技有限公司 一种积分发放和使用方法、系统及设备
CN116846980B (zh) * 2023-08-31 2024-02-13 苏州盈天地资讯科技有限公司 一种积分发放和使用方法、系统及设备

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