U.S. patent application number 10/840514 was filed with the patent office on 2004-10-21 for fraud deterred product and service coupons.
Invention is credited to Lee, Duncan.
Application Number | 20040210484 10/840514 |
Document ID | / |
Family ID | 32682655 |
Filed Date | 2004-10-21 |
United States Patent
Application |
20040210484 |
Kind Code |
A1 |
Lee, Duncan |
October 21, 2004 |
Fraud deterred product and service coupons
Abstract
A membership user coupon program for printed and electronic
coupons having built-in measures to deter fraud committed by a
retailer and/or a consumer during the redemption and/or
reimbursement of the coupon. The system and process provide
traceability prior to the issuance and/or printing of the coupon,
prior to a retailer acceptance of the coupon and at the point of
sale.
Inventors: |
Lee, Duncan; (Placentia,
CA) |
Correspondence
Address: |
Maria Erlinda C. Sarno
P.O. Box 1023
Artesia
CA
90702
US
|
Family ID: |
32682655 |
Appl. No.: |
10/840514 |
Filed: |
May 6, 2004 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10840514 |
May 6, 2004 |
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09513963 |
Feb 28, 2000 |
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6766301 |
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Current U.S.
Class: |
705/14.26 |
Current CPC
Class: |
G06Q 30/0236 20130101;
G06Q 30/0225 20130101; G06Q 30/0239 20130101; G06Q 30/0235
20130101; G06Q 30/02 20130101 |
Class at
Publication: |
705/014 |
International
Class: |
G06F 017/60 |
Claims
I claim:
1. A method to deter consumer/user and retailer fraud on a third
party coupon for a provider requiring membership prior to issuance
and redemption of the coupon, comprising the steps of: a) bringing
and presenting a printed third party coupon by a consumer/user to a
retailer; b) scanning the third party coupon by the retailer; c)
signing up for membership by the consumer/user; d) entering an
assigned identification mark and a member consumer/user password
into an interactive online database of a service center or a
provider, the interactive online database checking its database to
verify the assigned identification mark and password, tying the
assigned identification mark and password to a member
consumer/user, is approving or disapproving the use of the third
party coupon by the member consumer/user; e) entering a sale or a
plurality of sale of a product by the retailer only if payment is
made by credit card or a personal bank check; f) validating payment
of the sale by a credit card or a personal bank check; g)
imprinting on the surface of the third party coupon, certificate
and identification marks including at least, name of the member
consumer/user and proof of sale; and, h) forwarding a number of
gathered imprinted third party coupons generated from the sale or
plurality of sale of the product to a service center.
2. The method of claim 1 further comprising the steps of a)
scanning, decoding and validating the third party coupons forwarded
by the retailer; b) identifying fraudulent coupons from legitimate
coupons; c) preparing a coupon validation report by the service
center; d) forwarding the coupon validation report and the gathered
third party coupon to the provider; e) reviewing the coupon
validation report and the imprinted third party coupons by the
provider; and, f) reimbursing the retailer for the amount of the
desired coupons.
3. The method of claim 1 further comprising the step of auditing
the retailer for potential coupon fraud.
4. The method of claim 1 wherein the proof of sale is an approved
payment made on an entry of sale through a credit card or personal
bank check.
5. The method of claim 1 wherein the information imprinted on the
surface of the third party coupon further includes date of purchase
and the member consumer/user initial.
6. The method of claim 1 wherein the information imprinted on the
provider coupon further includes an e-mail address.
7. The method of claim 1 wherein the information imprinted on the
provider coupon further includes a member consumer/user spouse's
name.
8. The method of claim 1 wherein the information imprinted on the
provider coupon further includes a unique encrypted serial
number.
9. The method of claim 1 wherein the method is insurable.
10. A method to deter consumer/user and retailer fraud on a third
party coupon for a provider not requiring membership prior to
issuance and redemption of the coupon, comprising the steps of: a)
bringing and presenting a printed third party coupon by a
consumer/user to a retailer having the consumer/user's name
imprinted on the third party coupon; b) scanning the third party
coupon by the retailer; c) entering a sale or a plurality of sale
of a product by the retailer only if payment is made by credit card
or a personal bank check; d) validating payment of the sale by a
credit card or a personal bank check by matching the name imprinted
on the third party coupon with the name on the credit card or
personal bank check; e) imprinting on the surface of the third
party coupon a proof of sale; and, f) forwarding a number of
gathered imprinted third party coupons generated from the sale or
plurality of sale of the product to a service center.
11. The method of claim 10 further comprising the steps of a)
scanning, decoding and validating the third party coupons forwarded
by the retailer; b) identifying fraudulent coupons from legitimate
coupons; c) preparing a coupon validation report by the service
center; d) forwarding the coupon validation report and the gathered
third party coupon to the provider; e) reviewing the coupon
validation report and the imprinted third party coupons by the
provider; and, f) reimbursing the retailer for the amount of the
desired coupons.
12. The method of claim 10 wherein the proof of sale is a
validation and approval of sale by a card provider or if payment by
a personal bank check, a check number or a bank account number or
both.
13. The method of claim 10 wherein the information imprinted on the
surface of the third party coupon further includes a date of
purchase and the consumer/user initial.
14. The method of claim 10 wherein the information imprinted on the
provider coupon further includes an e-mail address.
15. The method of claim 10 wherein the information imprinted on the
provider coupon further includes a unique encrypted serial number.
Description
[0001] This is a continuation application of Ser. No. 09/513,963
filed Feb. 28, 2000 now allowed.
BACKGROUND
[0002] More and more consumers are shopping "online", that is
through the Internet, because of convenience, wider selection and
most of the time, better pricing. Internet is synonymous to a
global computer network. This type of marketing has cut the cost of
the middlemen. This method of marketing is also favorable to the
manufacturers and service providers because they can sell directly
to the consumers and retailers without the need of distributors and
nation wide warehouses. This increase in online purchasing of goods
and services, herein collectively referred to as products, has also
created the need for electronic coupons which are provided by
manufacturers and service providers to consumers as marketing
incentives. Manufacturers and service providers, are also herein
collectively referred to as providers. Electronic coupons are
similar to the traditional paper printed coupons which are
submitted by consumers when purchasing a particular good or service
in exchange for a monetary discount in price or a rebate except
that electronic coupons are retrieved and/or printed online by
consumers and retailers, herein also referred to as users. These
coupons typically contain product information, the coupon amount,
expiration date, and in some, transaction data such as the number
of allowable coupon per user and the total number of coupons
allowed for a given promotion, herein also referred to as
certificate marks. These certificate marks may be accompanied by
other identification data which are printed in numbers, letters,
bar codes, combination of these, or other symbols that uniquely
identify each coupon, herein also referred to as identification
mark.
[0003] Printed coupons have been faced with both retailer and
consumer fraud, referred to as coupon fraud, which have
necessitated the additional printing of unique certificate and
identification marks. The exact percent of coupon frauds related to
traditional newspaper printed coupons is unknown, because there are
only primitive techniques available to suspect potential frauds,
with very limited tools and audit trail to isolate the fraudulent
activities. Some experts have stated that coupons frauds are about
25%, and most agree that retailer coupon frauds are significantly
more of a concern than consumer coupon frauds.
[0004] Electronic coupons are expected to experience the same or
even greater coupon fraudulent practices because of the convenience
of printing several copies of the coupon online by a user. This
fear of influx of consumer and retailer coupon fraud have created
some resistance in adapting electronic coupons among providers
especially those that produce and sell high priced merchandise.
Golden, et al. in U.S. Pat. No. 5,761,648 attempted to address this
issue by providing an online coupon issuing service which
identifies and marks each electronic coupon or certificate with a
code distinguishing a particular certificate from all other
certificates, referred to as unique certificate mark and another
code identifying the user, referred to as unique identification
mark. In addition, the data processing system within the online
coupon issuing service, limits the total number of certificates to
be issued, as well as the number of certificates to be issued to
each individual and makes these actual transactions of printing the
certificates by the users available in a report form. While the
system of Golden prevents some form of coupon fraud, it is
ineffective because its traceability ends at the point of printing
the coupon. The system of Golden does not provide an efficient
system for tracing whether or not an actual use of the product
coupon occurred at the point of sale where most of coupon fraud
occur. More specifically, the system does not provide an audit
trail for tracing a particular sale transaction to a validated sale
by a validated consumer. While providing a PIN (personal
identification number) identifies a consumer/user and if set-up to
do so, the demographics of such user as to location of sale, etc.,
such security measures only ensure that the coupon is valid and was
issued to a consumer/user having an issued PIN. There are no built
in safeguards prior to the issuance of a PIN number such as
verifying that such consumer is not a fictitious person, that is,
it does not tie the provided information such as a credit card
number to the database of the credit card issuer or if a bank
checking account is provided instead of a credit card, to an
issuing bank. Additionally, even if issuance of the PIN is verified
with the credit card issuer or the personal check to an issuing
bank, a retailer can still gather these legitimate coupons, submit
these to the provider for reimbursement without having an actual
sale transaction take place. Scanning a coupon before credit
deduction from the consumer's bill only protects the retailer in
ensuring the validity of the coupon. The PIN does not address the
issue when it is the retailer that commits the coupon fraud as
stated above. Further, the system of Golden is inapplicable to the
traditional paper printed coupon.
[0005] A retailer coupon fraud is commonly committed by a retailer
submitting several providers' coupon to the provider for
reimbursement on non-bonafide sales or fictitious purchases. A
coupon that has unique markings, such as that proposed by Golden,
will not deter retailer coupon fraud because a retailer can just
gather several of these coupons, submit them to the provider and
get the reimbursement without having to link such coupons to actual
sale transactions. Consequently, a provider will experience a loss
by reimbursing the retailer without getting the benefit of
generating the revenue from an actual sale of the product, as well
as a loss of an opportunity for generating a potential repeat
customer or consumer by the retailer hoarding such coupons.
Combining the unique certificate mark with the unique
identification mark, as proposed by Golden, does not provide a
solution to the problem because a retailer can ask several living
individuals and fictitious individuals to print these electronic
coupons and submit these to the providers without requiring these
individuals to actually buy the product.
[0006] A consumer coupon fraud is usually committed by unauthorized
copying of the product coupon, counterfeiting, unauthorized
tampering of the value and expiration date of the coupon,
unauthorized creation of a special promotion and by printing or
getting several coupons which a consumer or a single household uses
by going back and forth to a store or several stores to purchase
the same specified product, that is, doing multiple redemption of
the coupon. The latter type of consumer fraud is usually of a
lesser monetary loss to a provider. However, these type of fraud is
rampant and often ignored by a retailer. The providers experience
loss by defeating the purpose of the coupon, that of promoting the
product through the issuance of a discount coupon, as an incentive
for the consumer to try the product at the discounted rate. Because
these coupons are provided in limited quantity and usually for a
limited time, the use of several of these coupons by one consumer
prevents the provider from reaching a greater number of consumers
belonging to different households. Golden et al. deters only the
copying of the product coupon through the printing of a unique
identification mark for each certificate or coupon. However, like
the retailer coupon fraud, the unique marks do not deter the
printing of several legitimate coupons by as many members of a
household, not ignoring the potential for the same household using
fictitious users to print more coupons. One household can
potentially print a sizeable percentage of the total allowable
coupons thereby minimizing the widespread distribution of these
coupons.
[0007] The present invention addresses both the retailer and
consumer fraud by providing traceability prior to the issuance
and/or printing of the coupon, prior to a retailer acceptance of
the coupon and more importantly, traceability of the product coupon
at the point of sale. The system places value on consumer
validation, and educates the industry to enforce the necessity and
policy of only accepting traceable purchases by credit card, smart
card, cash card and the like, collectively referred herein as
credit card, or by personal check, for all types of coupons.
Utilizing the claimed invention provides the necessary audit trail
that enables the providers to aggressively deter and reduce both
types of coupon frauds, and additionally provide the required
evidence to prosecute retailers for their criminal activities, if
desired. The system generally accomplishes this by requiring
consumer membership prior to issuance of the coupon, limiting the
sale to credit card or check payment, that is, no cash purchase is
allowed with coupon redemption, and requiring or providing user
validation and verification at the point of sale with an actual
sale reported or transmitted to a database having a traceable
retailer file or if applied to a traditional paper printed coupon
or third party coupons, a proof of sale imprinted on the coupon.
Imprinting may be done manually or electronically through a
printer.
[0008] It is an object of this invention to provide both printed
and electronic coupons that are traceable at the point of sale
thereby deterring and reducing both retailer and consumer
fraud.
[0009] It is also an object of this invention to provide a system
for using traditional paper coupons and current electronic coupons
with or without printed unique identification marks by implementing
the security devices of this invention.
SUMMARY OF THE INVENTION
[0010] The issuance and printing of manufacturing coupons with
certificate marks, and/or identification marks and/or encrypted
security marks are known. Online printing by users of coupons,
referred to as electronic coupons, the coupons bearing information
or data supplied by the manufacturer or a service provider, is also
known. See U.S. Pat. Nos. 5,907,830; 5,761,648; and, 5,305,197 as
examples. These on line processes generally involves a provider or
a provider with a service center, the service center herein also
referred to as coupon issuer, in electronic communication with each
other, generating providers' coupons for users' perusal and storing
these in a data base ready to be printed by an interested user.
Current or known coupons generally contain the product information,
amount of the coupon, expiration date and optionally, marketing
data, identification information and security codes to uniquely
identify the user and/or the promotion for verification on the
authenticity of the respective coupons. Although the claimed
invention proposes its own unique provider coupon and its method/s
of issuance, printing and redemption of these coupons, all of these
current or known coupons issued on line or paper printed and the
processes for generating these can be modified and adapted to any
one of the processes of the claimed invention to deter or reduce
coupon fraud. The present invention provides a system for deterring
and reducing coupon fraud by building in security measures both in
the process and in the printed coupon.
[0011] The invention utilizes an interactive online database
system, herein referred to as IODS, which operates on a membership
basis where users are validated and each given an identification
number or mark. An interactive online database system used in this
invention is a sophisticated combination of three subsystems all
working together to perform the different operations or process
steps described by the different claimed methods.
[0012] A method for registering a first time coupon user as a
member consumer/user into the coupon program described herein
comprise the steps of entering a prescreening information such as a
unique user name, a password and any other information requested by
a service center or a provider to an interactive online database
system, also referred to as IODS; verifying the user name, password
and other information for uniqueness, determining existing number
of accounts set up on a consumer/user terminal, usually an e-mail
address used for requesting online membership, preapproving or
predisapproving, that is, accepting or rejecting the prescreening
information of the consumer/user by the interactive online database
system; informing the consumer/user to enter a new prescreening
information if the entered information is not acceptable; entering
financial and directory information to the online database system
once the prescreening information is accepted; and, determining
existing number of financial accounts listed under the
consumer/user, approving or disapproving the membership of the
consumer/user, notifying an approved member of approval to use the
prescreening unique user name which automatically serve as the
e-mail address of the member for the user coupon program and
password for accessing the interactive online database system. The
e-mail provided through registration is not limited to the user
coupon program but can be use as any regular e-mail address. The
unique user name is also referred to as assigned identification
mark and unique means that the prescreen name provided does not
already exist in the IODS. The password are letters and or numbers
maintained by a consumer/user in his/her memory that should be
supplied whenever the unique user name is used. A consumer/user
applicant may elect not to apply online. The above information may
be processed through the telephone or by mail or other equivalent
means. For the latter, the applicant fills up an application form
containing all prescreening, financial, directory and any other
requested information such as a copy of a valid driver's license
and a copy of a telephone statement and sends these to the
administrator of the service center or provider maintaining the
interactive online database system. The interactive online system
in turn perform the same operation stated above and subsequent
communication between consumer/user and the administrator may be
done online using the e-mail address provided by the user coupon
program upon registration if the user has a terminal, by phone,
facsimile transmission or by mail. The IODS is activated only when
the provided unique user name and the password matches.
[0013] The use of providers coupon covered by the claimed invention
may be accomplished in several ways. One method is done purely
online and on real time basis resulting in a paperless transaction,
another methods is a combination of online and manual operation
while the other method covers the adaptation of an existing third
party paper or electronic coupon to the methods of the claimed
invention. A method for online, real time coupon issuing and
redeeming of a desired provider coupon by a member consumer/user,
comprise the steps of entering a resident zip code of the member
consumer/user to an interactive online database system of a service
center or a provider; displaying available provider coupons for the
member consumer/user by the interactive online database system;
selecting a provider coupon or coupons from the available coupons
by the member consumer/user; entering a service center assigned
identification mark or user name and a member consumer/user
password into the interactive online database system, the
interactive online database system checking its database to verify
the assigned identification mark and password, tying the assigned
mark and password to the member consumer/user, determining a number
of times the member consumer/user has requested the selected
provider coupon, approving or disapproving the member consumer/user
request for the provider coupon and allowing the issuance of the
provider coupon, the issued coupon tied to a member consumer/user
identification mark and password; transmitting the provider coupon
with a product order by the member consumer/user to a retailer's
computer; entering a sale or a plurality of sale of a product by a
retailer; validating payment of the sale by a credit card or a
personal bank check; forwarding a sale confirmation number and
retailer identification number to the service center; recording the
sale to the retailer by the service center; crediting the retailer
with an amount specified on the provider coupon; reimbursing the
retailer of the credit at a time specified by the provider; and,
updating the interactive online database after each reimbursement
of the retailer.
[0014] For coupon issuance and redemption at a retailer without
online, real time connection with an interactive online database
system of a service center and a payment center, a hybrid method of
online and manual operation, the method comprises the steps of
entering a resident zip code of a member consumer/user to an
interactive online database system of a service center or a
provider; displaying available provider coupons for the member
consumer/user by the interactive online database system; selecting
a provider coupon or coupons from the available coupons by the
member consumer/user; entering a service center assigned
identification mark or user name and a consumer/user password into
the interactive online database, the interactive online database
checking its database to verify the assigned identification mark
and password, tying the assigned identification mark and password
to the member consumer/user, determining a number of times the
member consumer/user has requested the provider coupon, approving
or disapproving the member consumer/user and allowing the issuance
of the provider coupon, the issued coupon tied to a member
consumer/user identification mark and password; printing the
provider coupon by the member consumer/user; bringing and
presenting the provider coupon by the member consumer/user to a
retailer; entering a sale or a plurality of sale of a product by
the retailer; validating payment of the sale by a credit card or a
personal bank check; forwarding a number of gathered validated
provider coupons generated from the sale or plurality of sale of
the product to the service center; scanning, decoding and
validating the provider coupons forwarded by the retailer;
identifying fraudulent coupons from legitimate coupons; preparing a
provider coupon validation report by the service center; forwarding
the coupon validation report and the gathered provider coupon to
the provider; reviewing the coupon validation report by the
provider; and, reimbursing the retailer for the amount of the
desired coupons. The IODS is updated after each reimbursement of
the retailer.
[0015] A preferred provider's coupon proposed by the claimed
invention for used with the above claimed methods includes aside
from the product information, the following information: name of
the member consumer/user and the name of the spouse, if requested,
e-mail address, date of issuance or printing of the coupon, a blank
space to fill in date of purchase, a blank space to write in the
initial of the member consumer/user, a blank space to write in the
personal account and/or check number if paying by check, coupon
value, expiration date, sales order number, provider's barcode,
unique membership identification number, instructions to cashier to
check identification and to accept purchases only with a credit
card payment method or by personal check, mailing address of the
administrator for the service center or provider where the retailer
can submit used member consumer/user coupons for reimbursement and
a unique encrypted serial number, if desired. The printing of the
member consumer/user name in the provider's coupon is a must for
the hybrid method to enable the security measures. This enables the
retailer to match the name of the member consumer/user with the
name on the credit card or personal bank check to prevent consumer
fraud. The service center certification mark generally includes
sales order number, coupon value, expiration date, provider's
barcode, instructions, mailing address of administrator and the
date of issuance or printing of the coupon. The service center
identification mark general includes the member customer/user name,
e-mail address, unique membership identification number, date of
purchase, customer's initials, personal check number, and
optionally, a unique encrypted serial number.
[0016] For electronic coupons, all of the preferred information can
be easily printed on the provider's coupon much like a personal
check. For third party coupons without the above printed
information on the coupon and for those issued by other than the
system herein, these may be used by separately entering, punching
in, and imprinting the above preferred information by the IODS at
the point of sale using the retailer's remote terminal, such as an
electronic card programmer, once a consumer/user agrees to sign up
for membership which follows the same membership application
process as described above. A member consumer/user can also use
third party coupons and need not sign up again for membership.
[0017] For current printed and online third party generated
provider coupons, collectively referred to as third party coupon,
the method of issuance and reimbursement of these coupons comprise
the steps of bringing and presenting the third party coupon by a
consumer/user to a retailer; scanning the third party coupon by the
retailer; signing up for membership by the consumer/user; entering
a service center assigned identification mark and a consumer/user
password into an interactive online database of a service center or
a provider, the interactive online database checking its database
to verify the assigned identification mark and password, tying the
assigned mark and password to the member consumer/user, approving
or disapproving the use of the third party coupon by the member
consumer/user; entering a sale or a plurality of sale of a product
by the retailer; validating payment of the sale by a credit card or
a personal bank check; imprinting a service center certificate and
identification marks on a surface of the third party coupon;
forwarding a number of gathered imprinted third party coupons
generated from the sale or plurality of sale of the product to the
service center; scanning, decoding and validating of the third
party coupons forwarded by the retailer; identifying fraudulent
coupons from legitimate coupons; preparing a coupon validation
report by the service center; forwarding the coupon validation
report and the gathered third party coupon to the provider;
reviewing the coupon validation report and the imprinted third
party coupons by the provider; and, reimbursing the retailer for
the amount of the desired coupons.
[0018] In the above methods, if allowed by the provider, the
retailer can also be the consumer, in which case the same
identification mark or user name is entered for the issuance of the
coupon and for crediting the coupon amount which the provider later
reimburses. These methods provide an audit trail which verifies a
user, prevents a consumer/user from printing or using the same
coupon beyond the allowable number for each user, requires a
verifiable purchase, and credits the retailer/user only with
verified purchases.
[0019] With this system, a counterfeit coupon will not hurt the
provider because there is an internal check for the number of usage
and more importantly, credit is given only after a bonafide
purchase. In lieu of on line real time check approval, payment by
check can be validated by a member consumer/user presenting a
picture identification such as a valid driver's license to the
retailer/user.
BRIEF DESCRIPTION OF THE DRAWING
[0020] FIG. 1 is a hardware schematic of the coupon issuance and
redemption system.
[0021] FIG. 2 is a schematic view of the membership process.
[0022] FIG. 3 is a schematic of a real time online coupon issuance,
redemption and verification process.
[0023] FIG. 4 is a schematic of a hybrid process for the issuance,
redemption and verification of a coupon.
[0024] FIG. 5 is an example of a provider's coupon.
[0025] FIG. 6 is a schematic of a process for adapting a fraud
deterrent measure into a third party coupon.
DETAILED DESCRIPTION OF THE INVENTION
[0026] The fraud deterred coupon issuance and redemption system
utilizes an interactive online database system 1, IODS as shown in
FIG. 1, which is a sophisticated combination of three subsystems,
the Internet web site programs and IODS web servers 2; the database
programs and IODS database servers 3; and, servers 4 for the
various work stations programmed to perform the respective work
station's specific operations or tasks. The Internet web site
program is a user friendly interface web site program designed and
developed to allow users, providers and retailers and visitors to
interact with and obtain information from the IODS database server,
display information and data, enable the online membership sign-up
or registration process, selection of coupon and viewing the
history of coupon issuance and printing. The database program, like
any database program, allows input, storage and output of data. It
can operate on the data such as encryption and auto-numbering, and
maintain a data history on the status of the accounts, sales order,
performance of each promotion and the issuance and redemption of
the coupons. The work station programs, ran on server 4, manages
the specific functions of the work station in a level of desired
security. The functions of the work stations include but is not
limited to enter, scan, validate, store, approve, disapprove,
archive, process and present data related to the verification of a
coupon, a retailer or a consumer. These subsystems all work
together to input or enter data, retrieve data, store data, create
data, code and decode data, encrypt data, secure data, analyze
data, process data, validate data, verify data, record and report
data, display data, match data, update data, provide printable
data, control access of data, for the providers, member
consumer/user, and retailer/users, these functions used, integrated
and identified in the claimed methods. The IODS 1 can be adapted to
connect with as many remote terminals as needed to allow
interactive communication between the various terminals and the
IODS. The interconnection is preferably done through a modem to a
commercial source for accessing a network, such as the Internet,
using a browser or by direct access from a bulletin board system.
However, other means of connection such as through fiber optics,
other electrical types of connection or wireless methods may be
employed. While the IODS is designed to be able to communicate
without restrictions with the remote terminals, the IODS 1
discriminates and limits accessibility of the individual terminals
to the data stored within the IODS as well as limits accessibility
of one terminal to access data stored in another terminal. The IODS
1 is set up to allow the interaction between the provider's
computer 5 with the web server 2 so that the provider can input,
view and secure data from the IODS database server 3. The IODS
system administrator 10 controls all updates and activities of the
system and confirms and validate the data coming from the
provider's computer 5 before it is made available for display to
the member consumer/user's computer 6. All IODS database servers,
work stations, network of computers and accessories are secured
behind a firewall 7. The work stations generally are the data entry
stations 8 for inputting data about the member users and providers;
and, the coupon scanning and validation processing stations 9 which
collect the data on the returned coupons. All data entry, coupon
scanning and validation of returned coupons are carefully validated
by the system administrator 10 before they are uploaded to the
central database 11 within server 4. At a selected period of time,
the administrator 10 validates the data in the central database
before it is fed to the IODS database server 3. A history database
12 archives outstanding coupon data to reduce the database size on
all the database servers and their back-ups. Both the IODS database
server and the central database server are backed up by real time
mirror servers 3A and 11A, respectively.
[0027] The security measures built into the claimed process require
that a user should first register as a member/user of the user
coupon program described herein.
A. Consumer/User Validation Process
[0028] A first time consumer/user 13 (not shown) who wants to
become a registered member as shown in FIG. 2, must enter in 14
from his/her user terminal or computer 6, a prescreening unique
user name, a password, and any other requested information,
collectively referred to as prescreening information, to a provider
16 (not shown) or service center 22 (not shown) having the IODS 1.
If the user name selected is unique, the IODS 1 preferably, will
check 15 the consumer/user's computer 6 to determine the number of
registered accounts created from the same computer 6, usually
traced by its e-mail address, using for example, a serverlet cookie
technology. If the number of existing accounts created exceeds the
limit of accounts per terminal allowed by a coupon provider 16, the
IODS 1 will inform the consumer/user 13 on the reason for rejecting
17 the application, and will also be prompted 18 to contact a
representative via e-mail or other means for assistance. After the
IODS 1 determines that there are no problem with the consumer/user
prescreening qualification, the IODS 1 will prompt the
consumer/user to enter in 19 additional financial and directory
information pertaining to the validation of a personal payment
card, including but not limited to the type of payment card,
expiration date, payment card number, first and last name, address
and zip code, and telephone number. All forms and types of payment
card are referred herein as credit card, the name commonly
associated by a user for these types of payment. The IODS 1 will
verify 20 the financial and directory information provided through
the financial institution's database and permit only a specified
number of accounts using a specific credit card number. If the IODS
rejects 23 the creation of an account based on the additional
information supplied, the IODS 1 will prompt the consumer/user of
the reason for rejecting the application, and will advise the
consumer/user to contact a representative via e-mail or other means
for assistance. If the consumer/user is not comfortable in
supplying credit card information online, or does not have a credit
card, the consumer/user may elect to print out and fill-up an
application form with all the requested information, and submit
this to the provider 16 or the service center 22, along with a copy
of a valid driver's license, and a copy of a current telephone
statement. The above information may also be supplied through the
telephone. If there is no problem with the application as
determined with the steps described above, the provider 16 or
preferably the service center 22 housing the IODS 1 manually or
online creates an account for the consumer/user. The service center
22 approves the membership and notifies 24 the applicant via e-mail
or through other forms of communication that his/her supplied
unique user name is the same as his/her identification mark and
will open an e-mail address with the same unique user name for the
member user. For a purely manual registration application, an
applicant will undergo the same process except that the information
and feedback will be done through telephone, facsimile transmission
or by mail.
B. Real Time Online Coupon Issuance and Redemption
[0029] A real time online method for coupon issuance and redemption
as shown in FIG. 3 is herein described. A provider 16, desiring to
issue product coupons 25, either independently or through the aid
of a service center 22, makes a certain number of coupon available
to the consuming market. Product manufacturer and Service Provider
16 provides industry data including and not limited to coupon
redemption value, product image, offer code, begin promotional
date, expiration date, coupon barcode, maximum number of coupon
independently or preferably to be issued/printed per geographical
zone (DMA) and instruction relating to the use of the coupon to a
service center 22 also herein referred to as coupon issuer. These
data will be inputed into an interactive online database (IODS)
system 1, and after an online or manual verification of the inputed
data by the administrator 10, the IODS 1 will display coupons from
the providers 16 to the member consumer/users 26 through the
Internet.
[0030] The process starts with a member consumer/user 26 connecting
27 online to the IODS 1, and providing 28 a resident zip code
number. The system 1 will display 29 the available coupons on the
screen of the member/user 6 terminal. Member/user represents both
consumer and retailer while consumer/user pertains only to the
consumer and not the retailer. Member consumer/user is a
consumer/user who was approved for membership. The member
consumer/user will be prompted to select 31 a coupon 25 from the
display of a selection of coupons based on their geographical
location. The display will also indicate the number of coupons
available for selection by the member consumer/user. A registered
member of the IODS enters 32 his/her user name also referred to as
assigned identification mark and password for verification 33 by
the IODS 1. Once verified for its validity, the IODS 1 will issue
34 a unique coupon 25 preferably with an encrypted serial number to
the member consumer/user's remote user computer terminal 6. A valid
user name and password mean that the IODS 1 has checked its
database and verified the client assigned identification mark and
password, tied the assigned identification mark to the member
consumer/user, and that the user has not requested the same coupon
at an earlier time. The member consumer/user may only obtain one
unique coupon per product or service, as the IODS 1 will not issue
a second unique coupon from the same provider's promotion for the
same product or service to the same member consumer/user. The IODS
1 may also issue according to the provider's instructions, a
designated number of provider's coupons for a household larger than
two. In a paper printed coupon, the above steps are accomplished
with the distribution of the providers' coupons through known
marketing media. If the user name and/or password is not valid, the
member consumer/user is advised by the IODS 1 to contact 36 the
provider or service center representative. The member consumer/user
redeems 37 the coupon online and transmits 38 the provider coupon
to a retailer remote terminal or computer 39 along with an order
for the product before the printed expiration date. At the retail
store's terminal or computer 39 the retailer/user 40 (not shown)
enters 41 a sale or a plurality of sale and communicates the sale
to the financial institution for validation and approval 42. Once
approved by the financial institution, the latter prints out online
at the retailer's terminal 39, a confirmation number which is
forwarded 43 online to the IODS 1 at either the provider or service
center site by the retailer/user along with his/her retailer/user
identification number. The IODS 1 records 44 online, the sale on
the retailer/user' account held at the service center or provider
and immediately credits 45 the retailer/user with the corresponding
amount indicated on the provider's coupon. After a period indicated
by the provider or service center, the IODS 1 reimburses the
retailer/user by printing 46 out a check for the outstanding amount
of credit due to the retailer/user and mailing this or transmitting
47 a check to the retailer/user terminal which the retailer/user
can print at his/her terminal. After reimbursement, the IODS 1
updates 48 its records. All these activities are stored in the IODS
1. Maintenance of this record is on real time interactivity,
meaning, the data or information is immediately entered and
modified after every credit and reimbursement.
[0031] A purely online process may not be feasible for some
retailers with less sophisticated terminals and network connection
such that some form of a hybrid process is resorted to.
C. Hybrid Coupon Issuance and Redemption
[0032] The initial steps of the process is the same as the real
time online process described above. The numbering of the same
steps will be maintained so that those steps that differ will be
differentiated by the use of a different number.
[0033] The process as shown in FIG. 4, starts with a member
consumer/user 26 connecting 27 online to the IODS 1, and providing
28 a resident zip code number. The system 1 will display 29 the
available provider coupons on the screen of the member/user 6
terminal. The member consumer/user will be prompted to a select 31
a provider coupon 25 from the display of a selection of coupons
based on their geographical location. The display will also
indicate the number of coupons available for selection by the
member consumer/user. A registered member of the IODS enters 32
his/her user name also referred to as assigned identification mark
and password for verification 33 by the IODS 1. Once verified for
its validity, the IODS 1 will issue 34 a unique coupon 25
preferably with an encrypted serial number to the member
consumer/user's remote user computer terminal 6, so that the coupon
25 may be printed 35 immediately or retrieved a second time from
the service center 22, if the original printed coupon was lost or
damaged, and printed on the member consumer/user's printer device
49 (not shown). The service center will issue a substitute
identical coupon as the original for lost or damaged coupon to
enable traceability if the member consumer/user has used the
original coupon because the duplicate usage will be identified and
detected once the original and the subtitute coupons are scanned.
Validity criteria are the same as the above real time online
process. In a paper printed coupon, the above steps are
accomplished with the distribution of the providers' coupons
through known marketing media. If the user name and/or password is
not valid, the member consumer/user is advised by the IODS 1 to
contact 36 the provider or service center representative. The
member consumer/user brings the provider coupon 25 to a
retailer/user 40 and upon presentation 50 of the coupon 25 for a
card payment, the retailer matches the name in the coupon with the
name on the credit card, personal bank check or any other valid
form of identification, punches in or enter 51 the amount of the
sale and requests the user to make his/her payment by sliding
his/her credit card for payment validation by the card provider.
For payment by a personal bank check, the check is validated by a
member consumer/user presenting a picture identification such as a
valid driver's license to the retailer/user and by writing 52 the
personal bank account and/or check number on the provider's coupon
25. The check number written on the coupon will be the retailer's
proof of the purchase. The retailer/user 40 gathers 53 all the
validated provider coupons 25 received, and forwards 54 these by
mail or shipment with his retailer identification number or other
forms of identification to the provider 16 or service center 22
whose address is printed on the coupon, or to a selected retail
clearing house selected by the retail store to sort and ship 54
these coupons 25 for them. The coupon 25 must be returned to the
provider or the appropriate service center 22 for coupon scanning,
decoding, and validation. Upon acceptance by the provider or
service center 22, The IODS 1 will download 55 the most recent copy
of the coupon database and activity into a scanning system 9 which
will scan, decode, validate and record 56 each coupon 25, the good
coupons will be counted 58 and any coupons that were tampered,
falsely created, or photocopied will be identified and recorded 59.
After completion of every submission, accounting and verification
of all coupons submitted by a retailer, the IODS 1 database is
updated. The latest retailer redemption activity will be documented
60 in a coupon validation report. The coupon validation report,
along with the physical coupon received by the service center if
used by the provider, will be forwarded 61 to the provider or its
agent who will review 62 the coupon validation report and reimburse
63 the retail store for the member consumer/user submitted coupons.
For any anomalies, the provider may choose to audit 64 the retail
store for potential coupon fraud. This audit trail, made possible
by using an IODS, allow the product and service providers to
isolate the cause of fraud, and therefore deter and reduce future
coupon fraud by the users. Because the systems described above can
quantify, deter and reduce fraud, the business risk brought about
by the fraudulent practices seen in a coupon promotion is likewise
reduced or deterred, thereby making an insurance company more open
to insuring or covering such businesses and/or practices.
[0034] In the above processes, the retailer can also be the
consumer, if allowed by the provider. In the real time online
process, the same assigned identification mark or user name is
entered both for the issuance of the coupon and credit of the
coupon amount which the provider later reimburses.
D. Provider's Coupon
[0035] While current printed and electronic coupons 82 (not shown)
may be adapted to the security systems of the claimed invention, a
preferred provider's coupon 25 as shown in FIG. 5 contains aside
from the product information 65, the following information: name of
the user 66 and name of spouse, if requested, date of printing or
issuance 67 a blank space to fill in date of purchase 68, a blank
space to write in the initial of the member consumer 69, coupon
value 70, barcode 71, unique encrypted serial number 72, unique
membership identification number 73, instruction to cashier to
check identification 74, and to accept purchases only with a credit
card payment method or by personal bank check 75, a blank space 76
where the member consumer/user writes in his/her account and or
check number, coupon expiration date 77, mailing address for
redemption of coupon 78, sales order number of the promotion 79 and
the e-mail address 80 issued to the member/user upon
registration.
[0036] For electronic coupons, all of the preferred information
above can be easily printed on the provider's coupon much like a
personal check. For third party coupons without the above printed
information on the coupon, these may be adapted to the claimed
system and used by separately entering or punching in the same
requested membership information to the IODS 1 with the IODS 1
imprinting the supplied information on the third party coupon 82
once the sale is validated. This is done at the point of sale using
the retailer's remote terminal 39, once a consumer/user agrees to
sign up for membership which may be done from the retailer's
terminal 39. The same membership application process as described
above is followed. For a member/user using a third party coupon,
the same steps are followed except that a member/user simply enters
his/her user name and password on the retailer's remote terminal or
computer 39 or on other devices at the retailer's premises such as
an electric card programmer.
E. Fraud Deterrent Process for Third Party Coupon
[0037] For current traditional paper printed and/or online third
party generated provider coupons, collectively referred to as third
party coupon, the method of issuance and reimbursement of these
coupons as shown in FIG. 6, starts with the presentation 81 of the
third party coupon 82 to a retailer. The retailer scans 83 the
coupon for validity and if the consumer/user desires to use the
coupon, he/she is allowed to do so if he/she agrees to sign up 84
for membership or if he/she is already a member. The membership
process is the same as that described in A above. If membership is
approved, the service center allows the member consumer/user 26 to
immediately start using the assigned identification mark or user
name with his/her password. As in the process above, the member
consumer/user enters 85 the assigned identification mark and
his/her consumer/user password into an interactive online database
system, IODS 1 of a service center or a provider, the IODS 1
checking its database to verify 86 the assigned identification mark
and password. The IODS 1 verifies the member consumer/user by tying
the assigned mark and password to the member consumer/user. The
IODS 1 approves 87 or disapproves 88 the use of the third party
coupon by the member consumer/user. Once the member consumer/user
is approved, the sale or sales of the product is entered 89 by the
retailer who then validates 90 the payment of the sale by a credit
card or a personal bank check by first matching the user name on
the coupon with the name on the credit card or personal bank check
and submitting 91 the sale to the respective financial institutions
who will notify 92 the retailer either on line or through the phone
whether the payment is good. When the payment is honored, the
retailer imprints 93 the service center certificate and
identification marks on the surface of the third party coupon. From
this step, the process proceeds as in section C above, from the
step commencing with the gathering and forwarding of the coupon to
the service center 22, but in this case imprinted third party
coupons 82 instead of the preferred provider coupon 25 are
submitted for reimbursement.
[0038] While the embodiments of the present invention have been
described, it should be understood that various changes,
adaptations, and modifications may be made therein without
departing from the spirit of the invention and the scope of the
claims.
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