U.S. patent application number 11/212802 was filed with the patent office on 2005-12-22 for user rewards program and associated communications system.
Invention is credited to Mobed, Jeffrey N., Oliver, Paul V..
Application Number | 20050283435 11/212802 |
Document ID | / |
Family ID | 46204442 |
Filed Date | 2005-12-22 |
United States Patent
Application |
20050283435 |
Kind Code |
A1 |
Mobed, Jeffrey N. ; et
al. |
December 22, 2005 |
User rewards program and associated communications system
Abstract
A financial system in which an intermediary facilitates
transactions between one or more credit card issuers and a
plurality of different vendors which may be related by a common
characteristic. The financial system of the present invention
preferably includes a consumer credit card and a membership card,
both including some type of rewards program. A customer applies for
the credit card and membership card at a point-of-sale associated
with a vendor that sponsors the credit card. The vendor uses a
computer with a hardware or software identification system to
securely transmit the application to the intermediary via a broad
bandwidth communication medium, such as the Internet. The credit
card issuer may use an instant on-line approval mechanism to
instantly send a credit card number and initial spending limit to
the customer via the vendor's computer. If the customer is not
instantly or otherwise approved for the credit card, the
intermediary may provide the customer with a branded membership
card that carries no purchasing power, but which provides certain
rewards at the vendor's location, preferably building customer
loyalty to the vendor.
Inventors: |
Mobed, Jeffrey N.;
(Woodstock, CT) ; Oliver, Paul V.; (Wayne,
PA) |
Correspondence
Address: |
REED SMITH LLP
P.O. BOX 488
PITTSBURGH
PA
15230-0488
US
|
Family ID: |
46204442 |
Appl. No.: |
11/212802 |
Filed: |
August 25, 2005 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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11212802 |
Aug 25, 2005 |
|
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10114696 |
Apr 2, 2002 |
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60281129 |
Apr 2, 2001 |
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Current U.S.
Class: |
705/39 |
Current CPC
Class: |
G06Q 30/0601 20130101;
G06Q 30/02 20130101; G06Q 20/0855 20130101; G06Q 20/10
20130101 |
Class at
Publication: |
705/039 |
International
Class: |
G06Q 040/00 |
Claims
1-14. (canceled)
15. A method for providing a credit card to a customer, comprising
the steps of: storing a HASP identifier code in a HASP; installing
said HASP on a vendor computer; installing system software on said
vendor computer; allowing said vendor computer access to an
intermediary portal web site if the HASP identifier code matches
information in a security database associated with the intermediary
portal web site; and passing rewards program application
information from the vendor computer through the intermediary
portal web site to a credit card issuer web site.
16. The method of claim 15, wherein said rewards program
application information is passed to a CGI bin associated with the
credit card issuer web site.
17. The method of claim 16, wherein said rewards program
application information includes information for applying for both
a credit card rewards program and a membership card rewards
program.
18. The method of claim 17, wherein said rewards program is tiered
such that the financial burden of the rewards program is shared
between the credit card issuer and the vendor.
19. The method of claim 18, wherein said membership card and said
credit card are branded to the vendor.
20. A method for providing a credit card to a user, comprising the
steps of: storing a HASP identifier code in a HASP; installing said
HASP on a vendor computer; installing system software on said
vendor computer; initially logging into an intermediary portal web
site to establish a security code for the vendor computer based on
the HASP identifier code and a system serial number for the vendor
computer; logging into the intermediary portal web site with a
login name and password; passing credit card application
information from the vendor computer through the intermediary
portal web site to a credit card issuer web site; and sending
instant credit card approval decisioning information from the
credit card issuer web site through the intermediary portal to the
vendor computer.
Description
CLAIM OF PRIORITY
[0001] This application claims the benefit under 35 U.S.C. .sctn.
119(e) of the earlier filing date of U.S. Provisional Patent
Application No. 60/281,129 which was filed on Apr. 2, 2001.
BACKGROUND OF THE INVENTION
[0002] 1. Field of the Invention
[0003] The present invention relates to multi-party financial
systems, and, more specifically, the present invention relates to
credit card acquisition systems in which a single intermediary
facilitates transactions between a plurality of vendors and one or
more credit card issuers.
[0004] 2. Description of the Background
[0005] With the advent of new communications schemes and the
ever-increasing ability to manage large amounts of information from
a centralized location, multi-party financial systems have seen
exponential growth recently. Among these financial systems, credit
card systems are among the most highly competitive, and among the
most varied.
[0006] A credit card generally gives a consumer enhanced purchasing
power without having to have funds in an account prior to use of
the funds (as with, for example, a checking account). The consumer
gains the ability to purchase goods before the money to pay for the
goods is earned and/or without having to carry legal tender at the
point of sale. The credit card issuer preferably receives the
benefit of yearly fees and/or the interest payments received on the
money loaned to the consumer for the purchase of goods.
[0007] Because of the large amount of consumer credit card debt,
many companies fiercely compete to sign up new credit card users,
and further compete to keep consumers "loyal" to their particular
brand/type of credit card. Among other factors, one way in which
credit card issuers garner and keep customer loyalty and retention
is by providing so called "rewards programs" whereby the consumer
receives some benefit returned to them in exchange for use of the
credit card. For example, a credit card issuer may provide
cash-back savings on a small percentage of purchases. With credit
cards that are specifically branded to a single company, for
example an airline, the sponsoring company often offers a more
focused rewards program, such as frequent flyer miles given to the
user for every dollar spent using the airline credit card.
[0008] A major problem with matching these credit card
opportunities to the potential customers of the card is to
determine a unique characteristic of the customer which may define
a certain future spending habit. For example, the purchasers of a
new car may be expected to purchase maintenance services and or
automobile accessories at the dealership in which the car was
purchased. Eventually, if the customer has a good experience with
the automobile and the dealer, the customer may also be expected to
purchase additional or replacement automobiles of the same brand
and at the same dealership. This process enhances the potential
revenue stream for the credit card issuer and the loyalty for the
dealer.
[0009] In addition to locating the appropriate market for a
particular credit card, the issuers may also be disadvantaged in
that it is difficult to administer different credit card programs
for different groups of users. The credit card issuer may provide
various benefits, rates, or other attributes to users in different
customer groups, and each of these groups must be kept
administratively separate from each other. When a large variety of
vendors all desire to have groups of their customers obtain a
branded credit card from a certain credit card issuer, the
bookkeeping difficulties are enormous.
[0010] As such, a need exists in the art to provide an intermediary
between one or more credit card issuers and a plurality of
disparate vendors offering a varied assortment of goods and/or
services which are related in some way (i.e., brand, manufacturer,
industry). The intermediary should be able to uniquely identify all
of the groups of vendors from each other, as well as subgroups or
individuals within each group, at the time when each transaction is
commenced. It would also be desirable if the intermediary could
receive and send data in disparate formats based on the needs and
desires of the various vendors and credit card issuers. Finally, it
is desirable to use the Internet, or other broad bandwidth
electronic communications network, to facilitate the various
communications across such a system.
[0011] These and other objects and advantages of the present
invention will be readily recognized by one skilled in the art
through the explanation given below, the attached figures and the
claims appended hereto.
SUMMARY OF THE INVENTION
[0012] In accordance with at least on preferred embodiment, the
present invention provides a financial system in which an
intermediary facilitates transactions between one or more credit
card issuers and a plurality of different vendors which may be
related by a common characteristic. The financial system of the
present invention preferably includes a consumer credit card and a
membership card, both including some type of rewards program. Each
vendor, and each location within each vendor is uniquely
identifiable by the intermediary, and the intermediary provides a
web-based portal site that facilitates information transfer between
the vendors and the credit card issuers.
[0013] A customer applies for the credit card and membership card
at a point-of-sale associated with a vendor that sponsors the
credit card. The vendor uses a computer with a hardware or software
identification system (such as a hardware HASP) to transmit the
application to the intermediary over a broad bandwidth
communication medium, such as the Internet. The intermediary both
saves the application for future reference, and converts the data
to a format acceptable to a credit card issuer and sends the
application to the credit card issuer.
[0014] The credit card issuer may use an on-line approval mechanism
to instantly send a credit card number and initial spending limit
to the customer via the vendor's computer. The customer may use the
credit card number in a "card not present" transaction for an
interim period, and the credit card issuer will provide the
physical credit card in a follow-up mailing.
[0015] If the customer is not instantly or otherwise approved for
the credit card, the intermediary may provide the customer with a
branded membership card that carries no purchasing power, but which
provides certain rewards at the vendor's location, preferably
building customer loyalty to the vendor.
[0016] Both the credit card and the membership card may be branded
to the vendor, the intermediary, and/or the credit card issuer. The
cards carry some type of rewards programs, such as building points
for future purchases at the vendor's site or other reward. Because
of the co- or tri-branding of the card, the burden of the
redemption process of the rewards program may be shared between all
of the participants in the financial system.
[0017] Generally speaking, the above process may be repeated with
many different credit card issuers and vendors. A single
intermediary preferably facilitates the unique identification of
the vendor computer during each transaction, for example, to make
sure that the credit card issuer sends the customer a card with the
vendor's logo. The intermediary may also sponsor a
business-to-business web site providing feedback and data mining
about customers of each vendor.
[0018] The above multi-party system is especially useful for highly
fractured industries wherein a few major goods producers use a wide
variety of independent distributors. For example, the automobiles
manufactured by only a few companies are sold through thousands of
independent automobile dealers who compete with one another. The
above system allows each local dealer to generate customer loyalty
on the local level--separate from any loyalty to the automobile
manufacturer itself.
BRIEF DESCRIPTION OF THE DRAWINGS
[0019] For the present invention to be clearly understood and
readily practiced, the present invention will be described in
conjunction with the following figures, wherein like reference
characters designate the same or similar elements, which figures
are incorporated into and constitute a part of the specification,
wherein:
[0020] FIG. 1 shows a high level block diagram of the present
invention;
[0021] FIG. 2 depicts a personal computer with a hardware HASP
applied to an external parallel port;
[0022] FIG. 3 shows an exemplary system diagram of the present
invention; and
[0023] FIG. 4 depicts an exemplary vendor branded credit card for
use with the present invention.
DETAILED DESCRIPTION OF THE INVENTION
[0024] It is to be understood that the figures and descriptions of
the present invention have been simplified to illustrate elements
that are relevant for a clear understanding of the present
invention, while eliminating, for purposes of clarity, other
elements that may be well known. Those of ordinary skill in the art
will recognize that other elements are desirable and/or required in
order to implement the present invention. However, because such
elements are well known in the art, and because they do not
facilitate a better understanding of the present invention, a
discussion of such elements is not provided herein. The detailed
description will be provided herein below with reference to the
attached drawings.
[0025] The present invention generally provides a customer
retention membership card program and co-branded loyalty credit
card program designed to expand and enhance a vendor's image within
its trade area and to increase customer awareness, loyalty,
retention, and revenue, through the issuance of vendor-specific
membership cards and vendor-specific credit cards. Each card may be
prominently branded with the individual vendor's name or logo on
the face of the card (see, FIG. 4) and includes a customer loyalty
value proposition intended to drive the customer back into the
vendor's place of business for future and related goods and/or
services. The loyalty value proposition may include, for example: a
variable discount on goods and/or services when using the
membership or credit cards; an instant seeding of money on either
card when the customer first accepts the card; a best-in-class
rewards program that allows a customer to earn rebate dollars good
for future goods and/or services; or preferred service
appointments.
[0026] The co-branded credit card allows a vendor to put the vendor
logo on the card, and the intermediary is able to provide the
credit card issuer with that information which is necessary to be
provided back to the credit card issuer's fulfillment provider (for
example, FLEET's First Data Resources). The information transfer
from the one or more vendors to the one or more banks is sent
through an intermediary sponsored portal web site. The issuer's
fulfillment provider does the back-end processing for the credit
card issuer. The intermediary identifies the vendor via a logo ID
that it passes on to the credit card issuer. The intermediary
provides the ability to actually separate thousands of vendors and
keep their information separately organized.
[0027] As generally depicted in FIG. 1, rather than being limited
to just one vendor and just one credit card issuer, the present
invention preferably utilizes an intermediary who acts as a
communications and functional bridge between a plurality of
different vendors and one or more credit card issuers. In this way,
the intermediary can transparently manage the accounts of many
different vendors in disparate industries while taking advantage of
economies of scale.
[0028] Because many different vendors can be managed by the
intermediary, the present invention provides a vendor-specific,
rather than manufacturing company-specific loyalty program. For
example, in the automotive industry, rather than having a credit
card branded with the name of an auto manufacturer (which does not
encourage the individual dealers to promote the card), the customer
would have a dealer-specific card, which the dealer would obviously
promote strongly. This is especially important in that it is the
dealer's branding (name and logo) rather than the automotive
manufacturing company that is being promoted.
[0029] Although not limited thereto, one potential application of
the present invention would be to the dealership structure of the
automobile selling industry. This example will therefore run
throughout the present document for purposes of example. In the
automotive industry, although a few large automotive manufacturing
companies brand the specific lines of their manufactured
automobiles, each dealer competes against all other dealers
(including other dealers that sell automobiles from the same
manufacturer) for market share. The credit card and membership card
according to the present invention may be tri-branded between this
dealership, a credit card issuer, and an intermediary who
administers the relationship between these two entities. This
arrangement allows the dealer group the opportunity to have its own
readily identifiable (branded) credit card.
[0030] The credit card is offered to the customer by the vendor's
employees. For example, in a new automobile dealership, a credit
card and a non-credit card membership card program would be offered
to the dealership's customers when the customer purchases, leases,
or services a new or used vehicle or by virtue of having previously
purchased, leased, or serviced a new or used vehicle in or from
that specific dealership. The credit card may be used by the
consumer for after-market purchases at the point of sale or service
and general credit card purchases. Consumers that do not qualify
for the credit card may then be automatically enrolled into the
intermediary's membership plan by the vendor.
[0031] In addition to receiving special consideration at the
vendor, consumers may earn rebate dollars for using the credit
card, as well as, for example, 10% off of future purchases at the
vendor (e.g., parts and/or service at the new automobile
dealership). The rebate dollars (which may be capped at some
maximum amount) are then applied toward the purchase of a product
from the vendor (e.g., the purchase or lease of another new or used
vehicle) if the rebate dollars are used within a certain predefined
timeframe (e.g., 4 years) from the time the reward is earned.
[0032] To disperse the financial burden of the rewards program, the
various entities in the financial system preferably share the
burden of rewards redemption in a "tiered" approach. For example,
the vendor may be responsible for an initial portion of the rewards
dollars, while the credit card issuer (or even the intermediary)
may be responsible for additional portions of the rewards dollars.
In this way, one entity may have an initial (and more onerous)
burden, while the other entities can delay having to put up capital
for the rewards programs until later in the process (after the user
has earned a certain amount of reward dollars sponsored by the
vendor).
[0033] The vendor-sponsored membership plan, as opposed to the
credit card, is designed to fill in the gap for those consumers who
do not qualify for the credit card. The membership card is designed
to allow the consumer to receive many of the benefits of the credit
card and to help the vendor retain the consumer as a repeat
customer. The membership card is preferably branded and designed to
look like the vendor-sponsored credit card 400 (see, FIG. 4), but
it will not have the credit card (or credit card issuer's) logo or
credit card identifier 440. The membership card may come with an
initial rebate toward future purchases from the vendor. For
example, the purchase or lease of a new or used vehicle from an
automobile dealership as long as the vehicle is purchased from the
same dealership within a specified amount of time.
[0034] The above dual card system provides a vendor with local area
brand recognition and increased customer retention which generates
increased short term and long term profits for the vendor. The
customer benefits from the well-defined value proposition. The
intermediary and the credit card issuer benefit from the revenue
stream from interest on the card debt.
[0035] As briefly described above, the rewards system is preferably
tiered so that part of the redemption burden can be shifted between
each of the entities of the system. For example, for the first
$1,999 of consumer purchases, 3% (up to $250) of the purchases may
be returned to the user as rewards dollars to be spent on the
sponsoring dealership. For the next $1,999, the dealer may provide
2% in rewards points. Thereafter, once the customer has maximized
the rewards from the dealer, the sponsoring bank may then provide
cash-back or other rewards on, for example, 1% of future purchases.
Again, the total amount of rewards may be capped at, for example,
$750. In this way, the burden of the rewards program may be shared
between various sponsoring entities.
[0036] The above discussion describes the general structure and
features of a multi-party financial system according to the present
invention, using an automobile dealership as a preferred example.
Below, a more concrete discussion of the system architecture is
provided along with an exemplary process by which the system may be
utilized.
[0037] FIG. 3 shows a general system diagram 300 according to one
embodiment of the present invention wherein a plurality of vendors
320 access one or more credit card issuers 360 through an
intermediary 340. All communications are facilitated by the
Internet 380. Although in FIG. 3, different vendor groups (e.g.,
different dealership groups) all access the intermediary 340
through the Internet 380 (through an intermediary portal web site),
other communication schemes, including various direct connections
could also be used within the scope of the present invention.
[0038] The vendors 320 are shown as three distinct groups. The
first two vendor computers 312 are shown directly connected to the
broad bandwidth communications medium 380. These vendor computers
312 may represent the financing manager's computer at two
completely different companies, or they may represent two uniquely
identifiable computers at the same company, in one or more physical
locations. The second two vendor computers 314 are connected to
each other and to the Internet 380 via a local area network 316.
These computers may be two different machines located at the same
vendor location, or the local area network 316 may represent an
inter-office connection. An almost limitless variety of
architectures may be facilitated by the present invention.
[0039] The intermediary 340 is also connected to the broad
bandwidth communications medium such as the Internet 380. The
intermediary 340 preferably includes one or more computers or
servers 342 that are connected to one or more databases 344, 346
that store information pertaining to the financial system. In FIG.
3, database 344 is shown directly connected to the intermediary
computer 342 and database 346 may be remotely accessed by the
intermediary computer 342. The vendors 320 preferably communicate
with the intermediary (and the credit card issuers) using a web
browser to access a portal web site run by the intermediary over
the Internet 380.
[0040] One or more credit card issuers (one shown) 360 are also
communicatively connected to the other system users. The credit
card issuers 360 include a computer or server 362 and one or more
databases 364 to store user information. These components 362, 364
represent all of the functionality that a credit card issuer 360
typically utilizes to manage a credit card system.
[0041] The present invention preferably uses a hardware or software
HASP (Hardware Against Software Piracy) key to uniquely identify
all of the users of the system to the intermediary and the bank, so
that the activities of each user may be centrally controlled and
managed by the intermediary. As seen in FIG. 2, the hardware HASP
200 plugs into the parallel port on rear of the vendor computer 210
(e.g., a personal computer or workstation at the dealership). The
software HASP is installed onto the specified, authorized vendor
computer 210 at the vendor site. The hardware HASP 200 has 128 bit
SSL encryption and allows a first tier of security for users of the
system.
[0042] As seen in FIG. 3, a vendor computer 312, 314 attempts to
access the system 300 by entering a URL (uniform resource locator)
of an intermediary portal web site into a web browser on the
vendor's computer. The computer 312, 314 may be connected to the
Internet 380 in any of a variety of ways, including: a dial-up
modem connection, a broadband access, access through a local area
network via a network card, or any other method. In a preferred
embodiment, the HASP 200 and the software are configured such that,
after being presented with an initial "splash page" on the
intermediary portal web site, the vendor computer is unable to
reach the system login screen unless properly authorized by the
system based on the HASP.
[0043] The HASP key 200 identifies the vendor, vendor location,
department, and even exact computer on which the HASP is installed
and present. This unique identification is important to determine
if the customer is in the finance, insurance, or parts and service
department.
[0044] The HASP device 200 is preferably an off-the-shelf copy
protection device, but it is being used for an identification
purpose in this system.
[0045] More specifically, the present invention identifies each
computer that uses the system by using a hardware identification
system, such as the HASP key manufactured by ALADDIN. A HASP is a
hardware-based software protection system or software-based
software protection system that prevents unauthorized use of
software applications. The physical HASP key is a small hardware
device (sometimes called a "dongle") that connects to a computer
and protects software applications against piracy by preventing use
of the software if the key is not present. The software HASP key is
a software program that is physically installed onto the user's
computer and protects software applications against piracy by
preventing use of the software if the key is not present.
[0046] A physical HASP may include a custom ASIC (Application
Specific Integrated Circuit) chip, a microcontroller, and/or other
hardware to perform the anti-piracy functionality. The HASP also
includes a memory, such as a one-time programmable Flash ROM that
is modified to uniquely identify the computer on which it is to be
installed. For example, before installation in a vendor computer,
the memory in the hardware HASP is stored with a unique HASP
identifier code that is encrypted and can not be altered. After the
HASP is installed in the parallel port of the vendor computer, the
system software installation is loaded on the vendor computer. The
first time this vendor computer system accesses the intermediary
web site, the software uploads both the HASP identifier and a hard
disk drive serial number (or other vendor computer identifier) to
the intermediary system. This HASP/disk identifier combination is
used to uniquely identify the location, department, vendor name and
other information of the vendor computer. If the HASP is removed
and inserted into another computer, or if a different HASP is used
with the vendor computer, the HASP/disk combination identifier will
not be correct as determined by the initial installation, and the
user will not be able to access to the financial system of the
present invention.
[0047] The following example of purchasing a vendor product will be
used to explain the invention. Assume a customer is at an
automobile dealer and has selected a car for purchase. The dealer
and the customer preferably agree on all of the terms for the car,
and an agreement is made between the customer and the dealer for
the dealer to purchase an automobile.
[0048] Continuing the example, during the financing discussion, the
dealer then preferably offers a dealership-specific
credit/membership card that provides rewards for future purchases
at the dealership. This rewards program helps the user by providing
free goods/services in the future and helps the dealer in
establishing loyalty with the customer. If the customer decides to
participate in the loyalty program, which includes both a credit
card rewards program and a membership rewards program, the customer
preferably fills out an application at the dealership, which is
both an application to become a member of the rewards program and a
credit card application.
[0049] The customer signs a paper form of the application which is
then given to a vendor employee. In the automobile dealership
example, the application could be given to an authorized financing
employee or other individual at the dealership. The employee uses a
vendor computer and a web browser to log onto the intermediary
portal web site to obtain credit decisioning either instantly of
within 10-14 days. The dealer employee will preferably log onto the
intermediary web site and enter all of the relevant information for
the customer to apply for a credit card. Preferably, the HASP is
used to uniquely identify the dealership, and even the specific
location within the dealership, that is currently applying for the
card by determining whether the HASP identifier and the vendor
computer disk drive serial number match the stored disk/HASP
identifier in the intermediary system database. Without the proper
HASP identifier, the web site is not accessible by this vendor
computer. With the HASP, the relevant information can be uploaded
to the intermediary site.
[0050] Once a secure communications link, which may include 128 bit
encryption of the information as well as identification of the
sender, is established between the vendor computer and the
intermediary portal web site (after the vendor is verified), the
intermediary system allows an operator at the intermediary to enter
a new application or to recall an application that is currently
pending. Thereafter, the intermediary operator may enter the
information into the intermediary "Credit Card Acquisition System"
(CCAS), and the information can be stored in an intermediary
database and/or the process may continue. After storage, the
operator preferably selects a "Visa" button or other selection
mechanism to send the application request to a credit card issuer.
For example, selecting the Visa button may open an HTML framed page
of a web site administered by the credit card issuer. Then, the
intermediary system may transfer the application information in a
format that can be read and interpreted by the credit card issuer
web-based system. For example, the information may be posted into a
CGI bin at the credit card issuer. The credit card issuer
preferably takes control of the credit card application at that
point in time.
[0051] The system 300 may provide for more than one possible credit
card or other membership card that may be procured by the user. For
example, if the customer does not get approved for a credit card by
the credit card issuer, the intermediary may offer a non-credit
card rewards membership card that may be used by the customer. The
intermediary 340, which has the stored application information on
its system, may wait a predefined period of time (e.g., one week)
to see if the credit card issuer issues a credit card to the
customer. If no card is issued in this time frame, the application
information may be flagged to issue an intermediary "membership
card" to the customer. The membership card preferably has certain
attributes of the system credit card, but does not have the
spending power of the credit card. The card may only be able to be
used at the sponsoring vendor. In this way, the customer's ill
feelings for not being approved for the full credit card may be
mitigated to some degree.
[0052] If the credit card issuer 360 approves the credit card
application, notification of the acceptance of the application is
preferably sent back to the intermediary system 340 either
instantly (within thirty seconds) or within 10-14 days. In short,
the intermediary 340 manages the relationship between the vendor
320 and the credit card issuer 360. The intermediary 340
periodically sends a report listing all of the customers who are
enrolled in the membership program and/or have successfully
obtained a vendor-sponsored credit card. For example, a paper or
electronic report may be sent to each dealer on a monthly basis,
but that information is also preferably accessibley on-line from a
web page controlled by the intermediary. Again, information about a
certain customer is preferably only accessible from a computer with
a HASP identifier that corresponds to the vendor that sponsored the
card for the customer.
[0053] The present invention includes the ability to obtain on-line
instant approval for the vendor-sponsored credit card. Once the
authorized vendor employee (or other authorized vendor
representative) enters the electronic application to the
intermediary URL site and the intermediary 340 forwards the
information to the credit card issuer 360, the credit card issuer
may provide an on-line instant approval for the application. The
credit card issuer 360 then sends an account number and an approved
spending limit for the credit card to the intermediary 340 through
to it's vendor site 320 for those applications that receive instant
on-line credit decisioning. The initial spending limit may be from
about $1,000 to $10,000. The customer is then able to spend up to
this approved limit instantly. The vendor representative preferably
provides a brochure that includes all of the disclosure forms and
other legally mandated forms, but the customer is then able to use
this "credit card" in a "card not present" transaction.
[0054] The credit card issuer will then mail the actual credit card
to the vendor's customer (applicant) in due course (typically 7-10
working days). As shown in FIG. 4 and briefly described above, the
credit card 400 includes prominent vendor branding 410, optional
intermediary or card issuer branding 420, a credit card
authentication marking (hologram) 430, and an indication of the
type of card (e.g., VISA or MASTERCARD) 440. A rewards card may
look the same as the FIG. 4 credit card 400 with the absence of the
credit card indicator 440. The correct vendor logo is automatically
associated with an applicant based on the identification
information facilitated by the HASP. The intermediary site may, in
fact, store all of the logo images on its site and send the image
to the credit card issuer.
[0055] The present invention preferably facilitates the
communication between any industry that needs to connect to any
banking or credit card issuing system. Each and every client to the
system may be uniquely identified using the HASP, and data
encryption and security is maximized. Also, the intermediary takes
care of any data conversion and other potential communications
problems by accepting the application and other information from
the vendor and converting the data to a form expected by the credit
card issuer. If any credit card issuer, bank or other financial
information provides the technical details on how and where
information is expected (e.g., for an on-line instant approval),
the intermediary can be tailored to facilitate transactions to that
financial system. For example, the instructions may be to go to a
certain CGI bin and provide a certain type of information in a
certain format.
[0056] One of the benefits of the present invention is that the
intermediary can aggregate many vendors under a single program. For
example, beyond car dealerships, the system could also aggregate
all retail stores of a single brand or any other grouping of
vendors, and each of these multiple vendors can be uniquely
identified at all times utilizing the HASP.
[0057] The bank can then easily determine at what time a
transaction is entered, who entered it, from what store and at what
terminal it was entered, and at what department the transaction was
entered from.
[0058] The intermediary may bring together disparate organizations,
different vendors who are not affiliated with one another, under
the intermediary umbrella as a distribution channel to get credit
cards. The intermediary's brand name may be branded on the cards
along with the individual vendor's name or logo. Therefore, each
individual vendor is uniquely identified and dealt with, but an
overall group structure is enabled.
[0059] The present invention may also include a unique redemption
process that is accessible by the individual vendors. The vendors
are able to go on-line to the intermediary's business-to-business
(B2B) web site and view all of the transaction information about
members in their program. As the vendor sees activity in a user's
account, the vendor may be able to more effectively target
advertising to that individual customer. For example, as the
customer approaches various levels of redemption points, they may
be encouraged to come to the vendor and spend the points. This
keeps the vendor's branding in the customer's focus. Again, this
access is based on HASP identification.
[0060] For example, an automobile dealer may view the redemption
files and determine which users have over $500 in outstanding
program redemption points. Thereafter, a year-end sales promotion
may be combined with this information to target those membership
customers who can most take advantage of the sales promotion.
Typically, the reward dollars will only be able to be used for new
or used car purchases. The dealers may also give other "rewards" to
customers who use their dealer-sponsored credit card at the
dealership. For example, an additional 5% or 10% discount may be
given at a dealership for purchases using the card (again, to
enhance loyalty). Traditional programs may not allow for the use of
such points against used car purchases.
[0061] The intermediary preferably also has the ability to
customize rewards on a vendor by vendor basis. For example, the
intermediary may have a standard template of benefits that are
provided. One set of benefits may be for the full credit card, and
one set of benefits may be for the membership card. Other
discounts, offers, or benefits may be provided by the vendor to the
program members. For example, at an automobile dealership, the
dealer may opt not to have a discount and instead have a program
whereby for every dollar that the customer spends at the dealership
in the service area, the dealer returns 10% in "loyalty dollars."
If the customer spends $100, $10 in rebates on future service at
the dealership may be returned.
[0062] In summary, a preferred method for utilizing the present
invention is as follows. A vendor PC workstation (with HASP) is
connected to the World Wide Web via a web browser. The splash page
on the intermediary portal web site forces 128-bit SSL encryption
which precludes password or other sensitive information from being
intercepted. At the URL splash page, the authorized vendor employee
then proceeds to the login page which will only appear if the
vendor's PC has a valid hardware HASP device physically installed.
The HASP device sends 128-bit information to the credit card
acquisition system security database web server which checks to see
if the HASP is valid and, if so, will then present a user login
page.
[0063] The authorized vendor employee enters their login name and
their password, and the security database checks to see if the
employee can be logged into that PC at the present time. If the
login and time are valid, the employee is presented with a credit
card application URL, and the employee then fills in all necessary
credit card application information. The employee clicks to submit
the application to the bank for a Visa credit card or is allowed to
present the customer the membership program. If Visa was selected
then the system transfers the credit information to the bank by
posting to a CGI bin. The bank then processes the application and
may approve the application instantly with an account number and an
approval credit amount. If the application is not approved
instantly, the bank sends the message that it is currently
processing the application.
[0064] Nothing in the above description is meant to limit the
present invention to any specific materials, geometry, or
orientation of parts. Many part/orientation substitutions are
contemplated within the scope of the present invention. The
embodiments described herein were presented by way of example only
and should not be used to limit the scope of the invention.
[0065] Although the invention has been described in terms of
particular embodiments in an application, one of ordinary skill in
the art, in light of the teachings herein, can generate additional
embodiments and modifications without departing from the spirit of,
or exceeding the scope of, the claimed invention. Accordingly, it
is understood that the drawings and the descriptions herein are
proffered by way of example only to facilitate comprehension of the
invention and should not be construed to limit the scope
thereof.
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