U.S. patent application number 12/257987 was filed with the patent office on 2009-04-30 for value-added services engine.
Invention is credited to Patrick Faith, Ayman Hammad.
Application Number | 20090112721 12/257987 |
Document ID | / |
Family ID | 40580421 |
Filed Date | 2009-04-30 |
United States Patent
Application |
20090112721 |
Kind Code |
A1 |
Hammad; Ayman ; et
al. |
April 30, 2009 |
VALUE-ADDED SERVICES ENGINE
Abstract
Systems and methods for conducting a transaction using a
Value-Added Services Engine. The method initiates sending
transaction information with a product identifier identifying a
product associated with a transaction conducted between a merchant
and a consumer to the Value-Added Services Engine. The Value-Added
Services Engine is programmed to determine a benefit associated
with the product. The benefit is determined after communicating
with a supplier of the product. The method also receives an
indication of the benefit.
Inventors: |
Hammad; Ayman; (Pleasanton,
CA) ; Faith; Patrick; (Pleasanton, CA) |
Correspondence
Address: |
TOWNSEND AND TOWNSEND CREW LLP
TWO EMBARCADERO CENTER, 8TH FLOOR
SAN FRANCISCO
CA
94111
US
|
Family ID: |
40580421 |
Appl. No.: |
12/257987 |
Filed: |
October 24, 2008 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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60982682 |
Oct 25, 2007 |
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Current U.S.
Class: |
705/14.14 ;
705/26.1; 705/28 |
Current CPC
Class: |
G06Q 20/10 20130101;
G06Q 20/102 20130101; G06Q 40/128 20131203; G06Q 20/32 20130101;
G06Q 20/20 20130101; G06Q 30/00 20130101; G06Q 20/3276 20130101;
G06Q 40/00 20130101; H04L 63/18 20130101; G06Q 30/0215 20130101;
G06Q 10/087 20130101; G06Q 20/387 20130101; G06Q 20/401 20130101;
G06Q 20/3825 20130101; G06Q 40/025 20130101; G06Q 20/3223 20130101;
G06Q 20/3274 20130101; G06Q 20/3224 20130101; G06Q 40/12 20131203;
G06Q 30/0601 20130101; G06Q 30/0212 20130101; G06Q 20/40
20130101 |
Class at
Publication: |
705/14 ; 705/28;
705/26 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00; G06Q 10/00 20060101 G06Q010/00 |
Claims
1. A method for conducting a transaction, the method comprising:
initiating sending transaction information with a product
identifier identifying a product associated with a transaction
conducted between a merchant and a consumer to a service engine,
wherein the service engine is programmed to determine or receive a
benefit associated with the product, wherein the benefit is
determined after communicating with a supplier of the product; and
receiving an indication of the benefit.
2. The method of claim 1, wherein the benefit varies based a
quantity of the product in an inventory of the supplier.
3. The method of claim 2, wherein the supplier checks the inventory
and determines a value of the benefit based on the quantity of the
product in the inventory, and wherein the supplier sends a message
to the service engine with the value of the benefit.
4. The method of claim 1, further comprising selecting the benefit,
wherein the service engine updates the transaction information to
include the benefit.
5. The method of claim 1, wherein the supplier is a manufacturer of
the product.
6. The method of claim 1, wherein the consumer initiates sending
the transaction information to the service engine.
7. The method of claim 6, wherein the consumer initiates sending
the transaction information to the service engine using a mobile
communication device.
8. The method of claim 1, wherein the merchant initiates sending
the transaction information to the service engine.
9. A computer readable medium, comprising: code for initiating
sending transaction information with a product identifier
identifying a product associated with a transaction conducted
between a merchant and a consumer to a service engine, wherein the
service engine is programmed to determine a benefit associated with
the product, wherein the benefit is determined after communicating
with a supplier of the product; and code for receiving an
indication of the benefit.
10. A mobile communication device, comprising: a computer readable
medium comprising code for initiating sending transaction
information with a product identifier identifying a product
associated with a transaction conducted between a merchant and a
consumer to a service engine, wherein the service engine is
programmed to determine or receive a benefit associated with the
product, wherein the benefit is determined after communicating with
a supplier of the product, and code for receiving an indication of
the benefit; and a processor in communication with the computer
readable medium.
11. A method comprising: receiving transaction information with a
product identifier identifying a product associated with a
transaction conducted between a merchant and a consumer;
determining or receiving a benefit associated with the product,
wherein the benefit is determined or received after communicating
with a supplier of the product; and sending an indication of the
benefit.
12. The method of claim 1, wherein the benefit varies based a
quantity of the product in an inventory of the supplier.
13. The method of claim 1, further comprising receiving a message
from the supplier indicating a value of the benefit, wherein the
supplier determined the value of the benefit based on the quantity
of the product in the inventory.
14. The method of claim 1, further comprising updating the
transaction information to include the benefit.
15. The method of claim 1, wherein the indication is sent to an
access device.
16. The method of claim 1, wherein the indication is sent to a
mobile communication device.
17. The method of claim 1, wherein the transaction information is
received from an access device.
18. The method of claim 1, wherein the transaction information is
received from a mobile communication device.
19. A computer readable medium comprising code for performing the
method of claim 11.
20. A server computer configured to perform the method of claim 11.
Description
CROSS-REFERENCES TO RELATED APPLICATIONS
[0001] This patent application claims priority to U.S. Provisional
Application No. 60/982,682 filed Oct. 25, 2007, entitled "Mobile
Phone Payment System and Method," which is hereby incorporated by
reference in its entirety for all purposes.
BACKGROUND
[0002] Products suppliers sometimes need to move products from
their inventory. For example, product suppliers may need to reduce
inventory of products that are slow-moving or overstocked, to
reduce the cost of holding and maintaining inventory. As another
example, product suppliers may want to reduce inventory of products
nearing the end of their shelf life to limit potential loss of
inventory.
[0003] To reduce inventory, product suppliers sometimes sell their
products in bulk to liquidators or generally discount the price of
their products to all buyers. Product suppliers usually lose sales
revenue when selling in bulk. Product suppliers do not necessarily
target potential buyers effectively when discounting the price of
their products to all buyers. In addition, general discounts can be
expensive to advertise.
[0004] Embodiments of this disclosure address these and other
problems.
SUMMARY
[0005] Embodiments of the disclosure relate to methods and systems
for using a Value-Added Service Engine (VASE) to conduct a
transaction. An embodiment of the disclosure is directed to a
method for conducting a transaction. The method initiates sending
transaction information with a product identifier identifying a
product associated with a transaction conducted between a merchant
and a consumer to a service engine. The service engine is
programmed to determine and receive a benefit associated with the
product, wherein the benefit is determined after communicating with
a supplier of the product. The method also receives an indication
of the benefit. In some cases, the benefit varies based a quantity
of the product in an inventory of the supplier.
[0006] Another embodiment is directed to a computer readable medium
that has code for initiating sending transaction information with a
product identifier identifying a product associated with a
transaction conducted between a merchant and a consumer to a
service engine. The service engine is programmed to determine and
receive a benefit associated with the product. The benefit is
determined after communicating with a supplier of the product. The
computer readable medium also has code for receiving an indication
of the benefit.
[0007] Another embodiment is directed to a mobile communication
device (e.g., a phone) having a computer readable medium and a
process in communication with the computer readable medium. The
computer readable medium has code for initiating sending
transaction information with a product identifier identifying a
product associated with a transaction conducted between a merchant
and a consumer to a service engine. The service engine is
programmed to determine and receive a benefit associated with the
product. The benefit is determined after communicating with a
supplier of the product. The computer readable medium also has code
for receiving an indication of the benefit.
[0008] Another embodiment is directed to a method of receiving
transaction information with a product identifier identifying a
product associated with a transaction conducted between a merchant
and a consumer. The method also determines or receives a benefit
associated with the product, wherein the benefit is determined
after communicating with a supplier of the product. The method also
sends an indication of the benefit.
[0009] These and other embodiments of the disclosure are described
in further detail below.
BRIEF DESCRIPTION OF THE DRAWINGS
[0010] FIG. 1 is a block diagram of an exemplary system for
conducting a transaction using a Value-Added Services Engine
(VASE), in accordance with an embodiment of the invention.
[0011] FIG. 2 is a schematic drawing of an exemplary mobile
communication device in the form of a mobile phone, in accordance
with an embodiment of the invention.
[0012] FIG. 3 is a block diagram of the basic components that may
reside in an exemplary access device, in accordance with an
embodiment of the invention.
[0013] FIG. 4 is a flowchart illustrating a method for using a
Value-Added Service Engine (VASE) to conduct a transaction, in
accordance with an embodiment of the invention.
[0014] FIGS. 5-7 are illustrations depicting exemplary displays on
access devices and mobile communication devices, in accordance with
embodiments of the invention.
[0015] FIG. 8 shows a block diagram of subsystems that may be
present in computer apparatuses, in accordance with embodiments of
the invention.
DETAILED DESCRIPTION
[0016] Embodiments of the disclosure are directed to methods and
systems that use a service engine such as a Value-Added Service
Engine (VASE) to conduct a transaction. Generally, a consumer
selects items at a merchant. The merchant enters information about
the items into an access device (e.g., a point-of-sale terminal).
The access device sends transaction information including product
identifiers to VASE. VASE determines and provides benefits (e.g.,
coupons) associated with the products. As an example, VASE may
request coupons from a supplier of the products. The supplier may
determine a quantity of the products in their inventory. If a
product is overstocked (i.e., in excess inventory), slow-moving, or
nearing the end of their shelf life, the supplier may decide to
send a coupon to encourage the consumer to purchase the product.
The value of the coupon may be directly related to the quantity of
the product in the supplier's inventory. VASE then sends the coupon
to the consumer. The consumer decides whether to use the coupon
and/or request payment to the merchant. If the consumer decides to
use the coupon, VASE updates the transaction information to reflect
the discount from the coupon and sends the updated transaction
information to the issuer of a consumer's account for
authorization. The issuer sends a message authorizing (or
declining) the transaction to the merchant to complete the
transaction.
[0017] In the above-described embodiments, the VASE may communicate
with suppliers during a transaction, in substantially real-time, to
obtain appropriate coupons for the consumer's current transaction,
or a future transaction conducted by the consumer. In other
embodiments, the VASE may obtain appropriate coupons for the
consumer before the consumer conducts a transaction with a
merchant.
[0018] Certain embodiments of the disclosure may provide one or
more advantages to consumers, merchants, manufacturers, and others.
An advantage to consumers may be that these methods and systems
give consumers information about benefits associated with the
products at the point of sale that may not otherwise be available
to them. For example, consumers can be given dynamic and up-to date
discounts on products based on the quantity of products in a
supplier's inventory. As another example, consumers can be given
information about healthcare benefits that apply to the products in
the transaction such as Flexible Spending Account (FSA) benefits.
Knowing these benefits apply, consumers can make a more informed
purchasing decision at the point of sale. In addition, consumers
can save money by applying benefits and changing items in their
transaction based upon available benefits.
[0019] An advantage to suppliers such as merchants and
manufacturers may be that these methods and systems provide an
avenue for optimizing their inventories. Suppliers can vary
discounts to consumers based on the quantity of products currently
in their inventories. By varying the discounts, suppliers can
control the rate of movement of their products from their
inventories. This gives the suppliers the ability to provide
discounts as needed to control the quantities of products in their
inventories. By optimizing inventories, suppliers can reduce their
costs in maintaining their inventory. Also, suppliers can increase
their sales revenue by optimally adjusting the discounts and
avoiding liquidators.
[0020] Certain embodiments of the disclosure may include none,
some, or all of the above technical advantages. One or more other
technical advantages may be readily apparent to one skilled in the
art from the figures, descriptions, and claims included herein.
I. Exemplary Systems
[0021] FIG. 1 is a block diagram of an exemplary system 10 that
uses VASE 70(a) to conduct a transaction, in accordance with an
embodiment of the invention. System 10 includes a consumer 20 in
operative communication with a mobile communication device 30.
System 10 also includes a merchant 50 in communication with
consumer 20 directly and through mobile communication device 30.
System 10 also includes an acquirer 60 (e.g., a bank) associated
with merchant 50 and in communication with merchant 50.
[0022] System 10 also includes a payment processing network 70
having a VASE 70(a) for determining benefits associated with
products/services identified in a purchase transaction. System 10
also includes a manufacturer 80, a healthcare network 82, and a
government organization 84, all in communication with payment
processing network 70. Payment processing network 70 is in
communication with mobile communication device 30, and merchant 50
through acquirer 60. Although the illustrated embodiment shows
three potential benefit providers--manufacturer 80, healthcare
network 82, and government organization 84--any suitable number or
type of benefit providers may be present in other embodiments of
the invention.
[0023] System 10 also includes an issuer 90 having an account with
consumer 20. Issuer 90 is communication with payment processing
network 70 to authorize (or decline) payments to merchant 50 based
on information provided by payment processing network 70.
[0024] Although VASE 70(a) is shown as being part of payment
processing network 70, it may be outside payment processing network
70 in other embodiments. Also, VASE 70(a) may be embodied by
software that resides on one or more computers within payment
processing network 70. Further, any of the functions performed by
VASE 70(a) may be embodied by computer code, and/or instructions
which may be executed by one or more processors in payment
processing network 70.
[0025] Consumer 20 may be an individual or an organization such as
a business that is capable of using mobile communication device 30
to conduct a transaction such as a purchase of goods and/or
services. Consumer 20 has an account with issuer 90 that is
associated with mobile communication device 30.
[0026] Mobile communication device 30 can be any suitable wireless
device that allows consumer 20 to conduct transactions with
merchant 50 and communicate information with other entities such as
payment processing network 70. Some examples of suitable devices
include cellular or wireless phones, personal digital assistants
(PDAs), pagers, portable computers, and the like. Mobile
communication device 30 may be in any suitable form. For example,
suitable mobile communication devices can be hand-held and compact
so that they can fit into a consumer's wallet and/or pocket (e.g.,
pocket-sized).
[0027] Mobile communication device 30 communicates information to
other system entities using any suitable form of communication.
Some examples of suitable forms of communication include a short
message service (SMS) message such as a text message, a multimedia
media message (MMS), a phone call, a voice message, a voicemail
message, an instant messaging (IM) message, an email message,
etc.
[0028] Merchant 50 can be any suitable entity that conducts
transactions with consumer 20 using mobile communication device 30.
Some examples of merchants 50 include a department store, a gas
station, a drug store, a grocery store, or other suitable business.
Merchant 50 may use any suitable method to conduct the
transaction.
[0029] Access device 52 can be any suitable device for
communicating with merchant 50 and for interacting with mobile
communication device 30. Examples of suitable devices include point
of sale (POS) devices, cellular phones, PDAs, personal computers
(PCs), tablet PCs, handheld specialized readers, set-top boxes,
electronic cash registers (ECRs), automated teller machines (ATMs),
virtual cash registers (VCRs), kiosks, security systems, access
systems, and the like. Access device 52 may use any suitable
contact or contactless mode of operation to communicate data to and
from mobile communication device 30. For example, access device 52
can use a wireless communication mode including near field
communication such as Bluetooth, infrared, etc.
[0030] Access device 52 can have a computer readable medium (CRM).
Computer readable medium may be a memory that stores data and may
be in any suitable form. A suitable computer readable medium
comprises code having instructions for performing the functions of
the access device 52. For example, a suitable computer readable
medium may include code for sending transaction information to
consumer 20 or VASE 70(a). Access device 52 may also include a
processor coupled to the computer readable medium for performing
the functions of the access device 52.
[0031] "Transaction information" can refer to any suitable
information related to the purchase transaction conducted between
consumer 20 and merchant 50. Some examples of suitable information
include a list of the items in the transaction, a description of
the items, item identifiers, product/service identifiers (e.g.,
stock keeping units or SKUs), a merchant ID, an access device ID
(e.g., POS terminal ID), prices of the items being purchased, the
total number of items, the transaction amount, a tax amount, an
electronic signature from merchant 50, a time of the transaction,
benefits information, and other suitable information related to the
transaction.
[0032] A "supplier" can refer to any suitable entity that holds an
inventory of products or services for sale to consumer 20. Suitable
suppliers include merchants such as retailers or wholesalers,
manufacturers, or other suitable entities.
[0033] An "inventory" can refer to the products or services that
are available for sale to consumer 20. In the illustrated
embodiment, merchant 50 and manufacturer 80 hold an inventory of
products/services for sale to consumer 20. Manufacturer 80 has an
inventory of products that can be sold directly to consumer 20 or
can be sent to merchant 50 for sale to consumer 20. In other
embodiments, other suppliers may hold inventories of
products/services for sale to consumer 20.
[0034] Acquirer 60 can be any suitable entity that has an account
with merchant 50. For example, acquirer 60 may be a bank that
operates a bank account for merchant 50.
[0035] Payment processing network 70 may include data processing
subsystems, networks, and operations used to support and deliver
value-added services such as providing benefits associated with
products in a purchase transaction, authorization services,
exception file services, and clearing and settlement services. An
exemplary payment processing network 70 may include VisaNet.TM..
Payment processing networks such as VisaNet.TM. are able to process
credit card transactions, debit card transactions, and other types
of commercial transactions. VisaNet.TM., in particular, includes a
VIP system (Visa Integrated Payments system) which processes
authorization requests and a Base II system which performs clearing
and settlement services.
[0036] In the illustrated embodiment, payment processing network 70
includes VASE 70(a). VASE 70(a) can be one or more software modules
programmed to determine and provide "value-added services" or
"benefits" associated with products/services in a purchase
transaction with consumer 20. A "benefit" can refer to any suitable
advantage or assistance given to consumer 20 associated with
products/services in the purchase transaction. Some examples of
"benefits" include coupons or other discounts, gift cards, cash
back, and other suitable benefits.
[0037] VASE 70(a) is in communication with manufacturer 80,
healthcare network 82, and government organization 84 to request
benefits, send transaction information, and receive benefit
information. Although one manufacturer 80, one healthcare network
82, and one government organization 84 are shown in the illustrated
embodiment, additional benefit providers may be included in other
embodiments. Benefits may be embodied by coupons (e.g., electronic
coupons) which provide a consumer with a discount, points, rewards,
etc.
[0038] Manufacturer 80 or merchant 50 can provide coupons to VASE
70(a). A "manufacturer" can refer to an entity that manufactures
one or more products identified in the transaction.
[0039] Healthcare network 82 can provide healthcare benefits to
VASE 70(a). Healthcare network 82 can be any suitable entity that
can provide healthcare benefits to consumer 20. For example,
healthcare network 82 can be a health insurance organization that
has a policy with consumer 20. Healthcare benefits refer to
benefits provided by healthcare network 82 (e.g., health insurance
company) associated with consumer 20. As an example, consumer 20
can have a flexible spending account (FSA) that allows consumer 20
to purchase certain prescription drug products or healthcare
services with pre-tax funds. VASE 70(a) may determine whether
consumer 20 has a FSA, whether there are funds left in the FSA, and
whether the products/services in the purchase transaction apply
under the FSA. As another example, consumer 20 may have an
insurance policy with healthcare network 82 that provides a benefit
of discounts on eligible prescription drug products and healthcare
services.
[0040] Government organization 84 can provide government benefits
to VASE 70(a). Government organization 84 can be any state,
federal, or municipal government organization that may provide
benefits to consumer 20 associated with the purchase of products in
the transaction. Government benefits refer to benefits provided by
government organization 84 (e.g., state and federal governments) to
a consumer 20 qualified under a government benefit program. For
example, a government benefit may be a federal benefit such as food
stamps available to a qualified consumer 20 under the federal
benefit program. As another example, a government benefit may be
medical and health-related services or low-cost prescription drugs
available under Medicaid or other similar program.
[0041] Benefits or the value of benefits determined or received by
VASE 70(a) can vary from one transaction to another. In some
embodiments, a determined benefit (e.g., a coupon with a discount)
varies based on the quantity of the product available in inventory
at the supplier such as merchant 30 and/or manufacturer 80. For
example, the benefit may have a greater value if the product is
overstocked i.e. in excess inventory. As another example, the
benefit may be zero if the product is in low inventory. In yet
another example, the benefit may have a very high value for a
certain portion of products in its inventory that are nearing the
end of their shelf life. In another example, the benefit may be
very high for all products left in inventory to make room for new
models. In these examples, VASE 70(a) may communicate with the
supplier of the product and request a benefit (e.g., a coupon)
associated with a product identified in a transaction. In response,
the supplier may determine the quantity of the product in its
inventory. The supplier may determine that it will offer a certain
discount based on the quantity of the product in its inventory.
Supplier sends a message to VASE 70(a) with the value of the
benefit along with other information regarding redeeming the
coupon.
[0042] VASE 70(a) sends an indication of the benefit to consumer 20
in any suitable way. An indication of the benefit can be any
suitable notification of the benefit sent to consumer 20. Some
examples of suitable notifications include a message sent to the
mobile communication device 30, a message sent to the access device
52, a phone call, or other suitable notice sent to the consumer 20.
The indication may include any suitable information regarding the
benefit. For example, the indication may include the value of the
benefit, the expiration date for collecting or redeeming the
benefit, and other suitable information. VASE 70(a) can send
message in any suitable way such as, for example, using a short
messaging service (SMS) message, a multimedia messaging service
(MMS) message, voicemail message, or an email message.
[0043] Payment processing network 70 comprises any suitable
components for running VASE 70(a). For example, payment processing
network 70 may include a server computer. The server computer can
include a computer readable medium (CRM) comprising code having
instructions for performing the functions of the server computer.
For example, CRM may include code for receiving transaction
information, code for interpreting product identifiers, code for
determining or receiving a benefit associated with a product, code
for determining the value of the benefit, code for communicating
with suppliers of products, and code for sending an indication of
the benefit to the consumer 20. The server computer of payment
processing network 70 can also include a processor for performing
the functions of the server computer, and for executing code on the
computer readable medium. Payment processing network 70 can also
include a database. Payment processing network 70 may use any
suitable wired or wireless network, including the Internet.
[0044] Issuer 90 can be any suitable entity that may open and
maintain an account associated with consumer 20. Some examples of
issuers may be a bank, a business entity such as a retail store, or
a governmental entity. In many cases, issuer 90 may also issue a
payment device (e.g., a payment card) to consumer 20. In some
embodiments, issuer 90 may also be the acquirer 60.
[0045] In an exemplary purchase transaction, consumer 20 selects
items (e.g., products and/or services) to purchase from merchant
50. Merchant 50 enters the information about the items into access
device 52. Access device 52 displays transaction information
including a list of the items in the transaction with their
product/service identifiers (e.g., SKU numbers), the prices of the
items, the total amount of the transaction, a merchant ID or access
device ID, along with other suitable transaction information.
[0046] Access device 52 then sends the transaction information with
the product identifiers to payment processing network 70. In some
cases, access device 52 can send the transaction information to
acquirer 60 which forwards the information to payment processing
network 70. In other cases, access device 52 can send the
transaction information to mobile communication device 30 and
consumer 20 can forward the information in a message to payment
processing network 70 without passing through an acquirer 60. For
example, consumer 20 uses their mobile communication device 30 to
interact with access device 52 at merchant 50 to initiate the
transaction. The mobile communication device 30 receives the
transaction information from the access device 52, and relays the
transaction information along with other information (e.g., a phone
number) associated with the mobile communication device 30 to the
payment processing network 70.
[0047] VASE 70(a) determines or receives one or more benefits
associated with the identified products in the transaction and/or
associated with consumer 20. For example, the product identifiers
in the transaction information can be mapped to manufacturers 80 of
the identified products. In other cases, consumer 20 can identify a
benefit provider to merchant 50, merchant 50 can enter the benefit
provider identification into access device 52, and access device 52
can send the benefit provider identification in the transaction
information to payment processing network 70. For example, consumer
20 may indicate to merchant 50 that he is covered under a health
insurance policy associated with healthcare network 82. Merchant 50
can enter into access device 52 that healthcare network 82 is a
benefit provider associated with consumer 20.
[0048] Once benefit providers are determined, a message is sent to
the benefit providers requesting benefit information. The message
includes the product identifiers. In response, the benefit
providers determine the benefit(s) associated with the identified
products or VASE 70(a) determines the benefit(s) associated with
the identified products on behalf of the benefit providers.
[0049] For example, VASE 70(a) can send a message to manufacturer
80 with product identifiers and a request for coupons associated
with the identified products. Manufacturer 80 retrieves inventory
information from its inventory database 80(c) such as the actual
quantity of the identified products in inventory, the optimal
quantity of the identified products in inventory, the expiration
dates of the products in inventory, and/or the rate of the movement
of the identified products in inventory. Manufacturer 80 can
determine whether the identified products are in excess inventory,
slow-moving, or about to expire based on the retrieved inventory
information. If the identified products are in one of these
categories, manufacturer 80 may decide to offer a coupon to move
the products. A value of the coupon is determined and the coupon is
sent to and is received by VASE 70(a).
[0050] VASE 70(a) then sends an indication of any benefits to
consumer 20. For example, VASE 70(a) can send a message to mobile
communication device 30 or access device 52. The message may
include a coupon for products that the consumer 20 is contemplated
purchasing. Consumer 20 can select one or more of the benefits to
use in the transaction and then can complete the transaction with
these benefits. The mobile communication device 30 or the access
device 52 responds by sending a message to VASE 70(a) indicating
the selected benefits and indicating that consumer 20 requested
that the transaction be completed. In response, VASE 70(a) updates
the transaction information to reflect the benefits selected by
consumer 20.
[0051] VASE 70(a) sends the updated transaction information in an
authorization request message to issuer 90. Issuer 90 processes the
authorization request message and determines whether to authorize
or decline the transaction. An authorization response message is
sent to payment processing network 70 indicating that the
transaction is authorized (or is declined). An authorization
response message is sent to acquirer 60 which forwards the message
to merchant 50. In other cases, VASE 70(a) authorizes the
transaction on behalf of issuer 90.
[0052] At the end of the day, a normal clearing and settlement
process can be conducted. A clearing process is a process of
exchanging financial details between merchant 50 and issuer 90 to
facilitate posting to a consumer's account and reconciliation of
the consumer's settlement position. Clearing and settlement can
occur simultaneously.
II. Exemplary Mobile Communication Device
[0053] FIG. 2 is a schematic drawing of an exemplary mobile
communication device 30 (e.g., a mobile phone), in accordance with
an embodiment of the disclosure. Exemplary mobile communication
device 30 comprises a body 30(a) that may be in the form a plastic
substrate, housing, or other structure.
[0054] Exemplary mobile communication device 30 also comprises a
computer readable medium (CRM) 31 that may be present within body
30(a), or may be detachable from it. CRM 31 may be a memory that
stores data and may be in any suitable form including a magnetic
stripe, a memory chip, etc. The memory preferably stores
information such as financial information, transit information
(e.g., as in a subway or train pass), access information (e.g., as
in access badges), etc. Financial information may include
information such as bank account information, bank identification
number (BIN), credit or debit card number information, account
balance information, expiration date, consumer information such as
name, date of birth, etc. Any of this information may be
transmitted by mobile communication device 30.
[0055] CRM 31 comprises any suitable code for performing the
functions of mobile communication device 30. In some embodiments,
computer readable medium comprises: a) code for receiving
information from access device 52; b) code for sending information
to payment processing network 70 or issuer 90, c) code for
receiving information from payment processing network 70 or issuer
90.
[0056] Exemplary mobile communication device 30 also includes a
contactless element 33, which is typically implemented in the form
of a semiconductor chip (or other data storage element) with an
associated wireless transfer (e.g., data transmission) element,
such as an antenna. Contactless element 33 is associated with
(e.g., embedded within) mobile communication device 30 and data or
control instructions transmitted via a cellular network may be
applied to contactless element 33 by means of a contactless element
interface. The contactless element interface functions to permit
the exchange of data and/or control instructions between the mobile
communication device circuitry (and hence the cellular network) and
contactless element 33.
[0057] Contactless element 33 is capable of transferring and
receiving data using a near field communications ("NFC") capability
(or near field communications medium) typically in accordance with
a standardized protocol or data transfer mechanism (e.g., ISO
14443/NFC). Near field communications capability is a short-range
communications capability, such as RFID, Bluetooth , infra-red, or
other data transfer capability that can be used to exchange data
between the mobile communication device 30 and an interrogation
device. Thus, the mobile communication device 30 is capable of
communicating and transferring data and/or control instructions via
both cellular network and near field communications capability.
[0058] The mobile communication device 30 may also include a
processor 34 (e.g., a microprocessor) for processing the functions
of the mobile communication device 30 and a display 35 to allow a
consumer to see phone numbers and other information and messages.
The mobile communication device 30 may further include input
elements 36 to allow a consumer to input information into the
device, a speaker 37 to allow the consumer to hear voice
communication, music, etc., and a microphone 38 to allow the
consumer to transmit her voice through the mobile communication
device 30. The mobile communication device 30 may also include an
antenna 39 for wireless data transfer (e.g., data
transmission).
[0059] Exemplary mobile communication device 30 also comprises a
processor 34 (e.g., a microprocessor) for processing the functions
of the mobile communication device 30 and a display 35 to display
information such as messages and transaction information to viewers
such as consumer 20. The mobile communication device 30 may further
include input elements 36 to allow consumer 20 to input information
into the mobile communication device 30, a speaker 37 to produce
sound communications and a microphone 38 for receiving sound
communications. The mobile communication device 30 may also include
an antenna 39 for wireless data transfer (e.g., data transmission).
Computer readable medium 31, contactless element 33, display 35,
input elements 36, speaker 37, microphone 38, and antenna 39 are
all operatively coupled to processor 34.
III. Exemplary Access Device
[0060] FIG. 3 is a block diagram of the basic components that may
reside in an exemplary access device 52, in accordance with an
embodiment of the disclosure. An exemplary access device 52 may
comprise a processor 52(a). It may also comprise a computer
readable medium 52(b), keypad 52(c), a mobile communication device
reader 52(d), an output device 52(e), and a network interface
52(f), all operatively coupled to the processor 52(a). A housing
may house one or more of these components. Exemplary mobile
communication device readers can include RF (radio frequency)
antennas, magnetic stripe readers, etc. that interact with the
mobile communication device 30. Suitable output devices may include
one or more display displays, audio output devices e.g., speakers
and printers. Exemplary computer readable media may include one or
more memory chips, disk drives, etc.
IV. Exemplary Methods
[0061] FIG. 4 is a flowchart illustrating a method for using a
Value-Added Service Engine (VASE) 70(a) to conduct a transaction,
in accordance with an embodiment of the invention. The VASE 70(a)
of payment processing network 70 receives transaction information
comprising product identifiers (or service identifiers) associated
with products (or services) in a transaction conducted between
consumer 20 and merchant 50 (step 100).
[0062] In some embodiments, the transaction information is received
in a communication message originating at access device 52. The
access device 52 then forwards the message to the acquirer 60,
which then forwards it to the payment processing network 70 and
consequently the VASE 70(a). As noted above, the transaction
information may include a list of the items in the transaction with
their product/service identifiers (e.g., SKU numbers), the prices
of the items, the total amount of the transaction, and a merchant
ID and/or access device ID. In other embodiments, the transaction
information is sent from the access device 52, to the mobile
communication device 30 operated by consumer 20, and then to the
payment processing network 70 over a wireless communication
channel, without passing through the acquirer 60.
[0063] VASE 70(a) can determine any suitable value added benefits
such as coupons, healthcare benefits, and/or government benefits.
These benefits are associated with the products/services identified
in the transaction and/or associated with the consumer 20.
[0064] To determine coupons that may apply to the transaction, VASE
70(a) sends a message requesting offers to suppliers (e.g.,
manufacturer 80 or merchant 50) of the products identified in the
transaction by product identifiers (step 120). To identify a
manufacturer 80 supplying one or more products in the transaction,
VASE 70(a) can correlate the product identifiers to the
manufacturer 80 using correlation data. VASE 70(a) identifies the
merchant 50 associated with the transaction based on the merchant
id or access id in the transaction information. A message is sent
to the suppliers requesting coupons for the products in the
transaction.
[0065] In response, the suppliers retrieve inventory data from
their inventory database(s) such as the actual quantity of the
identified products currently in inventory (step 130). Other
inventory information may also be retrieved such as the optimal
quantity of the identified products in inventory, the expiration
dates of the identified products, and the rate of the movement of
the identified products.
[0066] Suppliers can optimize inventories by providing coupons to
consumers that encourage sales and may move products that are in
excess, slow-moving, or about to expire. Coupons may offer a
discount on the product identified in the transaction or may offer
a discount on other products. For example, if consumer 20 is
purchasing a single product X, a supplier may offer a coupon for
50% off the purchase of a second product X or a different product
Y.
[0067] Suppliers determine the values of the coupon offers based on
the quantity of a product in inventory (step 140). If products are
in excess inventory, the value of the coupon offer may be relative
to the number or products in excess inventory. For example, a high
value coupon may be offered (e.g., 40% discount) when there are 100
widgets in excess inventory and a low value coupon may be offered
(e.g., 5% discount) when there are 10 widgets in excess inventory.
As another example, if 100 widgets are about to expire, a bulk
discount for 20 widgets at 50% discount may be offered to consumer
20. As another example, if products are in lower than optimal
quantity in the inventory, no coupon may be offered.
[0068] VASE 70(a) receives the coupon offers with values from the
suppliers (e.g., merchant 50 and manufacturer 80) and may
optionally optimize the offers (step 150). The offers are optimized
in any suitable way. In some cases, the offers may be optimized to
minimize the transaction amount. In other cases, the offers may be
optimized to minimize expenditures in maintaining inventory. For
example, VASE 70(a) may determine the coupons that provide the
highest value offers for products that are costly to maintain in
inventory.
[0069] To determine healthcare benefits that apply to the
transaction, VASE 70(a) first determines the healthcare network 82
associated with consumer 20 (step 200). In some cases, VASE 70(a)
determines that healthcare network 82 is associated with consumer
20 by an indication from consumer 20. For example, consumer 20 can
show merchant 50 a health insurance card indicating that consumer
20 is covered under a health insurance policy associated with
healthcare network 82. In response, merchant 50 can enter into
access device 52 an indication that healthcare network 82 is a
benefit provider associated with consumer 20 and access device 52
can send the indication to VASE 70(a).
[0070] VASE 70(a) can also receive healthcare benefit information
from the healthcare network 82 associated with consumer 20 (step
202). Using the healthcare benefit information, VASE 70(a)
determines healthcare benefits that apply to products/services in
the transaction (step 210). For example, the healthcare benefit
information can include data (e.g., a table) that maps healthcare
benefits to product /service identifiers. VASE 70(a) can determines
healthcare benefits that apply by searching for the product/service
identifiers in the data.
[0071] To determine government benefits that apply to the
transaction, VASE 70(a) determines whether the consumer 20 is
eligible under a government program, whether the merchant 50 is
authorized to accept the government benefits under the government
program, and/or whether there are eligible products/services in the
transaction. In some cases, consumer 20 identifies himself to
merchant 50 as being eligible under a government program (e.g., a
food stamp program) by providing a payment token (e.g., an
electronic benefit transfer (EBT) card) that identifies the
consumer 20 as being eligible.
[0072] VASE 70(a) receives government benefits information from the
government organization 84 associated with consumer 20 (step 220).
Using the government benefits information, VASE 70(a) can determine
whether merchant 50 is authorized to accept government benefits
under the government program. For example, VASE 70(a) can identify
merchant 50 using a merchant id or access id on a list of
authorized merchants in the government benefits information. VASE
70(a) also determines whether one or more of the products/services
in the transaction are eligible for government benefits under the
government program (step 230). For example, VASE 70(a) can identify
the product identifiers (or service identifiers) on a list of
eligible products (or services) in the government benefits
information.
[0073] Once benefits are determined, the benefits information and
other transaction information is sent to consumer 20 (step 240).
For example, VASE 70(a) can send the amount of the transaction
before benefits, the values of the benefits, the items in the
transaction, the prices of the items in the transaction, the terms
of the benefits including the conditions of accepting the benefits,
the associated benefits providers, and other suitable information
associated with the benefits and items in the transaction. The
information can be sent to mobile communication device 30 and/or to
access device 52.
[0074] Consumer 20 is given the option of selecting one or more of
the benefits to apply to the transaction. A message indicating the
selected benefits is then sent to VASE 70(a) (step 250). In some
cases, consumer 20 selects the benefits and sends the request with
the selections using their mobile communication device 30. The
mobile communication device 30 can send the message with the
selected benefits (e.g., coupons) to VASE 70(a) over a wireless
communication channel, without passing through the acquirer 60. In
other embodiments, consumer 20 makes selections of appropriate
benefits using access device 52. The access device 52 then forwards
the message with the selected benefits to VASE 70(a). In other
embodiments, the benefits are automatically applied to the
transaction.
[0075] Some of the transaction information such as the total amount
is updated to reflect the benefits selected by consumer 20. VASE
70(a) also determines the payment information (e.g., a credit card
number) associated with consumer 20. In some cases, consumer 20
sends the payment information in a message sent from mobile
communication device 30 to the payment processing network 70 and
consequently VASE 70(a), without passing through the acquirer 60.
In other cases, consumer 20 may provide payment information to
access device 52, which generates a message with the payment
information. This message is then forwarded to VASE 70(a) via the
acquirer 60. In other cases, VASE 70(a) can retrieve the payment
information from issuer 90.
[0076] VASE 70(a) sends an authorization request message to issuer
90 (step 260). In response, issuer 90 authorizes (or declines) the
transaction and sends an authorization response message back to
VASE 70(a). The authorization request message may be declined if
there are insufficient funds or credit in the consumer's account.
In other cases, VASE 70(a) authorizes (or declines) the transaction
on behalf of issuer 90. The authorization response message
indicating that the transaction is authorized (or declined) is sent
to merchant 50 through acquirer 60 (step 270) and the method ends
(step 280).
[0077] In one embodiment, consumer 20 has a flexible spending
account (FSA) associated with healthcare network 82. Consumer 20
can inform merchant 50 of his FSA and merchant 50 can enter
information identifying the FSA into the access device 52.
Alternatively, consumer 20 sends the information identifying the
FSA directly to VASE 70(a) his mobile communication device 30. VASE
70(a) requests and receives a list of products or services that are
covered under the FSA and a current balance in the FSA account.
VASE 70(a) can determine whether the products/services in the
transaction are eligible under the FSA by checking whether the
products/services identifiers are on the list of covered
products/services. VASE 70(a) also determines whether the balance
on the FSA account is sufficient to cover the cost of the products
or services. If the products/services are covered under the FSA,
the benefits and other transaction information is provided to
consumer 20. Consumer 20 can choose to use their FSA for the
products/services and can also request that the transaction be
processed by VASE 70(a). VASE 70(a) can send an authorization
request message to the healthcare network 82 with the chosen
product/services and other transaction information. If the
healthcare network 82 authorizes the transaction, VASE 70(a) can
clear and settle the transaction by exchanging financial details
between merchant 50 and healthcare network 82 to facilitate posting
to the FSA account.
[0078] In one embodiment, consumer 20 can send a request for
benefit information associated with certain products/services
directly to VASE 70(a) before initiating the transaction. For
example, consumer 20 may be considering whether to purchase a
product/service at a merchant 50 and would like to know whether
there are any benefits that may be associated with the
product/service before consumer 20 initiates the transaction.
Consumer 20 may enter a product/service identifier and request
benefits using their mobile communication device 30. A request
message with the product/service identifier is sent to VASE 70(a)
via a telephone company. VASE 70(a) sends requests to benefit
providers for benefits. A message is sent to mobile communication
device 30 indicating any benefits that may apply. Consumer 20 can
then decide whether or not to initiate the transaction based on the
benefits.
[0079] Either consumer 20 or merchant 50 can initiate sending the
transaction information to VASE 70(a). Consumer 20 can use their
mobile communication device 30 to send a message to VASE 70(a) or
consumer 20 can prompt the access device 52 at merchant 50 to send
the information. Merchant 50 can prompt its access device 52 to
initiate sending the transaction information to VASE 70(a). Also,
mobile communication device 30 and access device 52 can initiate
sending the transaction information. For example, access device 52
can send the transaction information to VASE 70(a) as merchant 50
enters product identifiers.
V. Exemplary Access Device and Communication Device Displays
[0080] FIGS. 5-7 are illustrations depicting exemplary displays on
access devices and mobile communication devices, in accordance with
an embodiment of the invention.
[0081] The display 300 shown in FIG. 5 can be on mobile
communication device 30 and/or on access device 52. The transaction
information shown on display 300 is associated with four items
selected for purchase by consumer 20. The transaction information
may be displayed as a result of merchant 50 entering information
identifying the four items into access device 52.
[0082] Display 300 includes a merchant ID at the top of the display
300. In other embodiments, an access device ID can be shown. The
merchant ID or access device ID can be used to identify the
merchant 50.
[0083] Display 300 also includes a list of the four items selected
for purchase by consumer 20, the price of each item, and a SKU
number associated with each item. The items in the list can be
products or services. Each SKU number can be used to identify the
product or service. Display 300 also includes a total amount of the
transaction of $112.90 before benefits or taxes are applied.
[0084] The consumer 20 or merchant 50 initiates sending the
transaction information shown on display 300 to VASE 70(a). In
response to receiving the transaction information, VASE 70(a)
determines or receives coupons and available FSA benefits
associated with the four items. For example, coupons can be
received from manufacturers and merchant 50. As another example,
FSA benefits may be retrieved from healthcare network 82. VASE
70(a) sends the benefit information to mobile communication device
30 and/or an access device 52 as illustrated on display 400 in FIG.
6.
[0085] The display 400 lists the benefits received from VASE 70(a)
for the four items that consumer 20 selected for purchase. The
benefits include coupons available and healthcare benefits
associated with consumer's FSA account. The top portion of display
400 shows the coupons available and the bottom portion of shows
available FSA benefits. As shown, four coupons (Coupons 1-4) are
available. Coupons 1-3 are associated with Item 1 and coupon 4 is
associated with the Item 2. There are no coupons available for Item
3 or 4. Coupon 1 is provided by Manufacturer 1, Coupon 2 is
provided by Manufacturer 2, Coupon 3 is provided by merchant 50,
and Coupon 3 is provided by Manufacturer 3.
[0086] Display 400 also includes the quantity of the items that
must be purchased in order to receive each coupon. For example, in
order to use Coupon 1, consumer 20 must purchase 10 units of Item
1. In order to use Coupon 2, consumer 20 must purchase 5 units of
item 1.
[0087] Consumer 20 can also view the coupon information such as the
terms and conditions in accepting the discount offered by the
coupon. To see the coupon information, consumer 20 can select the
icon under the "View" category adjacent to the coupon. If consumer
20 selects the icon, a pop up screen or other display can show the
coupon information. Consumer 20 can review the coupon information
before selecting to apply the coupon to the transaction.
[0088] As noted above, display 400 also shows the FSA benefits
available to consumer 20 in the transaction. As shown, there is a
$1000 balance left in consumer's FSA account and Items 3 and 4 are
eligible for purchase using funds from the FSA account.
[0089] After reviewing the benefits, consumer 20 can select the
coupons to redeem and eligible Items to purchase using FSA funds by
selecting the appropriate box under the "Apply" columns. Consumer
20 has checked the box to apply Coupon 1 for a discount on Item 1
and checked the box to apply FSA funds to purchase Item 4. At the
top of display 400, consumer 20 is prompted to hit "enter" after
completing their selection of benefits.
[0090] Once consumer 20 selects benefits to apply to the
transaction, the transaction information is updated to reflect the
benefits. The updated information can be displayed on mobile
communication device 30 and/or access device 52. An exemplary
display 500 of the updated transaction information is shown in FIG.
7. Display 500 includes a list of the items selected for purchase,
the quantity of the each item, the discounted price/unit, the total
prices for each item, the product identifiers for each item, and
the subtotal of the prices for the items. Display 500 also includes
the FSA funds applied to Item 4, the taxes and other fees that may
apply to the transaction, and the total amount of the transaction
after the selected benefits have been applied. As shown, the FSA
funds are applied to the pre-tax price of Item 4.
[0091] Display 400 also includes a request for a PIN number to
complete the transaction. VASE 70(a) can uses the PIN to
authenticate consumer 20. Once consumer 20 enters their PIN, a
request to conduct the transaction is sent to VASE 70(a) with the
updated transaction information and selected benefits to authorize
(or decline) the transaction.
VI. Computer Apparatuses
[0092] FIG. 8 shows a block diagram of subsystems that may be
present in computer apparatuses that are used in system 10,
according to embodiments of the disclosure.
[0093] The various participants and elements in the previously
described Figures may operate using one or more computer
apparatuses to facilitate the functions described herein. Any of
the elements in the Figures may use any suitable number of
subsystems to facilitate the functions described herein. Examples
of such subsystems or components are shown in a FIG. 8.
[0094] The subsystems shown in FIG. 8 are interconnected via a
system bus 575. Additional subsystems such as a printer 584,
keyboard 578, fixed disk 579 (or other memory comprising computer
readable media), monitor 576, which is coupled to display adapter
582, and others are shown. Peripherals and input/output (I/O)
devices, which couple to I/O controller 571, can be connected to
the computer system by any number of means known in the art, such
as serial port 577. For example, serial port 577 or external
interface 581 can be used to connect the computer apparatus to a
wide area network such as the Internet, a mouse input device, or a
scanner. The interconnection via system bus allows the central
processor 573 to communicate with each subsystem and to control the
execution of instructions from system memory 582 or the fixed disk
579, as well as the exchange of information between subsystems. The
system memory 582 and/or the fixed disk 579 may embody a computer
readable medium. Any of these elements may be present in the
previously described features. For example, the previously
described "server computer" may have one or more of these
components shown in FIG. 8.
[0095] A "computer readable medium" according to an embodiment of
the disclosure may comprise code for performing any of the
functions described above. The "server computer" may also have a
processor coupled to the computer readable medium, where the
processor executes instructions embodied by computer code on the
computer readable medium.
[0096] It should be understood that the present invention as
described above can be implemented in the form of control logic
using computer software in a modular or integrated manner. Based on
the disclosure and teachings provided herein, a person of ordinary
skill in the art will know and appreciate other ways and/or methods
to implement the present invention using hardware and a combination
of hardware and software.
[0097] Any of the software components or functions described in
this disclosure, may be implemented as software code to be executed
by a processor using any suitable computer language such as, for
example, Java, C++ or Perl using, for example, conventional or
object-oriented techniques. The software code may be stored as a
series of instructions, or commands on a computer readable medium,
such as a random access memory (RAM), a read only memory (ROM), a
magnetic medium such as a hard-drive or a floppy disk, or an
optical medium such as a CD-ROM. Any such computer readable medium
may reside on or within a single computational apparatus, and may
be present on or within different computational apparatuses within
a system or network.
[0098] A recitation of "a", "an" or "the" is intended to mean "one
or more" unless specifically indicated to the contrary.
[0099] The above description is illustrative and is not
restrictive. Many variations of the disclosure will become apparent
to those skilled in the art upon review of the disclosure. The
scope of the disclosure should, therefore, be determined not with
reference to the above description, but instead should be
determined with reference to the pending claims along with their
full scope or equivalents.
[0100] Modifications, additions, or omissions may be made to the
illustrated embodiments in FIGS. 1-8 without departing from the
scope of the disclosure. The features of the illustrated
embodiments may be integrated with one or more features of any
other embodiment or separated without departing from the scope of
the disclosure. For example, although separate functional blocks in
FIG. 1 are shown for issuer 90, payment processing network 70, and
acquirer 60, some entities perform all of these functions and may
be included in embodiments of the disclosure. As another example,
the methods described in the disclosure can include more, fewer, or
other steps. Also, the steps may be performed in any suitable
order. Moreover, the operations of components in the illustrated
embodiments may be performed by more, fewer, or other components.
Additionally, operations of components in the illustrated
embodiments may be performed using any suitable logic comprising
software, hardware, other logic, or any suitable combination of the
preceding.
[0101] All patents, patent applications, publications, and
descriptions mentioned above are herein incorporated by reference
in their entirety for all purposes. None is admitted to be prior
art.
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