U.S. patent application number 13/456512 was filed with the patent office on 2012-08-16 for method and system for using reward points to purchase products.
Invention is credited to Richard Postrel.
Application Number | 20120209684 13/456512 |
Document ID | / |
Family ID | 46303952 |
Filed Date | 2012-08-16 |
United States Patent
Application |
20120209684 |
Kind Code |
A1 |
Postrel; Richard |
August 16, 2012 |
METHOD AND SYSTEM FOR USING REWARD POINTS TO PURCHASE PRODUCTS
Abstract
A system and method for implementation of product searches via a
search engine over a networked computer system such as the
Internet. In particular, a user may execute a search for product
offers that are accompanied with reward components (e.g. reward
points, rebates, coupons, etc.) and/or those that allow payment in
whole or in part with payment components (e.g. reward points,
rebates, coupons, etc.).
Inventors: |
Postrel; Richard; (Miami
Beach, FL) |
Family ID: |
46303952 |
Appl. No.: |
13/456512 |
Filed: |
April 26, 2012 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13277278 |
Oct 20, 2011 |
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13456512 |
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12103487 |
Apr 15, 2008 |
8078496 |
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13277278 |
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11061095 |
Feb 19, 2005 |
7512551 |
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12103487 |
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10601317 |
Jun 20, 2003 |
6947898 |
|
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11061095 |
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09602222 |
Jun 23, 2000 |
6594640 |
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10601317 |
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60548373 |
Feb 27, 2004 |
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60140603 |
Jun 23, 1999 |
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Current U.S.
Class: |
705/14.23 |
Current CPC
Class: |
G06Q 40/04 20130101;
G06Q 30/0226 20130101; G06Q 30/02 20130101; G06Q 30/0603 20130101;
G06Q 30/0222 20130101; G06F 16/951 20190101; G06Q 20/06 20130101;
G06Q 30/0233 20130101; G06Q 30/0641 20130101; G06Q 30/0234
20130101; G06Q 30/0239 20130101; G06Q 30/0623 20130101; G06Q
30/0601 20130101; G06Q 30/0609 20130101 |
Class at
Publication: |
705/14.23 |
International
Class: |
G06Q 20/10 20120101
G06Q020/10; G06Q 30/00 20120101 G06Q030/00 |
Claims
1. A computer-implemented method for an online purchase transaction
computer to enable a user to execute an online purchase transaction
over a networked computer system using rewards towards purchase of
a product, comprising the steps of: an online purchase transaction
computer providing to a user device a payment web page displaying a
plurality of payment options for payment to be made for a product
selected for purchase via the user device, the payment options
comprising a rewards payment option that causes payment to be made
to a merchant computer for the product at least partially by
reducing rewards from a designated user reward account stored on
behalf of the user on a reward server computer that is different
from the merchant computer; the online purchase transaction
computer receiving from the user device a payment request to pay
for the selected product, said payment request comprising an
election of the rewards payment option; and in response to
receiving from the user device the payment request comprising the
election of the rewards payment option, the online purchase
transaction computer communicating with the reward server computer
to arrange for the reduction of rewards from the designated user
reward account in order to at least partially pay the merchant
computer for the selected product.
2. The method of claim 1 wherein the online purchase transaction
computer communicates with the reward server computer to arrange
for the reduction of rewards from the designated user reward
account in order to at least partially pay for the selected product
by requesting the reward server computer to reduce the rewards in
the user reward account by a designated amount; and receiving from
the reward server computer consideration corresponding to the
rewards reduced in the user reward account; and further comprising
the online purchase transaction computer conveying consideration to
the merchant computer to at least partially pay the merchant
computer for the selected product.
3. The method of claim 1 wherein the online purchase transaction
computer communicates with the reward server computer to arrange
for the reduction of rewards from the designated user reward
account in order to at least partially pay for the selected product
by requesting the reward server computer to reduce the rewards in
the user reward account by a designated amount; and causing reward
points to be transferred from the reward server computer to the
merchant computer to at least partially pay the merchant computer
for the selected product.
4. The method of claim 1 wherein the payment web page additionally
displays an additional rewards payment option, said additional
rewards payment option causing, if elected, payment to be made to
the merchant computer for the product at least partially by
reducing rewards from an additional designated user reward account
stored on behalf of the user on an additional reward server
computer that is associated with the additional reward payment
option and that is different from the merchant computer.
5. The method of claim 1 wherein the plurality of payment options
displayed on the payment web page for payment to be made for a
product selected for purchase via the user device comprises at
least two rewards payment options, wherein each of said rewards
payment options has an associated exchange rate with the merchant
computer that is displayed to the user to enable the user to select
a rewards payment option with a desired exchange rate with the
merchant computer.
6. The method of claim 1 wherein the payment web page further
additionally displays a credit card payment option as a payment
option.
7. The method of claim 1 wherein the reward payment option is
displayed on the payment web page as a pay with points button.
8. An online purchase transaction computer adapted to enable a user
to execute an online purchase transaction over a networked computer
system, said online purchase transaction computer comprising
processing circuitry programmed to: provide to a user device a
payment web page displaying a plurality of payment options for
payment to be made for a product selected for purchase via the user
device, the payment options comprising a rewards payment option
that causes payment to be made to a merchant computer for the
product at least partially by reducing rewards from a designated
user reward account stored on behalf of the user on a reward server
computer that is different from the merchant computer; receive from
the user device a payment request to pay for the selected product,
said payment request comprising an election of the rewards payment
option; and in response to receiving from the user device the
payment request comprising the election of the rewards payment
option, communicate with the reward server computer to arrange for
the reduction of rewards from the designated user reward account in
order to at least partially pay the merchant computer for the
selected product.
9. The online purchase transaction computer of claim 8 programmed
to communicate with the reward server computer to arrange for the
reduction of rewards from the designated user reward account in
order to at least partially pay for the selected product by
requesting the reward server computer to reduce the rewards in the
user reward account by a designated amount; and receiving from the
reward server computer consideration corresponding to the rewards
reduced in the user reward account; and wherein the online purchase
transaction computer is further programmed to convey consideration
to the merchant computer to at least partially pay the merchant
computer for the selected product.
10. The online purchase transaction computer of claim 8 programmed
to communicate with the reward server computer to arrange for the
reduction of rewards from the designated user reward account in
order to at least partially pay for the selected product by
requesting the reward server computer to reduce the rewards in the
user reward account by a designated amount; and causing reward
points to be transferred from the reward server computer to the
merchant computer to at least partially pay the merchant computer
for the selected product.
11. The online purchase transaction computer of claim 8 wherein the
payment web page additionally displays an additional rewards
payment option, said additional rewards payment option causing, if
elected, payment to be made to the merchant computer for the
product at least partially by reducing rewards from an additional
designated user reward account stored on behalf of the user on an
additional reward server computer that is associated with the
additional reward payment option and that is different from the
merchant computer.
12. The online purchase transaction computer of claim 8 wherein the
plurality of payment options displayed on the payment web page for
payment to be made for a product selected for purchase via the user
device comprises at least two rewards payment options, wherein each
of said rewards payment options has an associated exchange rate
with the merchant computer that is displayed to the user to enable
the user to select a rewards payment option with a desired exchange
rate with the merchant computer.
13. The online purchase transaction computer of claim 8 wherein the
payment web page further additionally displays a credit card
payment option as a payment option.
14. The online purchase transaction computer of claim 8 wherein the
reward payment option is displayed on the payment web page as a pay
with points button.
15. An online purchase transaction system for a user to execute an
online purchase transaction, comprising: an online purchase
transaction computer interconnected to a computer network; a
merchant computer interconnected to the computer network; a reward
server computer that is different from the merchant computer, the
reward server computer interconnected to the computer network; and
a user device interconnected to the computer network for
communications with at least the online purchase transaction
computer; wherein said online purchase transaction computer
comprises processing circuitry programmed to: provide to the user
device a payment web page displaying a plurality of payment options
for payment to be made for a product selected for purchase via the
user device, the payment options comprising a rewards payment
option that causes payment to be made to a merchant computer for
the product at least partially by reducing rewards from a
designated user reward account stored on behalf of the user on the
reward server computer; receive from the user device a payment
request to pay for the selected product, said payment request
comprising an election of the rewards payment option; and in
response to receiving from the user device the payment request
comprising the election of the rewards payment option, communicate
with the reward server computer to arrange for the reduction of
rewards from the designated user reward account in order to at
least partially pay the merchant computer for the selected
product.
16. The online purchase transaction system of claim 15, wherein the
online purchase transaction computer is programmed to communicate
with the reward server computer to arrange for the reduction of
rewards from the designated user reward account in order to at
least partially pay for the selected product by requesting the
reward server computer to reduce the rewards in the user reward
account by a designated amount; and receiving from the reward
server computer consideration corresponding to the rewards reduced
in the user reward account; and wherein the online purchase
transaction computer is further programmed to convey consideration
to the merchant computer to at least partially pay the merchant
computer for the selected product.
17. The online purchase transaction system of claim 15 wherein the
online purchase transaction computer is programmed to communicate
with the reward server computer to arrange for the reduction of
rewards from the designated user reward account in order to at
least partially pay for the selected product by requesting the
reward server computer to reduce the rewards in the user reward
account by a designated amount; and causing reward points to be
transferred from the reward server computer to the merchant
computer to at least partially pay the merchant computer for the
selected product.
18. The online purchase transaction system of claim 15 wherein the
payment web page additionally displays an additional rewards
payment option, said additional rewards payment option causing, if
elected, payment to be made to the merchant computer for the
product at least partially by reducing rewards from an additional
designated user reward account stored on behalf of the user on an
additional reward server computer that is associated with the
additional reward payment option and that is different from the
merchant computer.
19. The online purchase transaction system of claim 15 wherein the
plurality of payment options displayed on the payment web page for
payment to be made for a product selected for purchase via the user
device comprises at least two rewards payment options, wherein each
of said rewards payment options has an associated exchange rate
with the merchant computer that is displayed to the user to enable
the user to select a rewards payment option with a desired exchange
rate with the merchant computer.
20. The online purchase transaction system of claim 15 wherein the
payment web page further additionally displays a credit card
payment option as a payment option.
21. The online purchase transaction system of claim 15 wherein the
reward payment option is displayed on the payment web page as a pay
with points button.
22. The online purchase transaction system of claim 15 wherein the
user device is a portable device equipped with wireless Internet
access.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation application of
application Ser. No. 13/277,278 filed Oct. 20, 2011; which is a
continuation application of application Ser. No. 12/103,487 filed
Apr. 15, 2008 now U.S. Pat. No. 8,078,496; which is a continuation
application of application Ser. No. 11/061,095 filed Feb. 19, 2005
now U.S. Pat. No. 7,512,551; which claims the benefit of U.S.
provisional patent application Ser. No. 60/548,373 filed on Feb.
27, 2004, and which is a continuation-in-part application of
application Ser. No. 10/601,317 filed on Jun. 20, 2003 now U.S.
Pat. No. 6,947,898, which is a continuation of application Ser. No.
09/602,222 filed Jun. 23, 2000 now U.S. Pat. No. 6,594,640, which
claims the benefit of U.S. provisional patent application Ser. No.
60/140,603 filed on Jun. 23, 1999.
BACKGROUND OF THE INVENTION
[0002] The present invention allows a user to obtain product
information from a search engine and pay for found products with
reward points from individual reward accounts or aggregated reward
points or a combination of reward points and other consideration
such as cash, coupons, and/or a credit card.
[0003] Due to the wide reaching presence of the Internet, consumers
are able to conduct transactions with virtually any entity having a
web server or other presence on the Internet. Consumers are thus
faced with countless opportunities to (1) collect value ("reward
components") as a result of performing certain transactions or
other Internet-based actions, and (2) redeem such collected value
("payment components") in exchange for products and service offered
by merchants on the Internet. As used herein, the term "product"
refers to any tangible item (e.g. a DVD) or intangible item (e.g. a
property right) as well as a service (e.g. landscaping services)
that may be performed for the consumer. A merchant is anyone that
supplies a product to a consumer or user.
[0004] Thus, due to the multitude of available opportunities to
either obtain value or redeem value, there is a need to provide
consumers with a means for finding desired opportunities and offers
via the Internet. The prior art provides simple searching tools
such as search engines provided by GOGGLE, MICROSOFT and YAHOO, but
does not adequately address the current needs of consumers as
described herein.
[0005] A reward component of a transaction may be defined as any
value conveyed by a merchant or other entity to the consumer or
user as an incentive for executing a transaction, performing an
activity, etc. A typical example of a reward component is the
awarding of reward points for making a purchase, such as when
AMERICAN EXPRESS awards 500 Membership Rewards points for making a
$500 purchase with an AMERICAN EXPRESS card, or when The GAP awards
50 GAP Reward Points for making a $50 purchase at a GAP store.
Other reward components include rebates, discount coupons, or any
cash equivalent tender). It is noted that a reward component may be
an intangible perceived value in addition to real values listed
above.
[0006] Likewise, a payment component is essentially a reward
component that is being used as payment in whole or in part for a
product from a merchant. Thus, a consumer uses a payment component
to pay for a DVD that costs $20 when he redeems 2,000 reward points
(each worth one cent in this example) with the merchant. Likewise,
the consumer may redeem previously accrued rebates, coupons,
etc.
[0007] Reward points (also referred to as frequent flyer miles) are
used as an increasingly common form of both reward components and
payment components in consumer as well as business transactions.
That is, in order to attract and retain business customers,
airlines, hotels, car rental companies, chain retailers, telecom
providers, etc. have historically introduced frequent use programs
that offer awards of reward points, frequent flyer miles or other
such incentives schemes based on the distance traveled or use by
that customer. Success has enabled airlines to modify the manner in
which mileage was acquired to include travel related purchases by
consumers. For example, the dollar-based cost of a hotel stay may
be awarded as reward points or mileage to a client account. Within
the past several years, credit card companies or other retailers
and etailers have co-branded credit cards in the name of the
airlines and the credit card company where each dollar spent using
the card is recorded as a mile of travel or point in the award
program or some monetary value assigned by the issuer. These cards
may additionally award bonus miles in coordination with user
purchases of preferred products or flights during preferred
times.
[0008] With regard to FIG. 1, a model of the frequent flyer systems
of the prior art is presented. Two different airlines servers are
shown surrounded by their related marketing partners, the first
grouping labeled Airline 1 100 and the second independently
operated but functionally similar grouping labeled Airline 2 200.
In order to lure more business travelers, the airlines 100, 200
have established marketing agreements with travel related companies
to provide the business traveler with a more robust way to generate
rewards in the form of frequent flyer miles. These marketing
arrangements or associations have typically involved credit card
companies, phone companies, hotel chains and car rental companies.
Any purchases made through these "co-branded" partners were then
awarded to the user periodically. Bonus miles or points may
additionally be accumulated based on the user's actions in response
to offers made by the airline or in coordination with the partner
company. For example, phone companies offer bonus miles to users
based on the user's agreement to change phone service. These points
are obtained by the partner companies by purchasing them from the
issuing entity for redistribution as an incentive to utilize their
particular goods and/or services. FIG. 2 shows some sample
co-branded cards that are representative of marketing agreements
between TWA, Sprint, and Mastercard. In order to receive these
benefits, the user must sign up with each of the partner companies
separately and provide the frequent flyer account number that is to
receive the credited miles. A user either making phone calls or
purchases in accordance with the agreements made with each of these
partners will first accumulate a value on the partner's system
which in turn is periodically updated on the airline reward server
to reflect the value earned during that period. FIG. 3 is
representative of a typical user account that shows various
earnings in the system transferred in from any of the co-branded
partners. The records of the table in FIG. 3 identify the source of
the rewards, the dates they were recorded and the number of miles
associated with that transaction. The user can view the accumulated
miles by accessing the airline reward server or by tracking the
individual value reported to the user through the various bills the
user receives from each of the co-branded partners.
[0009] The prior art does not provide for a consumer to utilize
relatively small amounts of reward points in any manner. In
addition, a consumer often can only redeem points in an
airline-related manner (i.e. to obtain a free ticket or upgrade
from coach to first class). This prior art does not recognize the
need for a consumer to exchange reward points for non-travel
related goods, and in particular renders relatively small numbers
of points useless. For example, a consumer that does not travel
often may have 500 points in United Airlines, 700 points in USAir,
and 1000 points in TWA, each of which is relatively useless in the
prior art.
[0010] What is desired, therefore, is a system where users may
submit reward points or credits accumulated for other types of
transactions for redemption or translation into a form readily
acceptable by a participating merchant. A user should be able to
pool or aggregate the various earned rewards that may exist in
currently separate reward server systems where the resulting
combined value may be used by a user of the system to acquire items
of equivalent or relative value. A user who has earned frequent
flyer miles or rewards from several points issuers that,
individually, are insufficient to receive any direct value for
their mileage may be able to pool the miles acquired from several
different points issuers to transfer the awards accumulated to the
trading system of this invention. The user may have the selected
items delivered by performing a purchase request by various means
such as a product search over the Internet, dialing a toll free
number for placing an order, or any other means of placing an order
that will accept payment from this system.
[0011] It is also desired to provide a product search engine
integrated with or adjunct to the reward points aggregation aspect
of this invention to enable a user to easily find a desired product
with a search of a plurality of resources such as the Internet and
then pay for a product found in the search with reward points from
individual reward accounts as well as aggregated reward points from
an exchange account.
SUMMARY OF THE INVENTION
[0012] This invention allows a user to execute a search for
products (goods or services) over a networked computer system such
as the Internet and pay for the found products in whole or in part
using a payment component such as reward points from individual
reward points accounts as well as accumulated reward points held by
a variety of award programs or co-branded partners (wherein
individual accounts may or may not be maintained) that are
aggregated into an exchange account. The present invention also
allows users to execute a search over the Internet for offers of
reward components, such as reward points, rebates, coupons, etc.
for accumulation and subsequent redemption.
[0013] The user executes a product search using a search engine
that accepts a user query and returns hits that link the user to
merchant web sites that offer reward components and/or accept
payment components for the desired product. The user may then
consummate a purchase transaction with a merchant directly in the
event that the merchant accepts payment components directly (e.g. a
button may appear on the merchant's web site indicating payment
with reward points from a single account or an aggregated points
account). Or, in another embodiment, the user may utilize a payment
process provided by the search engine that allows the search engine
to broker the transaction with the merchant or other third party
and pay for the product with cash consideration (or its equivalent)
in exchange for redemption of the payment component (e.g. by
reducing the user's reward points in his account with the search
engine). The user may also have a search option that indicate she
only wants to see web pages from merchants that will accept reward
points to pay for the products.
[0014] In particular, as specified herein, the present invention is
a method for executing an online search over a networked computer
system. A user computing device accesses a search entry web element
(such as a toolbar or a web page) from a search engine web site
running on a search engine computer adapted to allow a user to
enter a search term associated with a desired product inquiry, and
then initiates a search by entering a search term into an input
field on the search entry web element, the search term associated
with a desired product inquiry. The user computing device transmits
the search term to the search engine web site over a computer
network. The search engine web site uses the search term to perform
a search for web pages matching the search term in accordance with
certain search criteria.
[0015] The search engine web site will then return to the user a
plurality of links to web pages determined by the search engine web
site to match the search term in accordance with the search
criteria. The user computing device connects with a merchant web
site associated with a selected link (selected by the user or by
the search engine web site), and the user executes a transaction to
purchase a desired product from the merchant web site. Notably, the
transaction includes tendering at least partial payment for the
desired product with a payment component previously accumulated by
said user. The payment component may for example be reward points,
a rebate, a discount coupon, special offer, cash equivalent tender,
etc.
[0016] The search criteria may for example include a payment
component filter that provides for display to the user of links to
web sites that will allow payment for the desired product with a
payment component. The payment component filter may provide that
links to web sites that will allow payment with a payment component
are displayed to the user with highlighted indicia, and/or it may
disallow display of links to those web sites that do not allow
payment with a payment component. The user may select the payment
component filter prior to initiating a search by selecting a
designated button control displayed on the search entry web
element.
[0017] The search criteria may also include a product purchase
filter that requires display to the user of links to those web
sites that will allow a user to purchase a product associated with
the search term. The product purchase filter may provide that links
to web sites that will allow a user to purchase a product
associated with the search term are displayed to the user with
highlighted indicia, and/or it may disallow display of links to
those web sites that do not allow a user to purchase a product
associated with the search term.
[0018] The search criteria may also include an availability filter
that provides for display to the user of links to web sites that
can provide a desired product based on date and time based
availability criteria, and/or it may include a usability filter
that provides for display to said user of links to web sites that
can provide a desired product based on usability criteria.
[0019] The search criteria may include an optimal value filter that
provides for display to the user of links to web sites that provide
optimal purchase value to the user for the desired product as
determined by the search engine web site. The optimal purchase
value is determined by the search engine web site in accordance
with value criteria (e.g. entered by the user). Examples of value
criteria are the purchase price of the product, the availability of
a reward component (e.g. reward points, a rebate, a discount, or a
cash equivalent tender)) provided by the merchant along with the
purchase of the product. The links to web sites that provide
optimal purchase value to the user for the desired product may be
ranked in order by the search engine web site as determined by the
amount of value provided to the user for the desired product. The
search engine web site may automatically link the user's computing
device browser to the web site that provides the best value for
purchase of the desired product.
[0020] The search engine web site may provide a toolbar web element
that includes a reward points payment button, which when selected
will initiate a points payment process. In the points payment
process, a points payment request is transmitted from the user
computing device to the search engine web site, and then the search
engine web site arranges for the redemption of reward points from a
reward point account stored on a reward point server on behalf of
the user in order to at least partially pay the merchant for the
selected product. This may be done by communicating with the reward
server computer to determine the number of reward points held in
the reward point account on behalf of the user, and then redeeming
reward points from the reward point account on behalf of the user,
wherein the number of reward points in the reward point account is
decreased by the reward server computer and consideration for said
redemption is conveyed from said reward server computer to the
search engine computer. The search engine computer then arranges
for payment to the merchant in exchange for the selected product on
behalf of the user.
[0021] The points payment process may optionally allow for the
search engine web site to arrange for the redemption of reward
points from a plurality of reward point accounts stored on a
plurality of reward point servers on behalf of the user in order to
at least partially pay the merchant for the selected product.
[0022] A user profile database may be stored on the search engine
computer, which would then use the profile associated with the user
along with the search term to perform a search for web pages
matching said search term in accordance with search criteria and a
profile associated with the user. The user profile database may
include for example user product preference data and user
demographic information. The search engine web site may also use
the user profile to make alternate product searches and transmit
alternate product suggestions to the user computing device based on
results obtained from the alternate product searches.
[0023] The process for exchange of the previously earned reward
points comprises the steps of the user requesting the search
engine/trading server computer to obtain reward points from a
reward server associated with a rewarding entity with which the
user has reward points. The reward server computer decreases the
user's reward point account by the requested number of reward
points. The reward server computer may convey consideration to the
trading server computer, where the consideration corresponds in
some predetermined proportion to the number of reward points
decreased in the account of the reward server. The trading server
computer increases the reward exchange account on the trading
server associated with the user by the requested number of
points.
BRIEF DESCRIPTION OF THE DRAWING
[0024] FIG. 1 is representative of the prior art marketing
arrangements used in reward programs;
[0025] FIG. 2 is a representation of the co-branded partners in a
prior art award program;
[0026] FIG. 3 is a sample of the prior art reward summary from an
airline frequent flyer system;
[0027] FIG. 4 is a block diagram of the components of the present
invention;
[0028] FIG. 5 is a block diagram of the system components of the
present invention;
[0029] FIG. 6 is a data flow diagram of the process for a user to
redeem rewards;
[0030] FIG. 7 is a data flow diagram of the user request for
purchase of an item at a merchant site;
[0031] FIG. 8 is a data flow diagram of the user account creation
process on the trading server;
[0032] FIG. 9 is a data flow diagram of the offer process by a
reward program or by a merchant;
[0033] FIG. 10 is a data flow diagram of the process where a user
may be redirected from a reward program to the trading server of
the present invention; and
[0034] FIG. 11 is a block diagram of the search engine process of
the present invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
[0035] The present invention implements various methodologies to
enable a user to implement a search engine service in an online
commerce environment for an enriched product search, review,
analysis, and purchase experience. Improvements over prior art
search engines have been implemented herein that allow users to
perform tasks that generally fall into either of the following two
categories: (1) to search for, compare and obtain desired products
having a reward component (such as rebates, coupons, discounts, and
reward points) associated with the purchase such that users earn
the reward component(s) by making the purchase (and
contemporaneously redeem them with the purchase, if desired),
and/or (2) to search for, compare and obtain desired products that
may be obtained in whole or in part by tendering an
already-obtained payment component (such as rebates, coupons,
discounts, and reward points).
[0036] Reward components are becoming more prevalent in today's
commerce environment. A reward component provides an incentive to
make a purchase since it rewards the purchaser or user by giving
him a rebate, discount, or reward points. Reward points, as known
in the art, are often awarded by merchants as a reward for making a
purchase with that merchant. Various types of reward or loyalty
schemes have been implemented, but the general concept is that the
customer may earn and accrue reward points based on the amount of
money spent at a merchant, and then at some point the customer may
redeem some or all of his earned reward points in exchange for a
product or a reduced price on a product. A typical example is when
a merchant awards one point for every dollar spent with that
merchant, so that a customer would spending $1,000.00 would earn
1,000 points. That customer then redeems them at a rate of one
penny per point, so that the value of the 1,000 points is $10.00.
The merchant would accept the redemption of its points against a
product purchase, for example a $15.00 may be reduced in price to
$5.00 or the customer may obtain a $10.00 item free of further
charges by redeeming his 1,000 reward points.
[0037] In the present invention, reward points are logged in a
reward point account stored on a reward server computer that is
associated with the reward issuing entity (e.g. the merchant). On
aspect of the present invention, which is the subject of my U.S.
Pat. No. 6,593,640, allows users to trade or exchange reward points
into a common reward point account so that they may combine the
values of their various (disparate) reward points into one account.
Thus, with reference to FIG. 4, a plurality of reward server
computers 10, 12, 14, a trading server 20, a merchant computer 30
and a user computer 40 are shown in communication with a network 2.
The network may comprise any type of communication process where
computers may contact each other. The present invention will be
described with respect to an Internet-based network where the
reward server computer 10 is associated with an airline frequent
flyer program. Any type of reward server may also be used in this
system. The reward server computer may be a credit card reward
program such as that offered by American Express where the user
earns rewards based on purchases, or an advertising based award
program where the user earns rewards by selecting advertising
content for viewing on the Internet.
[0038] A user of this system may acquire and accumulate reward
components such as reward points through any prior art means such
as shown on FIG. 1, which are then posted in a user's reward point
account 52 that is accessible through the reward server computer
10. The trading server computer 20 is in communication through the
network 2 with a user on a user computer 40 and is additionally
able to connect to the reward server computers 10, 12, 14 through
the network 2 in accordance with techniques well known in the art
for Internet communications. Alternative electronic communications
methodologies may be used, such as an ATM adapted to allow a user
to access his accounts, or a smart card reader, etc. The merchant
computer 30 is representative of any site that can communicate with
the network that has goods or services for sale or trade. The
merchant may have a direct relationship with the trading server
where the direct relationship allows for a streamlined process for
allowing a user to acquire products offered via the merchant
computer. Alternatively, the merchant computer may be an
independent merchant that does not currently have a profile defined
in the trading server that will accept payment from another
computer system in any one of well known e-commerce
embodiments.
[0039] The rewarding entities may be any type of entity that has a
service for allocating points or consideration for user actions.
The reward server computers 10, 12, 14 may be of any type of
accessible server capable of holding data about a user along with a
corresponding earned value that is negotiable for other goods,
services, or points of another system. In the preferred embodiment,
the airline reward server computer 10 may refer to one or several
different airlines that have frequent flyer programs or the like.
The credit card reward server computer 12 may refer to any type and
number of credit card server systems capable of holding, increasing
or decreasing a user's earned rewards acquired according to the
terms of the credit card program to which the user has enrolled.
The marketing reward server computer 14 may refer to one or a
multitude of network accessible marketing systems that allow a user
to have an account where points or other redeemable value may be
stored, updated and redeemed by a user. The trading server computer
may be any type of computer system that allows users to access the
system in order to perform the processes involved in this
invention. In the preferred embodiment all of the systems described
are accessible through the Internet and the user may automatically
or freely navigate to any site by means well known in the art.
[0040] The method of this invention of allowing the user to utilize
a search engine web site to find desired products that either (1)
provide the user with a reward component as an incentive for
purchasing an item, or (2) allow the user to make a purchase with
an already-accumulated payment component will now be described with
respect to FIG. 11, FIG. 4 and the data flow diagram of FIG. 6. The
product search engine process is shown in FIG. 11. In one
embodiment, a user is provided with a search engine web element
such as a search form page served from the search engine trading
server (such as when a user uses the GOGGLE web site
http://www.google.com). In the alternative, a search engine toolbar
may be downloaded from the search engine computer and executed with
the user's web browser as known in the art. In any event, the
search entry web element has an input field such as a text entry
box for entering the search term as known in the art. Optionally, a
web control element such as a button may be provided to allow a
user to indicate that the search will be for product purchases only
(i.e. with a merchant) rather than just an informational search
that may also pull up product reviews etc. For example, a user may
enter the term "DVD Player" and select the "Purchases Only" button,
and then submit the page to the search engine web site as well
known in the art. The search engine will return a list of web links
as well known in the art that will redirect the user to a
merchant's web site, in particular to a web page that features the
desired item (a DVD Player).
[0041] The search engine performs the search utilizing the
user-entered search term (such as "DVD Player") as well known in
the art, but modified in accordance with several aspects of the
present invention. In one aspect of the invention, the search
engine will implement a set of search criteria that may be set by
the user and/or the search engine itself as described herein.
[0042] The search criteria of the present invention include a
payment component filter, a product purchase filter, an
availability filter, a usability filter, and/or optimal value
filter. Any or all of these filters may be selected by the user
prior to executing the search, for example by selecting buttons on
a toolbar, or by selecting check boxes or the like on a search
engine web page, etc. In the event that additional information is
required (in accordance with the filter selected), then the user
will enter such additional information in any manner made available
as well known in the art of web page design (e.g. text boxes, check
boxes, radio buttons, drop down lists, menus, etc.). After all of
the desired filters have been selected by the user, and all
appropriate data has been entered, then the user selects a "Search"
button to send all search criteria as well as the search term(s) to
the search engine web site and the search is initiated. It is also
noted that filters may be preset or automatically triggered or set
by the user or a third party based on certain conditions as may be
defined.
[0043] The payment component filter will instruct the search engine
to return to the user computing device's browser a display of links
to web sites that will allow payment for the desired product with a
payment component. As previously described, a payment component is
previously-acquired value such as a rebate, coupons, discounts, or
reward points. These payment components may be accumulated by a
user based on prior purchases with that merchant, such as when a
user makes a $100 purchase at RADIO SHACK and is awarded 100 radio
shack points, which are logged in an account held on behalf of that
user. That account may be increased (based on subsequent purchases)
or decreased (based on reward point redemptions) as well known in
the art. These payment components may also be accumulated by a user
based on prior purchases using a certain credit card, such as when
a user makes a $100 purchase using his AMERICAN EXPRESS card and is
awarded 100 AMERICAN EXPRESS MEMBERSHIP REWARD POINTS, which are
logged in an account held on behalf of that user. That account may
be increased (based on subsequent purchases) or decreased (based on
reward point redemptions) as well known in the art. By selecting
the payment component filter, the user is requesting the search
engine to return links to web sites that have already indicated a
willingness to accept payment (in whole or in part) in the form of
an applicable payment component. These links to web sites that will
allow payment with a payment component may then be displayed to the
user with highlighted indicia, such as use of a bold,
larger-than-normal, or underlined font, which will aid the user in
seeing which links will allow use of a payment component such as
reward points. Likewise, an option may be set that would list only
those links to web sites that allow use of a payment component and
disallow display of links to those web sites that do not allow
payment with a payment component.
[0044] The search engine may determine whether a merchant's web
site would allow a user to make a purchase with a payment component
such as reward points in any manner known in the art, such as the
user of metadata or metatags embedded in the web page of that
merchant. That is, by embedding certain keywords, control data or
the like in a web page, the search engine can determine if the
associated web site of that merchant will allow the use of a
payment component. Other methodologies for accomplishing this
objective known in the art may also be used for this purpose.
[0045] The product purchase filter may be selected by the user to
instruct the search engine to return only those links to web sites
that will provide for a purchase of the product indicated in the
search term. That is, any web site that provides information only
(and no product purchase availability) such as a magazine review of
the product, would be filtered out of a search with this option
selected by the user. This helps the user eliminate the numerous
links that would otherwise appear that would not enable the user to
make a purchase from that web site. Of course, this is an option
since the user may in fact want to be provided with links to such
web sites. These links to web sites that will allow purchase of the
product may then be displayed to the user with highlighted indicia,
such as use of a bold, larger-than-normal, or underlined font.
Likewise, an option may be set that would list only those links to
web sites that allow purchase of the product and disallow display
of links to those web sites that do not allow purchase of the
product.
[0046] The availability filter may be selected by the user to allow
him to input certain desired dates and times, for example when a
user wants to purchase tickets to a play and wants to limit his
search accordingly. By selecting this filter, additional
information will be entered such as a range of available dates and
times, a range of unavailable dates and times, etc. Likewise, a
usability filter may be employed, which allows the user to specify
usability factors that may be implemented by the search engine in
its product searches.
[0047] The optimal value filter provides for display to the user of
links to web sites that provide optimal purchase value to the user
for the desired product as determined by the search engine web
site. The optimal purchase value is determined by the search engine
web site in accordance with value criteria entered by the user.
Examples of value criteria are the purchase price of the product,
the availability of a reward component (e.g. reward points, a
rebate, a discount, or a cash equivalent tender)) provided by the
merchant along with the purchase of the product. The links to web
sites that provide optimal purchase value to the user for the
desired product may be ranked in order by the search engine web
site as determined by the amount of value provided to the user for
the desired product. The search engine web site may automatically
link the user's computing device browser to the web site that
provides the best value for purchase of the desired product.
[0048] Once the user has navigated through the various web pages
found by the search engine and makes a purchase decision, then he
will go through a product purchase process. The merchant will have
various payment options, including the typical credit card options,
and may also have an option to pay for the product with a payment
component such as reward points. In particular, the user may be
given the option to pay for a product utilizing reward points from
a single reward account (such as his AMERICAN EXPRESS MEMBERSHIP
REWARDS POINTS), or he may be able to pay for a product utilizing
reward points from multiple reward accounts (such as his MEMBERSHIP
REWARDS POINTS and his VISA points), or he may be able to pay for a
product utilizing reward points from an aggregated reward point
account that holds reward points previously aggregated/exchanged
from multiple single reward point accounts. This process is
described in further detail with respect to a trading server later
in this application. In that scenario, the search engine may
operate as a trading service as well (i.e. aggregating reward
points from various reward accounts and exchanging aggregated
reward points with the merchants for the desired products). The
search engine/trading server may pay the merchant for the desired
product with cash or its equivalent, or it may barter with the
merchant by exchanging a user's reward points directly for the
product. In any event, the user's individual or aggregated reward
points are decreased by a value equivalent to the price of the
product (and optionally a service fee charged by the search engine
for brokering the transaction).
[0049] The user may also be given an option to pay for the product
with reward points held by a third party trading server in addition
to the search engine itself. In this case, the payment button would
trigger a brokerage process amongst the merchant, the user, and the
selected trading server that holds the user's aggregated reward
points.
[0050] As a further embodiment, the points aggregation payment
model discussed herein may be integrated with a search toolbar
commonly used in conjunction with web browsers. In this case, the
toolbar is always present for the user to take advantage of without
having to navigate to the home page of the search engine web site.
There will be a "Pay With Points" button available on the toolbar
to allow the user to pay for a product with rewards points as
discussed above. This "Pay With Points" button may be used to
transfer points directly to a merchant that accepts points as
described above, or it may cause a transaction to occur wherein
cash or cash equivalent consideration is transferred from the
trading server to the merchant in exchange for the product. This
function may operate with any type of merchant, even when not found
in a search. For example, a user is navigating a BEST BUY website
and sees a DVD player he wants to buy. He goes through the checkout
process, but in the event that BEST BUY does not accept points for
payment, then selecting the "Pay With Points" button will trigger a
transaction between the trading server and the BEST BUY merchant
wherein cash equivalent is sent to BEST BUY, the product is shipped
to the user, and the user's aggregated reward points account is
decremented accordingly.
[0051] Moreover, the search results may indicate which vendors
provide optimal transactions for the user, based on a user profile
that indicates which reward point program(s) the user is a member
of. The search results may indicate, for example, that a certain
vendor provides a better exchange rate for American Airline points
than it does for United Airline points, and since the user has a
large number of American Airline points to exchange then that
vendor would provide a preferred transaction that is of greater
benefit to that user. Likewise, the search results page may
indicate that a certain vendor will accept payment for the product
completely with reward points, or it may only accept 75% of the
price in reward points, etc. This will enable the user to select a
vendor that provides an optimal exchange for the user's reward
points for a given product. This information is of great value to a
consumer in addition to learning just the purchase price, since a
more expensive price may actually be more beneficial if the vendor
accepts a greater ratio of points. In addition, the search results
may indicate if a vendor will accept additional points that may be
used for a donation to a charitable organization, rather than only
for a purchase of a product, such that a tax deduction may be taken
by the vendor (and/or the user) for donation of the reward
points.
[0052] In another aspect of the present invention, a user is able
to perform a search via the search engine web site using a reward
component filter; that is, for certain products that have a reward
component offer associated with that product. Reward components
include but are not limited to coupons, rebates, reward points and
the like. This enables users to determine if the purchase of a
certain product from a certain merchant will be accompanied with a
rebate, coupon reward points, etc. The user is also able to make
comparisons to products from merchants that do not provide such
value added offers and determine which offer presents the best
terms for the user. For example, the user may be able to determine
if any merchants are offering discount coupons or instant rebates
that may be used to reduce the purchase price, which merchants may
be offering reward points for the purchase of the product, and
which merchants do not provide and such offers.
[0053] As previously indicated, the offer may be flagged as having
a reward component offer associated with it by the use of an
embedded flag or marker (e.g. metadata) that signifies the reward
component offer to the search engine. Other types of intelligent
methods for extracting desired information that are used by search
engines in the art may also be employed by the present
invention.
[0054] The search engine functionality of the present invention
also allows a user to make a comparative analysis between similar
(but not identical) products in making a purchase decision. Thus,
the user may compare similar but not identical DVD players from
various merchants to make an informed purchase decision. The search
engine may also function to present all comparable product
offerings and make recommendations as to the best price, the best
value, the best product, or any combination of these factors.
[0055] Reward components, although typically obtained from a single
merchant, may also be obtained from multiple merchants, for example
when two merchants are co-branded in a transaction and offer a
reward component usable with (1) either merchant independently or
(2) only both merchants combined. For example, an offer may be made
wherein a purchase of a MCDONALD's hamburger will yield a reward
component of a COCA-COLA soda.
[0056] The search engine service will have analytical tools that
will enable it to determine the resources that may be required to
obtain a product requested by the customer as well as resources
that may be available to that customer such as from other users.
For example, the search engine/trading server may be able to
determine that another registered user has reward points accrued
from a certain merchant that would be useful for the customer to
utilize in its product purchase, and then broker an exchange
between the users that would be beneficial to both users. User A
may have a large number of frequent flyer reward points with
American Airlines and be glad to trade them or sell to them to User
B, who may need them for a special offer from American
Airlines.
[0057] The search engine service of the present invention is
configured for interaction and interoperability with other search
engines. This would allow the search engine to benefit from
external resources that would be otherwise unavailable. For
example, another search engine service may have preferred access to
information and then be able to transfer that preferred information
to the present search engine. Also, searches may be handed off to
alternative search engines if the (primary) search engine is unable
to handle the search (e.g. if search request traffic is high at a
given time). Likewise, searches may be executed in parallel be
multiple search engines and the results collated for presentment to
the user.
[0058] The search engine of the present invention may feature
advertisements that are based on a search engine rating system.
Various colors may be applied to signify various purchase values
(e.g. red for an offer of high consumer value, blue for lower
value, etc.)
[0059] In an alternative embodiment, a portable device such as a
personal digital assistant is equipped with wireless Internet
access through one or more of various known technologies. A user
may input search criteria or may use automated data entry such as a
bar code scanner, which is then fed wirelessly to the search
engine, and the results are displayed on the screen of the PDA for
the user to act on.
[0060] Revenue may be generated by the present invention in one or
more of several manners. A transaction-based fee may be charged by
the search engine service to users for (1) executing a search, (2)
viewing results, (3) linking to selected search results, (4)
executing a purchase transaction, (5) making a reward point
exchange, and/or (6) redeeming reward points. Merchants and/or
reward issuing/holding entities may also be charged transaction
fees. Merchants or other advertisers may be charged insertion fees
for placement of advertisements. A license or subscription fee may
also be charged by the service to user, merchants, advertisers,
reward point issuers, reward point exchangers, etc.
[0061] The search engine service of the present invention allows
for users to interact in a bidirectional manner with merchants.
That is, in known search engine scenarios, a user will find a link
of interest and click through to the merchant's web site associated
with the link. The user may then browse that webs site and make a
purchase based on the price provided by the merchant on the web
page the user is viewing. In the present invention, the user is
able to make a counteroffer to the merchant whereby a reduced price
may offered and then accepted (or not) by the merchant.
[0062] In another embodiment, the user may enter requests for
certain products or rewards, and if the product or reward is not
currently available, then the search engine service may store that
request and notify the user when such product or reward becomes
available. Optionally, the desired item may be held on reserve for
a certain time period on behalf of the requesting user.
[0063] The search engine may allow for a user to specify certain
destinations or other geographic search parameters so that the
search will be limited to those parameters. This is particularly
useful where the user anticipates that he will want to physically
visit the location of the merchant, or where the shipping costs
will likely be high and the user wants to purchase the product from
a relatively close-by merchant, etc. In this case, entering
geocentric terms will help the search engine user limit the search
results accordingly.
[0064] A real-time availability counter or other type of graphic
indicator may be used on the search engine web page to indicate to
the user the number of products that are available in inventory so
that the user will have that information instantly available. For
example, there may be a number shown that may change as inventory
is depleted, or a bar graph may be used, etc.
[0065] As previously mentioned, a user is able to aggregate reward
components (such as reward points) previously earned in various
individual reward accounts into one reward exchange account stored
on the search engine computer, or on a third party reward point
exchange computer (also referred to as a trading server computer).
That is, a user is able to exchange or trade previously earned
reward points in order to maximize their value to the user. The
following description of the functionality of the trading server
computer applies regardless of the actual location of the trading
server software (i.e. on the search engine computer or another
computer). The trading server computer allows users to "log in" to
access the functionality provided where the user may interact with
applications, forms or controls. For example, the user may view his
account information by using a web browser which may automatically
select or allow the user to enter the appropriate identification
information and then select buttons, links or other selectable
objects to navigate to the part of the system desired. In the
alternative, navigation may be done automatically by the web site,
and thus be transparent to the user (i.e. not directly controlled
by the user). If the user does not yet have an account (step 602),
then the user may be enrolled per the flow diagram of FIG. 8 (step
604) as discussed below. The user, from the user computer, makes a
request to the trading server computer 20 via communications flow
102 (step 600), requesting redemption through the network 2 for
either all or a portion of the pre-accumulated reward points stored
for the user in one of the rewarding entities. A user's reward
point account 52 is associated with each of the reward servers but
is only shown in FIG. 4 connected to the airline server for sake of
clarity. Communications are made by the trading server 20 to the
user computer 40 via communications data flows 104. The user may
interactively select rewards to be redeemed, or the system may
determine which rewards are to be redeemed based on a previously
defined user profile rule or other third party profile rule (such
as an issuer) (step 606). The trading server computer 20 "obtains"
the reward points balance information from a reward server 10, 12,
14 stored in the user's account 52 by contacting the appropriate
reward server via communication flow 110 (step 608) according to
the user's requirements, by using the connection parameters as
defined in a database 54 on the trading server as shown in FIG. 5.
In one embodiment, the trading server retrieves reward point
account balance information via communications flow 114 (step 610)
from the reward server for the user. In another embodiment, the
trading server transfers as part of the communication 110, the
requested reward points to be redeemed (step 612). The reward
server computer 10 decreases the user's reward point account 52 by
the requested number of reward points (step 614). The term point is
used to reference any earned value that has a cash equivalent or
negotiable worth as in "frequent flyer" point or mile. The reward
server computer 10 conveys consideration to the trading server
computer 20 where the consideration corresponds to the number of
reward points decreased in the user's account 52 on the reward
server 10 (step 616). For example, the consideration may be in the
form of a monetary credit to an account that exists between the
trading server and the reward server, that gets paid at the end of
a predefined billing cycle (i.e. every month) or in real time or
upon execution of a trade or redemption procedure. The trading
server computer 20 increases the reward exchange account 54
associated with the user by the received number of points (step
620). The trading server computer 20 in turn, receives the
consideration from the reward server computer 10 (step 618).
[0066] Similar communications are made between the trading server
20 and the credit card reward server 12, as indicated by the data
communications 120 made by the trading server 20 to the credit card
reward server 12 and the data communications 124 made by the credit
card reward server 12 to the trading server 20. Likewise,
communications are made between the trading server 20 and the
marketing reward server 14, as indicated by the data communications
130 made by the trading server 20 to the marketing reward server 14
and the data communications 134 made by the marketing reward server
14 to the trading server 20. In each case, the trading server 20
increases the user's reward exchange account 54 by the received
number of points from the credit card reward server 12 and the
marketing reward server 14, respectively.
[0067] In the second part of the transaction (see FIG. 7), the user
from a user computer 40 may make a request 150 to purchase an item
from an associated merchant computer 30 (step 700) which the user
may access as a result of executing a search with the search engine
web site as previously explained. In the preferred embodiment, the
merchant computer system will be a networked computer system
accessible via the Internet. The user would visit the merchant site
by selecting on a link from the search results page. The user may
identify one or many items to be acquired from one or several
merchants 30. The user elects to pay for the desired item with a
reward component such as reward points (step 702), and the user is
redirected from the merchant server to the trading server at step
704. If the user does not have an account (step 706) then the user
is enrolled per the flow diagram of FIG. 8 (step 708). The merchant
server computer 30 would confirm that the user has sufficient
reward points or other reward value to purchase the selected item
by communicating with the trading server 20 via communication flows
140, 144 in order to check the user's reward exchange account 54
(step 710). (Optionally the user may decide to effect payment with
reward points from single reward point source, such as with his
AMERICAN EXPRESS MEMBERSHIP REWARDS points.) If the user does not
have enough points in his reward exchange account at the trading
server 20, then the process of trading more points from the user's
reward point account 52 into his reward exchange account 54 is
executed by branching to the flow diagram at exit point A (step
712) which brings the process to the flow diagram in FIG. 6
discussed above. After enough points are traded, the user continues
with the process from step 712 as shown in FIG. 7. The user may
also borrow additional points to make purchases. The trading server
computer 20 would request the merchant computer to deliver the item
to the user. The user delivery information may be retrieved from
the trading server computer 20 or may be supplied in some other
manner. The trading server computer 20 would decrease the user
exchange account 54 by the number of points or value corresponding
to the purchased item (step 714). The trading server computer 20
conveys consideration (or instructs a third party to convey
consideration) to the merchant computer 30 equivalent to the cost
of the item by means well known in the art of electronic commerce
(e.g. by a preexisting account, credit card, etc.) (steps 716,
718). In the alternative, the consideration may be a direct
transfer of points to an account associated with the merchant. The
merchant then completes the transaction at step 720, for example by
delivering the purchased item. A transaction fee may be charged by
any of the parties in the form of points, cash or cash equivalent,
etc. Also, a delivery fee may be charged for delivery of the
product.
[0068] Policies and profiles may be established to automatically
contact each of the reward servers according to a user profile,
merchant profile, broker dealer profile, issuer profile, or product
provider redemption profile (see FIG. 5) to transact the required
payment for an item selected by a user. This profile may indicate
the order of redemption and method of providing funds sufficient to
cover the purchase after redeemable points are exhausted. For
example, if a user has a preferred air carrier where the user would
like to retain mileage in that reward system, the user may specify
a priority of use indicating the reward resources that should be
exhausted prior to accessing the most desirable rewards. Following
the selection of an item to be acquired, the server may contact all
of the reward resources according to this profile to selectively
redeem each as required to meet the purchase price. The process may
be performed in real time or as a background process transparent to
the user where the user may select how the transaction should
proceed. If the user exhausts lower personal worth resources from
the reward servers, the system may be required to contact the user
before the transaction is allowed to proceed to redeem points. A
classification system may also be used to indicate rewards of
similar worth or category. If for instance, a frequent flyer
program supports multiple classifications of miles that may be
redeemed differently, the user may optionally define how those
resources should be managed during redemption. The redemption
process would then honor those rules elected by the user to select
from several different reward programs instead of redeeming rewards
strictly on a value required from the first reward program
contacted or based upon a preferred hierarchy defined by the system
or its members.
[0069] FIG. 8 describes the process steps involved in enrolling a
user to utilize the trading server. The user accesses the trading
server 20 at step 800 and selects an option to create a user
account at step 802. The data entered by the user may be used in
determining whether a user allows unsolicited offers to be
presented from the trading server. In addition, offers may be
provided in an automatic fashion without user interaction. The
user's preferences for manufactured goods services, products,
travel destinations, hobbies, interests or any other user entered
criteria may be stored in the database for subsequent use by the
system (steps 804 and 808). The trading server has the ability to
receive offers from reward servers or merchants (steps 806 and 808)
which may then be directed in real time to users based on the
database profile information provided by the user or other third
party (e.g. an issuer, merchant, etc.) (see FIG. 9). At step 900,
the reward server contacts the trading server with an offer to
redeem points. Similarly, a merchant may contact the trading server
with an offer to be distributed to members (step 902). The trading
server records the offer in a database (step 906), and the trading
server may record a limited conversion rate in its database (step
906). The reward server may then contact the user with an offer to
redeem at step 908. Optionally, the process may branch to the flow
diagram in FIG. 6 discussed above (step 910).
[0070] The trading server may also be contacted in response to a
button or hyperlink located on a web page accessible by the user
from the airline reward server (FIG. 10, steps 1000 and 1002). The
process may continue to that described with respect to FIG. 6 for
trading points into a reward exchange account (step 1004). In a
similar manner, hyperlinks or calling routines may allow a user to
access a reservations system or merchant from the trading server.
The link would direct the user to partner or associated air
carriers where the points in a user exchange account on the trading
server 20 may be used to acquire hotel accommodations, special
offers, reduced fare or free flights.
[0071] The system used to implement the aforementioned method will
now be disclosed with respect to FIG. 5. The system is comprised of
a trading server computer connected to a network of computers where
a user interface is established whereby a user from a user computer
may access the server to request the transaction to contact a
reward server computer system. In the preferred embodiment, the
server has memory means for storing the user account information,
user profiles and rules which may be specified by the user, system,
or merchant. The trading server also has communications means to
allow users to access the server and to allow the trading server to
contact reward servers and processing means to interpret the rules
and coordinate the contact to the respective servers. The
processing means is adapted to allow the user to request and
exchange consideration for rewards from reward servers. The
processing means additionally is adapted to coordinate the exchange
of consideration and increase or decrease the user exchange
accounts stored in memory in response to actions performed by the
user computer, reward server and merchants and issuers.
[0072] In the preferred embodiment, the memory means comprises a
database structure that is used to record the transactions
associated with the previously described method. Records indicating
the changes and current value of user exchange accounts are updated
according to the request processed by the processor. This invention
also implements the recording and subsequent reporting of factors
such as the average redemption value redeemed to date, the rate of
redemption, and other liquidation liability factors.
[0073] In response to a request for exchange or redemption, the
trading server looks up the contact properties of the reward server
to be contacted. The user information is submitted to the reward
server to display the available points that may be redeemed. In
another embodiment, the request additionally contains a value to be
redeemed. The processor establishes a communication link with the
reward server and a transaction request is sent to the processor of
the reward server. The processor of the reward server may perform
actions that may allow or refuse the requested action, or suggest
an alternative action. In another embodiment, the trading server
processor may be granted direct authorization to modify the user's
records in the reward server database without analysis by the
processor of the reward server. A conversion rate may be applied to
the transaction such that the reward server reduces the available
rewards or value in the user's account. The reward server then
transfers consideration to the trading server that corresponds to
the value reduced or available in the reward system. In response to
the receipt of the transfer or approval of the transfer, the
trading server increments the user account balance to reflect the
received consideration and the connection to the reward server is
terminated. A transaction log may be used to record each of the
transactions in case a reconciliation process is required at a
later time. The new value, whether increased or decreased in the
user's exchange account may then be stored until a user finds an
item to be purchased.
[0074] The user selects the desired object from the merchants by
performing a search for the type of product or service to be
procured. In one embodiment, the trading server contacts the
merchant server to return to the user a list of products that match
the user's search criteria or if the user had specified in detail
what was desired, the product may be directly acquired from a
merchant or broker/dealer. A communication link is established
between the trading server and the merchant computer or designee
for e-commerce. Direct acquisition may be enacted by contacting the
merchant or broker/dealer computer and supplying the user indicia,
the product indicia, and the redemption value sufficient to secure
the transaction. In response to the transaction request, the
merchant computer or broker/dealer will receive the consideration
supplied and contract for the delivery of the product. Unfulfilled
requests are stored and when available can be pushed to the user.
In another embodiment, the consideration required for the item
selected is sent to the trading server where based on the available
points in the user's exchange account the trading server will
determine whether the consideration is available. An authorization
process may be incorporated at this point to request authorization
from the user or in a more simplified process, the consideration
will be transferred to the merchant computer and the user's
exchange account will be reduced. The merchant computer will
receive the consideration and will effectuate a delivery
transaction to be issued.
[0075] The goods may also be placed under direct control of a
distribution arm of the trading service so that the user places the
order with the trading service directly and the merchants are not
directly involved with the sale of the goods.
[0076] In a situation wherein the user finds it necessary or
desirable to return a product, such as when the product may be
damaged, then provision is made for the restocking of points back
into the user account (rather than a cash refund), with an optional
restocking fee being charged to the user in the form of points.
[0077] Thus, the present invention provides a liability management
system for issuers of reward points, which allows them to take
points off the books and eliminate them, if desired, at a
discounted rate. This system enables the sale or repurchase of
points with a trading strategy in which points need not expire, or
may be retired at a controlled rate or value. The value ascribed to
the points (the par value) may be changed by the points
issuer/aggregator based on the rate of redemption of the points
with respect to the issuers ability to maintain cash flow. That is,
the par value of the points may be varied by the points issuer,
after issuance, based upon factors such as the rate of redemption
of points by other users. For example, if the rate of redemption
becomes excessively large, this may negatively impact the cash
position of the issuer since points redemption generally results in
cash flow out of the issuer to product and service providers. Thus,
when an issuer determines that the cash flow is excessive, it may
reduce the par value such that subsequent redemptions will result
in a lower cash flow rate.
[0078] The present system may be implemented by means of a smart
card (or credit/stored value card) wherein frequent use points may
be accumulated on the user's card every time the card is used for
associated application. For example, if a user uses his smart card
to pay for a hotel that normally gives reward points, those reward
points may be stored on the smart card. Likewise, when the card is
used for the purchase of an airline ticket, the points would be
added to the smart card. The user may then redeem the accumulated
reward points by inserting the card into a reader associated with a
computer connected to the Internet or other authorized
communication system (e.g. an ATM or other reader). The trading
process proceeds as described above, except that the points are
obtained directly from the smart card or system rather than a
reward server. Information provided to the user regarding the
user's reward points is updated after every transaction.
[0079] The user may have a credit card, debit card, or stored value
card that is linked to their points account in such a way as to
permit them to pay for purchases with a merchant by using the card,
wherein the merchant uses the existing credit card payment
infrastructure as if payment were being made/authorized by a bank
linked to the credit card or debit card account, but in fact the
card may be linked to the user's points account. In this manner,
the user and merchant can use the points account to pay for
purchases in a seamless manner whereby points are used for
consideration rather than or as a supplement to cash and
traditional credit.
[0080] Other aspects of this invention will now be disclosed that
will enhance the reader's understanding of the application of this
invention.
[0081] Merchandisers also benefit from the use of this system where
another marketing channel is afforded for products that are often
purchased by frequent travelers with high disposable income.
Products and services encompassing jewelry, flowers, limousine
transport, timeshare rental may be exchangeable for points stored
in this system. Items purchased through the system may also be paid
for by a combination of points and currency which might be the case
when a user does not have enough accrued points to meet the
purchase consideration of an item selected. There may be
designations where a percentage of the product may be paid with
points, with the rest in cash or cash equivalent.
[0082] It is anticipated that high quality limited access products
may benefit from the distribution methods afforded by this system.
For example, companies like SONY and Chanel may take advantage of
this distribution means without impacting the level of quality or
excellence associated with their products.
[0083] Manufacturers can discount or liquidate goods for points in
a manner that doesn't negatively affect the perceived value of the
goods (i.e. not in direct competition with the mainstream sales).
That is, the manufacturer can place overstocked, end of run type
goods and the like, place them in the chain of distribution for
exchange with points, and not be in direct competition with cash
sales of its mainstream products.
[0084] Resort destinations that are managed by property management
companies such as RCI may be integrated into this system where
instead of trading accommodations with only those having similar
property, it is now possible that the rental of the property may be
achieved by conversion for points or points plus a property
timeshare or a percentage of cash. Rooms may be booked with
discounts that vary in accordance with the number of rooms
available, which can change in real time as per the changing
availability of rooms.
[0085] Offers may be distributed to users of this system where
substantial rebates or reduced rates are described in the offer.
Time sensitive product offerings can also be accommodated in the
system where the value of the product is decreased according to a
life span of the product. Time sensitive product offerings such as
food products or concert tickets, airline departures, hotel room
rentals and the like can have an associated diminishing or
escalating value based on the length or availability of the offer.
This invention may be used to provide hotel rooms such that when
rooms are available and the date of use approaches, the rental
price may decrease (the same methodologies may be used to sell
advertising space that is time-sensitive).
[0086] Using this system it is now possible to coordinate the
products of several different providers into one package. A user of
this system may therefore select an airline, hotel, car rental and
Broadway show tickets in New York, individually or in a prepared
package from one location by trading points where the package may
not have existed before where the trading system coordinates all
aspect of the transaction and reduces the user's exchange rewards
in a corresponding manner.
[0087] A purchasing club or group may utilize the present invention
in order to purchase items in bulk. For example, a transaction may
be configured wherein a purchasing club can obtain 100 TVs at a
substantial discount, if and only if they agree to purchase all or
a substantial portion of them.
[0088] Other purchasing leverage not specifically addressed
previously may also be acquired by combining the power of a pool of
users of this system where these users may be allocated access to
products or services not generally distributed to the remainder of
the system users. Points collected in the system by these users may
afford them access to limited distribution channels where higher
discount levels or premium products may be acquired. Direct access
to cartel or special club products such as diamonds, bulk or
price-advantaged products, duty free items and other restricted
access product or service offerings are also accommodated through
the coordination of the trading server with these specialized
service and product providers. For example, a preferred client
distribution channel such as found in a European market for luxury
goods would be made available to users of this system where the
prices for the objects in this preferred channel may be
significantly lower than retail for objects that are typically
reserved for limited distribution at premium prices. The trading
server may additionally have exclusive rights to allocate access to
certain premium products, services, events, travel destinations or
accommodations in accordance with any right or grant permitting
such allocation to any user of the system. A distribution channel
may make available exclusive products for all or a limited amount
of the members of the system where the trading server system
controls access to the offer. Parameters associated with the
available quantity, duration, exchange rates, etc may be input into
the system to be used in the allocation algorithm to restrict the
offer. Upon user access, the trading server would, in these cases,
modify the premiums offered to reflect the immediately attainable
items for the current user and may additionally display or provide
access to premiums that may be acquired through payment by other
means (i.e. cash, charge, debit) to make up the difference between
the user's available points and the points required to accept the
offer.
[0089] In one embodiment, the present invention utilizes a graphic
on a web page that shows the availability of an item, such as the
number of items left (or about to expire) for a given
offer--similar to a running meter. This meter would be updated in
real time so that a user would know when the offer will soon be
expired due to unavailability of an item.
[0090] In another embodiment of this invention, airlines seeking to
provide higher levels of personalized service for their business
travelers will provide access to the Internet or access to
in-flight services such as video games, for a fee or in place of
granting mileage rewards on transcontinental or transatlantic
flights. Access to video games or other services (e.g. meals and
drinks) may be afforded to the traveler where the availability of
different games depends on the number of reward points traded in by
the traveler. The rewards may be converted using the trading server
of this invention, where the user may opt to forego collecting
mileage in return for accessing on-board entertainment provided in
a standalone mode or in a linked mode. For example, users may
select to play video games, access the Internet or utilize Email
via a seatback or tray table mounted interface and controller. The
user may optionally connect a laptop computer to an interface port
of the aircraft using an Ethernet, parallel, USB connection or
proprietary connector provided by the air carrier. In the preferred
embodiment, the user would select the connection speed and type for
communications based on whether in-flight or external services were
to be accessed. Other types of business services may additionally
be used and accounted for, such as using network printers or fax
equipment. RF, satellite or microwave based communications may be
used for real time communications where sufficient geographical
coverage is provided.
[0091] The interface would allow a user to login using the frequent
flyer account information or preferably, the trading server account
login id and password, where the user may use points awarded from
another air carrier or point server to "pay" for the services
accessed. The account balance from the trading server may be
transferred to the local controller prior to takeoff for each user
that logs in to the trading server. Once the plane has departed,
depending on the linking or access capability afforded by the air
carrier or service provider, the user's account may be modified in
real time or upon reconnection following landing, based on services
selected by the traveler. If a real time link is supported, the
user's exchange account may be periodically debited according to
the services selected and duration of use, certified against the
passenger log.
[0092] In another embodiment, the value of the reward points may
fluctuate as a function of the company's performance, which may be
measured by reference to the price of its stock, revenue, earnings,
or some other parameter that is agreed to that reflects the
relative performance of the company The number or value of points
outstanding being redeemed also may also be a factor). In this
manner, companies that perform well would provide an additional
incentive to a user for using their frequent use program rather
than a competitor's program. For example, all other parameters
being the same, a user would likely choose the Acme credit card
company over the Beta credit card company when the user determines
that the Acme company performance results in a 10% increase in the
value of points otherwise earned by using its credit card. The
value may also fluctuate as a function of the number of points
outstanding or the desirability of the issuer to reduce its
liability or make it more robust.
[0093] In a further embodiment, the present invention may be
utilized to allow users to pay for items won in an auction with
points aggregated as described above. In this embodiment, a user
may participate in an auction, such as one of many known auction
services executed over the Internet, whereby a user selects an item
that he or she would like to bid on from a web page provided by a
merchant computer web site, or even by a web site hosted by the
trading server computer or a third party auction service provider.
The auction may be carried out in any number of well known ways,
such as for example when all bidders may bid up until a date and
time when the auction ends, and the highest bidder or group of
bidders wins the auction. The winning bidder may then designate
reward points from his or her reward points exchange account to be
used to pay for the item bid for and won in the auction. The
accumulated reward points are selected by the user, and
consideration is conveyed to the merchant/seller in exchange for
the auctioned item as described above.
* * * * *
References