DESCRIPTION
TECHNICAL FIELD
The invention generally relates to retail merchandising and customer relationship management, and more particularly to a unique implementation of merchant specific loyalty programs.
BACKGROUND
Nowadays, some merchants accept electronic payment transactions, as an alternative to cash, which are aimed at payment for goods and services. In such electronic payment transactions, payment cards may be used as one of various payment options. Typical examples of such payment cards include, but are not limited to credit cards, debit cards, ATM cards, pre-paid cards, charge cards, fleet cards, store-value cards, gift cards, etc. All these types of the payment cards are somehow linked to a customer or cardholder account that is generally backed by card-issuing banks, hereinafter referred to as the issuer banks.
The issuer banks, either themselves or through a third party, such as a loyalty program service provider, may implement payment card specific loyalty programs that provide incentives to their cardholders, for example, in form of discounts and rebates to the cardholders based on the frequency and volume of spending by their payment cards. These incentives are intended to improve revenue and profitability for the issuer banks by giving the cardholders another reason to use their payment cards more frequently. With more transactions being processed, there is a greater chance for increased revenue for the issuer banks. The increased popularity of loyalty programs has resulted in a significant proliferation of loyalty programs these days.
Sometimes, merchants at their end also want to implement merchant specific loyalty programs to reward their loyal customers, and hence improve their revenue and profitability ultimately. To this end, the loyalty programs implemented by or caused to be implemented by issuer banks do not cater to the needs of merchants in terms of implementing a merchant specific loyalty program. The reason for the same is that a payment card used at a merchant by a cardholder may belong to any of issuer banks. Moreover, the merchant process its transactions through a merchant’s acquirer, which is most likely different from the issuer bank owing to a large number of banks.
To this end, merchants typically implement a loyalty program themselves or through a third party, such as a loyalty program service provider. Such merchant side or third party implementation of the loyalty programs is a costly affair for most merchants and bothers customers for registration to the loyalty programs. For instance, some merchants offer their customers a physical loyalty card also known as “rewards card or “points card” or “advantage card” or club card” or a discount coupon or the like. Typically, each merchant operates a separate loyalty program, offering discounts, promotions and the like to a customer visiting that merchant with the corresponding loyalty card, etc. A customer belonging to loyalty programs with multiple merchants and wishing to visit multiple stores therefore needs to carry multiple loyalty cards, etc. in addition to the payment card. One shortcoming of such loyalty programs is that they are dependent on the presentation of a physical loyalty card, etc. while completing a purchase. As a result, they depend on the vigilance and consistency of use by a customer. This adversely affects both the merchant and the customer.
Another shortcoming of traditional loyalty programs involving physical loyalty card is that merchants need to implement a costly loyalty engine and a tedious process for physical issuance of loyalty cards for interested customer. Moreover, the loyalty engine and said process needs to be integrated with merchant’s point of sale (POS) terminals. It is quite evident that merchants have to bear financial burden for issuance, distribution, and maintenance of physical loyalty cards. It is pertinent to note here that many customers simply do not opt for the physical loyalty card due to the formalities of registration process and the wastage of time involved therein. Merchants as well as customers therefore do not get the best out of the traditional loyalty programs involving physical loyalty cards, etc.
Another alternative to physical loyalty cards is the use of digital wallets, also known as an e-wallets, which are used to store various forms of electronic money and store resources to aid in making e-commerce transactions. A digital wallet may be implemented on a portable wireless client device, such as a smart phone, with additional server-side support. The widespread adoption of digital wallets has been slower than many industry observers expected. One problem is customer’s concern about security. Another problem is that digital wallets have not previously offered enough compelling services. In particular, previous digital wallet approaches have not provided a comprehensive solution to the problems faced by merchants and customers.
From a customer’s perspective, it is desirable to implement a system where the customer neither needs to carry multiple loyalty cards or a separate loyalty card at all in order to avail benefits of a merchant specific loyalty program nor has to bother about online/offline registration to participate in a loyalty program.
SUMMARY OF THE INVENTION
In accordance with the purposes of the invention, the present invention as embodied and broadly described herein, enables a customer to participate in a plurality of loyalty programs offered by a plurality of merchants using the existing infrastructure of payment cards, thereby eliminating the need of physical loyalty cards, digital wallets, etc.
According to one aspect of the invention, a loyalty server at a merchant’s acquirer implements merchant specific loyalty programs. The loyalty server automatically creates and maintains a database of loyalty accounts on the fly for each of participating merchants, wherein a combination of payment card number, such as Primary Account Number (PAN), and merchant identifier (ID) serves the purpose of loyalty account identifier. In this way, merchant’s acquirer can implement merchant specific loyalty programs, which are generally implemented by issuer banks or third parties.
According to another aspect of the invention, the loyalty server at the merchant’s acquirer extracts the merchant identifier and the payment card number from the transaction data of a current transaction in order to automatically accrue loyalty points for the current transaction in a corresponding customer loyalty account and/or automatically redeem loyalty points accumulated so far in the corresponding customer loyalty account.
According to another aspect of the invention, the loyalty server at the merchant’s acquirer provides a user interface for the purposes of creating a merchant specific loyalty program, wherein merchant specific rules for accrual or redemption of loyalty points can be received from a client device. The client device may be provided at merchant’s acquirer or the merchant itself.
In this way, merchants would be able to offer loyalty programs without getting into hassles of physical loyalty cards, etc. More specifically, merchants neither have to buy and maintain any expensive hardware, such as loyalty engine, nor have to implement a tedious process for issuance, distribution, and maintenance of physical loyalty cards. At the same time, the extensive employee training required otherwise for the said tedious process is also eliminated.
Furthermore, a merchant does not have to take the services of a third party or a separate financial entity because merchant specific loyalty programs can now be provided as a value added service by a merchant’s acquirer to whom the merchant is already an existing customer. By marketing this value added service of merchant specific loyalty programs, the merchant’s acquirer can also attract more merchants as their customers, thereby increasing their revenue and profitability as the merchants are generally considered high value customers than individual customers.
On the other hand, the customers neither have to go through any online/offline registration process to participate in a merchant specific loyalty program nor need to carry a bunch of physical loyalty cards or discount coupons in addition to a payment card, hence providing better customer experience. The payment card itself would be able to get them the benefits of merchant specific loyalty programs automatically in addition to the regular benefits of payment card specific loyalty programs implemented by issuer banks/third parties.
These and other aspects as well as advantages will be more clearly understood from the following detailed description taken in conjunction with the accompanying drawings and claims.
BRIEF DESCRIPTION OF THE ACCOMPANYING DRAWINGS:
To further clarify advantages and aspects of the invention, a more particular description of the invention will be rendered by reference to specific embodiments thereof, which is illustrated in the appended drawings. It is appreciated that these drawings depict only typical embodiments of the invention and are therefore not to be considered limiting of its scope. The invention will be described and explained with additional specificity and detail with the accompanying drawings, which are listed below for quick reference.
Figure 1 is a schematic diagram illustrating a use case for customer loyalty identification, in accordance with an embodiment of the invention.
Figure 2a is a schematic diagram illustrating implementation of a merchant specific loyalty program by a loyalty server at merchant acquirers’ side, in accordance with an embodiment of the invention.
Figure 2b is a schematic diagram illustrating implementation of merchant specific loyalty programs for a plurality of merchants by the loyalty server at merchant acquirers’ side, in accordance with an embodiment of the invention.
Figure 3a illustrates an exemplary configuration of a client system capable of communicating with the loyalty server at merchant acquirers’ side, in accordance with an embodiment of the invention.
Figure 3b illustrates an exemplary configuration of the loyalty server at merchant acquirers’ side, in accordance with an embodiment of the invention.
Figure 4 illustrates an exemplary method for implementing a merchant specific loyalty program by a merchant’s acquirer, in accordance with an embodiment of the invention.
Figure 5a-5c illustrate the exemplary webpages of a user interface provided by the loyalty server to create a merchant specific loyalty program, in accordance with an embodiment of the invention.
It may be noted that to the extent possible, like reference numerals have been used to represent like elements in the drawings. Further, those of ordinary skill in the art will appreciate that elements in the drawings are illustrated for simplicity and may not have been necessarily drawn to scale. For example, the dimensions of some of the elements in the drawings may be exaggerated relative to other elements to help to improve understanding of aspects of the invention. Furthermore, the one or more elements may have been represented in the drawings by conventional symbols, and the drawings may show only those specific details that are pertinent to understanding the embodiments of the invention so as not to obscure the drawings with details that will be readily apparent to those of ordinary skill in the art having benefit of the description herein.
DETAILED DESCRIPTION
It should be understood at the outset that although illustrative implementations of the embodiments of the present disclosure are illustrated below, the present invention may be implemented using any number of techniques, whether currently known or in existence. The present disclosure should in no way be limited to the illustrative implementations, drawings, and techniques illustrated below, including the exemplary design and implementation illustrated and described herein, but may be modified within the scope of the appended claims along with their full scope of equivalents.
The term “some” as used herein is defined as “none, or one, or more than one, or all.” Accordingly, the terms “none,” “one,” “more than one,” “more than one, but not all” or “all” would all fall under the definition of “some.” The term “some embodiments” may refer to no embodiments or to one embodiment or to several embodiments or to all embodiments. Accordingly, the term “some embodiments” is defined as meaning “no embodiment, or one embodiment, or more than one embodiment, or all embodiments.”
The terminology and structure employed herein is for describing, teaching and illuminating some embodiments and their specific features and elements and does not limit, restrict or reduce the spirit and scope of the claims or their equivalents.
More specifically, any terms used herein such as but not limited to “includes,” “comprises,” “has,” “consists,” and grammatical variants thereof do NOT specify an exact limitation or restriction and certainly do NOT exclude the possible addition of one or more features or elements, unless otherwise stated, and furthermore must NOT be taken to exclude the possible removal of one or more of the listed features and elements, unless otherwise stated with the limiting language “MUST comprise” or “NEEDS TO include.”
Whether or not a certain feature or element was limited to being used only once, either way it may still be referred to as “one or more features” or “one or more elements” or “at least one feature” or “at least one element.” Furthermore, the use of the terms “one or more” or “at least one” feature or element do NOT preclude there being none of that feature or element, unless otherwise specified by limiting language such as “there NEEDS to be one or more . . . ” or “one or more element is REQUIRED.”
Unless otherwise defined, all terms, and especially any technical and/or scientific terms, used herein may be taken to have the same meaning as commonly understood by one having an ordinary skill in the art.
Reference is made herein to some “embodiments.” It should be understood that an embodiment is an example of a possible implementation of any features and/or elements presented in the attached claims. Some embodiments have been described for the purpose of illuminating one or more of the potential ways in which the specific features and/or elements of the attached claims fulfil the requirements of uniqueness, utility and non-obviousness.
Use of the phrases and/or terms such as but not limited to “a first embodiment,” “a further embodiment,” “an alternate embodiment,” “one embodiment,” “an embodiment,” “multiple embodiments,” “some embodiments,” “other embodiments,” “further embodiment”, “furthermore embodiment”, “additional embodiment” or variants thereof do NOT necessarily refer to the same embodiments. Unless otherwise specified, one or more particular features and/or elements described in connection with one or more embodiments may be found in one embodiment, or may be found in more than one embodiment, or may be found in all embodiments, or may be found in no embodiments. Although one or more features and/or elements may be described herein in the context of only a single embodiment, or alternatively in the context of more than one embodiment, or further alternatively in the context of all embodiments, the features and/or elements may instead be provided separately or in any appropriate combination or not at all. Conversely, any features and/or elements described in the context of separate embodiments may alternatively be realized as existing together in the context of a single embodiment.
Any particular and all details set forth herein are used in the context of some embodiments and therefore should NOT be necessarily taken as limiting factors to the attached claims. The attached claims and their legal equivalents can be realized in the context of embodiments other than the ones used as illustrative examples in the description below.
Figure 1 is a schematic diagram illustrating a use case for customer loyalty identification, in accordance with an embodiment of present invention. As shown, a customer 101 (also referred to as the cardholder) walks into a store pertaining to a particular merchant 102 and picks up some items 103 to be purchased. At the cash counter of the store, the customer 101 presents a payment card 104 to purchase those items 103. An attendant at the cash counter, swipes the payment card 104 into a point of sale (POS) 105 terminal and requests for customer action based on customer verification method (CVM) defined for that payment card 104. After that, the POS terminal 105 sends transaction data for authorization. In one implementation, transaction data comprises Track 2 magnetic stripe data, which is used for financial transactions by credit and debit cards. More specifically, an authorization request message is generated by the POS terminal 105, which is sent to a card issuer via merchant’s acquirer. On the other hand, the card issuer sends back an authorization response message to the POS terminal 105 also via the merchant’s acquirer. Here, the POS terminal 105 may be interconnected to the Internet through a variety of interfaces including a network, such as a local area network (LAN) or a wide area network (WAN), dial-in connections, cable modems, wireless modems, cellular communications, and special high-speed ISDN lines. The POS terminal 105 may be any device capable of interconnecting to the Internet and of reading information from the payment card 104 of the customer 101. Although illustrated as including one POS terminal 105, there may be any number of POS terminals at the merchant 102 and operate as described herein.
During aforementioned process, a merchant specific loyalty program is implemented in background at the site of merchant’s acquirer. In one embodiment, merchant’s acquirer that could be a telecom operator or a merchant aggregator than a regular bank. More specifically, a customer loyalty account pertaining to the customer 101 is created automatically and/or identified using a combination of the payment card number, such as Primary Account Number (PAN) of the payment card 104 and merchant ID embedded in the POS 105. Said combination serves the purpose of the identifier to the customer loyalty account. In the customer loyalty account, loyalty points are accrued and redeemed automatically based on predefined rules for the same. In this way, the customer 101 may get rewarded for his/her loyalty to the merchant 102 for purchasing goods 106 and/or services from that merchant 102 without bothering the customer 101 for registration to participate in the merchant specific loyalty program or for producing a discount coupon or for producing a physical loyalty card.
Figure 2a is a schematic diagram illustrating hardware implementation of a merchant specific loyalty program using a server at merchant acquirer’s side, in accordance with an embodiment of present invention. In a typical multi-party payment card system, a financial institution called the “issuer bank” 201 issues a payment card 104, such as a credit card, to a cardholder 101, who uses the payment card 104 to pay for a purchase from a merchant 102. To accept payment with the payment card 104, the merchant 102 must normally establish an account with a financial institution that is part of the financial payment system. This financial institution is usually called the “merchant’s acquirer” 202 or the “acquiring bank” or “acquirer bank”. In one embodiment, merchant’s acquirer that could be a telecom operator or a merchant aggregator than a regular bank. When cardholder 101 pays for a purchase with the payment card 104, the merchant 102 via communication network 203 requests authorization from the merchant’s acquirer 202 for the amount of purchase. The request may be performed over telephone, but is usually performed through the use of fixed POS terminals 105-1, 105-2 or mobile POS terminals 105-3, 105-4, collectively referred to as the POS terminals 105. Each of the POS terminals 105 can read the payment card identification information from, for example, a magnetic stripe on the payment card or a chip within the payment card. Here, the payment card can be contact based or contactless type of payment card. Each of the POS terminals 105 can communicate said information electronically with the transaction processing computers of merchant’s acquirer 202. Alternatively, the merchant’s acquirer 202 may authorize a third party (not shown) to perform transaction processing on its behalf. In this case, the POS terminals 105 will be configured to communicate with the transaction processing computers of the third party.
The computers of the merchant’s acquirer 202 or the third party will communicate with the computers of the issuer bank 201 to determine whether the cardholder's account 204 is in good standing in terms of money 205 and whether the purchase is covered by the cardholder's available credit line. Based on these determinations, the request for authorization will be declined or accepted. If the request for authorization is accepted, an authorization code is issued to the POS terminal 105 by sending an authorization response message. After that, the transaction is settled between the merchant 102, the merchant’s acquirer 202, and the issuer bank 201.
During the aforementioned process, a loyalty server 206 at the merchant’s acquirer 202 implements a loyalty program specific to the merchant 102 in background. The loyalty server 206 may be implemented in the form of an application server and/or a database server. Further, the loyalty server can be offered as a cloud based service/solution to the merchant 102 and other merchants as well by the merchant’s acquirer 202. The loyalty server 206 is communicatively coupled to a database 207. The database 207 may be implemented as an integral storage device or as a standalone storage device to the loyalty server 206. Furthermore, the database 207 may be provided in vicinity of the loyalty server 206 or implemented as a remote storage device. The database 207 stores a merchant specific table 208 of loyalty accounts. The contents of said table 208 include, but are not limited to merchant ID, payment card number (e.g., PAN), loyalty points, etc. In one implementation, any other customer related information or identifier that is collected as part of the regular payment process may also be stored in said table 208. The loyalty server 206 keeps on monitoring all the merchant related transactions at the merchant’s acquirer 202. If the merchant 102 has created or requested to implement a loyalty program specific to that merchant 102, then the loyalty server 206 automatically accrues or redeems loyalty points in customer loyalty accounts pertaining to said merchant specific loyalty program.
Figure 2b is a schematic diagram illustrating implementation of merchant specific loyalty programs for a plurality of merchants 102-1, 102-2 by the loyalty server 206 at merchant’s acquirer 202, in accordance with an embodiment of present invention. As shown, the cardholder 101 may use his/her payment card 104 at a plurality of merchants 102-1, 102-2 for a transaction. These merchants 102-1, 102-2 via the communication network 203 send transaction data to the merchant’s acquirer 202 for authorization of the payment card 104. As described above, the loyalty server 206 at the merchant’s acquirer 202 implements the merchant specific loyalty programs in background. The loyalty server 206 basically creates and maintains merchant specific tables 208-1, 208-2 of customer loyalty accounts in the database 207.
In one example, the cardholder 101 may use his/her payment card 104, say, having a payment card number xxxx1234, at a plurality of merchants 102-1, 102-2. Accordingly, two separate loyalty accounts may be maintained for the cardholder 101 – one for first merchant 102-1 and another for second merchant 102-2. These two loyalty account can be accessed from a combination of merchant ID (e.g., merchant ID 1 or merchant ID 2) and the payment card number (e.g., xxxx1234). As shown, the loyalty account of the customer 101 with the first merchant 102-1 has 100 loyalty points, whereas the loyalty account of the customer 101 with the second merchant 102-2 has 500 loyalty points.
Figure 3a illustrates an exemplary configuration of a client device 300 operated by a user 301 and capable of communicating with the loyalty server 206 at merchant acquirers’ side, in accordance with an embodiment of present invention. The client device 300 may include, but is not limited to, client devices at merchants 102-1, 102-2 or the Merchant’s acquirer 202. Accordingly, the user 301 may be one of the employees of the merchants 102-1, 102-2 or the merchant acquirer 202. In one embodiment, merchant’s acquirer that could be a telecom operator or a merchant aggregator than a regular bank.
In one embodiment, the client device 300 are computers including a web browser, such that the loyalty server 206 is accessible to the client device 300 using the Internet. The client device 300 may be interconnected to the Internet through a variety of interfaces including a network, such as a local area network (LAN) or a wide area network (WAN), dial-in-connections, cable modems and special high-speed ISDN lines. The client device 300 could be any device capable of interconnecting to the Internet including a web-based phone, personal digital assistant (PDA), or other web-based connectable equipment.
The client device 300 includes a processor 302 for executing instructions. In some embodiments, executable instructions are stored in a memory area 303. The processor 302 may include one or more processing units (e.g., in a multi-core configuration). The memory area 303 is any storage device allowing information, such as executable instructions and/or written works to be stored and retrieved. The memory area 303 may include one or more computer readable media.
The client device 300 also includes at least one media output component 304 for presenting information to the user 301. The media output component 304 is any component capable of conveying information to the user 301. In some embodiments, the media output component 304 includes an output adapter, such as a video adapter and/or an audio adapter. An output adapter is operatively coupled to the processor 302 and operatively couplable to an audio/video output device.
In some embodiments, the client device 300 includes an input device 305 for receiving inputs from the user 301. The input device 305 may include, for example, a keyboard, a pointing device, a mouse, a stylus, a touch sensitive panel (e.g., a touch pad or a touch screen), a gyroscope, an accelerometer, a position detector, or an audio input device. A single component, such as a touch screen may function as both an output device for the media output component 304 and the input device 305 for the client device 300.
The client device 300 may also include a communication interface 306, which is communicatively couplable to a remote device, such as the loyalty server 206. The communication interface 306 may include, for example, a wired or wireless network adapter or a wireless data transceiver.
Stored in the memory area 303 are, for example, computer readable instructions for providing a user interface to the user 301 via media output component 304 and, optionally, receiving and processing input from the input device 305. The user interface may include, among other possibilities, a web browser and client application. Web browsers enable users, such as user 301, to display and interact with media and other information typically embedded on a web page or a website from the loyalty server 206. A client application residing on the client device 300 allows the user 301 to interact with a server application from the loyalty server 206.
In operation, the loyalty server 206 provides a user interface to create the merchant specific loyalty program. The user 301 can see said user interface at a monitor coupled to the media output component 304 of the client device 300. Further, the loyalty sever 206 receives, through said user interface, merchant specific rules for accrual and redemption of loyalty points. The same is provided by the user 301 of the client device 300 through the input device 305. Accordingly, the loyalty sever 206 creates the merchant specific loyalty program from the merchant specific rules provided by the user 301 of the client device 300.
Figure 3b illustrates an exemplary configuration of the loyalty server 206 at merchant acquirers’ side, in accordance with an embodiment of present invention. The loyalty server 206 also includes a processor 307 for executing instructions. Instructions may be stored in a memory area 308, for example. Processor 307 may include one or more processing units, for example, in a multi-core configuration.
The loyalty server 206 is connected to the database 207, which contains information on a variety of matters, as described below in greater detail. In one embodiment, the database 207 is stored in a centralized manner on the loyalty server 112 itself and can be accessed by a user 301 of a client device 300 by logging onto the loyalty server 112 or internet banking for merchants as may be provided by the merchant’s acquirer 202. In an alternative embodiment, the database 207 is stored remotely from the loyalty server 206 and may be non-centralized. The database 207 may store transaction data relating to merchants, account holders or customers, and purchases. The database 207 may also store data relating to a list of merchants, for example, merchants102-1, 102-2 and corresponding merchant identifiers (merchant ID 1 and merchant ID 2) of said merchants 102-1, 102-2 opting for merchant specific loyalty programs with the merchant’s acquirer 202.
The processor 307 of the loyalty server 206 is operatively coupled to a communication interface 309 such that the loyalty server 206 is capable of communicating with a remote device, such as the client device 300. For example, communication interface 309 may receive requests from the client device 300 via the Internet.
The processor 307 may also be operatively coupled to the database 207. The database 207 is any computer-operated hardware suitable for storing and/or retrieving data. In some embodiments, the database 207 is integrated in the loyalty server. For example, the loyalty server 206 may include one or more hard disk drives for implementing the database 207. In other embodiments, the database 207 is external to the loyalty server 206 and may be accessed by more than one loyalty server 206. For example, the database 207 may include multiple storage units, such as hard disks or solid state disks in a redundant array of inexpensive disks (RAID) configuration. The database 207 may include a storage area network (SAN) and/or a network attached storage (NAS) system.
In some embodiments, the processor 307 is operatively coupled to the database 207 via a database interface 310. The database interface 310 is any component capable of providing the processor 307 with access to the database 207. The database interface 310 may include, for example, an Advanced Technology Attachment (ATA) adapter, a Serial ATA (SATA) adapter, a Small Computer System Interface (SCSI) adapter, a RAID controller, a SAN adapter, a network adapter, and/or any component providing the processor 307 with access to the database 207.
In one embodiment, the loyalty server 206 comprises: means 307, 309 to access a current transaction from amongst a plurality of transactions pertaining to a plurality of merchants 102-1, 102-2; means 307, 308 to extracting a merchant identifier from transaction data of the current transaction; means 307 to determine whether a merchant 102 corresponding to the merchant identifier is registered to the merchant specific loyalty program; means 307, 308 to further extract payment card number from the transaction data of the current transaction when the merchant 102 is determined to be registered to the merchant specific loyalty program; and means 307, 310 to identify a customer loyalty account for the current transaction from a combination of the payment card number and the merchant identifier. However, if the merchant 102 is determined to be not registered to the merchant specific loyalty program, then the loyalty server 206 does not perform any further action.
In a further embodiment, the loyalty server 206 comprises: means 307 to determine whether the payment card number is encountered first time in relation to the merchant identifier; and means 307, 310 to automatically create the customer loyalty account with the combination of the payment card number and the merchant identifier as an identifier for the customer loyalty account when the payment card number is encountered first time in relation to the merchant identifier. Here, automatic creation implies that the cardholder 101 does not have to go through any registration process for creation of the customer loyalty account. However, if the payment card number is encountered again in relation to the merchant identifier, then the existing customer loyalty account for the current transaction is identified from a combination of the payment card number and the merchant identifier.
In a further embodiment, the loyalty server 206 comprises: means 307, 310 to store the data pertaining to the customer loyalty account in the database 207, wherein same means 307, 310 can later access the data from the database 207.
In a further embodiment, the cardholder 101 is informed about the automatic creation of the customer loyalty account.
In a further embodiment, the loyalty server 206 comprises: means 307 to determine whether loyalty points so far accumulated in the customer loyalty account are sufficient for redemption; and means 307, 310 to automatically redeem the loyalty points so far accumulated in the customer loyalty account when the loyalty points so far accumulated in the customer loyalty account are sufficient for redemption. Here, automatic redemption implies that the cardholder 101 does not have to present a physical loyalty card or digital wallet or a discount coupon for redemption of loyalty points.
In a further embodiment, the automatic redemption of the loyalty points so far accumulated in the customer loyalty account is settled at the site of merchant 102 in real time, i.e., at the time of purchase, but not at a later point of time.
In a further embodiment, the cardholder 101 is informed about the automatic redemption of the loyalty points so far accumulated in the customer loyalty account.
In a further embodiment, the loyalty server 206 comprises: means 307, 310 to automatically accrue the loyalty points for the current transaction in the customer loyalty account. Here, automatic accruing implies that the cardholder 101 does not have to present a physical loyalty card or digital wallet or a discount coupon for accruing of loyalty points. The loyalty points for the current transaction are automatically accrued in the customer loyalty account in two cases: (a) when the payment card number is encountered first time in relation to the merchant identifier, and (b) when the loyalty points so far accumulated in the customer loyalty account are insufficient for redemption.
In a further embodiment, the cardholder 101 is informed about the automatic accruing of the loyalty points for the current transaction in the customer loyalty account.
In a further embodiment, the payment card number is a primary account number (PAN) of a payment card used for the current transaction.
In a further embodiment, the loyalty server 206 comprises: means 307, 309 to provide a user interface to create the merchant specific loyalty program.
In a further embodiment, the loyalty server 206 comprises: means 307, 309 to receive, through the user interface, merchant specific rules for accrual and redemption of loyalty points; and means 307, 310 to create the merchant specific loyalty program from the merchant specific rules.
In a further embodiment, the loyalty server 206 is implemented as a cloud based solution.
Figure 4 illustrates an exemplary method 400 performed by the loyalty server 206 for implementing a merchant specific loyalty program by a merchant’s acquirer 202, in accordance with an embodiment of present invention. In said embodiment, merchant’s acquirer that could be a telecom operator or a merchant aggregator than a regular bank.
In said embodiment, the method 400 comprises accessing 401 a current transaction from amongst a plurality of transactions pertaining to a plurality of merchants 102-1, 102-2; extracting 402 a merchant identifier from transaction data of the current transaction; determining 403 whether a merchant 102 corresponding to the merchant identifier is registered to the merchant specific loyalty program; further extracting 404 payment card number from the transaction data of the current transaction when the merchant 102 is determined to be registered to the merchant specific loyalty program; and identifying 405 a customer loyalty account for the current transaction from a combination of the payment card number and the merchant identifier. However, if the merchant 102 is determined to be not registered to the merchant specific loyalty program, then the method 400 ends there.
In a further embodiment, the method 400 comprises: determining 406 whether the payment card number is encountered first time in relation to the merchant identifier; and automatically creating 407 the customer loyalty account with the combination of the payment card number and the merchant identifier as an identifier for the customer loyalty account when the payment card number is encountered first time in relation to the merchant identifier. Here, automatic creations implies that the cardholder 101 does not have to go through any registration process for creation of the customer loyalty account. However, if the payment card number is encountered again in relation to the merchant identifier, then the existing customer loyalty account for the current transaction is identified 405 from a combination of the payment card number and the merchant identifier.
In a further embodiment, the loyalty server 206 stores the data pertaining to the customer loyalty account in the database 207 and can later access the data from the database 207.
In a further embodiment, the cardholder 101 is informed about the automatic creation 407 of the customer loyalty account.
In a further embodiment, the method 400 comprises: determining 408 whether loyalty points so far accumulated in the customer loyalty account are sufficient for redemption; and automatically redeeming 409 the loyalty points so far accumulated in the customer loyalty account when the loyalty points so far accumulated in the customer loyalty account are sufficient for redemption. Here, automatic redemption implies that the cardholder 101 does not have to present a physical loyalty card or digital wallet or a discount coupon for redemption of loyalty points.
In a further embodiment, the automatic redemption 409 of the loyalty points so far accumulated in the customer loyalty account is settled at the site of merchant 102 in real time, i.e., at the time of purchase, but not at a later point of time.
In a further embodiment, the cardholder 101 is informed about the automatic redemption 409 of the loyalty points so far accumulated in the customer loyalty account.
In a further embodiment, the method 400 comprises: automatically accruing 410 the loyalty points for the current transaction in the customer loyalty account. Here, automatic accruing implies that the cardholder 101 does not have to present a physical loyalty card or digital wallet or a discount coupon for accruing of loyalty points. The loyalty points for the current transaction are automatically accrued 410 in the customer loyalty account in two cases: (a) when the payment card number is encountered first time in relation to the merchant identifier, and (b) when the loyalty points so far accumulated in the customer loyalty account are insufficient for redemption.
In a further embodiment, the cardholder 101 is informed about the automatic accruing 410 of the loyalty points for the current transaction in the customer loyalty account.
In a further embodiment, the payment card number is a primary account number (PAN) of a payment card used for the current transaction.
In a further embodiment, the method 400 comprises: providing 411 a user interface to create the merchant specific loyalty program.
In a further embodiment, the method 400 comprises: receiving 412, through the user interface, merchant specific rules for accrual and redemption of loyalty points; and creating 413 the merchant specific loyalty program from the merchant specific rules.
In a further embodiment, the method 400 is implemented as a cloud based solution.
Figure 5a-5c illustrate exemplary a user interface provided by the loyalty server 206 to create a merchant specific loyalty program, in accordance with an embodiment of present invention. Although the user interface is depicted in form of webpages, those skilled in the art will appreciate that a mobile application from the merchant’s acquirer 202 could also provide screens similar to said webpages. The user 301 can access said user interface from the client device 300, such as a desktop computer having a web browser or a smartphone having said mobile application.
Figure 5a illustrates a log-in page 500, wherein the user 301 can provide a login id in first textbox 501 and password in a second textbox 502, and then press a log in button 503. Once the user 301 is logged in, then a webpage 504 as depicted in Figure 5b is shown to the user 301, wherein the user 301 can create a merchant specific loyalty program after providing relevant input information. Examples of said information include, but are not limited to name of the loyalty program, start time/date of the loyalty program, end time/date of the loyalty program, and optional upper/lower limits of transaction amount for accrual/redemption of loyalty points. Said information can be received in textboxes 505-508 respectively. Further, the user 301 can also from predefined accrual rules or provide customized rules for the same through a first graphical user interface element 509. Similarly, the user 301 can also from predefined redemption rules or provide customized rules for the same through a second graphical user interface element 510. In the end, the user 301 can press a create button 511 to create the loyalty program based on inputted information. Once the merchant specific program is implemented, the user 301 can log in again to access an analytics page 512, as shown in Figure 5c, dedicated to various analytics 513 of the merchant specific loyalty program, and if required modify the loyalty program to get best out of the same. Examples of said analytics 513 include, but are not limited to information about repeat customers, incremental sales generated after introducing the loyalty program, profitability of the loyalty program considering incremental revenue and incremental cost, etc.
While certain present preferred embodiments of the invention have been illustrated and described herein, it is to be understood that the invention is not limited thereto. Clearly, the invention may be otherwise variously embodied, and practiced within the scope of the following claims.

CLAIMS:We Claim:
1. A method for implementing a merchant specific loyalty program by a merchant’s acquirer, the method comprising:
accessing a current transaction from amongst a plurality of transactions pertaining to a plurality of merchants;
extracting a merchant identifier from transaction data of the current transaction;
determining whether a merchant corresponding to the merchant identifier is registered to the merchant specific loyalty program;
further extracting payment card number from the transaction data of the current transaction when the merchant is determined to be registered to the merchant specific loyalty program; and
identifying a customer loyalty account for the current transaction from a combination of the payment card number and the merchant identifier.
2. The method as claimed in claim 1, further comprising:
determining whether the payment card number is encountered first time in relation to the merchant identifier; and
creating the customer loyalty account with the combination of the payment card number and the merchant identifier as an identifier for the customer loyalty account when the payment card number is encountered first time in relation to the merchant identifier.
3. The method as claimed in claim 1, further comprising:
determining whether loyalty points so far accumulated in the customer loyalty account are sufficient for redemption; and
redeeming the loyalty points so far accumulated in the customer loyalty account when the loyalty points so far accumulated in the customer loyalty account are sufficient for redemption.
4. The method as claimed in claim 1, further comprising:
accruing the loyalty points for the current transaction in the customer loyalty account.
5. The method as claimed in claim 1, wherein the payment card number is a primary account number (PAN) of a payment card used for the current transaction.
6. The method as claimed in claim 1, further comprising:
providing a user interface to create the merchant specific loyalty program.
7. The method as claimed in claim 6, further comprising:
receiving, through the user interface, merchant specific rules for accrual and redemption of loyalty points; and
creating the merchant specific loyalty program from the merchant specific rules.
8. A server to implement a merchant specific loyalty program by a merchant’s acquirer , the server comprising:
means to access a current transaction from amongst a plurality of transactions pertaining to a plurality of merchants;
means to extract a merchant identifier from transaction data of the current transaction;
means to determine whether a merchant corresponding to the merchant identifier is registered to the merchant specific loyalty program;
means to further extract payment card number from the transaction data of the current transaction when the merchant is determined to be registered to the merchant specific loyalty program; and
means identify a customer loyalty account for the current transaction from a combination of the payment card number and the merchant identifier.
9. The server as claimed in claim 1, further comprising:
means to determine whether the payment card number is encountered first time in relation to the merchant identifier; and
means to create the customer loyalty account with the combination of the payment card number and the merchant identifier as an identifier for the customer loyalty account when the payment card number is encountered first time in relation to the merchant identifier.
10. The server as claimed in claim 1, further comprising:
means to determine whether loyalty points so far accumulated in the customer loyalty account are sufficient for redemption; and
means to redeem the loyalty points so far accumulated in the customer loyalty account when the loyalty points so far accumulated in the customer loyalty account are sufficient for redemption.
11. The server as claimed in claim 1, further comprising:
means to accrue the loyalty points for the current transaction in the customer loyalty account.
12. The server as claimed in claim 1, wherein the payment card number is a primary account number (PAN) of a payment card used for the current transaction.

13. The server as claimed in claim 1, further comprising:
means to provide a user interface to create the merchant specific loyalty program.
14. The server as claimed in claim 13, further comprising:
means to receive, through the user interface, merchant specific rules for accrual and redemption of loyalty points; and
means to create the merchant specific loyalty program from the merchant specific rules.