METHOD AND SYSTEM FOR PROCESSING OF A REAL-TIME REBATE
AT TRANSACTION AUTHORIZATION
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a PCT International Application of, and claims priority to,
U.S. Patent Application No. 14/465,063, filed August 21, 2014. U.S. Patent Application No.
14/465,063 is a continuation-in-part of U.S. Patent Application No. 14/058,548, filed October
21, 2013. The entire disclosures of the above applications are incorporated herein by reference.
FIELD
[0002] The present disclosure relates to the initiating of a rebate for a payment
transaction funded using a reward account, specifically the automatic initiating of a rebate on a
reward account following the processing of a payment transaction based on a reward balance.
BACKGROUND
[0003] This section provides background information related to the present disclosure
which is not necessarily prior art.
[0004] In an effort to increase use, many payment card issuers offer rewards to
cardholders for use of their payment card. Rewards may come in a variety of forms, such as
reward points that may be redeemed for cash or products, cash back, airline miles, reward points
with a specific vendor (e.g., a travel service, hotel, merchant, retailer, etc.), a reward level based
on activity where each level may have corresponding benefits, and more. However, these
traditional reward schemes often require a significant amount of actions to be taken by the
cardholder in order to receive the benefit. In addition, the cardholder is typically unable to take
advantage of rewards directly at a point-of-sale, instead being required to redeem a reward,
receive the reward, and then utilize the reward at a point-of-sale.
[0005] In order to streamline the redemption of reward benefits at a point-of-sale,
some systems and methods have been developed to enable the redemption of reward points or
other benefits upon the use of a special payment card. For example, the system described in U.S.
Patent Publication No. 2010/0057553, filed on September 4, 2009, which is herein incorporated
by reference in its entirety, uses a payment card that is authorized only against the use of a
reward balance of points. However, as the card is only authorized against the use of points, the
card is unavailable to be used for traditional payment transactions, which may frustrate or
confuse consumers, particularly if a consumer does not wish to carry around multiple payment
cards. Another system has been developed where a physical switch is included on a payment
card that may be toggled by the cardholder to switch between use as a traditional payment card
and payment via a reward balance. However, this again may frustrate consumers who may forget
to switch between use types. Furthermore, the difference in the two payment methods may result
in the inability for a cardholder to pay using both credit and a reward balance.
BRIEF DESCRIPTION OF THE DRAWING FIGURES
[0006] The scope of the present disclosure is best understood from the following
detailed description of exemplary embodiments when read in conjunction with the
accompanying drawings. Included in the drawings are the following figures:
[0007] FIG. 1 is a high level architecture illustrating a system for initiating a rebate
for a payment transaction funded using a reward account in accordance with exemplary
embodiments.
[0008] FIG. 2 is a block diagram illustrating the processing server of FIG. 1 for the
initiating of the rebate for the reward account-funded payment transaction in accordance with
exemplary embodiments.
[0009] FIG. 3 is a flow diagram illustrating a process for the processing of a payment
transaction funded using a reward account and the initiating and processing of a rebate for the
reward account based on a reward balance in accordance with exemplary embodiments.
[0010] FIG. 4 is a flow diagram illustrating a process for the initiating of a rebate
request by the processing server of FIG. 2 following a payment transaction funded using a
reward account in accordance with exemplary embodiments.
[0011] FIG. 5 is a diagram of an exemplary interface for receiving consumer
preference selections.
[0012] FIG. 6 is a flow chart illustrating an exemplary method for initiating a rebate
for a payment transaction funded using a reward account in accordance with exemplary
embodiments.
[0013] FIG. 7 is a block diagram of another exemplary system of the present
disclosure suitable for use in processing payment transactions involving reward accounts.
[0014] FIG. 8 is an exemplary method flowchart for processing payment transactions
involving reward accounts, according to the system of FIG. 7.
[0015] FIG. 9 is an exemplary method flowchart for processing payment transactions
involving reward accounts associated with a third party, according to the system of FIG. 7.
[0016] FIG. 10 is a block diagram illustrating a computer system architecture in
accordance with exemplary embodiments.
[0017] Further areas of applicability of the present disclosure will become apparent
from the detailed description provided hereinafter. It should be understood that the detailed
description of exemplary embodiments are intended for illustration purposes only and are,
therefore, not intended to necessarily limit the scope of the disclosure.
DETAILED DESCRIPTION
[0018] Exemplary embodiments will now be described more fully with reference to
the accompanying drawings.
Definition of Terms
[0019] Payment Network - A system or network used for the transfer of money via
the use of cash-substitutes. Payment networks may use a variety of different protocols and
procedures in order to process the transfer of money for various types of transactions.
Transactions that may be performed via a payment network may include product or service
purchases, credit purchases, debit transactions, fund transfers, account withdrawals, etc. Payment
networks may be configured to perform transactions via cash-substitutes, which may include
payment cards, letters of credit, checks, financial accounts, etc. Examples of networks or systems
configured to perform as payment networks include those operated by MasterCard®, VISA®,
Discover®, American Express®, PayPal®, etc. Use of the term "payment network" herein may
refer to both the payment network as an entity, and the physical payment network, such as the
equipment, hardware, and software comprising the payment network.
[0020] Payment Account - A financial account that may be used to fund a transaction,
such as a checking account, savings account, credit account, virtual payment account, etc. A
payment account may be associated with an entity, which may include a person, family,
company, corporation, governmental entity, etc. In some instances, a payment account may be
virtual, such as those accounts operated by PayPal®, etc.
[0021] Payment Card - A card or data associated with a payment account that may be
provided to a merchant in order to fund a financial transaction via the associated payment
account. Payment cards may include credit cards, debit cards, charge cards, stored-value cards,
prepaid cards, fleet cards, virtual payment numbers, virtual card numbers, controlled payment
numbers, etc. A payment card may be a physical card that may be provided to a merchant, or
may be data representing the associated payment account (e.g., as stored in a communication
device, such as a smart phone or computer). For example, in some instances, data including a
payment account number may be considered a payment card for the processing of a transaction
funded by the associated payment account. In some instances, a check may be considered a
payment card where applicable.
[0022] Reward Account - A payment account that, when used to fund a transaction,
may earn rewards for the account holder. Rewards may be in the form of points, levels, cash
back, miles, or other suitable frequency value as will be apparent to persons having skill in the
relevant art. The amount of accrued rewards may be referred to as a reward balance, such as the
more rewards earned by an account holder may result in an increased (e.g., higher) reward
balance. As used herein, "points" may refer to rewards for a reward account generally and "point
balance" may refer to the reward balance for a reward account generally.
[0023] Merchant - An entity that provides products (e.g., goods and/or services) for
purchase by another entity, such as a consumer or another merchant. A merchant may be a
consumer, a retailer, a wholesaler, a manufacturer, or any other type of entity that may provide
products for purchase, as will be apparent to persons having skill in the relevant art. In some
instances, a merchant may have special knowledge in the goods and/or services provided for
purchase. In other instances, a merchant may not have or require any special knowledge in
offered products. In some embodiments, an entity involved in a single transaction may be
considered a merchant.
[0024] Issuer - An entity that establishes (e.g., opens) a letter or line of credit in favor
of a beneficiary, and honors drafts drawn by the beneficiary against the amount specified in the
letter or line of credit. In many instances, the issuer may be a bank or other financial institution
authorized to open lines of credit. In some instances, any entity that may extend a line of credit to
a beneficiary may be considered an issuer. The line of credit opened by the issuer may be
represented in the form of a payment account, and may be drawn on by the beneficiary via the
use of a payment card.
[0025] Acquirer - An entity that may process payment card transactions on behalf of
a merchant. The acquirer may be a bank or other financial institution authorized to process
payment card transactions on a merchant's behalf. In many instances, the acquirer may open a
line of credit with the merchant acting as a beneficiary. The acquirer may exchange funds with
an issuer in instances where a consumer, which may be a beneficiary to a line of credit offered
by the issuer, transacts via a payment card with a merchant that is represented by the acquirer.
[0026] Payment Transaction - A transaction between two entities in which money or
other financial benefit is exchanged from one entity to the other. The payment transaction may
be a transfer of funds, for the purchase of goods or services, for the repayment of debt, or for any
other exchange of financial benefit as will be apparent to persons having skill in the relevant art.
In some instances, payment transaction may refer to transactions funded via a payment card
and/or payment account, such as credit card transactions. Such payment transactions may be
processed via an issuer, payment network, and acquirer. The process for processing such a
payment transaction may include at least one of authorization, batching, clearing, settlement, and
funding. Authorization may include the furnishing of payment details by the consumer to a
merchant, the submitting of transaction details (e.g., including the payment details) from the
merchant to their acquirer, and the verification of payment details with the issuer of the
consumer's payment account used to fund the transaction. Batching may refer to the storing of an
authorized transaction in a batch with other authorized transactions for distribution to an
acquirer. Clearing may include the sending of batched transactions from the acquirer to a
payment network for processing. Settlement may include the debiting of the issuer by the
payment network for transactions involving beneficiaries of the issuer. In some instances, the
issuer may pay the acquirer via the payment network. In other instances, the issuer may pay the
acquirer directly. Funding may include payment to the merchant from the acquirer for the
payment transactions that have been cleared and settled. It will be apparent to persons having
skill in the relevant art that the order and/or categorization of the steps discussed above are
performed as part of payment transaction processing.
System for Processing Rebate Requests for a Reward Account
[0027] FIG. 1 illustrates a system 100 for the initiating and processing of a rebate for
a payment transaction funded using a reward account.
[0028] The system may interact with a consumer 102. The consumer 102 may have a
payment account with rewards enabled (e.g., a reward account) that is held by an issuer 104. In
some instances, the issuer 104 may issue the consumer 102 a payment card associated with the
reward account for use in funding payment transactions using the reward account. The consumer
102 may conduct a payment transaction with a merchant 106 to be funded by the reward account.
[0029] The merchant 106 (e.g., or an acquirer associated with the merchant 106) may
submit an authorization request for the payment transaction funded by the reward account to a
payment network 108. The payment network 108 may process the payment transaction using
systems and methods that will be apparent to persons having skill in the relevant art. As part of,
or following the processing, the payment network 108 may transmit a copy of the authorization
request to a processing server 110. The authorization request transmitted to the processing server
110 may include at least payment information (e.g., indicating the reward account used to fund
the payment transaction) and a transaction amount.
[0030] The processing server 110, discussed in more detail below, may be configured
to initiate a rebate request for the reward account based on a reward balance. The processing
server 110 may calculate a transaction reward value based on at least the transaction amount and
at least one conversion rule. The conversion rule may be based on the merchant 106, the
consumer 102, the issuer 104, transaction data for the payment transaction, or any other suitable
value. The transaction reward value may be a representation of the value of rewards in the
reward account required to fund the entire payment transaction via rewards. For example, a
transaction reward value may be calculated to be 150 points for a $150 transaction.
[0031] The processing server 110 may also store, as discussed in more detail below,
an account data entry corresponding to the consumer 102 in an account database 112. The
account data entry may include at least a reward balance for the reward account used by the
consumer 102 to fund the payment transaction. In some embodiments, the processing server 110
may be associated with the issuer 104 and/or may receive account information (e.g., the reward
balance) from the issuer 104. The processing server 110 may identify a reduction amount for the
account data entry, where the reduction amount is based on the lesser of the transaction reward
value and the reward balance included in the account data entry. In such an instance, the
reduction amount may account for scenarios where the reward balance exceeds the reward
amount necessary to fund the payment transaction or where the reward balance does not exceed
the reward amount and may only be used to partially fund the payment transaction.
[0032] The processing server 110 may then update the reward balance in the account
data entry associated with the consumer 102 based on the reduction amount. The processing
server 110 may also calculate a rebate amount for a rebate to be processed on the reward account
for the payment transaction based on the reduction amount and the at least one conversion rule.
The processing server 110 may then submit a rebate request to the payment network 108 for the
rebate amount to be paid to the issuer 104 for the reward account based on the redeemed
rewards. The payment network 108 may process the rebate using systems and methods that will
be apparent to persons having skill in the relevant art.
[0033] In some embodiments, the processing server 110 may transmit a notification
to the consumer 102 indicating the successful transmission of the rebate request to the payment
network 108. The notification may be transmitted to the consumer 102 via short message service
(SMS) message, multimedia service message, e-mail, traditional mail, telephone, a website, an
application program, or any other suitable method as will be apparent to persons having skill in
the relevant art, which may be transmitted to the consumer 102 or a computing device associated
with the consumer 102. In other embodiments, the processing server 110 may transmit another
notification, in addition, or alternative to, the notification indicating successful transmission of
the rebate request, indicating the successful processing of the rebate request. In some
embodiments, the processing server 110 may also transmit a notification to the issuer 104, such
as to provide an update as to the reward balance of the reward account based on the calculated
updated reward balance.
[0034] In some instances, the processing server 110 may request permission from the
consumer 102 to submit a rebate request for a payment transaction where the reward balance for
the account data entry associated with the consumer 102 is less than the transaction reward value.
In such an instance, the processing server 110 may submit a request to the consumer 102 (e.g., to
a computing device associated with the consumer 102, such as a mobile computing device or a
point-of-sale device where the payment transaction was conducted). The consumer 102 may
respond to the request, which may be received by the processing server 110 and processed
accordingly. The processing server 110 may submit a rebate request as discussed above if the
consumer 102 wishes to use their reward balance, or may not submit any request if the consumer
102 does not wish to use their reward balance. In some embodiments, the processing server 110
may be configured to submit rebate requests based on partial use of a reward balance.
[0035] The systems and methods discussed herein may provide for a number of
improvements over traditional systems and methods for enabling a consumer 102 to fund a
payment transaction using rewards for a reward account. Because the processing server 110 may
utilize a reward balance for funding of a payment transaction without requiring the consumer 102
to use a second payment card or to perform any actions prior to conducting the transaction, the
processing server 110 may provide for faster and more efficient funding of payment transaction
via rewards. As a result, the system 100 may potentially be more acceptable by consumers,
which may, in turn, result in a higher rate of use, which may provide benefits to both consumers
102 and issuers 104.
[0036] In addition, by processing the use of rewards as a rebate request, the payment
transaction itself may be conducted traditionally without modification to existing payment
systems. Furthermore, the rebate request may be transmitted as a clearing record following the
payment transaction, which may result in very fast processing of the rebate request. In such an
instance, the initial authorization request submitted to the payment network 108 from the
merchant 106 may be submitted traditionally, without interruption or intervention by the
processing server 110, which may result in the maintaining of traditional processing speeds,
which, when combined with the speed of clearing of the rebate request, may result in the
processing of a rebate for a payment transaction using rewards with unnoticeable delay to the
consumer 102.
Processing Device
[0037] FIG. 2 illustrates an embodiment of the processing server 110 of the system
100. It will be apparent to persons having skill in the relevant art that the embodiment of the
processing server 110 illustrated in FIG. 2 is provided as illustration only and may not be
exhaustive to all possible configurations of the processing server 110 suitable for performing the
functions as discussed herein. For example, the computer system 600 illustrated in FIG. 6 and
discussed in more detail below may be a suitable configuration of the processing server 110.
[0038] The processing server 110 may include a receiving unit 202. The receiving
unit 202 may be configured to receive data over one or more networks via one or more network
protocols. The receiving unit 202 may be configured to receive an authorization request from the
payment network 108 corresponding to a payment transaction funded by a reward account,
wherein the authorization request includes at least a transaction amount and payment
information. The payment information may include an account identifier or other suitable
information, as will be apparent to persons having skill in the relevant art, which may be used to
identify the reward account used to fund the payment transaction.
[0039] The processing server 110 may further include a processing unit 204. The
processing unit 204 may use the payment information to identify an account data entry 208
stored in the account database 112 associated with the reward account used to fund the payment
transaction. Each account data entry 208 stored in the account database 112 may include data
related to a consumer reward account including at least an account identifier and a reward
balance. The account identifier may be a unique value used for identification, such as an
identification number, a payment account number (e.g., of the associated reward account),
username, e-mail address, phone number, etc. The reward balance may be a balance of the
rewards earned by the consumer 102 for the associated reward account. In some instances, the
reward balance may be received by the processing server 110 (e.g., via the receiving unit 202)
from the issuer 104.
[0040] The processing unit 204 may be further configured to calculate a transaction
reward value based on at least the transaction amount and one or more conversion rules, which
may be stored in a memory 210. In some instances, the transaction reward value may be further
based on at least one of: the consumer 102 (e.g., an account level for the consumer 102), the
issuer 104 (e.g., issuer preferences, issuer category, etc.), the merchant 106 (e.g., merchant
preferences, merchant category, merchant industry, etc.), transaction data included in the
authorization request (e.g., product data, transaction time and/or date, geographic location, etc.),
and more as will be apparent to persons having skill in the relevant art.
[0041] The processing unit 204 may also be configured to identify a reduction
amount, which may be the lesser of the transaction reward value and the reward balance included
in the identified account data entry 208. The processing unit 204 may then update the reward
balance included in the identified account data entry 208 based on the current reward balance
and the reduction amount, and may calculate a rebate amount based on the identified reduction
amount and the at least one conversion rule. The processing unit 204 may generate a rebate
request for the calculated rebate amount. In an example, the transaction amount may be $100 and
the processing unit 204 may calculate a transaction reward value of 100 points. The identified
account data entry 208 may include a reward balance of 75 points. The processing unit 204 may
accordingly identify a reduction amount of 75 points, which may update the reward balance to be
zero points, and may result in a calculated rebate amount of $75. The processing unit 204 may
then generate a rebate request for $75 to the reward account.
[0042] The processing server 110 may also include a transmitting unit 206. The
transmitting unit 206 may be configured to transmit data over one or more networks via one or
more network protocols. The transmitting unit 206 may be configured to transmit the generated
rebate request to the payment network 108 for processing.
[0043] The transmitting unit 206 may also be configured to transmit notifications to
the consumer 102 and/or the issuer 104 indicating the successful transmitting of the rebate
request.
[0044] In some embodiments, the receiving unit 202 may receive a notification from
the payment network 108 upon the successful processing of the rebate request. In such an
embodiment, the transmitting unit 206 may be further configured to transmit a notification to the
consumer 102 and/or the issuer 104 indicating the successful processing. In some instances, the
notification may be transmitted in addition, or alternative to, a prior notification indicating
successful transmission of the rebate request.
[0045] In embodiments where the reward balance for the identified account data
entry 208 is less than the transaction reward value for the payment transaction, and if the
processing server 110 requires consent of the consumer 102 for the partial funding of the
payment transaction using rewards (e.g., based on previously received consumer preferences,
which may be stored in the identified account data entry 208, for instance), the transmitting unit
206 may be configured to transmit a request for approval of the consumer 102 to proceed to the
consumer 102. The request may be transmitted to the consumer 102 via any suitable method as
will be apparent to persons having skill in the relevant art, such as via a computing device
associated with the consumer 102 or a point-of-sale device used to conduct the payment
transaction (e.g., as indicated in the authorization request). The receiving unit 202 may be
configured to receive a response from the consumer 102 indicating to process the rebate request
for the partial amount of the transaction amount or to withhold a rebate request. The processing
unit 204 may identify the indication included in the response and may act accordingly as
discussed above. In some embodiments, the account data entry 208 may indicate if the
processing unit 204 is to generate a rebate request if the reward balance is less than the
calculated transaction reward value.
Processing of a Payment Transaction and Subsequent Processing of a Rebate Request
[0046] FIG. 3 illustrates a process for the processing of a payment transaction funded
using a reward account and the subsequent processing of a rebate request using rewards earned
on the reward account.
[0047] In step 302, the consumer 102 may initiate a payment transaction with the
merchant 106 for the purchase of goods or services using a reward account. As part of the
initiation of the payment transaction, the consumer 102 may provide the merchant 106 with an
account number for the reward account (e.g., via a payment card or other suitable method). In
step 304, the merchant 106 (e.g., or an acquirer associated with the merchant 106) may generate
and submit an authorization request to the payment network 108 for processing. In step 306, the
payment network 108 may forward the authorization request to the issuer 104 of the reward
account. The issuer 104 may approve the payment transaction (e.g., based on adequate funding in
the reward account), in step 308, and may transmit an authorization response indicating approval
back to the payment network 108, in step 310.
[0048] In step 312, the payment network 108 may forward the authorization response
to the merchant 106 indicating the approval of the payment transaction. It will be apparent to
persons having skill in the relevant art that steps 304 through 312 are illustrative of the
processing of a payment transaction using traditional systems and methods and that additional
steps and/or additional entities may be included. In step 314, the merchant 106 may furnish a
receipt and/or transacted for goods or services to the consumer 102.
[0049] In step 316, the payment network 108 may transmit a copy of the
authorization request for the payment transaction, including at least payment information and a
transaction amount, to the processing server 110. In step 318, the processing server 110 may
identify an account data entry 208 associated with the reward account used to fund the payment
transaction and may further identify the potential for the use of rewards to fund the payment
transaction based on a reward balance included in the identified account data entry 208 and a
transaction reward value calculated based on the transaction amount and at least one conversion
rule, and possibly based on a preference as described below. For example, a preference (e.g., a
reward preference) may indicate to use rewards to fund the payment transaction for all
transactions, for only the next transaction, for no transactions, for only transactions above a
minimum threshold, for only transactions that can be fully funded using rewards, etc. In
instances where the consumer 102 may be required to approve the use of rewards to fully or
partially fund the payment transaction, the processing server 110 may submit an approval request
to the consumer 102, in step 320.
[0050] In step 322, the consumer 102 may approve the use of points via a computing
device (e.g., a mobile computing device, a point-of-sale device at the merchant 106, etc.) or other
suitable method. An approval response indicating the consumer's approval may be transmitted to
the processing server 110, in step 324. In step 326, the processing server 110 may then generate a
rebate request for a rebate amount based on the reduction amount and the at least one conversion
rule, and potentially based on approval or preferences. In step 328, the processing server 110
may transmit the rebate request to the payment network 108.
[0051] In step 330, the payment network 108 may process the rebate request using
methods and systems that will be apparent to persons having skill in the relevant art. The rebate
may be processed from an account associated with the merchant 106 to the reward account
associated with the consumer 102. In step 332, the payment network 108 may transmit a rebate
response indicating the successful processing of the rebate for the rebate amount to the reward
account. In step 334, the processing server 110 may transmit a notification to the consumer 102
indicating the successful processing of the rebate. In some instances, the notification may further
include an updated reward amount and other suitable information as will be apparent to persons
having skill in the relevant art.
Method for Generating and Initiating a Rebate Request
[0052] FIG. 4 illustrates a method for the generating and processing thereof of a
rebate reward request for a rebate for a payment transaction funded using a reward account as
executed via the processing server 110 of the system 100. The reward account may include the
selection of a consumer's preferences in the use of a reward balance, and may include program
preferences for the use of the reward balance as selected by an issuer 104, payment network
provider, merchant 106 and/or acquirer.
[0053] In step 402, the receiving unit 202 of the processing server 110 may receive
an authorization request for a payment transaction funded using a reward account. The
authorization request may include at least payment information and a transaction amount. In step
404, the processing unit 204 may determine if the payment transaction is a valid transaction for
the full or partial funding of the payment transaction using rewards. Step 404 may include the
identification of an account data entry 208 stored in the account database 112 using the payment
information included in the authorization request. If a valid account data entry 208 is not
identified, then the transaction may not be considered valid, and the process may be ended.
[0054] Referring again to FIG. 4, if a valid account data entry 208 is identified and
the transaction may be fully or partially funded using rewards, then, in step 405, the processing
server 110 determines whether the payment transaction is eligible for a rebate reward request,
based on one or more consumer and/or program preferences (e.g., reward preferences). Each
account data entry 208 in the account database 112 may include a consumer preference
associated with a reward account. The consumer preference may be indicative of when a reward
rebate should be requested for purchase made at a point-of-sale terminal (physical or virtual),
and conversely, when the purchase should not be eligible for a reward rebate request. The
consumer preference may be received from a computing device associated with the consumer
102, such as a mobile computing device or even a point-of-sale device where the payment
transaction was conducted with the consumer 102 present. Often, the consumer 102 will select
or provide, through the consumer computing device, a reward preference before arriving at the
merchant 106, which is received by the processing server 110 and stored in the account data
entry 208. Alternatively, the consumer 102 may select a reward preference from a mobile
computing device or a point-of-sale device at the merchant 106, while shopping, just prior to a
payment purchase, or as part of a payment transaction.
[0055] The consumer preferences (e.g., consumer reward preferences) may include a
variety of different indications of when a reward rebate should or should not be requested for a
purchase.
[0056] For example, consumer preference options may include disabling use of the
reward rebate requests for payment transactions, using reward rebate requests for all payment
transactions, using reward rebate requests for only the next payment transaction, etc. This allows
the consumer 102 to decide when they would like to have a reward rebate requested for a
payment transaction. If the reward balance is relatively small, or if the consumer 102 would like
to build the reward balance up to a larger amount for a more significant purchase in the future,
for example, the consumer 102 may, in some examples, turn off rewards usage for the time
being. Alternatively, if the consumer 102 has built up a large reward balance in the reward
account, or would like to use rewards as soon as possible, for example, the consumer 102 may
select to use reward rebate requests for all payment transactions. Further, if the consumer 102
would like to make a single purchase using a reward rebate, but then allow the reward balance to
grow after making the purchase, for example, the consumer 102 may select to use a reward
rebate request only for the next purchase. The consumer 102 may, for example, select this
reward preference at the merchant 106 while shopping, where the consumer 102 has decided to
purchase a product, which he/she desires to use a reward rebate request. After the next purchase
is made the consumer preference is automatically changed back to disabled. The consumer 102
is then able to change the preference later in order to have reward rebate requests used for
subsequent payment transactions.
[0057] In yet another example, a consumer preference may include a particular
merchant (or merchants), such that reward rebate requests should only be used for payment
transactions at the particular merchant(s).
[0058] As another example of the possible reward preferences, the processing server
110 and/or the consumer 102 may select minimum criteria, which must be met for the reward
rebate to be requested for a payment transaction. In one example, the consumer may select a
minimum purchase amount of $20, such that reward rebate requests will only be used for
payment transactions involving at least $20. The consumer 102 may select this minimum
purchase amount, for example, so that the consumer can pay for smaller purchases using normal
payment account methods (e.g., charging/debiting reward account, etc.), while saving the reward
balance to be used for larger, more significant purchases. Of course, various other reasons may
be employed by a consumer 102 to select one minimum amount rather than another. In at least
one embodiment, the consumer preference may include a maximum purchase amount.
[0059] Each of the above exemplary consumer preferences, and other consumer
preferences, may be received, via an interface at the consumer's computing device, or through
other interaction between the consumer 102 and the processing server 110 (directly or
indirectly), whereby the processing server 110 subsequently receives the consumer's preferences.
[0060] For example, FIG. 5 illustrates an interface 450 suitable to be displayed at a
consumer's mobile computing device. The interface 450 includes an account number entry field
452, which may receive an account number (e.g., account identifier) associated with the
consumer's reward account from the consumer 102. The interface 450 further includes a
passcode field 454, which may receive a passcode associated with the reward account, to prevent
others from accessing and/or altering preferences of the consumer's reward account. The
interface 450 includes a radio button to select a minimum purchase amount 456, as described
above, which may cause a rebate request to only be requested when payment transactions is at or
above a minimum purchase amount entered by the consumer 102 in an amount field 458.
[0061] The interface 450 further includes radio buttons 460 associated with
preferences for all transactions, no transactions, and a next transaction only, consistent with the
preferences described above with reference to FIG. 4. When the consumer 102 is finished
selecting some or all of the preferences in the interface 450, and providing the account number
and passcode at 452, 454, the consumer 102 submits the preferences to the processing server
110, by actuating a submit button 462. The processing server 110, in turn, receives the
preferences and stores the associated account data entry 208.
[0062] It should be appreciated that any number of different preferences from the
consumer may be included and/or selected from an interface, such as interface 450. Generally,
the consumer preference allows the consumer 102 to predefine how the reward balance should be
used, i.e., via one or more reward preferences, and then simply use the payment card associated
with the reward account in a normal fashion without having to perform any additional actions
and/or activities to utilize the reward balance, resulting in easier reward account usage for the
consumer 102.
[0063] Furthermore, in various embodiments, the issuer 104 of the reward account
may set a minimum purchase amount for the reward account, such that reward rebates will only
be requested for payment transactions involving at least that amount. This may permit the issuer
104 to limit consumer 102 from using a reward rebate request for every purchase, no matter the
size, thereby saving the issuer 104 from any overhead associated with processing each separate
reward rebate request for numerous small purchases, etc. Additionally, or alternatively, the issuer
104 may require the consumer 102 to submit a minimum purchase amount preference, as
described above. Program preferences may further limit the number of reward rebate requests in
a certain period, limit the merchants 106 at which rewards may be used, and/or various other
options, which may preserve breakage in a rewards program (not allow a consumer to cash out
all of their points), create rewards program level variables, reduce the amount of processed
reward redemptions, reduce the amount of reward redemption fees, etc. Any criteria established
by the issuer 104, a merchant 106, a payment network provider, or an acquirer may be
considered program preferences (e.g., program reward preferences).
[0064] With further reference to FIG 4, and in particular, step 405, the processing
server 110 determines whether the payment transaction is eligible for a rebate request, based on
one or more consumer and/or reward program preferences, including those described above. As
should be apparent, in other example embodiments step 405 may be located at other points in the
method (e.g., after step 406, after step 408, etc.), or may be absent from the method.
[0065] Referring still to FIG. 4, if a transaction is eligible based on one or more
preferences, then, in step 406, the processing unit 204 may determine if there is an adequate
reward balance in the account for the full funding of the payment transaction. Step 406 may
include the calculation of a transaction reward value based on the transaction amount for the
payment transaction and one or more conversion rules, and identification if a reward balance
included in the identified account data entry 208 meets or exceeds the calculated transaction
reward value.
[0066] If the reward balance is not adequate for full funding of the payment
transaction, then, in step 408, the processing unit 204 may determine if there is default approval
from the consumer, consumer preferences and/or program preferences associated with the reward
account for partial funding of the payment transaction, such as based on data included in the
identified account data entry 208. The default approval may be indicated by a consumer
preference and/or a program preference. For example, an issuer 104 may choose to only allow
reward rebate requests when the reward balance is sufficient to fund the full amount of a
transaction (i.e., fully funded). The issuer 104 may select this requirement in order to avoid
processing separate payment methods (i.e., with rewards points and with normal payment
account operations) for a single payment transaction, to reduce fees associated with reward point
redemption, etc. In this case, a reward rebate request will not be generated unless the reward
balance is greater than or equal to the transaction amount (or transaction reward value). The
cash equivalent of the consumer's current reward point balance must be greater than the
transaction amount.
[0067] Alternatively, a program preference may indicate that partial reward balance
usage is allowed. If a consumer preference indicates partial payment is provided by default, a
reward rebate request may be generated even if the reward balance is only sufficient to fund a
portion of the payment transaction amount. The reward balance will be used even if the reward
balance cash equivalent is less than the transaction amount.
[0068] If default approval is not provided by the consumer 102, then, in step 410, the
transmitting unit 206 of the processing server 110 may transmit an approval request to the
consumer 102. In some embodiments, the method of communication of the approval request may
be included in the identified account data entry 208. In step 412, the receiving unit 202 may
receive a response from the consumer 102 indicating the approval or denial of the usage of
rewards to partially fund the payment transaction. In step 414, the processing unit 204 may
identify in the consumer response if usage of rewards is approved. If usage is not approved, then
the process may be completed.
[0069] In some embodiments, points may be redeemed in pre-defined increments
according to a preference. For example, if a consumer 102 has 10,400 rewards points, and each
point is worth $.01, the consumer has a cash equivalent balance of $104, through use of a
conversion rule. If the program increment is set to $5, and the consumer attempts to make a
purchase of $136.23, $100 would be redeemed. The consumer 102 would be left with 400
points, which amount to $4. The consumer 102 would be unable to use rewards points again
until the consumer 102 accrued at least 500 points. Further, if a program minimum is $10, the
consumer 102 would be unable to use rewards points until the consumer accrued at least 1,000
points.
[0070] If usage is approved by the consumer 102 in the consumer response, or if
usage is approved by default by the consumer 102, or if there is an adequate reward balance for
fully funding the payment transaction, then, in step 416, the processing unit 204 may deduct the
corresponding reward amount from the reward balance in the identified account data entry 208.
The processing unit 204 may then, in step 418, process the rebate for the payment transaction.
Processing the rebate may occur upon calculating a rebate amount, which may be based on the
transaction reward value, reward reduction amount, and at least one conversion rule, generating a
rebate request for the calculated rebate amount, and transmitting thereof, by the transmitting unit
206, to the payment network 108 for processing. In step 420, the transmitting unit 206 may
transmit a notification to the consumer 102 indicating the processing of the rebate. In some
instances, the notification may include at least one of: the reduction amount, the rebate amount,
and the updated reward balance.
Method for Initiating a Rebate for a Payment Transaction Funded Using a Reward Account
[0071] FIG. 6 illustrates a method 500 for the initiating of a rebate for a payment
transaction funded using a reward account.
[0072] In step 502, a plurality of account data entries (e.g., the account data entries
208) may be stored in a database (e.g., the account database 112), wherein each account data
entry 208 includes data related to a consumer reward account including at least an account
identifier and a reward balance. In step 504, an authorization request for a payment transaction
involving a merchant (e.g., the merchant 106) may be received, by a receiving device (e.g., the
receiving unit 202), wherein the authorization request includes at least payment information and
a transaction amount. In step 506, a transaction reward value may be calculated, by a processing
device (e.g., the processing unit 204), based on at least the transaction amount and at least one
conversion rule. In one embodiment, the at least one conversion rule is associated with at least
one of: the merchant 106, the transaction amount, an account level, and a merchant category.
[0073] In step 508, a reduction amount may be identified, by the processing device
204, wherein the reduction amount is a lesser of the transaction reward value and the reward
balance included in a specific account data entry 208 in the database 112 where the included
account identifier corresponds to the payment information. In one embodiment, each account
data entry 208 may further include an indication of whether the corresponding reward balance is
to be used if the reward balance is less than the calculated transaction reward value. In some
embodiments, the payment information included in the authorization request may include the
account identifier included in the specific account data entry 208.
[0074] In step 510, the reward balance included in the specific account data entry 208
may be updated, in the database 112, based on the identified reduction amount. In step 512, a
rebate amount may be calculated, by the processing device 204, based on the transaction reward
value and the identified reduction amount, and the at least one conversion rule. In step 514, a
rebate request for the calculated rebate amount from a payment account associated with the
merchant 106 to a payment account corresponding to the payment information included in the
authorization request may be transmitted, by a transmitting device (e.g., the transmitting unit
206). In some embodiments, the rebate request may be transmitted to a payment network (e.g.,
the payment network 108).
[0075] In one embodiment, the method 500 may further include: transmitting, by the
transmitting device 206, a notification to a consumer (e.g., the consumer 102) associated with the
specific account data entry 208 indicating successful transmission of the rebate request. In
another embodiment, the method 500 may further include: receiving, by the receiving device
202, an indication of successful processing of a rebate in response to the transmitted rebate
request; and transmitting, by the transmitting device 206, a notification to the consumer 102
associated with the specific account data entry indicating the successful processing of the rebate.
[0076] In some embodiments, the method 500 may further include receiving, by the
receiving device 202, an indication to proceed with transmitting the rebate request prior to the
transmitting of the rebate request when the reward balance is less than the transaction reward
value. In a further embodiment, the indication to proceed may be received in response to
transmitting, by the transmitting device 206, a request to proceed to a computing device
associated with the specific account data entry 208. In an even further embodiment, the request
to proceed may include at least the reward balance included in the specific account data entry
208 and may be transmitted via at least one of: short message service message, multimedia
message service message, e-mail, and transmission to a point-of-sale device associated with the
payment transaction.
Method Processing Rewards through Third Party Rewards Programs
[0077] In some embodiments, a reward balance related to a reward account may be
stored by a third party (e.g., airlines, retailers, etc.). The reward account may include a third
party indicator, indicative of a reward balance associated with the reward account being stored
by a third party. The third party may be a points bank that holds the rewards point balance of the
consumer 102. In these cases, a processing server 110 may be configured to transmit a
transaction reward value to the third party, based on a transaction amount of a payment
transaction involving a reward account having a reward balance stored by the third party. The
transaction reward value may indicate an amount of reward balance (e.g., amount of reward
points, cash equivalency, etc.) needed to fund the payment transaction. The transaction reward
value can be based on a rewards program, third party and/or consumer configuration. For
example, any of the payment service provider, third party, consumer, etc., may set criteria for
calculating the transaction reward value. If the payment transaction is deemed eligible, based on
the criteria (e.g., consumer preference, program preference, etc.), the transaction reward value is
transmitted to the third party.
[0078] The processing server 110 may also transmit payment transaction information
to the third party, which may include, without limitation, a transaction location, local currency
amount, settlement currency amount, merchant location, etc. The processing server 110 may
also transmit a scoring rule used to calculate the amount of points required, which may include a
cost per point (e.g., 100 basis points, each point being worth $.01, etc.). The third party
processor may then determine if the consumer 102 has enough reward balance to complete the
redemption. If the consumer has enough reward balance, the third party processor may send a
message indicating that points have been deducted, and a statement credit may be given to the
consumer. The third party may transmit a rebate request to an issuer of the reward account, a
payment network provider, merchant and/or acquirer.
[0079] FIG. 7 illustrates an example system for processing a payment transaction
involving a reward account having a reward balance stored with a third party, according to
another example embodiment of the present disclosure. A consumer 550 (e.g., a MasterCard®
consumer) makes a purchase at a point-of-sale (POS) terminal 552 of a merchant. A payment
transaction authorization is transmitted to an acquirer 554, and then to a payment network 556.
The payment network 556 may be linked to, or include, a system for transmitting and receiving
information between banks (e.g., BankNet ASA). The authorization request is then be
transmitted to an issuer 558.
[0080] The transaction authorization is added to a queue, which is read by a real time
rewards (RTR) engine 560. The RTR engine 560 may be part of the payment network 556, and
may be implemented by a processing server. The RTR engine 560 applies applicable filtering
logic (including consumer eligibility) and determines how many points are needed to cover the
full transaction amount, or details on how to process a partial transaction amount. The RTR
engine 560 may apply any consumer and/or program preferences, including those described
herein, to determine whether the transaction authorization is eligible for a rebate request.
[0081] If the transaction authorization is eligible for a rebate request according to
consumer preferences and/or program preferences, the RTR engine 560 then generates a
transaction reward value (i.e., scored transaction result), which may be calculated as described
herein (e.g., based on at least one conversion rule, etc.).
[0082] The RTR engine 560 then determines, at 562, whether the reward account
associated with the authorization request is a third party reward account. If the reward account is
not a third party account, the payment transaction is processed by the payment network, which
may include generating a rebate request as described herein (e.g., calculating a rebate amount
based on the reward transaction value, etc.).
[0083] If the payment transaction is for a reward account involving a third party, the
RTR engine 560 transmits the transaction reward value to the third party (or a third party
transaction processor) in a fire-and-forget message. The fire-and-forget message informs the
third party (or third party transaction processor) of the possibility of requesting a reward rebate
for the transaction. The third party transaction processor may be internal to the payment network
556.
[0084] The third party transaction processor calls an application programming
interface (API) of the issuer 558 associated with the reward account to determine if the
transaction should result in a statement credit (i.e., the reward balance should be applied to the
transaction), and whether necessary points should be deducted. If the reward balance should be
applied to the transaction, a rebate is sent to a rebate service 564, which may be part of the
payment network 556. The rebate service 564 saves the rebate redemption in a database, such as
the MasterCard® rewards system (MRS) database. The rebate may then be settled, such as being
sent via batch to the MasterCard® global clearing management system (GCMS). The rebate
may also be reported to the issuer 558 of the reward account, for the issuer 558 to apply the
rebate to the reward account.
[0085] If the third party determines to apply the reward balance to the payment
transaction and transmits a corresponding rebate request, the third party may then reduce the
reward balance related to the reward account, based on the amount of the rebate request.
[0086] FIG. 8 illustrates an example method flow for processing a payment
transaction according to the system illustrated in FIG. 7. The method flow is broken into regions
that designate actions at the consumer 550, at a payment network e.g., a merchant, an acquirer
554, a payment network 556, which may include BankNet, MRS and GCMS, and at the issuer
558.
[0087] According to this example method flow, the consumer 550 first signs up for
the pay with rewards-real time rewards (PWR-RTR) service, at 566, at which point the payment
network 556 enrolls the consumer into the service (e.g., by creating a new reward account,
associating a reward balance and account identifier with an existing account, etc.).
[0088] When the consumer 550 swipes a payment card associated with the reward
account for a purchase at a merchant, a transaction authorization request is received by the
payment network 556, and may be stored in a queue (e.g., a transaction authorization request
copy is provided by BankNet to MRS, then MRS acknowledges receipt of the transaction to
BankNet, and stores the authorization transaction).
[0089] The payment network 556 then determines whether the transaction passes
validations, at 568, which may include consumer preferences, program preferences, etc. If the
transaction does not pass validations, the transaction is complete. If the transaction passes
validations, the payment network 556 calculates points for redemption based on the transaction
amount (e.g., by calculating a transaction reward value based on at least one conversion rule).
[0090] Once the required points for redemption are calculated, the payment network
556 next checks to see if the reward account is associated with a third party bank, at 570. If the
reward account is stored with a third party bank, the payment network 556 transmits an external
fire-and-forget message to the third party (e.g., a message transmitted to the third party such that
the third party, and not the payment network 556, handles further reward balance usage
determination, reward balance updating, rebate request generation, etc.) and the process is
complete. The transmitted message may include the transaction reward value, and other
transaction and/or reward account information.
[0091] If the reward account is not associated with a third party bank, the payment
network 556 then determines, at 572, whether the reward balance of the consumer's reward
account can cover at least a portion of the transaction (e.g., whether the consumer's reward
account has enough points to pay for at least a portion of the transaction). If the consumer
reward balance doesn't have enough points, an optional message (e.g., short message service
(SMS), email, etc.) may be sent to the consumer indicating the lack of reward points.
[0092] If the consumer does have enough reward balance points to cover at least a
portion of the transaction (or if partial payment is not allowed but the reward balance is greater
than the full transaction amount), the redemption cash back process is initiated. A rebate request
file is generated for the transaction, based on a schedule. The rebate request file is then
processed (e.g., by submitting the file to the GCMS). The payment transaction may then be
processed by the payment network 556, and settlement of the payment transaction occurs with
the issuer 558 of the reward account.
[0093] Redemption fees are calculated (which may be based on the amount of the
rebate request) and transmitted to the issuer 558. A redemption notification may optionally be
sent to the consumer 550, indicating the status of the payment transaction and/or the success of
the rebate request.
[0094] FIG. 9 illustrates an example method flow for processing a payment
transaction involving a reward account associated with a third party, according to the system
illustrated in FIG. 7. The illustrated method flow is broken down into actions at the third party
actions, the payment network 556 (including MRS services, MRS, and GCMS) and actions at the
issuer 558.
[0095] The third party first processes rewards points redemption at 574 (e.g., in
response to receiving a message from the payment network 556 indicating a consumer would
like to use a reward balance of the consumer's reward account to fund a payment transaction).
The third party then transmits a rebate request to the payment network 556 (e.g., by initiating an
MRS rebate redemption request).
[0096] The payment network 556 then processes the rebate request at 576 (e.g., MRS
services then initiates redemption following a cash back process in which no points may be
required). The payment network transmits a message to the third party, which may indicate
whether the rebate request was successful. If the rebate request was indicated as successful, the
third party process is complete (and the third party may update the reward balance accordingly).
If the rebate request was not successful, the third party may repeat the step of transmitting a
rebate request to the payment network.
[0097] Based on the received rebate request, the payment network may create a
rebate file based on a schedule, at 578. The rebate file is then processed (e.g., by submitting the
file to GCMS). The payment transaction may then be processed by the payment network 556,
and settlement of the payment transaction occurs with the issuer 558 of the reward account.
[0098] Redemption fees are calculated and sent to the issuer 558 associated with the
reward account. An optional redemption notification may be sent to the consumer 550.
[0099] Further details of the steps of FIGS. 8 and 9 are described in the blocks of the
flow diagrams of FIGS. 8 and 9, but should not be considered as limiting the example processes
illustrated in FIGS. 8 and 9. As should be apparent, in other example embodiments the order of
the steps may vary, some steps may be absent, and some additional steps may be added, without
departing from the scope of the present disclosure.
Computer Architecture
[00100] FIG. 10 illustrates a computer system 600 in which embodiments of the
present disclosure, or portions thereof, may be implemented as computer-readable code. For
example, the processing server 110 of FIG. 1 may be implemented in the computer system 600
using hardware, software, firmware, non-transitory computer readable media having executable
instructions stored thereon, or a combination thereof and may be implemented in one or more
computer systems or other processing systems. Hardware, software, or any combination thereof
may embody modules and components used to implement the methods of FIGS. 3-5.
[00101] If programmable logic is used, such logic may execute on a commercially
available processing platform or a special purpose device. A person having ordinary skill in the
art may appreciate that embodiments of the disclosed subject matter can be practiced with
various computer system configurations, including multi-core multiprocessor systems,
minicomputers, mainframe computers, computers linked or clustered with distributed functions,
as well as pervasive or miniature computers that may be embedded into virtually any device. For
instance, at least one processor device and a memory may be used to implement the above
described embodiments.
[00102] A processor unit or device as discussed herein may be a single processor, a
plurality of processors, or combinations thereof. Processor devices may have one or more
processor "cores." The terms "computer program medium," "non-transitory computer readable
medium," and "computer usable medium" as discussed herein are used to generally refer to
tangible media such as a removable storage unit 618, a removable storage unit 622, and a hard
disk installed in hard disk drive 612.
[00103] Various embodiments of the present disclosure are described in terms of this
example computer system 600. After reading this description, it will become apparent to a person
skilled in the relevant art how to implement the present disclosure using other computer systems
and/or computer architectures. Although operations may be described as a sequential process,
some of the operations may in fact be performed in parallel, concurrently, and/or in a distributed
environment, and with program code stored locally or remotely for access by single or multi
processor machines. In addition, in some embodiments the order of operations may be
rearranged without departing from the spirit of the disclosed subject matter.
[00104] Processor device 604 may be a special purpose or a general purpose processor
device. The processor device 604 may be connected to a communications infrastructure 606,
such as a bus, message queue, network, multi-core message- passing scheme, etc. The network
may be any network suitable for performing the functions as disclosed herein and may include a
local area network (LAN), a wide area network (WAN), a wireless network (e.g., WiFi), a
mobile communication network, a satellite network, the Internet, fiber optic, coaxial cable,
infrared, radio frequency (RF), or any combination thereof. Other suitable network types and
configurations will be apparent to persons having skill in the relevant art. The computer system
600 may also include a main memory 608 (e.g., random access memory, read-only memory,
etc.), and may also include a secondary memory 610. The secondary memory 610 may include
the hard disk drive 612 and a removable storage drive 614, such as a floppy disk drive, a
magnetic tape drive, an optical disk drive, a flash memory, etc.
[00105] The removable storage drive 614 may read from and/or write to the removable
storage unit 618 in a well-known manner. The removable storage unit 618 may include a
removable storage media that may be read by and written to by the removable storage drive 614.
For example, if the removable storage drive 614 is a floppy disk drive, the removable storage
unit 618 may be a floppy disk. In one embodiment, the removable storage unit 618 may be nontransitory
computer readable recording media.
[00106] In some embodiments, the secondary memory 610 may include alternative
means for allowing computer programs or other executable instructions to be loaded into the
computer system 600, for example, the removable storage unit 622 and an interface 620.
Examples of such means may include a program cartridge and cartridge interface (e.g., as found
in video game systems), a removable memory chip (e.g., EEPROM, PROM, etc.) and associated
socket, and other removable storage units 622 and interfaces 620 as will be apparent to persons
having skill in the relevant art.
[00107] Data stored in the computer system 600 (e.g., in the main memory 608 and/or
the secondary memory 610) may be stored on any type of suitable computer readable media,
such as optical storage (e.g., a compact disc, digital versatile disc, Blu-ray disc, etc.) or magnetic
tape storage (e.g., a hard disk drive). The data may be configured in any type of suitable database
configuration, such as a relational database, a structured query language (SQL) database, a
distributed database, an object database, etc. Suitable configurations and storage types will be
apparent to persons having skill in the relevant art.
[00108] The computer system 600 may also include a communications interface 624.
The communications interface 624 may be configured to allow software and data to be
transferred between the computer system 600 and external devices. Exemplary communications
interfaces 624 may include a modem, a network interface (e.g., an Ethernet card), a
communications port, a PCMCIA slot and card, etc. Software and data transferred via the
communications interface 624 may be in the form of signals, which may be electronic,
electromagnetic, optical, or other signals as will be apparent to persons having skill in the
relevant art. The signals may travel via a communications path 626, which may be configured to
carry the signals and may be implemented using wire, cable, fiber optics, a phone line, a cellular
phone link, a radio frequency link, etc.
[00109] Computer program medium and computer usable medium may refer to
memories, such as the main memory 608 and secondary memory 610, which may be memory
semiconductors (e.g., DRAMs, etc.). These computer program products may be means for
providing software to the computer system 600. Computer programs (e.g., computer control
logic) may be stored in the main memory 608 and/or the secondary memory 610. Computer
programs may also be received via the communications interface 624. Such computer programs,
when executed, may enable computer system 600 to implement the present methods as discussed
herein. In particular, the computer programs, when executed, may enable processor device 604 to
implement the methods illustrated by FIGS. 3-4, 6, and 8-9, as discussed herein. Accordingly,
such computer programs may represent controllers of the computer system 600.
[00110] Where the present disclosure is implemented using software, the software may
be stored in a computer program product and loaded into the computer system 600 using the
removable storage drive 614, interface 620, and hard disk drive 612, or communications
interface 624.
[00111] Techniques consistent with the present disclosure provide, among other
features, systems and methods for initiating a rebate for a payment transaction funded using a
reward account. While various exemplary embodiments of the disclosed system and method
have been described above it should be understood that they have been presented for purposes of
example only, not limitations. It is not exhaustive and does not limit the disclosure to the precise
form disclosed. Modifications and variations are possible in light of the above teachings or may
be acquired from practicing of the disclosure, without departing from the breadth or scope.
[00112] As will be appreciated based on the foregoing specification, the abovedescribed
embodiments of the disclosure may be implemented using computer programming or
engineering techniques including computer software, firmware, hardware or any combination or
subset thereof, wherein the technical effect may be achieved by performing at least one of the
following steps: (a) receiving an authorization request for a payment transaction involving the
reward account, wherein the authorization request includes at least a transaction amount, (b)
determining, based on the reward preference, whether the payment transaction is eligible for a
reward rebate, (c) transmitting a request for the reward rebate when the payment transaction is
eligible, (d) calculating a transaction reward value based on at least the transaction amount and at
least one conversion rule, (e) calculating a rebate amount based on the lesser of the transaction
reward value and the reward balance, (f) updating the reward balance based on the rebate
amount, and (g) transmitting the transaction reward value and payment transaction information
to a third party.
[00113] The foregoing description of the embodiments has been provided for purposes
of illustration and description. It is not intended to be exhaustive or to limit the disclosure.
Individual elements or features of a particular embodiment are generally not limited to that
particular embodiment, but, where applicable, are interchangeable and can be used in a selected
embodiment, even if not specifically shown or described. The same may also be varied in many
ways. Such variations are not to be regarded as a departure from the disclosure, and all such
modifications are intended to be included within the scope of the disclosure.

CLAIMS
What is claimed is:
1. A computer-implemented method for initiating a rebate to a reward account, the
reward account associated with an account data entry in a database, the account data entry
including at least an account identifier for the reward account, a reward balance, and a reward
preference, the method comprising:
receiving, by a processing server, an authorization request for a payment transaction
involving the reward account, wherein the authorization request includes at least a transaction
amount;
determining, at the processing server, based on the reward preference, whether the
payment transaction is eligible for a reward rebate; and
transmitting, from the processing server, a request for the reward rebate when the
payment transaction is eligible.
2. The method of claim 1, further comprising:
calculating, by the processing server, a transaction reward value based on at least the
transaction amount and at least one conversion rule; and
calculating, by the processing server, a rebate amount based on the lesser of the
transaction reward value and the reward balance.
3. The method of claim 2, further comprising:
updating, in the database, the reward balance based on the rebate amount; and
wherein transmitting the request for the reward rebate includes transmitting the request
for the reward rebate based on the calculated rebate amount when the payment transaction is
eligible for the reward rebate.
4. The method of claim 1, wherein the reward preference includes a consumer
reward preference; and wherein the consumer reward preference includes at least one of: a
preference to request a reward rebate for only the next transaction and a preference to request a
reward rebate for only transactions above a consumer minimum purchase amount.
5. The method of claim 4, further comprising, when the consumer reward preference
includes a preference to request a reward rebate for only the next transaction, automatically
changing the consumer reward preference to a preference not to request a reward rebate for any
transactions, after transmitting the rebate request.
6. The method of claim 4, wherein the reward preference includes at least one
program reward preference related to the reward account; and
wherein determining whether the payment transaction is eligible includes determining,
based on the program reward preference and the consumer reward preference, whether the
payment transaction is eligible for a reward rebate.
7. The method of claim 6, wherein the program reward preference includes at least
one of: a preference to allow a request of a reward rebate only when the transaction amount is
above a program minimum, a preference to allow a request of the reward rebate only when the
reward balance is sufficient to fully fund the transaction, and a preference to allow a request of a
reward when the reward balance is insufficient to fully fund the transaction.
8. The method of claim 7, wherein transmitting a request for a reward rebate
includes, when the program reward preference includes a reward preference to allow a reward
rebate to be requested for part of a transaction, transmitting a reward rebate request for a rebate
amount based on the reward balance.
9. The method of claim 1, further comprising:
receiving, by the processing server, a consumer selection of at least one consumer reward
preference; and
updating the reward preference in the account data entry in the database, based on the
received consumer selection.
10. The method of claim 9, further comprising:
causing an interface to be displayed at a consumer computer system, the interface
offering multiple selectable consumer reward preferences; and
wherein receiving the consumer selection includes receiving, from the consumer
computer system, via the interface, the selection of at least one of the multiple selectable
consumer reward preferences.
11. The method of claim 1, further comprising:
calculating, by the processing server, a transaction reward value based on at least the
transaction amount and at least one conversion rule; and
when the reward balance related to the reward account is stored at a third party,
transmitting, by the processing server, the transaction reward value and payment transaction
information to a third party, thereby permitting the third party to manage the reward balance.
12. A system for processing a payment transaction involving a reward account, the
system comprising:
a processing server including an account database, the account database including
multiple account data entries, each account data entry including at least an account identifier and
a consumer reward preference;
wherein the processing server includes instructions that, when executed by the processing
server, cause the processing server to:
receive an authorization request for a payment transaction involving a reward
account, the payment transaction having a transaction amount; and
determine, based on the consumer reward preference, whether the payment
transaction is eligible for a reward rebate.
13. The system of claim 12, wherein the account data entry includes a third party
indicator, the third party indicator indicative of whether a reward balance related to the reward
account is stored by a third party; and
wherein the instructions, when executed by the processing server, further cause the
processing server to:
calculate a transaction reward value based on at least the transaction amount and
at least one conversion rule; and
when the third party indicator indicates the reward balance is stored by a third
party, transmit the transaction reward value to the third party.
14. The system of claim 12, wherein the consumer reward preference indicates a
minimum purchase amount; and
wherein the instructions, when executed by the processing server, cause the processing
server to:
determine whether the transaction amount is at least a minimum purchase amount;
and
if the transaction amount is at least a minimum purchase amount:
calculate a transaction reward value based on at least the transaction
amount and at least one conversion rule;
calculate a rebate amount based on the lesser of the transaction reward
value and a reward balance related to the reward account; and
update the reward balance based on the rebate amount, wherein an amount
of the reward rebate is based on the calculated rebate amount.
15. The system of claim 12, wherein the instructions are executable by the processing
server to cause the processing server to request a reward rebate when the transaction is eligible.
16. The system of claim 12, wherein the consumer reward preference indicates a
reward preference of at least one of: requesting a reward rebate only for the next transaction, and
requesting a reward rebate only for transactions above a consumer minimum purchase amount.
17. The system of claim 12, wherein the instructions, when executed by the
processing server, cause the processing server to determine, based on the consumer reward
preference and a program reward preference, whether the payment transaction is eligible for a
reward rebate.
18. The system of claim 17, wherein the program reward preference indicates a
preference of at least one of: allowing the reward rebate to be requested only when the
transaction is above a program minimum, allowing the reward rebate to be requested only when
a reward balance of the reward account is sufficient to fully fund the transaction, and allowing
the reward rebate to be requested when the reward balance is insufficient to fully fund the
transaction.
19. A non-transitory computer readable media comprising instructions that, when
executed by at least one processor, cause the processor to:
receive a consumer reward preference associated with a reward account, the consumer
reward preference indicative of when a reward rebate should be requested for a payment
transaction involving the reward account,
receive an authorization request for a payment transaction involving the reward account,
the payment transaction including a transaction amount; and
determine, based on the consumer reward preference, whether the payment transaction is
eligible for a reward rebate request.
20. The non-transitory computer readable media of claim 19, wherein the consumer
reward preference includes a preference to request a reward rebate only for a next transaction.
21. The non-transitory computer readable media of claim 19, wherein the instructions,
when executed by the processor, cause the processor to:
determine whether the payment transaction is eligible for a rebate reward request
based on the consumer reward preference and a program reward preference; and
transmit the rebate reward request when the payment transaction is eligible for the
rebate request;
wherein the program reward preference includes a preference to only allow the
reward rebate request when the transaction amount is above a program minimum and/or a
preference to allow the reward rebate request when the reward balance is insufficient to
fully fund the transaction.