Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Discount or incentive
Reexamination Certificate
1999-08-25
2001-06-05
Trammell, James P. (Department: 2162)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Discount or incentive
C705S037000, C705S026640, C705S027200
Reexamination Certificate
active
06243688
ABSTRACT:
DESCRIPTION OF RELATED ART
Due to proliferation of award programs, issuers will need to structure programs to minimize cost of rewards at the same time maximizing appeal to consumers, to win market share due to increasing competitive market. The key to customer and credit card holder retention and loyalty is immediate or near immediate gratification. The potential of earning an investment opportunity and possible appreciation of the issuer's reward can retain customers in an era when the costs to acquire new accounts are skyrocketing and where the effectiveness of new marketing is diminishing. They key today is offering a meaningful value-added proposition.
Airline frequent-flier programs and other reward programs are becoming so common customers are becoming used to rebate programs and are expecting them from merchants. Even though airline frequent-flier programs have been successful, the market is becoming saturated and consumers are becoming aware of frequent flier pitfalls such as frequent flier awards expiring, poor availability of seats and available flying times. These and other award programs involve a considerable accumulation period to earn a benefit, have a ceiling on the award, or encourage consumers to charge excessively.
There is a rising concern of backlash from consumer groups and government over what might be viewed as encouragement from creditors for consumers to stay in debt.
This is especially applicable for supermarkets, discount retailers and gasoline stations which provide essential goods and services. Patrons of these establishments would be good potential users of the invention and save money through potential appreciation of investment as people do grocery shopping and buy gasoline more than anything else, which would include low income and disadvantaged people, who are hard pressed to save for investment income.
Clearly, there is a need in this environment for having rewards/credits tailored to a particular market, to meet the various needs of consumers with no limit on accumulation periods, ceilings or expirations, but with greater competitive advantage to merchants, banks and other creditors, and, most importantly, for the consumer, potential appreciation of award through investment, thereby, effectively reducing the cost of interest on debt; amount of debt, with potential of gaining from debt used in the form of credit.
The parent application describes a method and system which fulfills this need. More specifically, the parent application is directed to describing methods and systems employing a purchase award account wherein purchase credit awards resulting from a purchase by a consumer using the purchase award account is converted into an ownership interest in an investment vehicle such as a stock, bond, mutual fund, money market fund, or insurance product. More specifically, a purchase credit award interchange center is described which interfaces with a credit award exchange center for converting any form of merchant or purchase credit award resulting from a customer purchase of goods and services into an interest in an investment vehicle. Pre-assigned purchase credit accumulations earned by the customer are exchanged from a merchant or creditor through a combination of credit card, co-branded credit card, PIN card, debit and smart cards, coupons, stamps, proof of purchases, rebates, or any other form of purchase award. In this manner, the customer accrues an interest in an investment vehicle, rather than merely earning a gift certificate, mileage award or the like.
The present application is directed to further improvements pertaining to systems and methods for establishing and processing purchase award accounts wherein purchase credit awards are exchangeable into investment vehicles and is directed in particular to Internet-based improvements.
SUMMARY OF THE INVENTION
A method is provided for establishing and processing a purchase award account wherein purchase credit awards resulting from a purchase by a consumer using the purchase award account is exchanged into an ownership interest in an investment vehicle. In accordance with the method, information is received from a consumer needed to establish the purchase award account, a purchase award account is established on behalf of the consumer. Thereafter, information is received pertaining to purchases made by the consumer using the purchase award account, the account of the consumer is credited with credit awards, and the credit awards are accumulated in the account. Upon the credit awards reaching a predetermined level, an ownership interest in the investment vehicle is then purchased on behalf of the consumer with the credit awards in the account. The investment vehicle is thereafter subject to appreciation or depreciation.
In an exemplary embodiment, the information from a consumer needed to establish the purchase award account is received over the Internet. Forms are provided via the Internet for the signature by the consumer to authorize purchase of investment vehicles on behalf of the consumer. The forms are printable by the consumer from a web site via the Internet. The consumer also selects, via the Internet, specific investment vehicles out of a group of predetermined vehicles. The investment vehicle may be a mutual fund, a bond, a stock, an insurance investment vehicle, a money market fund, an annuity investment vehicle or a real estate investment vehicle.
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Carol Jouzaitis, Frequent Flier No Bonus for Airlines, Apr. 22, 1988, Chicago Tribune, p. 1.*
Anonymous, How to Profit from Merchandise Incentives, Sep. 1991, Bill Communications, p. 4-34.*
William M. Mercer Inc, William M Mercer Survey: Biotech Executives Highest Paid: Underscores Strength of Industry, Apr. 8, 1991.
Lastra Daniel
Sonnenschein Nath & Rosenthal
Trammell James P.
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