Prompt coupon reimbursement after coupon redemption

Registers – Systems controlled by data bearing records – Credit or identification card systems

Reexamination Certificate

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Details

C235S462010, C705S014270

Reexamination Certificate

active

06497360

ABSTRACT:

FIELD OF THE INVENTION
The present application relates to systems for tracking customer purchase transactions. In particular, the present invention relates to systems for accurately tracking the use of coupons redeemed by consumers, and for promptly reimbursing retailers for discounts extended to consumers in exchange for coupons presented to the retailer.
BACKGROUND OF THE INVENTION
Coupons are typically distributed to consumers by consumer packaged goods manufacturers (PGM) as a marketing tool to encourage consumers to purchase their products. The coupons are distributed to consumers through any one of a number of different channels, including through newspapers as freestanding insert (FSI) coupons, advertising circulars, direct mailings, e-mail, and the Internet. To redeem a coupon, a consumer must generally present the coupon in connection with the purchase of a product identified on the coupon at a retail establishment. The retailer, upon receiving the coupon, will deduct the face value of the coupon from the total amount owed by the consumer. The retailer generally does not receive reimbursement for the discount extended to the consumer until the redeemed coupon has been subjected to a lengthy retailer redemption verification process.
In order to verify the legitimacy of discounts extended to consumers by retailers, product manufacturers generally require retailers to provide them with the original redeemed coupons in support of invoices seeking reimbursement. Accordingly, retailers typically bundle together redeemed coupons and ship them to third party clearinghouses, which sort the redeemed coupons by product manufacturer. The sorted coupons, together with the retailer invoices, are then shipped to a manufacturer's agent. The manufacturer's agent, which in some instances may be associated with a clearinghouse, attempts to determine whether the invoice amount is supported by the redeemed coupons. In addition, the manufacturer's agent typically examines the redeemed coupons for evidence of fraud, which may be indicated by a large number of evenly cut coupons or by counterfeit coupons. The manufacturer's agent then may issue a check to the retailer through the clearinghouse as reimbursement for the value of the coupons verified by the agent as genuine. Any invoiced amount that is not adequately supported by the provided original coupons will not be paid by the manufacturer or its agent. Retailers often respond to such “chargebacks” by deducting the amount of the chargeback from amounts paid to the product manufacturers for products delivered to the retailer. Where a check is issued for the retailer, it is generally not received until six to eight weeks after the original discount was extended to the consumer by the retailer. Accordingly, the redemption of manufacturer coupons requires retailers to forego receipt of full value for items purchased using a coupon for a significant period of time.
In addition to the significant time delays involved in the processing of coupons using traditional methods, such methods are also vulnerable to fraud and do not provide product manufacturers with timely marketing data. For instance, there is no way for a manufacturer to precisely determine whether the redemption of a coupon was accompanied by a bona fide product sale. This is because traditional methods of coupon redemption do not correlate a specific product sale to each specific redeemed coupon at the time of redemption at the store. The redeemed coupons are not segregated according to the store at which they were redeemed and there is no accurate data that correlates coupons and sales of products. Instead, manufacturers have only a general idea of the volume of product sales expected for particular retail chains. Accordingly, fraud can usually only be detected by product manufacturers if it is carried out on a large scale. Additionally, product manufacturers do not receive timely or accurate marketing data using traditional coupon redemption and verification methods. This is because coupons are often bundled together by retail chain rather than by a particular retail outlet. In addition, the manufacturer receives no information regarding the date and place of redemption, or regarding the precise products or product configuration purchased in connection with the redemption of the coupon.
For the above stated reasons, it would be beneficial, as supported by the Joint Industry Coupon Council (JICC), to enhance the redemption of coupons, particularly providing for prompt reimbursement to retailers for discounts extended by them to consumers. Furthermore, it would be advantageous to provide the issuers of coupons with accurate and timely information concerning the circumstances of the coupon redemption and to enable the issuer to verify the validity of coupon redemptions. In addition, it would be advantageous to provide such a method and apparatus that can be implemented at an acceptable cost and that is operated by a third party who is trustworthy and reliable.
SUMMARY OF THE INVENTION
In accordance with the present invention, a system for accurately tracking the use of coupons and for promptly reimbursing retailers for discounts extended in exchange for such coupons is provided. The disclosed system generally includes a coupon redemption subsystem interconnected to a point-of-sale (POS) subsystem by a communications channel. In one embodiment, a passive tap from the POS controller is employed. The system can record the same transactions as the retailer does. A transaction log is generated that enables the system to provide coupon information and product UPC information. The POS subsystem can include a main computer or server of the retailer that commonly communicates with a number of check-out stations at which products are purchased, such as grocery items offered by a supermarket retailer. Each check-out station includes a cash drawer or electronic cash register (ECR), together with a product scanner. The product scanner reads the UPC (universal product code) on the product as part of the check-out procedure. In general, the coupon redemption subsystem is adapted to interface with this point-of-sale subsystem to receive information regarding the sale of products and any associated discounts (e.g. coupons being redeemed) from the point-of-sale subsystem. In addition, the coupon redemption subsystem is adapted to store information associated with redeemed coupons and to attempt to match that information to product sale and discount information downloaded from the point-of-sale subsystem.
In operation, information regarding product sales and discounts is entered into the point-of-sale subsystem by retailer personnel. Coupons redeemed in connection with consumer transactions are collected by the retailerpersonnel. According to one embodiment of the present invention, the redeemed coupons are input and stored in a secure container (e.g. a safe or lock box) that is not accessible to retailer personnel.
A suitable number of such redeemed coupons are collected by the retailer. The suitable number is based on a plurality of different customer transactions with the retailer typically occurring throughout a day, week or other acceptable time interval. After being collected and placed in the secure container, coupon verification personnel, preferably a third party not affiliated with the retailer, remove the coupons and cause coupon information to be input into the coupon redemption subsystem. The coupon information is input using a reader, scanner, or other coupon information input device that is separate and different from the scanner or input device of the point-of-sale subsystem. This information is also stored in the coupon redemption subsystem. Information regarding product sales and discounts extended by the retailer to consumers in connection with product sales is downloaded from the point-of-sale subsystem to the coupon redemption subsystem. The download may occur as an automatic transfer of files at periodic intervals including real time or substantially real tim

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