Telephonic communications – With check operated control – Other than coin
Reexamination Certificate
1998-09-02
2001-04-24
Kuntz, Curtis (Department: 2643)
Telephonic communications
With check operated control
Other than coin
C379S111000, C379S114030, C379S121020, C705S014270, C705S014270, C705S026640
Reexamination Certificate
active
06222914
ABSTRACT:
TECHNICAL FIELD OF THE INVENTION
The present invention generally relates to the field of computer programming and data processing systems for incentive award programs and, more particularly, to a system and method for administration of an incentive award system having a delayed award payment using a credit instrument.
BACKGROUND OF THE INVENTION
Many recent prior art incentive award programs utilize either a credit card or debit card which is issued to the Participant. For example, one such prior art process requires the issuance of a traditional credit card to each incentive program Participant. The Participant's cardholder account is assigned a credit limit which is based upon the Participant's past credit history. Earnings which are accumulated in the incentive award program are then used to “float” this credit limit up to the level of the Participant's assigned credit limit plus any available non-redeemed earnings. The Participant may then use the credit card to make purchases at any merchant honoring the credit card. These purchases will then downgrade the amount of available credit on the cardholder account. After settlement and posting of these purchase transactions into the cardholder's account, the incentive program's administrator may make a payment to the cardholder's account based upon charge amounts and any available program earnings. The Participant/cardholder is then responsible for any outstanding balances above the amount paid by the incentive program administrator. He may choose to pay this amount or allow the balance to revolve, thereby accruing interest charges until paid.
In such prior art systems, incentive award program points may be earned in any way, but it is most common to award points for use of the credit card, either to purchase the Sponsor's products or to purchase any items that may be paid for with the credit card. The incentive award program points therefore are in the nature of a rebate on the prior qualifying purchases.
In the system as just described, points earned by the Participant in the incentive program are converted to dollars whenever purchases are posted to the cardholder's account. At that time, any available points are converted to dollars and the incentive program administrator makes a payment to the credit card issuer (i.e. the Bank that issues the credit card). Under such a scenario, the incentive program administrator retains the money earned through the incentive program until such time as the program Participant makes a purchase with his credit card. This system therefore has the feature that the incentive program administrator keeps track of points earned through the incentive program and then converts these points to dollars immediately after the Participant makes a purchase with the credit card. The Sponsor of such a plan therefore provides an incentive to the Participant to perform the desired action in order to earn the award points, but once the award points are earned, they provide no further incentive to the Participant to perform the desired action. In other words, once the points are awarded, incentive to perform the desired action is only achieved by awarding further points; the previously awarded points don't create any incentive for customer loyalty.
There is therefore a need for a system and method for administration of an incentive award program in which incentive to perform the desired action is achieved not only by a Participant's desire for more award points, but is also achieved by the method by which the points may be redeemed. In particular, there is a need for a system and method for administration of an incentive award program which provides incentive both for performing the desired action and for Participant loyalty to the program. The present invention is directed toward meeting these needs
SUMMARY OF THE INVENTION
The present invention relates to a system and method for administration of an incentive award program wherein award points are earned in response to certain actions by the Participants and then credited to the Participant's credit card, but only after a predetermined time delay. Furthermore, the Participant must still be a customer in good standing with the credit card Sponsor at the end of this predetermined delay period in order to receive the awarded points. As used herein, the term “credit card” is intended to encompass traditional credit cards, debit cards, smart cards, etc. which are commonly accepted as payment for purchases in place of cash or bank checks. The system of the present invention therefore creates an incentive for the Participant to purchase the Sponsor's goods and/or services in order to earn award points, and further creates an incentive for the Participant to remain a loyal customer of the Sponsor in order to receive and redeem these award points at some point in the future. Each award point therefore serves a double function as a reward for using the Sponsor's products and/or services and also as an incentive for customer loyalty to the Sponsor.
In one form of the invention, a method for administration of an incentive award system is disclosed, comprising the steps of: a) issuing a credit card account to a Participant; b) selling goods and/or services of a Sponsor to said Participant; c) charging said sales to said credit card account; d) determining an award amount bases at least in part upon said charges; e) waiting a predetermined length of time; f) determining if said Participant is still a customer in good standing of said Sponsor after said predetermined length of time; and g) if said Participant is determined at step (f) to be a customer in good standing, crediting said award amount to said credit card amount.
In another form of the invention, a method for administration of an incentive award system is disclosed, comprising the steps of: a) causing a credit provider to issue a credit card account to a Participant; b) creating a database containing information about said credit card account; c) selling goods and/or services of a Sponsor to said Participant; d) charging said sales to said credit card account; e) using computer data processing means to calculate an award amount based at least in part upon said charges; f) waiting a predetermined length of time; and g) determining if said participant is still a customer in good standing of said Sponsor after said predetermined length of time; and h) causing said award amount to be credited to said credit card account information if said Participant is determined at step (g) to be a customer in good standing.
REFERENCES:
patent: 5025372 (1991-06-01), Burton et al.
patent: 5056019 (1991-10-01), Schultz
patent: 5210789 (1993-05-01), Jeffus et al.
patent: 5608785 (1997-03-01), Kasday
patent: 5909486 (1999-06-01), Walker et al.
patent: 5991376 (1999-11-01), Hennessy et al.
patent: WO 96/29668 (1996-09-01), None
Shell MasterCard Application Form From CHASE and Monthly Cycling Bill.
Kuntz Curtis
Tieu Binh K.
Woodard Emhardt Naughton Moriarty & McNett
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