Method and system for processing of a real-time rebate at transaction authorization

Abstract

A method for initiating a rebate for a payment transaction funded using a reward account includes: storing account data entries, each entry including an account identifier and reward balance; receiving an authorization request for a transaction involving a merchant, the request including payment information and a transaction amount; calculating a transaction reward value based on the transaction amount and a conversion rule; identifying a reduction amount, wherein the amount is a lesser of the transaction reward value and the reward balance included in a data entry where the account identifier corresponds to the payment information; updating the reward balance included in the data entry based on the identified reduction amount; calculating a rebate amount based on the transaction reward value and reduction amount, and the conversion rule; and transmitting a rebate request for the rebate amount from an account of the merchant to an account corresponding to the payment information.

Description

technical field [0001] The present disclosure relates to initiating a discount for a payment transaction funded by a rewards account, and more particularly to processing a payment transaction based on a rewards balance after automatically initiating the discount for the rewards account. Background technique [0002] To increase usage, many payment card issuers offer cardholders incentives for using their payment cards. Rewards can take many forms such as reward points redeemable for cash or products, cash back, airline miles, reward points for specific vendors (e.g., travel services, hotels, merchants, retailers, etc.), activity-based Degree reward levels (where each level may have corresponding benefits), and more. However, these traditional rewards programs often require substantial action by the cardholder to earn the benefit. Furthermore, cardholders typically cannot take advantage of rewards directly at the point of sale, but instead need to redeem the reward, obtain ...

AI Technical Summary

Problems solved by technology

However, this may once again frustrate consumers who may forget to switch between usage types

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