Automated Electronic Coupon Processing at Point of Sale

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Solution Overview

Problem

Manual processing of paper coupons in retail stores is inefficient, prone to errors, and lacks consistent validation for expiration, validity, and fraud detection, especially with high volumes of coupons processed daily.

Innovation Solution

A computer-implemented method and system for automatically processing coupons at the point of sale using electronic coupon data, validation data, and barcode scanning to determine validity, expiration, and potential fraud, with integration to a back office system and clearing house for electronic redemption.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If manual processing of paper coupons is used, then flexibility in handling various coupon types is maintained, but processing efficiency and accuracy deteriorate due to high volumes and human error

Engineering Contradiction:

Improvecoupon processing efficiencyVSAvoidvalidation accuracy

Core Design Contradiction:

ProductivityVSReliability

Solution Approach 1:

The patent replaces manual mechanical processing of paper coupons with an automated electronic system. Barcode scanners optically read coupon codes, processors automatically validate against databases, and point-of-sale terminals electronically redeem coupons. This substitution eliminates manual handling errors while maintaining the ability to process various coupon types through standardized electronic validation rules.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Productivity

If automated electronic processing is implemented, then processing speed and accuracy improve, but system complexity and initial setup requirements increase

Engineering Contradiction:

Improvecoupon processing speedVSAvoidsystem implementation complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent implements a universal coupon processing system where a single automated platform handles multiple coupon types (digital coupons, printed coupons with barcodes, promotional codes) through standardized validation procedures. The system integrates with existing point-of-sale infrastructure, allowing the same hardware to process both regular transactions and coupon validations, thereby reducing overall system complexity despite the advanced processing capabilities.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Solution Approach 2:

The patent introduces a centralized coupon validation database that acts as an intermediary between the point-of-sale terminals and the coupon issuer systems. This database stores valid coupon codes, redemption rules, and status information, allowing terminals to automatically validate coupons without complex real-time communication with multiple external systems, thereby simplifying the overall architecture while maintaining high processing speed.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Reliability

If manual verification and sorting of coupons is performed, then fraud detection can be conducted, but processing time and labor requirements increase significantly

Engineering Contradiction:

Improvefraud detection capabilityVSAvoidprocessing time

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent implements preliminary validation by pre-loading coupon validation rules, valid code ranges, and redemption criteria into the system database before processing begins. When a coupon is presented, the system instantly compares it against these pre-established criteria rather than requiring step-by-step manual verification. This preliminary preparation enables rapid automated fraud detection without sacrificing accuracy, processing thousands of coupons per hour compared to manual handling.

Inventive Principle:

Principle #10Preliminary action

4Loss of information

If paper coupons are manually handled and keyed into accounting registers, then redemption tracking is maintained, but errors and discrepancies increase with high processing volumes

Engineering Contradiction:

Improveredemption data accuracyVSAvoidback office processing efficiency

Core Design Contradiction:

Loss of informationVSProductivity

Solution Approach 1:

The patent creates electronic copies of coupon data through barcode scanning, which automatically captures the coupon code, expiration date, and redemption value without manual transcription. This electronic copying eliminates keying errors entirely, as the data is directly transferred from the coupon's barcode to the processing system. The same electronic copy is then used for both point-of-sale redemption and back-office accounting, ensuring consistency across all records without requiring separate manual entry processes.

Inventive Principle:

Principle #26Copying

Data Source

PatentUS10453090B2Methods and systems for automated coupon processing

Publication Date: 2019.10.22 WALMART APOLLO LLC

AI summary

A computer-implemented method for processing coupons in a point of sale terminal includes receiving electronic coupon data representing a machine-readable coupon code. The coupon code is associated with a coupon presented by a customer at a retail point of sale. The method further includes receiving electronic coupon validation data representing at least one valid coupon code and/or at least one fraudulent coupon code. The method further comprises determining whether the coupon is valid based on the coupon code and the valid coupon code(s) and/or the fraudulent coupon code(s), and identifying the coupon as accepted or invalid based on the determination of whether the coupon is valid.