Credit Card Rewards System Using Level 3 Data for Flexible Redemption
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Solution Overview
Problem
Consumers face difficulty in choosing between credit cards with various benefit and incentive programs, as existing programs often limit redemption options to specific providers, constraining cardholders to use particular airlines or partners for travel rewards, reducing the appeal of the card.
Innovation Solution
A system and method that rewards credit card users based on both qualifying purchases and miles traveled using travel tickets or passes, allowing points to be redeemed for various goods and services without being tied to a specific provider, using Level 3 Data to track travel miles and calculate rewards points, and managed through the credit card issuer or its agent.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If credit card issuers offer benefit programs tied to specific providers (e.g., frequent flyer miles with particular airlines), then cardholders receive targeted rewards, but consumer choice is limited and redemption flexibility is reduced
Solution Approach 1:
The patent creates a universal rewards platform where points earned from purchases can be redeemed across multiple providers and service categories. The system aggregates rewards from various sources (purchases, travel miles) and allows redemption with any participating provider, making the rewards program universally applicable rather than provider-specific.
Solution Approach 2:
The patent introduces a rewards management system that acts as an intermediary between cardholders and multiple providers. This system consolidates rewards tracking, conversion, and redemption across different providers, simplifying the complexity for consumers while maintaining flexibility in redemption options.
2Measurement precision
If credit card issuers track and reward based on miles traveled using Level 3 Data, then rewards accuracy improves, but data processing complexity increases
Solution Approach 1:
The patent utilizes Level 3 Data that is already captured during the initial purchase transaction. By pre-processing and storing this detailed transaction data at the point of sale, the system eliminates the need for subsequent complex data collection efforts, as all necessary information for miles calculation is already available.
Solution Approach 2:
The system automatically processes Level 3 Data to calculate miles traveled and convert them to rewards points without requiring manual intervention. The data processing is performed autonomously by the rewards management system, reducing operational complexity while maintaining high measurement precision.
Data Source
AI summary
A platform and program for enhancing the value and desirability of a credit card (or other payment product) to a card holder and encouraging increased use of the card as a payment device by rewarding the card holder based not only on qualifying purchases but on miles traveled in connection with travel ticket or travel pass purchases. The inventive program leverages qualifying transaction information and other data (e.g., Level 3 Data) which automatically flow with such transaction information. The rewards redeemed by the card holder according to the inventive platform and program are not tied to a particular provider of goods or services, and reward fulfillment is managed through the card issuer or its fulfillment agent.