Gift Card Redemption via Existing Payment Accounts
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Solution Overview
Problem
Current gift card systems are cumbersome, leading to unused funds due to difficulty in tracking and redeeming values, as recipients often forget to use physical or electronic gift cards, resulting in millions of dollars going unspent.
Innovation Solution
A system that allows gift card recipients to redeem gift card values using their existing credit or debit cards, eliminating the need for physical cards or codes by associating a policy with the recipient's account, which automatically applies the gift card amount during qualifying transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Quantity of substance
If physical gift cards or electronic gift codes are used, then gift card values can be provided to recipients, but recipients often forget to use them or lose track of them, resulting in unused funds
Solution Approach 1:
The system automatically applies gift card values to recipient transactions without requiring manual intervention. The gift card system self-manages the redemption process by monitoring transactions and automatically deducting amounts, eliminating the need for recipients to actively remember or manage gift card codes.
Solution Approach 2:
The system provides continuous feedback to both givers and recipients about gift card status and transaction amounts. Givers receive notifications when gift card values are applied, and recipients are informed of remaining balances, creating a feedback loop that ensures proper usage and tracking of gift card values.
2Quantity of substance
If recipients must enter gift card codes or click links to redeem, then gift card values can be transferred, but the process becomes complicated and time-consuming
Solution Approach 1:
The complex gift card redemption process is extracted from the transaction flow. Instead of requiring code entry or link clicking during purchase, the system separately manages gift card application in the background, allowing recipients to make normal purchases without additional steps while still benefiting from gift card values.
Solution Approach 2:
The system introduces an intermediary layer between the recipient's payment and the gift card system. This intermediary automatically matches transactions with gift card values and processes the deduction, shielding the recipient from complexity while enabling seamless value transfer.
3Quantity of substance
If physical gift cards are mailed to recipients, then gift card values can be delivered, but recipients may lose or forget about the cards
Solution Approach 1:
Instead of mailing physical cards that can be lost, the system creates and transmits electronic representations of gift card values through notifications and account associations. These electronic copies remain in digital form, easily stored and referenced, eliminating the physical loss risk while maintaining full value transfer capability.
Solution Approach 2:
The system transitions gift card delivery from the physical dimension (mailed cards) to the digital dimension (electronic notifications and account integration). This dimensional shift enables better tracking, storage, and retrieval of gift card information without the limitations of physical media.
4Ease of operation
If gift card balances are not tracked, then recipients can use gift cards freely, but millions of dollars remain unused due to lack of awareness
Solution Approach 1:
The system continuously monitors and reports gift card balances to recipients through notifications and account statements. This feedback mechanism ensures recipients are always aware of remaining values, prompting them to use the funds before expiration while maintaining the freedom to spend on any qualifying purchases.
Data Source
AI summary
Disclosed herein are systems, methods, and non-transitory computer-readable storage media for enabling gift card recipients to redeem gift card amounts using existing accounts such as a credit/debit card. A system practicing the method identifies a giver and recipient of a gift card amount and associated accounts. A policy is established which governs how the gift card is redeemed, such as a specific merchant or item. When the recipient makes a purchase using an existing credit/debit card according to the policy, the gift card amount is applied to the transaction. No special codes, separate physical gift cards, or printable coupons are necessary for redemption. The recipient makes purchases using their normal purchasing credit/debit card via a qualifying purchase according to the policy, and the gift card is applied automatically. The recipient credit/debit card becomes a combination of an open-looped card and a closed-loop card. Thus, no money is wasted or lost.