Loyalty Program Intermediary for Transaction Verification
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Small to medium-sized businesses face high costs and complexity in implementing loyalty programs due to the need for standalone software and hardware systems, which discourages participation and limits the ability to offer rewards and incentives to customers effectively.
Innovation Solution
A system and method that allows for transaction verification and reward redemption without additional hardware or software installation, using a loyalty program platform that interfaces with financial institutions and payment processors to manage loyalty and advertising systems, enabling merchants to offer incentives and track their effectiveness.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If standalone software and hardware systems are implemented for loyalty programs, then transaction verification and reward management can be performed, but implementation costs and system complexity increase significantly
Solution Approach 1:
The patent introduces an intermediary component that bridges the loyalty program system and the financial transaction system. This intermediary receives transaction data from the financial system, verifies loyalty program eligibility, and triggers reward redemptions without requiring the merchant to implement complex standalone loyalty software or hardware. The intermediary acts as a mediator that enables loyalty program functionality through existing financial infrastructure.
Solution Approach 2:
The system enables existing financial transaction systems to perform multiple functions by integrating loyalty program verification and reward management capabilities. The same transaction processing infrastructure is used both for financial transactions and for verifying loyalty program eligibility, eliminating the need for separate dedicated systems.
2Reliability
If standalone loyalty program systems are implemented, then reward management and tracking can be performed, but implementation costs increase
Solution Approach 1:
The patent merges the loyalty program management functions with the existing financial transaction processing system. By combining reward verification, transaction tracking, and financial processing into a single integrated workflow, the system eliminates the need for separate loyalty program infrastructure, significantly reducing implementation costs for merchants.
Solution Approach 2:
The system enables automatic reward verification and redemption triggered by transaction data from the financial system. The loyalty program management occurs automatically without requiring additional manual processes or dedicated hardware at the merchant location, reducing both implementation and operational costs.
3Adaptability or versatility
If external systems manage transactions independently from financial institutions, then loyalty program flexibility can be maintained, but transaction verification reliability decreases
Solution Approach 1:
The intermediary component serves as a trusted mediator that receives authoritative transaction data directly from the financial institution's system. This ensures verification reliability by using official financial transaction records, while the intermediary maintains loyalty program flexibility by applying customizable reward rules to these verified transactions.
Data Source
AI summary
Methods, systems and device for verifying a transaction in a loyalty or advertising system are described. One such method includes: receiving, at least one processor, transaction data associated with a transaction between a customer and a merchant; determining, at the at least one processor, from the transaction data whether the customer and the merchant are associated with the loyalty or advertising system; and upon determining from the transaction data whether the transaction corresponds to a reward or advertisement, triggering the redemption of the reward or advertisement.