Loyalty Program Integration via Payment Card Chip Storage

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Solution Overview

Problem

Customers face difficulties in managing multiple loyalty cards, leading to forgotten cards, expired points, and impractical manual entry or scanning processes, which hinders the effectiveness of loyalty programs and increases operational costs for merchants.

Innovation Solution

Integrating a loyalty program with a payment card by sending a payment transaction request that includes a consumer identifier linked to the loyalty program, allowing the merchant terminal to store this information in the payment card's chip, facilitating automated awarding and redemption of loyalty points.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If customers carry multiple loyalty cards to access different loyalty programs, then they can accumulate and redeem points from various merchants, but they face the problem of forgetting to carry specific cards and the impracticality of managing multiple physical cards

Engineering Contradiction:

Improveaccess to multiple loyalty programsVSAvoidmanagement of multiple cards

Core Design Contradiction:

Adaptability or versatilityVSEase of operation

Solution Approach 1:

The patent combines multiple loyalty card functions into a single payment card by storing multiple consumer identifiers in the payment card's chip. This allows customers to access multiple loyalty programs using one card instead of carrying multiple separate loyalty cards, thereby improving ease of operation while maintaining adaptability.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The payment card is designed to perform multiple functions: it serves as both a payment instrument and a loyalty program access tool. By storing multiple consumer identifiers linked to different loyalty programs, the single payment card becomes a universal tool that can access various loyalty programs, eliminating the need for separate loyalty cards.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Reliability

If merchants manually enter or scan loyalty card details at the POS terminal, then customers can receive loyalty benefits, but the process becomes time-consuming and impractical

Engineering Contradiction:

Improveloyalty benefit deliveryVSAvoidmanual entry or scanning process

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The system enables automatic identification and processing of loyalty program information through the payment card's embedded chip. When the payment card is presented at the POS terminal, the consumer identifier is automatically read from the chip and processed, eliminating the need for manual entry or scanning by either the customer or merchant, thereby reducing time loss while ensuring reliable loyalty benefit delivery.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces the mechanical process of manually entering or scanning loyalty card details with an automated electronic system. The consumer identifier stored in the payment card's chip is electronically read and processed by the POS terminal, substituting manual mechanical operations with automated electronic data retrieval and processing.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Productivity

If loyalty points have expiry dates to encourage redemption, then merchants can maintain program activity, but customers may forget to redeem points before expiry and lose valuable benefits

Engineering Contradiction:

Improveloyalty program activityVSAvoidforgotten loyalty points

Core Design Contradiction:

ProductivityVSLoss of information

Solution Approach 1:

The system provides automated feedback to customers about their loyalty point balances and expiry status. Through notifications and reminders, customers are informed of upcoming expirations, enabling them to redeem points before loss while maintaining program activity. This feedback mechanism addresses both the need for productivity and prevention of information loss.

Inventive Principle:

Principle #23Feedback

4Adaptability or versatility

If merchants integrate separate loyalty card systems with each POS system, then loyalty programs can be implemented, but the integration becomes expensive and problematic across multiple locations

Engineering Contradiction:

Improveloyalty program implementationVSAvoidintegration with multiple POS systems

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The payment card serves as a universal interface for loyalty program implementation across different merchants and POS systems. By storing consumer identifiers that can be read by standard POS terminals, the system enables loyalty program integration without requiring custom solutions for each POS system, thereby reducing device complexity while maintaining adaptability.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS11514432B2Methods and systems for integrating a loyalty program with a payment card

Publication Date: 2022.11.29 MASTERCARD INT INC

AI summary

Embodiments provide a method of integrating a loyalty program with a payment card of a customer. In some implementations, the method includes sending, by a merchant terminal, a payment transaction request to a server system associated with a payment network. The payment transaction request includes a payment transaction amount to be paid to a merchant account from an issuer account of the customer and a consumer identifier linked to the loyalty program associated with the merchant loyalty card. The method includes receiving a notification comprising a payment transaction approval message and a machine-readable script through the payment network. The machine-readable script comprises the consumer identifier and is executable by the merchant terminal. The method further includes storing the consumer identifier associated with the merchant loyalty card with existing customer data in the payment card of the customer by executing the machine-readable script thereby integrating the loyalty program with the payment card.