Mobile Rewards Redemption via Single POS Payment Token
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Solution Overview
Problem
Current rewards points redemption systems require separate transactions and are limited in allowing customers to directly redeem points at merchant point of sale, often necessitating additional payment devices and merchant system modifications.
Innovation Solution
A method using a mobile device to authenticate and authorize rewards points redemption within a merchant transaction, allowing customers to select payment options that include redeeming rewards points for a portion or all of the payment amount, with the option to present a single form of payment to the merchant's point of sale device.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If customers use traditional rewards points redemption systems, then rewards points can be redeemed for cash or gifts, but customers must engage in separate advance transactions using a separate system and carry additional payment devices
Solution Approach 1:
The patent combines the rewards points redemption system with the merchant point of sale system, allowing customers to redeem rewards points directly at the point of sale terminal without separate transactions. The card issuer's system integrates both credit account and rewards account functionality into a single transaction flow, eliminating the need for separate redemption systems and additional payment devices.
Solution Approach 2:
The point of sale terminal is enhanced to handle multiple functions: processing traditional credit card transactions, processing rewards points redemptions, and providing selectable payment options that combine both credit and rewards accounts. This multi-functional capability allows a single device to replace multiple separate systems.
2Adaptability or versatility
If merchants implement rewards points redemption systems, then customers can redeem points at merchant locations, but merchant point of sale devices require modification and ongoing software/hardware updates
Solution Approach 1:
The card issuer's account management system serves as an intermediary that handles the complex rewards points redemption logic and communication with the rewards points system. The merchant's point of sale terminal only needs to interact with the card issuer's existing infrastructure, avoiding the need for merchants to implement and maintain complex rewards management software and hardware.
3Reliability
If customers access rewards points redemption separately from credit account, then rewards points can be managed independently, but customers must maintain redeemed rewards points in a separate payment device
Solution Approach 1:
The system merges access to both the credit account and rewards account through a single integrated interface at the point of sale. The card issuer's system processes both account types in one transaction flow, allowing customers to select payment options that draw from either or both accounts without needing separate payment devices or systems.
Data Source
AI summary
A method of payment using rewards is provided. The method includes receiving a payment amount from a customer's mobile device; sending selectable payment options to the mobile device based on an amount of rewards points available in a customer rewards account and an amount of credit available in a customer account, the selectable payment options including an option to redeem a portion of the amount of rewards points available to fund a first portion of the payment amount and using a portion of the amount of credit available to fund a second portion of the payment amount; receiving a customer selection of the option; generating a single form of payment in the form of at least one of a quick response (QR) code, a bar code, or a near-field communication (NFC) transmission; and transmitting the single form of payment to the mobile device for providing to a merchant.