Payment Instrument Loyalty Account Identification

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Solution Overview

Problem

Users are required to maintain multiple loyalty account identification cards for different merchants, making it inconvenient to access and manage multiple loyalty accounts during transactions.

Innovation Solution

A computer-implemented method and system that uses identifiers on user payment instruments to associate and identify user loyalty accounts with merchants, allowing a single payment instrument to access multiple loyalty accounts by encoding loyalty account information on the payment instrument or transmitting it during transactions.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If users maintain separate loyalty account identification cards for each merchant, then each merchant can accurately track loyalty transactions, but users must carry and manage multiple cards which reduces convenience

Engineering Contradiction:

ImproveConvenience of accessing loyalty accountsVSAvoidNumber of loyalty cards to manage

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The patent combines multiple loyalty account identification functions into a single payment instrument by embedding multiple loyalty account identifiers (such as loyalty account numbers or unique identifiers) within the payment card structure. This allows users to access multiple merchant loyalty programs with one card rather than carrying separate loyalty cards for each merchant.

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The payment instrument is designed to serve multiple functions: it acts as both a payment method and a loyalty account identification card for multiple merchants. The card contains encoded loyalty account information that can be read by different merchant systems, enabling universal use across various retail establishments without requiring separate specialized cards.

Inventive Principle:

Principle #6Universality (Multi-functionality)

2Reliability

If loyalty account information is stored on separate cards for each merchant, then transaction accuracy is maintained, but the system complexity and user burden increase

Engineering Contradiction:

ImproveAccuracy of loyalty transaction trackingVSAvoidSystem structure for managing multiple cards

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent segments loyalty account information into discrete, machine-readable identifiers that can be independently encoded on the payment instrument. Each loyalty account identifier is stored as a separate data element within the card's magnetic stripe, chip, or other machine-readable medium, allowing the system to accurately distinguish and track transactions for different loyalty programs while maintaining data integrity.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

The payment instrument contains encoded copies of loyalty account identification data that can be read by merchant systems. Rather than requiring physical loyalty cards, the system uses digital copies of loyalty account identifiers stored on the payment card, which can be electronically transmitted and verified to ensure accurate transaction tracking.

Inventive Principle:

Principle #26Copying

3Ease of operation

If a single payment instrument contains multiple loyalty account identifiers, then user convenience is improved, but the risk of information loss or corruption increases

Engineering Contradiction:

ImproveSimplification of card managementVSAvoidData integrity of loyalty account information

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent implements error detection and correction mechanisms within the encoded loyalty account information structure. Checksum fields, redundancy coding, and validation protocols are built into the data format to detect and correct potential errors before they can cause transaction failures or data corruption, providing a buffer against information loss.

Inventive Principle:

Principle #11Beforehand cushioning (Prior cushioning)

Solution Approach 2:

The system incorporates validation feedback mechanisms where the payment terminal or merchant system verifies the integrity of read loyalty account identifiers in real-time. If data corruption or errors are detected during reading, the system can request re-reading or trigger error handling procedures to ensure accurate data capture before processing the transaction.

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS11861648B2Loyalty account identification

Publication Date: 2024.01.02 GOOGLE LLC

AI summary

Using identifiers on user payment instruments to identify user loyalty accounts comprises a method to store a loyalty account list associated with a user, the loyalty account list comprising one or more user loyalty accounts; associate an identifier with the loyalty account list; receive information identifying a user loyalty account associated with a merchant, the information comprising an account number for the user loyalty account and an identity of the merchant; associate the user loyalty account with the loyalty account list; receive a request for information identifying a user loyalty account associated with a merchant, the request comprising the identifier received by the merchant from a user payment instrument and an identity of the merchant; determine the user loyalty account associated with the merchant; and provide the information identifying a user loyalty account associated with a merchant.