Reward Currency Redemption Platform Processor
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Solution Overview
Problem
Current credit card reward programs lack a seamless electronic method for card members to convert rewards currency into cash and transfer it directly to another person, with existing methods relying on gift cards or manual processes.
Innovation Solution
A system and method for person-to-person reward currency redemption using computer hardware and software, allowing reward currency holders to request a direct deposit of cash to a recipient's account, converting rewards to cash via a predefined rate, and transferring it through a redemption platform processor, utilizing various interfaces and notification methods.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If traditional reward redemption methods (gift cards, manual cash processes) are used, then card members can receive rewards, but the process is complex and not seamless
Solution Approach 1:
The patent introduces a payment network as an intermediary between the reward program and the recipient's bank account. The payment network processor receives redemption requests, converts reward currency to cash equivalents, and processes direct deposits to the recipient's account. This intermediary eliminates the need for complex manual processes or gift card intermediaries, providing a seamless electronic redemption experience while maintaining system simplicity.
2Productivity
If reward currency is converted to cash through traditional methods, then card members can access their rewards, but the process requires multiple steps and time delays
Solution Approach 1:
The system performs preliminary actions by pre-validating the recipient's bank account information and pre-converting the reward currency to cash equivalents before the actual redemption request is completed. When the card member initiates a redemption, the payment network processor already has the necessary information ready, allowing for immediate direct deposit processing. This eliminates the need for card members to wait for manual processing or gift card delivery, significantly reducing the time to receive rewards.
3Adaptability or versatility
If card members use existing redemption options, then they can access rewards, but they cannot directly transfer cash to another person electronically
Solution Approach 1:
The patent creates a universal redemption system that combines multiple functions into a single platform. The payment network processor can handle various reward currency types (points, miles, cash-back), convert them to different cash equivalents, and process transfers to any bank account through the payment network. This multi-functional approach allows card members to redeem rewards for direct cash transfers to themselves or others, eliminating the need for separate gift card systems or manual cash handling processes.
Data Source
AI summary
Methods and systems for person-to-person reward currency redemption involve, for example, receiving a request to redeem of reward currency of a reward currency holder as a direct deposit of cash to a deposit account of a recipient using a processor coupled to memory; converting the reward currency to an amount of cash based on a predefined conversion rate likewise using the processor; and also using the processor, transferring the amount of cash to the deposit account of the recipient.