Reward Point Pooling Group Structure for Credit Card Management
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Solution Overview
Problem
Credit card issuers do not provide a mechanism for unrelated individuals to share or jointly participate in rewards programs, leading to the accumulation of reward points solely on individual accounts, and users often carry multiple cards to maximize rewards, which can be inconvenient and inefficient.
Innovation Solution
Disparate account holders can form a group or buying club where points or rewards for credit or debit card use are pooled and allocated based on transaction types or numbers, allowing members to earn rewards collectively while maintaining independent account processing and payment responsibilities.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Quantity of substance
If individuals carry multiple credit cards to participate in different rewards programs, then the total reward points earned increase, but the complexity of managing multiple cards and accounts increases
Solution Approach 1:
The patent combines multiple individual rewards accounts into a single pooled account that can be accessed by multiple users. This merging approach allows the group to accumulate reward points from all member accounts while managing them through a single interface, thereby increasing total rewards while reducing management complexity.
Solution Approach 2:
The pooled rewards account serves multiple functions: it accumulates points from multiple individual accounts, allows flexible allocation of points to different members, and provides a unified management interface. This multi-functionality resolves the contradiction by making a single system perform the roles of multiple separate card management systems.
2Adaptability or versatility
If credit card accounts are held individually, then each account holder maintains independent control and payment responsibility, but unrelated individuals cannot share or jointly participate in rewards programs
Solution Approach 1:
The patent segments the pooled rewards account into individual sub-accounts or allocations for each member, allowing independent tracking and control of each person's share while maintaining the ability to pool and transfer points as needed. This segmentation enables both individual control and joint participation.
Solution Approach 2:
The system introduces an intermediary pooled account that sits between individual credit card accounts and the rewards program. This intermediary structure allows unrelated individuals to participate in joint rewards programs while maintaining their individual account independence and payment responsibilities.
3Productivity
If reward points are allocated individually to each account holder, then each person controls their own rewards, but the group cannot leverage collective purchasing power or coordinate purchasing strategies
Solution Approach 1:
The patent implements a dynamic reward allocation system where points can be flexibly assigned to different members based on their individual spending patterns, preferences, or group agreements. The allocation structure can change over time, allowing the group to optimize for collective purchasing power in some periods and individual flexibility in others.
Data Source
AI summary
Disparate account holders may form a group or buying club within which points or rewards for credit or debit card use are allocated into a pool for the account holders. At the end of a billing cycle, transaction totals may be weighted based on the type or number of items purchased by members of the group to making point or reward allocations into the pool. Account holders may be added to the group by invitation as members of a group operate to solicit friends having similar interests and character to join the group. Merchants may market products to like-minded account holders in the group through one or a few members in a manner consistent with social networks or viral marketing approaches.