Reward Points P2P Transaction System
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Solution Overview
Problem
Current systems do not allow for person-to-person transactions using reward or loyalty points, limiting customers to currency transfers or credit card charging for payments.
Innovation Solution
A method and system for conducting person-to-person transactions using reward points, which involves receiving a request to issue a reward points gift, sending notifications to the recipient, and transferring the points to their account, with options for converting points to cash equivalents and redeeming through various forms like digital deposits or prepaid cards.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If reward points are used for traditional redemption methods (cash back, experiences, merchandise), then customers can redeem their points, but customers cannot conduct person-to-person transactions using reward points
Solution Approach 1:
The reward points system is extended to serve multiple functions: traditional redemption (cash back, experiences, merchandise) and new P2P transaction capability. The gift recipient can redeem points for various forms including cash equivalents, goods, and services, making the system universally applicable across different transaction types.
Solution Approach 2:
The patent introduces an intermediary system that facilitates P2P transactions by enabling gift sending and redemption processes. The system acts as a mediator between the gift sender and recipient, handling point transfer, notification, and redemption verification without requiring direct interaction between parties.
2Ease of operation
If customers use currency transfer or credit card charging for P2P payments, then transactions can be completed, but customers cannot use their accumulated reward points
Solution Approach 1:
Customers accumulate reward points from previous purchases as a preliminary action. Instead of letting these points go unused, the system enables them to be transferred as gifts to other customers, thereby utilizing the previously accumulated value in a new transaction context.
Solution Approach 2:
The patent enables recovery of reward points that would otherwise be discarded or unused. By allowing P2P gifting and redemption, the system recovers the value of accumulated points and puts them back into circulation through new transactions.
3Productivity
If reward points are transferred directly without verification, then the transfer process is simple, but security and account verification issues may arise
Solution Approach 1:
The system implements feedback mechanisms including notification to the gift recipient about the incoming gift and verification steps during the redemption process. The recipient receives alerts and must authenticate their identity before points are transferred, providing feedback loops that ensure security while maintaining efficiency.
Solution Approach 2:
The system performs preliminary verification actions before completing the point transfer. Account validation, recipient verification, and transaction authorization are conducted in advance to prevent security issues while enabling rapid execution of the actual transfer.
Data Source
AI summary
Systems and methods for conducting person to person (P2P) transactions using points are disclosed. In one embodiment, in an information processing apparatus comprising at least one computer processor, a method for person-to-person reward points gifting may include: (1) receiving, from a bank customer, a request to issue a reward points gift to a gift recipient, the request identifying gift recipient contact information for the gift recipient and a reward points amount; (2) sending a notification to the gift recipient contact information for the gift recipient to log in a gift recipient account to redeem the reward points gift; and (3) transferring the reward points amount to a gift recipient reward points account.