Universal Transaction Identifier for Rewards Programs
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Conventional electronic payment processing systems for rewards programs are limited by dependence on a few dominant payment processor firms, leading to conflicts of interest, restrictive enrollment requirements, unappealing rewards, and inadequate marketing opportunities for merchants, while also compromising consumer privacy and tracking behavior.
Innovation Solution
A system that uses a universal transaction associating identifier (UID120) to facilitate rewards across multiple resource providers, allowing consumers to perform transactions without specific payment methods or enrollment, and enabling merchants to create attractive rewards programs without payment processor constraints, promoting desired behaviors and reducing tracking.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If a universal transaction associating identifier system is implemented, then market participation and reward attractiveness are improved, but system complexity and infrastructure requirements increase
Solution Approach 1:
The patent implements a universal transaction associating identifier (UID120) that functions across multiple payment processors and reward programs simultaneously. This single identifier system replaces multiple processor-specific identifiers, enabling consumers to participate in rewards programs from any merchant without enrollment requirements while maintaining system manageability through centralized tracking.
2Reliability
If payment processor control over transaction data is maintained, then processor security and data management are improved, but merchant marketing opportunities and consumer choice are reduced
Solution Approach 1:
The patent extracts transaction data control from payment processors and transfers it to consumers through the universal identifier system. Consumers own their UID120 and can selectively share transaction data with merchants for rewards purposes without requiring processor approval or enrollment, thereby enabling merchant marketing initiatives while maintaining consumer privacy and security.
Solution Approach 2:
The universal transaction associating identifier acts as an intermediary between consumers, merchants, and payment processors. It enables direct merchant-consumer interactions for rewards programs without requiring processor control or enrollment infrastructure, allowing merchants to implement custom marketing strategies while processors maintain their payment processing functions.
3Ease of operation
If mandatory account enrollment is required, then processor control and program management are improved, but consumer convenience and market accessibility are reduced
Solution Approach 1:
The patent enables consumers to automatically participate in rewards programs without mandatory enrollment by using their existing UID120. The system self-registers consumers when they make purchases, eliminating the need for separate account creation, enrollment forms, or processor approval processes that currently hinder consumer convenience and market accessibility.
4Adaptability or versatility
If processor-specific rewards programs are used, then processor loyalty and control are improved, but merchant independence and reward diversity are reduced
Solution Approach 1:
The patent segments the rewards program management function from payment processing, allowing individual merchants to create and manage their own rewards programs using the universal identifier system. This enables each merchant to offer customized rewards and marketing initiatives independent of processor control, increasing reward diversity while maintaining manageable program structures through the standardized UID120 framework.
Data Source
AI summary
Rewards programs in which rewards are awarded for a series of transactions using a universal transaction associating identifier to associate transactions in common within each rewards program in a reward processing system. The system includes resource providers, a rewards program rule implementer having access to a rewards program database, and an implementer processor. The implementer processor receives transaction data whenever a transaction occurs using the universal transaction associating identifier, determines when a consumer has performed the transactions satisfying rules requirements, and identifies and awards a reward, including vouchers, for the consumer. The reward processing system generates a universal transaction associating identifier from a plurality of identification sources and provides for objects containing the universal transaction associating identifier. The reward processing system issues and redeems vouchers exchangeable for rewards. The system targets consumers and transmits messages adaptive to system elements, including rules requirements and the universal transaction associating identifier.