Virtual Rewards Card With Partial Authorization for Point Payments

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Solution Overview

Problem

Consumers face cumbersome processes when using rewards credit cards, requiring them to log into accounts, convert points to currency, and use currency for payments, which is inefficient and inconvenient.

Innovation Solution

A system and method allowing direct spending of rewards points through a virtual account linked to a rewards account, eliminating the need for manual conversion to currency by using a virtual payment card or mobile wallet, with a backup funding source for insufficient points.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If consumers use traditional rewards credit card processes, then rewards points can be accrued and converted to currency, but the process becomes cumbersome and inconvenient requiring multiple steps including logging in, converting points, and using currency for payments

Engineering Contradiction:

Improveease of using rewards pointsVSAvoidtime required for point conversion and payment process

Core Design Contradiction:

Ease of operationVSLoss of time

Solution Approach 1:

The patent combines the rewards account and the payment account into a single unified account structure. The virtual card account serves both as a rewards account where points are accrued and as a payment account that can directly process transactions. This merging eliminates the need for separate point conversion and payment steps, allowing consumers to directly spend rewards points at merchants using the virtual card, thereby resolving the technical contradiction between ease of operation and time loss.

Inventive Principle:

Principle #5Merging (Combining)

2Productivity

If consumers manually convert rewards points to currency, then payments can be made, but the process is inefficient and requires additional steps

Engineering Contradiction:

Improveefficiency of rewards redemptionVSAvoidcomplexity of the rewards redemption process

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent extracts the point conversion step from the traditional rewards redemption process. Instead of requiring consumers to manually convert points to currency through a separate process, the system directly uses rewards points for payment transactions. The virtual card system allows merchants to accept rewards points directly without needing to convert them to currency first, thereby extracting the inefficient conversion step and improving overall productivity while reducing process complexity.

Inventive Principle:

Principle #2Taking out (Extraction)

Solution Approach 2:

The virtual card acts as an intermediary between the rewards account and the merchant payment system. It enables direct transaction processing using rewards points without requiring manual conversion to currency. The virtual card system mediates the interaction between the consumer's rewards balance and the merchant's payment processing, allowing efficient direct spending while simplifying the overall redemption process.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Ease of operation

If rewards points are directly integrated into payment systems, then transaction convenience is improved, but partial authorization and backup funding mechanisms are required

Engineering Contradiction:

Improveconvenience of direct rewards spendingVSAvoidcomplexity of authorization and funding management

Core Design Contradiction:

Ease of operationVSDevice complexity

Solution Approach 1:

The system performs preliminary actions by pre-loading the virtual card account with both rewards points and a backup funding source (such as a linked bank account or credit line). This preliminary setup ensures that when a transaction occurs, the system can immediately determine whether sufficient funds are available without requiring complex real-time authorization negotiations. The backup funding is arranged in advance, simplifying the transaction processing while maintaining ease of operation.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The system implements feedback mechanisms that provide real-time information to consumers about their rewards point balance and available credit limit. This feedback allows consumers to make informed spending decisions and understand their account status before transactions are completed. The partial authorization message provides feedback about the approved amount, helping consumers manage their spending while the system automatically handles the complexity of authorization and backup funding allocation.

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS20260105483A1Pay with points virtual card

Publication Date: 2026.04.16 WELLS FARGO BANK NA

AI summary

A method performed by a provider computing system includes receiving a payment request from a merchant computing system for a transaction between a merchant and a customer where the payment request a first amount associated with the transaction, determining a currency conversion value for the number of rewards points based on a merchant multiplier that is activated based on a location of the customer, determining the number of rewards points in the rewards account is not enough to cover the first amount associated with the transaction, transmitting to the merchant computing system a partial authorization message, receiving a modification to the payment request comprising a second amount associated with the transaction, and transmitting an approval message to the merchant computing system based on the number of rewards points in the rewards account being sufficient to cover the second amount.