Debit card system and method for implementing incentive award program

A method for implementing an incentive award program for a customer having participants, said program permitting the participants to obtain as an award products and/or services from authorized merchants who are part of the incentive award program and who are part of a credit/debit card network, which credit/debit card network also includes unauthorized merchants who are not part of the incentive award program and who are part of the credit/debit card network, each merchant having access via an input/output (I/O) port to a credit/debit card network processor of the credit/debit card network, said method comprising the steps of:

• a. providing a plurality of debit cards, each assigned to one participant and having a unique account number corresponding to an award account of the participant;
• b. accessing the following program data:
• (1) data identifying the authorized unique account numbers of the participants,
• (2) data identifying the authorized merchants, and
• (3) data indicating the balance in each participant's award account,
• said filter processor interfacing with the credit/debit card network processor;
• c. transmitting the following transaction data in response to a transaction initiated by a merchant using an initiating card having an initiating account number:
• (1) the initiating account number of the card initiating the transaction,
• (2) merchant identification data of the initiating merchant, and
• (3) data regarding the amount of the initiated transaction;
• d. comparing the transmitted transaction data to the program data;
• e. validating the transaction when the comparing step indicates that the transaction has been initiated by an authorized merchant using the unique account number of a participant having a sufficient balance in the participant's corresponding award account to cover the transaction;
• f. invalidating the transaction when the comparing step indicates that the initiating account number is not one of the authorized account numbers;
• g. invalidating the transaction when the comparing step indicates that the initiating merchant is not one of the authorized merchants;
• and
• h. invalidating the transaction when the comparing step indicates that the balance in the award account corresponding to the initiating account number is insufficient to cover the amount of the initiated transaction.

A system for implementing an incentive award program for a customer having participants, said program permitting the participants to obtain as an award products and/or services from authorized merchants who are part of the incentive award program, said system comprising:

• a. a credit/debit card network which includes the authorized merchants who are part of the credit/debit card network and which also includes unauthorized merchants who are not part of the incentive award program and who are part of the credit/debit card network, each merchant having access via an input/output (I/O) port to a credit/debit card network processor of the credit/debit card network;
• b. a plurality of debit cards, each assigned to one participant and having a unique account number corresponding to an award account of the participant;
• c. a filter processor accessing the following program data:
• (1) data identifying the authorized unique account numbers of the participants,
• (2) data identifying the authorized merchants, and
• (3) data indicating the balance in each participant's award account,
• said filter processor interfacing with the credit/debit card network processor;
• d. means, responsive to a transaction initiated by a merchant using an initiating card having an initiating account number, for transmitting from the credit/debit card network processor to the filter processor the following transaction data:
• (1) the initiating account number of the card initiating the transaction,
• (2) merchant identification data of the initiating merchant, and
• (3) data regarding the amount of the initiated transaction;
• e. said filter processor including means for evaluating the transaction data transmitted to the filter processor by the credit/debit card network processor by comparing the transaction data to the program data;
• f. said filter processor evaluating means including means for generating validating data for the transaction when the evaluated transaction data indicates that the transaction has been initiated by an authorized merchant using the unique account number of one of the participants having a sufficient balance in the participant's corresponding award account to cover the transaction;
• g. said filter processor evaluating means including means for generating invalidating data for the transaction when the evaluated transaction data indicates that the initiating account number is not one of the authorized account numbers;
• h. said filter processor evaluating means including means for generating invalidating data for the transaction when the evaluated transaction data indicates that the initiating merchant is not one of the authorized merchants;
• i. said filter processor evaluating means including means for generating invalidating data for the transaction when the evaluated transaction data indicates that the balance in the award account corresponding to the initiating account number is insufficient to cover the amount of the initiated transaction;
• j. said filter processor including means for transmitting the validating or invalidating data to the credit/debit card network processor so that the credit/debit card network processor provides the validating or invalidating data for the evaluated transaction to the initiating merchant.

A system for implementing an incentive award program for a customer having participants, said program permitting the participants to obtain as an award products and/or services from authorized merchants who are part of the incentive award program and who are part of a credit/debit card network, which credit/debit card network also includes unauthorized merchants who are not part of the incentive award program and who are part of the credit/debit card network, each merchant having access via an input/output (I/O) port to a credit/debit card network processor of the credit/debit card network, said system comprising:

• a. a plurality of debit cards, each of the cards having a unique account number corresponding to an award account;
• b. a filter processor accessing the following program data:
• (1) data identifying the authorized unique account number of each card,
• (2) data identifying the authorized merchants, and
• (3) data indicating the balance in each award account,
• said filter processor interfacing with the credit/debit card network processor;
• c. means, responsive to a transaction initiated by a merchant using an initiating card having an initiating account number, for transmitting from the credit/debit card network processor to the filter processor the following transaction data:
• (1) the initiating account number of the card initiating the transaction,
• (2) merchant identification data of the initiating merchant, and
• (3) data regarding the amount of the initiated transaction;
• d. said filter processor including means for evaluating the transaction data transmitted to the filter processor by the credit/debit card network processor by comparing the transaction data to the program data;
• e. said filter processor evaluating means including means for generating validating data for the transaction when the evaluated transaction data indicates that the transaction has been initiated by an authorized merchant using the unique account number of one of the cards having a sufficient balance in the card's corresponding award account to cover the transaction;
• f. said filter processor evaluating means including means for generating invalidating data for the transaction when the evaluated transaction data indicates that the initiating account number is not one of the authorized account numbers;
• g. said filter processor evaluating means including means for generating invalidating data for the transaction when the evaluated transaction data indicates that the initiating merchant is not one of the authorized merchants;
• h. said filter processor evaluating means including means for generating invalidating data for the transaction when the evaluated transaction data indicates that the balance in the award account corresponding to the initiating account number is insufficient to cover the amount of the initiated transaction;
• i. said filter processor including means for transmitting the validating or invalidating data to the credit/debit card network processor so that the credit/debit card network processor provides the validating or invalidating data for the evaluated transaction to the initiating merchant .