# US 7,613,629 B2 · System and method for the transfer of loyalty points

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- Number: US 7,613,629 B2
- Document ID: US7613629B2
- Status: Granted
- Kind: B2
- Application number: 10/304,251
- Filed: 2002-11-26
- Published: 2003-07-10
- Granted: 2009-11-03
- Earliest claimed: 2001-03-29
- Assignees: American Express Travel Related Services Company, Inc.
- Inventors: Donna A. Antonucci; Theodore S. Voltmer
- Web page: https://patentgrep.com/patent/US7613629B2

## CPC

- G06Q 30/0226: Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
- B01J 23/6562: {Manganese}
- B01J 23/8913: {Cobalt and noble metals}
- B01J 37/0205: {in several steps}
- B01J 37/0226: {Oxidation of the substrate, e.g. anodisation}
- G06Q 20/042: {characterized in that the payment protocol involves at least one cheque}
- G06Q 20/208: {Input by product or record sensing, e.g. weighing or scanner processing}
- G06Q 30/02: Marketing; Price estimation or determination; Fundraising
- G06Q 30/0208: Trade or exchange of goods or services in exchange for incentives or rewards
- G06Q 30/0209: {Incentive being awarded or redeemed in connection with the playing of a video game}
- G06Q 30/0211: Determining the effectiveness of discounts or incentives
- G06Q 30/0217: involving input on products or services in exchange for incentives or rewards
- G06Q 30/0219: {based on funds or budget}
- G06Q 30/0224: {based on user history}
- G06Q 30/0225: {Avoiding frauds}
- G06Q 30/0227: {Frequent usage incentive value reconciliation between diverse systems}
- G06Q 30/0228: {On-line clearing houses}
- G06Q 30/0229: {Multi-merchant loyalty card systems}
- G06Q 30/0232: {Frequent usage rewards other than merchandise, cash or travel}
- G06Q 30/0233: {Method of redeeming a frequent usage reward}
- G06Q 30/0235: constrained by time limit or expiration date
- G06Q 30/0236: {Incentive or reward received by requiring registration or ID from user}
- G06Q 30/0238: at point-of-sale [POS]
- G06Q 30/0267: {Wireless devices}
- G06Q 30/0269: {based on user profile or attribute}
- G06Q 30/0283: Price estimation or determination
- G06Q 30/0601: Electronic shopping [e-shopping]
- G06Q 30/0613: {using intermediate agents}
- G06Q 40/12: Accounting
- G07F 17/3255: {Incentive, loyalty and/or promotion schemes, e.g. comps, gaming associated with a purchase, gaming funded by advertisements}
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- B01J: CHEMICAL OR PHYSICAL PROCESSES, e.g. CATALYSIS OR COLLOID CHEMISTRY; THEIR RELEVANT APPARATUS
- G07F: COIN-FREED OR LIKE APPARATUS (coin sorting G07D3/00; coin testing G07D5/00; {handling coins or paper currencies apart from payment activated apparatus G07D; payment architectures, schemes or protocols G06Q20/00})

## Abstract

The present invention includes a loyalty program on a network-wide level, wherein the program facilitates a transfer of loyalty points from at least one consumer account associated with a sponsoring company to at least one consumer account associated with a host company. In one embodiment, the invention analyzes the loyalty point balances of consumer accounts associated with a sponsoring company, and based upon certain criteria or rules, the system determines particular loyalty point balances which are below a certain threshold amount or which have remained inactive for a certain time period. After determining particular consumer accounts which meet the criteria or rules, the system establishes a new host account in a host system for each qualifying consumer. The system then deducts all or any portion of the remaining loyalty point balance in the particular consumer's sponsored account and credits the corresponding host account with a corresponding loyalty point balance. By transferring the consumer accounts to a host system, the sponsoring company eliminates or reduces the loyalty point balances from its system, thereby reducing the sponsoring company accounting liabilities and providing new options for the consumers to redeem the points.

## Claims

### Claim 1

A method for facilitating a transfer of loyalty points from a consumer account associated with a sponsoring company to a consumer account associated with a host company, said method including:
receiving and storing, by a loyalty computing device, manufacturer item identifiers, wherein said manufacturer item identifiers are received from said manufacturer;
receiving and storing, by said loyalty computing device, retail item identifiers, wherein said retail item identifiers are received from said merchant;
associating and storing, by said loyalty computing device, each of said retail item identifiers with a corresponding one of said manufacturer item identifiers;
receiving and processing, by said loyalty computing device, a purchase transaction, wherein said purchase transaction includes a consumer ID, a merchant item identifier, and a purchase price;
retrieving, by said loyalty computing device, a manufacturer item identifier corresponding to said merchant item identifier;
calculating, by said loyalty computing device, merchant loyalty points based on said consumer ID, said purchase price and a first currency to point ratio corresponding to said merchant item identifier;
calculating, by said loyalty computing device, manufacturer loyalty points based on said consumer ID, said purchase price and a second currency to point ratio corresponding to said manufacturer item identifier;
calculating, by said loyalty computing device, a third set of loyalty points based on said consumer ID, said purchase price and a third currency to point ratio corresponding to affiliated Service Establishment (SE) numbers;
combining, by said loyalty computing device, said merchant loyalty points, said manufacturer loyalty points, and said third set of loyalty points within loyalty account balances associated with said consumer ID;
acquiring, by said loyalty computing device, balance data related to said loyalty point balances of consumer accounts associated with a sponsoring company, wherein said loyalty account balances comprise said manufacturer loyalty points issued by a manufacturer and said merchant loyalty points issued by a merchant,
determining, by said loyalty computing device and using said balance data and rules, said consumer accounts that have loyalty point balances below a certain threshold amount;
deducting, by said loyalty computing device, at least a portion of said loyalty point balance of said consumer accounts associated with a sponsoring company that have loyalty point balances below the threshold amount; and,
crediting, by said loyalty computing device, loyalty point balances of said consumer accounts associated with said host company that have loyalty point balances below the threshold amount, wherein at least one of said sponsoring company or said host company initiated a transfer of said loyalty points.

### Claim 2 (depends on 1)

The method of claim 1, wherein said determining step includes determining said consumer accounts which have remained inactive for a certain time period.

### Claim 3 (depends on 1)

The method of claim 1, wherein said crediting step includes crediting said loyalty points to a loyalty point account in said host company corresponding to the same consumer from which said loyalty points were deducted in said deducting step.

### Claim 4 (depends on 1)

The method of claim 1, wherein said crediting step includes crediting said loyalty points to a loyalty point account in said host company corresponding to a different consumer from which said loyalty points were deducted in said deducting step.

### Claim 5 (depends on 1)

The method of claim 1, wherein said crediting step includes crediting said loyalty points to more than one loyalty point account associated with said host company.

### Claim 6

A method for facilitating a transfer of loyalty points from a consumer account associated with a sponsoring company to a consumer account associated with a host company, said method including:
receiving and storing, by a loyalty computing device, manufacturer item identifiers, wherein said manufacturer item identifiers are received from said manufacturer;
receiving and storing, by said loyalty computing device, retail item identifiers, wherein said retail item identifiers are received from said merchant;
associating and storing, by said loyalty computing device, each of said retail item identifiers with a corresponding one of said manufacturer item identifiers;
receiving and processing, by said loyalty computing device, a purchase transaction, wherein said purchase transaction includes a consumer ID, a merchant item identifier, and a purchase price;
retrieving, by said loyalty computing device, a manufacturer item identifier corresponding to said merchant item identifier;
calculating, by said loyalty computing device, merchant loyalty points based on said consumer ID, said purchase price and a first currency to point ratio corresponding to said merchant item identifier;
calculating, by said loyalty computing device, manufacturer loyalty points based on said consumer ID, said purchase price and a second currency to point ratio corresponding to said manufacturer item identifier;
calculating, by said loyalty computing device, a third set of loyalty points based on said consumer ID, said purchase price and a third currency to point ratio corresponding to affiliated Service Establishment (SE) numbers;
combining, by said loyalty computing device, said merchant loyalty points, said manufacturer loyalty points, and said third set of loyalty points within loyalty account balances associated with said consumer ID;
acquiring, by said loyalty computing device, balance data related to said loyalty point balances of consumer accounts associated with a sponsoring company, wherein said loyalty account balances comprise said manufacturer loyalty points issued by a manufacturer and said merchant loyalty points issued by a merchant;
determining, by said loyalty computing device and using said balance data and rules, said consumer accounts that have loyalty point balances below a certain threshold amount;
deducting, by said loyalty computing device, at least a portion of said loyalty point balance of said consumer accounts associated with a sponsoring company that have loyalty point balances below the threshold amount; and,
crediting, by said loyalty computing device, loyalty point balances of said consumer accounts associated with said host company that have loyalty point balances below the threshold amount, wherein an entity initiating the transfer of loyalty points is not a consumer.

### Claim 7

A tangible computer-readable medium having stored thereon a plurality of computer-executable instructions that, if executed by a computing device, cause said computing device to perform a method comprising:
receiving and storing manufacturer item identifiers, wherein said manufacturer item identifiers are received from said manufacturer;
receiving and storing retail item identifiers, wherein said retail item identifiers are received from said merchant;
associating and storing each of said retail item identifiers with a corresponding one of said manufacturer item identifiers;
receiving and processing a purchase transaction, wherein said purchase transaction includes a consumer ID, a merchant item identifier, and a purchase price;
retrieving a manufacturer item identifier corresponding to said merchant item identifier;
calculating merchant loyalty points based on said consumer ID, said purchase price and a first currency to point ratio corresponding to said merchant item identifier;
calculating manufacturer loyalty points based on said consumer ID, said purchase price and a second currency to point ratio corresponding to said manufacturer item identifier;
calculating a third set of loyalty points based on said consumer ID, said purchase price and a third currency to point ratio corresponding to affiliated Service Establishment (SE) numbers;
combining said merchant loyalty points, said manufacturer loyalty points, and said third set of loyalty points within loyalty account balances associated with said consumer ID;
acquiring balance data related to said loyalty point balances of consumer accounts associated with a sponsoring company, wherein said loyalty account balances comprise manufacturer loyalty points issued by a manufacturer and said merchant loyalty points issued by a merchant;
determining, using said balance data and rules, said consumer accounts that have loyalty point balances below a certain threshold amount;
deducting at least a portion of said loyalty point balance of said consumer accounts associated with a sponsoring company that have loyalty point balances below the threshold amount; and,
crediting loyalty point balances of said consumer accounts associated with said host company that have loyalty point balances below the threshold amount, wherein at least one of said sponsoring company or said host company initiated a transfer of said loyalty points.