Inverted tier rebate system
AssigneeDiscover Financial Services
InventorDavid W. Nelms
Life of this patent
Estimating the term…
Abstract
An inverted tier award system for financial alternatives to currency is presented, wherein a consumer using the financial alternative to currency is rewarded based on the purchases made by the consumer within a given time frame. Award rates can vary based on the total value of purchases made within a given time frame, with higher award rates assigned to lower value ranges to motivate those consumers to increase their purchases made using the financial alternative to currency. Additionally, higher award rates at lower value ranges can increase consumer loyalty and provide consumers access to their awards more quickly and more often. The award rates or award access can be modified to achieve greater profitability or to further other goals of the implementing organization.
Claims13
A system for determining an award amount accrued to a consumer due to at least one transaction, the transaction involving the consumer's use of a financial alternative to currency to purchase goods or services, the system comprising:
- a database containing a data record of the transaction and an account record for the consumer, the account record including a dollar-value sum which includes the transaction amount;
- and
- a computing device coupled to the database for accessing at least one of the records and for calculating the award amount, from either the dollar-value sum or the transaction amount, by applying thereto an award formula comprising a selected award rate from an inverted tier structure comprising
- a first tier corresponding to a first value range of goods or services purchased and providing a first award rate and
- a second tier corresponding to a second value range of goods or services purchased and providing a second award rate,
- wherein the minimum of the second value range is higher than the maximum of the first value range and the second award rate is lower than the first award rate, the inverted tier structure being stored in the computing device.
A method for determining an award amount accrued to a consumer due to at least one transaction, the transaction involving the consumer's use of a financial alternative to currency to purchase goods or services from a merchant, the method comprising:
- receiving, through a network, information about the transaction, the information including the transaction amount;
- storing the information about the transaction, including the transaction amount, in a database transaction record;
- accessing with a computing device a database account record for the consumer, the account record including a dollar-value sum which includes the transaction amount;
- and
- calculating with the computing device an award amount by applying to the dollar-value sum an award formula comprising a selected award rate from an inverted tier structure comprising:
- a first tier corresponding to a first value range of goods or services purchased and providing a first award rate, and
- a second tier corresponding to a second value range of goods or services purchased and providing a second award rate;
- wherein the second value range is higher than the first value range and the second award rate is lower than the first award rate.
Dependencies are inferred from the claim text.