System and method for discounting fuel
View Patent ↗A system and method of discounting a price-per-unit (PPU) of fuel during a fueling transaction by a customer at a fuel merchant. In one aspect, the invention identifies an issuer of the customer's credit card, associates the issuer with a PPU discount for the fuel, and discounts the posted PPU by an amount equal to the PPU discount associated with the identified credit card issuer. In another aspect, the invention determines that the customer participates in a reward program with a vendor with whom the fuel merchant has a relationship agreement for providing PPU discounts for fuel in exchange for redeemed reward points from the reward program. The customer's reward points are converted to a PPU discount, and the posted PPU of the fuel is discounted accordingly.
1. A computer-implemented method of discounting a price-per-unit (PPU) of fuel at a fuel merchant and increasing customer use of third-party financial cards issued by a plurality of third-party issuers, wherein the third-party financial cards are selected from a group consisting of credit cards and debit cards, said method comprising:
storing in a database, a PPU discount associated with one of third-party issuers, wherein the PPU discount is defined in affinity-type agreements between a fuel merchant and third-party issuers;
reading a customer's financial card number to begin a fueling transaction at the fuel merchant, wherein said financial card is available for use by said customer at a plurality of non-affiliated merchant locations;
identifying the third-party issuer of the financial card by analyzing the financial card number, each issuer having a PPU discount individually associated therewith;
associating the identified third-party issuer of the financial card with the stored PPU discount for the fuel;
discounting a PPU of the fuel posted on the fuel dispenser by an amount equal to the PPU discount associated with the identified issuer of the financial card;
dispensing a number of units of fuel to the customer at the discounted PPU;
calculating a redeemed discount by multiplying the dispensed number of units of fuel by the PPU discount associated with the identified third-party issuer of the financial card; and
allocating the redeemed discount between the third-party issuer of the financial card and the fuel merchant wherein said reading, identifying, associating and calculating are performed by a computing device.
2. The method of claim 1 , wherein the step of identifying the third-party issuer of the financial card includes analyzing a Bank Identification Number (BIN) range within the financial card number.
3. The method of claim 1 , further comprising storing in the relationship database, identities of a plurality of financial card issuers, wherein each given financial card issuer is associated with a PPU discount negotiated by the given financial card issuer and the fuel merchant.
4. The method of claim 1 , wherein the PPU discount associated with the identified third-party issuer of the financial card is a fixed discount value that does not vary with the posted PPU of the fuel.
5. The method of claim 1 , wherein the PPU discount associated with the identified third-party issuer of the financial card is a percentage of the posted PPU of the fuel, and the method further comprises, prior to the discounting step, the step of calculating a current PPU discount based on the PPU of the fuel posted on the fuel dispenser and the percentage discount.
6. The method of claim 1 , further comprising the steps of:
providing the redeemed discount to a clearing mechanism; and
wherein the step of allocating the redeemed discount between the third-party issuer of the financial card and the fuel merchant includes reimbursing the fueling merchant for the redeemed discount by the identified issuer of the financial card.
7. The method of claim 6 , wherein the step of providing the redeemed discount to a clearing mechanism includes the steps of:
storing the redeemed discount in a redeemed discounts database; and
interfacing the clearing mechanism with the redeemed discounts database.
8. The method of claim 6 , further comprising transferring funds by the clearing mechanism from an account associated with the third-party financial card issuer to an account associated with the fuel merchant, wherein the transferred funds are equal to the redeemed discount.
9. A system for discounting a price-per-unit (PPU) of fuel at a fuel merchant and increasing customer use of a third-party financial card issued by a third-party issuer, wherein the third-party financial card is selected from a group consisting of different issuers of credit cards, said system comprising:
an input device in a fuel dispenser for reading a customer's financial card number to begin a fueling transaction at the fuel merchant, said financial card being usable by said customer at any of a number of non-affiliated vendor locations;
means for identifying the third-party issuer of the financial card by analyzing the financial card number;
a relationship database for associating the identified issuer of the financial card with a stored PPU discount for the fuel, said PPU discount individualized to said issuer, wherein the stored PPU discount is defined in an affinity-type agreement between the fuel merchant and the third-party issuer;
a dispenser controller for retrieving the PPU discount from the relationship database, discounting a PPU of the fuel posted on the fuel dispenser by an amount equal to the retrieved PPU discount, and dispensing fuel to the customer at the discounted PPU;
means for calculating a redeemed discount by multiplying the dispensed number of units of fuel by the PPU discount associated with the identified issuer of the financial card; and
means for allocating the redeemed discount between the third-party issuer of the financial card and the fuel merchant.
10. The system of claim 9 , wherein the input device is selected from a group consisting of a magnetic card reader, a smart card reader, a radio frequency identification device (RFID) controller, an audio recognition device, a biometric recognition device, and an optical reader.
11. The system of claim 9 , wherein the relationship database stores identities of a plurality of financial card issuers, wherein each given financial card issuer is associated with a PPU discount negotiated by the given financial card issuer and the fuel merchant.
12. The system of claim 9 , further comprising:
means for providing the redeemed discount to a clearing mechanism; and
wherein the means for allocating the redeemed discount between the third-party issuer of the financial card and the fuel merchant includes means for reimbursing the fueling merchant for the redeemed discount by the identified issuer of the financial card.
13. The system of claim 12 , wherein the means for providing the redeemed discount to a clearing mechanism includes:
a redeemed discounts database; and
an interface adapted to provide the clearing mechanism with access to the redeemed discounts database.
14. The system of claim 12 , wherein the clearing mechanism includes means for transferring funds from an account associated with the third-party financial card issuer to an account associated with the fuel merchant, wherein the transferred funds are equal to the redeemed discount.
15. The system of claim 9 , wherein the PPU discount associated with the identified third-party issuer of the financial card is a fixed discount value that does not vary with the posted PPU of the fuel.
16. The system of claim 9 , wherein the PPU discount associated with the identified third-party issuer of the financial card is a percentage of the posted PPU of the fuel, and the system further comprises means for calculating a current PPU discount based on the PPU of the fuel posted on the fuel dispenser and the percentage discount.