System and method for discounting fuel

1 - 17 . (canceled)

18 . A computer-implemented method of discounting a price-per-unit (PPU) of fuel during a fueling transaction by a customer at a fuel merchant, said method comprising:

reading the customer's financial card number to begin the fueling transaction;

identifying the customer by analyzing the financial card number;

determining that the identified 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;

exchanging at least a portion of the customer's reward points for a predefined PPU discount for fuel, said predefined PPU discount being associated with the vendor;

discounting the PPU of the fuel posted on the fuel dispenser by an amount equal to the predefined PPU discount; and

dispensing fuel to the customer at the discounted PPU.

19 . The method of claim 18 , wherein the vendor is an airline, and the reward points are frequent flyer miles.

20 . The method of claim 18 , further comprising:

calculating a redeemed discount by multiplying the PPU discount by the number of units of fuel purchased in the fueling transaction;

converting the redeemed reward points to a cash value at a rate agreed upon by the vendor and the fuel merchant;

crediting cash value equal to the redeemed discount to an account associated with the fuel merchant; and

debiting cash value equal to the redeemed discount to an account associated with the vendor.

21 . A computer-implemented method of discounting a price-per-unit (PPU) of fuel during a fueling transaction by a customer at a fuel merchant, said method comprising:

reading the customer's financial card number to begin the fueling transaction;

identifying the customer by analyzing the financial card number;

determining that the identified customer participates in a reward program with a reward point host 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;

retrieving from the reward point host, information regarding the customer's available reward points;

converting the customer's available reward points to a PPU discount for fuel;

discounting the PPU of the fuel posted on the fuel dispenser by an amount equal to the PPU discount; and

dispensing fuel to the customer at the discounted PPU.

22 . The method of claim 21 , further comprising, after the converting step, the step of obtaining the customer's approval to apply the PPU discount to the fueling transaction.

23 . The method of claim 22 , wherein the step of obtaining the customer's approval includes the steps of:

providing the customer with a number of different PPU discounts associated with redemption of different numbers of reward points; and

receiving a selection by the customer of an approved PPU discount.

24 . The method of claim 22 , further comprising:

calculating a redeemed discount by multiplying the PPU discount by the number of units of fuel purchased in the fueling transaction; and

providing the redeemed discount to a clearing mechanism.

25 . The method of claim 24 , 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.

26 . The method of claim 24 , further comprising transferring funds by the clearing mechanism from an account associated with the reward point host to an account associated with the fuel merchant, wherein the transferred funds are equal to the redeemed discount.

27 . A system for discounting a price-per-unit (PPU) of fuel during a fueling transaction by a customer at a fuel merchant, said system comprising:

input means for reading the customer's financial card number to begin the fueling transaction;

means for identifying the customer by analyzing the financial card number;

means for determining that the identified 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;

means for exchanging at least a portion of the customer's reward points for a predefined PPU discount for fuel, said predefined PPU discount being associated with the vendor;

means for discounting the PPU of the fuel posted on the fuel dispenser by an amount equal to the predefined PPU discount; and

dispensing means for dispensing fuel to the customer at the discounted PPU.

28 . A system for discounting a price-per-unit (PPU) of fuel during a fueling transaction by a customer at a fuel merchant, said system comprising:

input means for reading the customer's financial card number to begin the fueling transaction;

means for identifying the customer by analyzing the financial card number;

means for determining that the identified customer participates in a reward program with a reward point host 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;

means for retrieving from the reward point host, information regarding the customer's available reward points;

means for converting the customer's available reward points to a PPU discount for fuel;

means for discounting the PPU of the fuel posted on the fuel dispenser by an amount equal to the PPU discount; and

dispensing means for dispensing fuel to the customer at the discounted PPU.