Online reward point exchange method and system with price, redemption and transacted value discount scheduling
An online reward exchange system and method of operation, which includes an exchange computer that interoperates via a computer network with user computers, reward point issuer computers, and merchant computers. The merchants' products may be purchased by a user by requesting an issuer(s) to redeem reward points in exchange for payment to the merchant for the product. The exchange computer is the gateway to the system and manages various transactions such as providing online product catalogs to users that list the merchants products, as well as displaying to the user the reward points he has available in his reward programs with the issuers. Once a user selects a desired product the exchange computer can mediate or manage the purchase transaction in which reward points are redeemed by the selected issuer and consideration is conveyed to the merchant in exchange for the merchant providing the product to the user.
1. A method of an exchange computer executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, comprising:
an exchange computer receiving from a merchant computer a price discount schedule that specifies price discounts to be automatically generated by the exchange computer as a function of elapsed time that an item is available for purchase, wherein the price discount that is applied to the item will increase as the length of time that the item is available for purchase increases;
the exchange computer automatically generating a price discount in accordance with the price discount schedule as a function of elapsed time that the item is available for purchase and offering the item for sale to a user computer using the generated price discount,
the exchange computer receiving from the user computer a request to purchase the item with the generated price discount and a selection of a user reward account stored on an issuer computer and a quantity of reward points to be redeemed from the user reward account towards payment of the purchase price; and
the exchange computer executing a purchase transaction for the item from the merchant computer using at least the quantity of reward points from the user reward account selected by the user computer by
the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points selected by the user for redemption towards purchase of the item from the merchant computer and
the exchange computer requesting the issuer computer to convey consideration directly to the merchant computer corresponding to the quantity of reward points reduced in the user reward account.
2. A method of an exchange computer executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, comprising:
an exchange computer receiving from a merchant computer a redemption schedule that specifies redemption discounts to be automatically generated by the exchange computer as a function of elapsed time that an item is available for purchase, wherein the redemption discount that is applied to the item will increase as the length of time that the item is available for purchase increases;
the exchange computer automatically generating a redemption discount in accordance with the redemption schedule as a function of elapsed time that the item is available for purchase and offering the item for sale to a user computer using the generated redemption discount,
the exchange computer receiving from the user computer a request to purchase the item with the generated redemption discount and a selection of a user reward account stored on an issuer computer and a quantity of reward points to be redeemed from the user reward account towards payment of the purchase price; and
the exchange computer executing a purchase transaction for the item from the merchant computer using at least the quantity of reward points from the user reward account selected by the user computer by
the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points selected by the user for redemption towards purchase of the item from the merchant computer and
the exchange computer requesting the issuer computer to convey consideration directly to the merchant computer corresponding to the quantity of reward points reduced in the user reward account.
3. A method of an exchange computer executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, comprising:
an exchange computer receiving from a merchant computer a transacted value discount schedule that specifies transacted value discounts to be automatically generated by the exchange computer as a function of elapsed time that an item is available for purchase, wherein the transacted value discount that is applied to the item will increase as the length of time that the item is available for purchase increases;
the exchange computer automatically generating a transacted value discount in accordance with the transacted value discount schedule as a function of elapsed time that the item is available for purchase and offering the item for sale to a user computer using the generated transacted value discount,
the exchange computer receiving from the user computer a request to purchase the item with the generated transacted value discount and a selection of a user reward account stored on an issuer computer and a quantity of reward points to be redeemed from the user reward account towards payment of the purchase price; and
the exchange computer executing a purchase transaction for the item from the merchant computer using at least the quantity of reward points from the user reward account selected by the user computer by
the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points selected by the user for redemption towards purchase of the item from the merchant computer and
the exchange computer requesting the issuer computer to convey consideration directly to the merchant computer corresponding to the quantity of reward points reduced in the user reward account.
4. An exchange computer for executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, the exchange computer programmed to:
receive from a merchant computer a price discount schedule that specifies price discounts to be automatically generated by the exchange computer as a function of elapsed time that an item is available for purchase, wherein the price discount that is applied to the item will increase as the length of time that the item is available for purchase increases;
automatically generate a price discount in accordance with the price discount schedule as a function of elapsed time that the item is available for purchase and offer the item for sale to a user computer using the generated price discount,
receive from the user computer a request to purchase the item with the generated price discount and a selection of a user reward account stored on an issuer computer and a quantity of reward points to be redeemed from the user reward account towards payment of the purchase price; and
execute a purchase transaction for the item from the merchant computer using at least the quantity of reward points from the user reward account selected by the user computer by
the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points selected by the user for redemption towards purchase of the item from the merchant computer and
the exchange computer requesting the issuer computer to convey consideration directly to the merchant computer corresponding to the quantity of reward points reduced in the user reward account.
5. An exchange computer for executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, the exchange computer programmed to:
receive from a merchant computer a redemption schedule that specifies redemption discounts to be automatically generated by the exchange computer as a function of elapsed time that an item is available for purchase, wherein the redemption discount that is applied to the item will increase as the length of time that the item is available for purchase increases;
automatically generate a redemption discount in accordance with the redemption schedule as a function of elapsed time that the item is available for purchase and offer the item for sale to a user computer using the generated redemption discount,
receive from the user computer a request to purchase the item with the generated redemption discount and a selection of a user reward account stored on an issuer computer and a quantity of reward points to be redeemed from the user reward account towards payment of the purchase price; and
execute a purchase transaction for the item from the merchant computer using at least the quantity of reward points from the user reward account selected by the user computer by
the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points selected by the user for redemption towards purchase of the item from the merchant computer and
the exchange computer requesting the issuer computer to convey consideration directly to the merchant computer corresponding to the quantity of reward points reduced in the user reward account.
6. An exchange computer for executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, the exchange computer programmed to:
receive from a merchant computer a transacted value discount schedule that specifies transacted value discounts to be automatically generated by the exchange computer as a function of elapsed time that an item is available for purchase, wherein the transacted value discount that is applied to the item will increase as the length of time that the item is available for purchase increases;
automatically generate a transacted value discount in accordance with the transacted value discount schedule as a function of elapsed time that the item is available for purchase and offer the item for sale to a user computer using the generated transacted value discount,
receive from the user computer a request to purchase the item with the generated transacted value discount and a selection of a user reward account stored on an issuer computer and a quantity of reward points to be redeemed from the user reward account towards payment of the purchase price; and
execute a purchase transaction for the item from the merchant computer using at least the quantity of reward points from the user reward account selected by the user computer by
the exchange computer requesting the issuer computer to reduce the user reward account by the quantity of reward points selected by the user for redemption towards purchase of the item from the merchant computer and
the exchange computer requesting the issuer computer to convey consideration directly to the merchant computer corresponding to the quantity of reward points reduced in the user reward account.