Point of interaction loyalty currency redemption in a transaction
Multiple different non-financial loyalty currencies held by different issuers are used by a consumer as financial tender for a transaction with a merchant. Each issuer pays to a primary issuer the financial currency value of the non-financial loyalty currencies being held in return for a corresponding reduction of the balance of non-financial loyalty currency. For each reduced balance, the primary issuer adds an equivalent primary loyalty currency to a primary loyalty account for the consumer. The primary issuer pays the merchant for the transaction in financial currency and makes an equivalent reduction in the balance of the primary loyalty currency. The financial value of each loyalty currency may be dependent upon its use in a transaction with a competitor of a merchant supplying loyalty currency to the consumer.
1. A computing apparatus configured on an electronic payment processing network, the computing apparatus comprising:
a processor; and
memory storing instructions that when executed by the processor cause the processor to:
receive an authorization request initiated by a point of service (POS) terminal of a merchant in the electronic payment processing network, the authorization request associated with a payment transaction from a payment account of a user; and
in response to receiving the authorization request, and while the payment transaction is being processed:
communicate, via a transaction handler of a payment processing system, with each secondary issuer of a plurality of secondary issuers to:
receive, from the secondary issuer, an equivalent financial currency value of a loyalty currency value of the user being held by the secondary issuer, the equivalent financial currency value corresponding to a reduction of the loyalty currency value from a loyalty account of a plurality of loyalty accounts, the loyalty account controlled by the secondary issuer; and
in response to receiving the equivalent financial currency value, convert the equivalent financial currency value to an equivalent primary loyalty currency value, wherein converting the equivalent financial currency value comprises adding the equivalent primary loyalty currency value to a primary loyalty account of the user in exchange for the equivalent financial currency value received from the secondary issuer;
send, as financial tender for the payment transaction, at least a first financial currency value corresponding to a sum of loyalty currency values that are reduced in the plurality of loyalty accounts; and
reduce a balance in the primary loyalty account according to the first financial currency value sent as financial tender for the payment transaction.
2. The computing apparatus of claim 1 , wherein the instructions further cause the processor to deduct from the payment account a difference between:
a transaction amount requested in the authorization request for the payment transaction; and
the first financial currency value corresponding to the sum of the loyalty currency values that are reduced in the plurality of loyalty accounts.
3. The computing apparatus of claim 1 , wherein the equivalent financial currency value of the loyalty currency value being held by each secondary issuer of the plurality of secondary issuers is based on a conversion factor based on an identity of the merchant.
4. The computing apparatus of claim 1 , wherein the instructions further cause the processor to clear and settle the first financial currency value sent as financial tender for the payment transaction.
5. The computing apparatus of claim 1 , wherein the instructions further cause the processor to determine whether the balance in the primary loyalty account has a primary equivalent financial currency value sufficient to satisfy a total value of the transaction.
6. The computing apparatus of claim 5 , wherein the instructions further cause the processor to, in response to determining that the balance in the primary loyalty account has the primary equivalent financial currency value sufficient to satisfy the total value of the transaction, send the at least a first financial currency value.
7. The computing apparatus of claim 5 , wherein determining whether the balance in the primary loyalty account has the primary equivalent financial currency value sufficient to satisfy the total value of the transaction is based on an exchange rate determined by at least one of the following: a total value of the balance in the primary loyalty account; transaction history of the user; membership status of the user; location of transaction; or any combination thereof.
8. A non-transitory computer medium storing instructions which, when executed by a processor of a computing apparatus configured on an electronic payment processing network, cause the computing apparatus to:
receive an authorization request initiated by a point of service (POS) terminal of a merchant in the electronic payment processing network, the authorization request associated with a payment transaction from a payment account of a user; and
in response to receiving the authorization request, and while the payment transaction is being processed:
communicate, via a transaction handler of a payment processing system, with each secondary issuer of a plurality of secondary issuers to:
receive, from the secondary issuer, an equivalent financial currency value of a loyalty currency value of the user being held by the secondary issuer, the equivalent financial currency value corresponding to a reduction of the loyalty currency value from a loyalty account of a plurality of loyalty accounts, the loyalty account controlled by the secondary issuer; and
in response to receiving the equivalent financial currency value, convert the equivalent financial currency value to an equivalent primary loyalty currency value, wherein converting the equivalent financial currency value comprises adding the equivalent primary loyalty currency value to a primary loyalty account of the user in exchange for the equivalent financial currency value received from the secondary issuer;
send, as financial tender for the payment transaction, at least a first financial currency value corresponding to a sum of loyalty currency values that are reduced in the plurality of loyalty accounts; and
reduce a balance in the primary loyalty account according to the first financial currency value sent as financial tender for the payment transaction.
9. The non-transitory computer medium of claim 8 , wherein the instructions further cause the computing apparatus to deduct from the payment account a difference between:
a transaction amount requested in the authorization request for the payment transaction; and
the first financial currency value corresponding to the sum of the loyalty currency values that are reduced in the plurality of loyalty accounts.
10. The non-transitory computer medium of claim 8 , wherein the equivalent financial currency value of the loyalty currency value being held by each secondary issuer of the plurality of secondary issuers is based on a conversion factor based on an identity of the merchant.
11. The non-transitory computer medium of claim 8 , wherein the instructions further cause the computing apparatus to clear and settle the first financial currency value sent as financial tender for the payment transaction.
12. The non-transitory computer medium of claim 8 , wherein the instructions further cause the computing apparatus to determine whether the balance in the primary loyalty account has a primary equivalent financial currency value sufficient to satisfy a total value of the transaction.
13. The non-transitory computer medium of claim 12 , wherein the instructions further cause the computing apparatus to, in response to determining that the balance in the primary loyalty account has the primary equivalent financial currency value sufficient to satisfy the total value of the transaction, send the at least a first financial currency value.
14. The non-transitory computer medium of claim 12 , wherein determining whether the balance in the primary loyalty account has the primary equivalent financial currency value sufficient to satisfy the total value of the transaction is based on an exchange rate determined by at least one of the following: a total value of the balance in the primary loyalty account; transaction history of the user; membership status of the user; location of transaction; or any combination thereof.
15. A computer-implemented method comprising:
receiving, with at least one processor, an authorization request initiated by a point of service (POS) terminal of a merchant in an electronic payment processing network, the authorization request associated with a payment transaction from a payment account of a user; and
in response to receiving the authorization request, and while the payment transaction is being processed:
communicating, with the at least one processor via a transaction handler of a payment processing system, with each secondary issuer of a plurality of secondary issuers to:
receive, with the at least one processor from the secondary issuer, an equivalent financial currency value of a loyalty currency value of the user being held by the secondary issuer, the equivalent financial currency value corresponding to a reduction of the loyalty currency value from a loyalty account of a plurality of loyalty accounts, the loyalty account controlled by the secondary issuer; and
in response to receiving the equivalent financial currency value, convert, with the at least one processor, the equivalent financial currency value to an equivalent primary loyalty currency value, wherein converting the equivalent financial currency value comprises adding, with the at least one processor, the equivalent primary loyalty currency value to a primary loyalty account of the user in exchange for the equivalent financial currency value received from the secondary issuer;
sending, with the at least one processor, as financial tender for the payment transaction, at least a first financial currency value corresponding to a sum of loyalty currency values that are reduced in the plurality of loyalty accounts; and
reducing, with the at least one processor, a balance in the primary loyalty account according to the first financial currency value sent as financial tender for the payment transaction.
16. The computer-implemented method of claim 15 , further comprising:
deducting, with the at least one processor, from the payment account a difference between:
a transaction amount requested in the authorization request for the payment transaction; and
the first financial currency value corresponding to the sum of the loyalty currency values that are reduced in the plurality of loyalty accounts.
17. The computer-implemented method of claim 15 , wherein the equivalent financial currency value of the loyalty currency value being held by each secondary issuer of the plurality of secondary issuers is based on a conversion factor based on an identity of the merchant.
18. The computer-implemented method of claim 15 , further comprising clearing and settling, with the at least one processor, the first financial currency value sent as financial tender for the payment transaction.
19. The computer-implemented method of claim 15 , further comprising determining, with the at least one processor, whether the balance in the primary loyalty account has a primary equivalent financial currency value sufficient to satisfy a total value of the transaction, based on an exchange rate determined by at least one of the following: a total value of the balance in the primary loyalty account; transaction history of the user; membership status of the user; location of transaction; or any combination thereof.
20. The computer-implemented method of claim 19 , further comprising, in response to determining that the balance in the primary loyalty account has the primary equivalent financial currency value sufficient to satisfy the total value of the transaction, sending the at least a first financial currency value.