Abstract:
A method of redeeming a gift card having an associated programmed monetary value and incentivizing a user to purchase goods and services in an amount exceeding the programmed monetary value includes reading the identity of the gift card presented by a user and associating the gift card with a stored monetary card balance. The purchase amount of the user&#39;s desired purchase is determined and then compared with the associated card balance. A balance owing in excess of said associated card balance is calculated and the balance is then discounted by a predetermined percentage. Finally, payment from the user of the discounted balance owing is received. The system can include a registry to enable multiple subsequent discounts for a predetermined number of discounts during future purchases through the merchant or merchants.

Description:
CROSS-REFERENCE TO RELATED APPLICATION 
     This Non-Provisional Utility application claims the benefit of U.S. Provisional Patent Application Ser. No. 61/424,210, filed on Dec. 17, 2010, which is incorporated herein in its entirety. 
    
    
     FIELD OF THE INVENTION 
     The present disclosure generally relates to apparatuses and methods for gift cards. More particularly, the present disclosure relates to a gift card that offers a discount for amounts spent in excess of the gift card balance. 
     BACKGROUND OF THE INVENTION 
     Gift cards have been around since the beginning of the twentieth century and their popularity has virtually exploded since entering the electronic age. A gift card is a restricted monetary equivalent that is typically issued by a retailer to be used as an alternative to a non-monetary gift. Banks also issue gift cards. Gift cards have become increasingly popular since they relieve the donor of selecting a specific gift. Gift cards have ranked as the second-most given gift by consumers in the United States and as the most-wanted gift by women. In 2006 about $80 billion were paid for gift cards in the United States. When used within the restrictions set by the issuing entity, the gift card can be used the same as cash at the discretion of the user. Retailers have gradually used gift cards to replace gift certificate programs in their retail business operations. 
     Gift cards today typically resemble credit cards in size and appearance. These gift cards usually display a specific theme identifying them with the issuing entity such as a retailer and are identified by a specific number or code, but usually not with an individual name. Thus, the cards can be readily transferred from individual to individual. The cards may have a barcode or magnetic strip which is readable by an electronic credit card machine and some gift cards can be reloaded by payment and can thus be used multiple times. Usually, the cards having an electronically readable identification have no value until sold at which time the cashier enters the monetary value, which a customer wishes to put on the card. This monetary value is rarely stored on the card, but rather is cross-linked in a master database to the card identification. To counteract attempts at counterfeiting a card, the data on the card is encrypted. Other gift cards may have a set value and prior to use need to be activated by calling a specific phone number. 
     A new trend in gift cards is the use of mobile and virtual gift cards. These cards are delivered to mobile phones via SMS messages and applications resident on smart phones thus permitting users to carry only their cell phones eliminating the need to carry a physical card which can be prone to damage or loss and eliminate the need to drive to a ‘brick and mortar’ location to purchase the gift card. 
     One disadvantage of using a gift card is that purchase totals rarely match the programmed value of the gift card. Thus, a user who possessed a gift card will typically makes a purchase that is less than the value of the card, trying to use as much of the value of the card as possible without spending more than the programmed value to avoid having to pay additional cost. However, the retailer or merchant that issues the card usually desires that the value of the user&#39;s purchase exceeds the value of the card to increase the volume of sales from a gift card user. However, there is no ready incentive for a user to make purchases in excess of a gift card value. Therefore, a need for a gift card system and method of using a gift card incentivizing a user to make retail purchases in excess of the value of a gift card. 
     SUMMARY OF THE INVENTION 
     The present disclosure is generally directed to a method of redeeming a gift card having an associated programmed monetary value and incentivizing a user to purchase goods and services in an amount exceeding the programmed monetary value. The method includes reading the identity of the gift card presented by a user and associating the gift card with a stored monetary card balance. The purchase amount of the user&#39;s desired purchase is determined and then compared with the associated card balance. A balance owing in excess of said associated card balance is calculated and the balance is then discounted by a predetermined percentage. Finally, payment from the user of the discounted balance owing is received. 
     These and other features, aspects, and advantages of the invention will be further understood and appreciated by those skilled in the art by reference to the following written specification, claims and appended drawings. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
       The invention will now be described, by way of example, with reference to the accompanying drawings, in which: 
         FIG. 1  presents a schematic depiction of a system for redeeming a gift card to incentivize a consumer to purchase in excess of the gift card value; 
         FIG. 2  presents a block diagram representative of a method of redeeming a gift card to incentivize a consumer to purchase in excess of the gift card value; 
         FIG. 3  presents a block diagram representative of a method of redeeming a gift card to incentivize a consumer to return to the merchant for subsequent purchases; 
         FIG. 4  presents a block diagram representative of a method of replenishing a gift card balance onto a gift card upon depletion of subsequent discounts; and 
         FIG. 5  presents an exemplary gift card comprising an integrated discount identifier. 
     
    
    
     Like reference numerals refer to like parts throughout the various views of the drawings. 
     DETAILED DESCRIPTION OF THE INVENTION 
     The following detailed description is merely exemplary in nature and is not intended to limit the described embodiments or the application and uses of the described embodiments. As used herein, the word “exemplary” or “illustrative” means “serving as an example, instance, or illustration.” Any implementation described herein as “exemplary” or “illustrative” is not necessarily to be construed as preferred or advantageous over other implementations. All of the implementations described below are exemplary implementations provided to enable persons skilled in the art to make or use the embodiments of the disclosure and are not intended to limit the scope of the disclosure, which is defined by the claims. For purposes of description herein, the terms “upper”, “lower”, “left”, “rear”, “right”, “front”, “vertical”, “horizontal”, and derivatives thereof shall relate to the invention as oriented in  FIG. 1 . Furthermore, there is no intention to be bound by any expressed or implied theory presented in the preceding technical field, background, brief summary or the following detailed description. It is also to be understood that the specific devices and processes illustrated in the attached drawings, and described in the following specification, are simply exemplary embodiments of the inventive concepts defined in the appended claims. Hence, specific dimensions and other physical characteristics relating to the embodiments disclosed herein are not to be considered as limiting, unless the claims expressly state otherwise. 
     A gift card redemption system  100 , which is one of the preferred embodiments of the present invention and illustrates its various components, is presented in an exemplary schematic illustrated in  FIG. 1 . The gift card redemption system  100  is based at a retailer&#39;s central office  110  of a retail chain, or the central office  110  could also be a single retail establishment for a single non-chain retailer. The retailer central office  110  houses a computer  112  executing an instruction set for tracking and maintaining a data base of gift cards  140  and is further interconnected with a searchable storage medium  114 . The computer  112  is also connected to the Internet  150  with a communications link  116  for communicating with entities outside of central office  110 . 
     One or more retail outlets  120  associated with central office  110  are connected to central office  110  through an Internet  150  using an electronic link  121 . Each retail outlet  120  has an electronic reader  122  for reading encoded information on a gift card  140 . The gift card  140  can have the encoded information recorded on a magnetic strip  142  in a manner well known in the industry. To read the magnetic strip  142 , the gift card  140  is passed through a card slot  124  of the electronic reader  122  whereupon the encoded information is translated to electronic signal and transmitted to central office computer  112  via electronic links  121 ,  123  and via the Internet  150  and electronic link  116 . Card electronic reader  122  can also included a keypad  126  and a display screen  128  for entering supplemental data and interacting with central office  110 . Those practiced in the art will readily recognize that card electronic reader  122  can take various forms to facilitate compatibility with the method of data contained on gift card  140  such as an optical scanner to read a bar code or other means of optically encoded information. The illustration of electronic reader  122  with the function of magnetic strip reading capability is meant to be illustrative and not limiting. 
     With the increasing use of virtual and mobile gift cards that do not require the storage of data on a plastic card  140 , the gift cards can then be stored in virtual format with the requisite identification data on electronic communication devices with appropriately hosted software. In this manner, retail customers  130 , here represented by home pictorials, also possess network terminals  132  such as a personal computer which are communicative with Internet  150  via electronic communication links  133 . Alternatively, retail customers  130  can also communicate over Internet  150  utilizing a portable personal electronic device  134  communicative via link  135  of dedicated communications network  136 . The hosted software on network terminal  132  or personal electronic device  134  can communicate the necessary identification data via the illustrated communication links  133 ,  134 ,  137 , and  116  to retail central office  110  to facilitate redemption of the virtual gift card without the necessity of traveling to the ‘brick and mortar’ retail outlet  120 . 
     An exemplary redemption process  200  utilizing the gift card redemption system  100  is presented in the illustration in  FIG. 2 . The exemplary redemption process  200  illustrates the redemption of the gift card  140  incentivized with offering an added discount for amounts spent in excess of the redemption value of gift card  140 . In step  202  the process starts wherein a user receives a gift card  140  with an associated redemption value in block  204 . Those practiced in the art will readily recognize that while process  200  is described with respect to a plastic gift card  140  being redeemed at a ‘brick and mortar’ retail outlet  120 , the process is similar for redemption of a virtual gift card hosted on a home computer  132  or personal electronic device  134 . The user then selects merchandise items for purchase in block  206  and upon checkout from either retail outlet  140  or from the retailer&#39;s Internet web site and tenders gift card  140  as payment for purchase of the items in block  208 . 
     At checkout time when the user is paying for the items purchased, gift card  140  is proffered as payment, such as by swiping through card electronic reader  122 , and card  140  is electronically read and identified in block  210 . The retail outlet  120  then communicates the data read from card  140  to retail central office computer  112 , which in block  212  searches storage medium  114  for data associated with card  140 . Once the data associated with card  140  is located on storage medium  114 , the current monetary balance of card  140  is recalled in block  214 . In block  216 , the balance of card  140  is compared with the purchase amount for the items being purchased. If, in block  218 , the purchase amount for the items is not greater than the current monetary balance of card  140 , the process is directed to block  220  where the purchase amount is deducted from the monetary balance of card  140 . The new monetary balance of card  140  is stored in storage medium  114  until the next time the user proffers card  140  for purchase of items from the retailer, and the process ends at block  240 . 
     However, if in block  218  the purchase amount is found to be greater than the remaining monetary balance of the gift card  140  the process is directed to block  224  where the monetary balance of the gift card  140  is deducted from the purchase amount to determine a balance owing to the retail outlet. In block  226  a discount is established to be applied against the balance owing and the balance owing is discounted by the discount amount in block  228 . The discount can be a set percentage, such as ten percent, or the retailer can offer a tiered discount whereupon the discount percentages increase as the balance owing amount increases. For example, a ten percent discount can be offered for balances owing of 0-25 dollars, a fifteen percent discount offered for balances owing of 25-50 dollars and so on. Alternatively, a fixed dollar discount can be offered for balances owing beyond a fixed balance owing. The particular discount and how the discount is applied is at the discretion of the retailer with the intent being that the offer of a discount for balances owing will act as an incentive to the user of the gift card  140  to purchase items having a sales price that exceeds the monetary value of the gift card  140 . Once the discount has been applied to the balance owing, the user of the gift card  140  pays the discounted balance owing in block  230 . 
     In block  232  the user of the gift card  140  can be offered the opportunity to replenish a desired balance on the gift card  140 . If the user does not wish to replenish gift card  140 , the process is directed to block  240  and ends. However, if the user elects to replenish the monetary value of the gift card  140 , the process proceeds to block  234  where the user tenders a desired amount of money to add to the balance of the gift card  140 . In block  236  the new monetary balance of the gift card  140  is stored in the database in storage medium  114  until the data is required when the gift card  140  is again used. The process ends at block  240  until such time as the user again desires to use the gift card  140  and the process again restarts at block  202 . Every time the user offers the gift card  140  as payment for a purchase and the purchase amount is greater than the monetary value of card  140 , the retailer can offer a discount to be deducted from the balance owing as an incentive for the customer/user to continue replenishing the gift card  140  and returning to purchase merchandise from retail outlet  120 . 
     An exemplary redemption process  300  utilizing gift card redemption system  100  presented in the illustration in  FIG. 3 . The exemplary redemption process  300  is shown illustrating the redemption of the gift card  140  incentivized with offering an added discount for purchases made during a subsequent visit. The redemption process  300  commences with a series of steps as previously taught in  FIG. 2 . The process is directed to incentivize the consumer to return to the merchant for a subsequent purchase. The process deviates from the redemption process  200  during transaction completion steps. In this embodiment, the gift card  140  having a depleted value (step  224 ) is subsequently converted into a discount coupon for use during a future visit to the merchant. In step  350 , a one time, subsequent visit discount is established. The one time subsequent discount is established and subsequently associated with the gift card  140  when said associated monetary card balance is depleted. The one time subsequent discount is identified by data saved on either the storage media  142  integrated with the gift card  140  or remotely on the storage medium  114  within the respective merchant service system  110 . It is understood that the system can store any predetermined quantity of subsequent discounts for future use. In a configuration that utilizes a plurality of subsequent discounts, the system can include a step of reducing the quantity of subsequent discounts as each discount is applied to a purchase. The cardholder returns to the merchant at a future point in time in accordance with block  352 . The consumer selects merchandise and/or services offered by the merchant for purchase. During a transaction execution step, the merchant applies the one time, subsequent visit discount to the total purchase amount during block  354 . The transaction is completed with the consumer providing a means for payment for the total, reduced amount due as prescribed in block  356 . In parallel, the subsequent visit discount is nullified as directed in block  358  ensuring a one-time application of the subsequent visit discount. The process continues returning to block  232 , offering the consumer the ability to replenish the gift card  140 . 
     The process can include a step of collecting the gift card  140  from the user when the gift card  140  has a depleted value. 
     An exemplary modified redemption process  400  utilizing gift card redemption system  100  presented in the illustration in  FIG. 4 . The process is directed to incentivize the consumer to return to the merchant for subsequent purchases. The exemplary modified redemption process  400  is shown illustrating the redemption of a gift card  140  incentivized with offering a predetermined quantity of additional discounts for purchases made during subsequent visits. The redemption process  400  commences by establishing a predetermined quantity of subsequent discounts (step  460 ) for application to purchases made after depletion of a card balance. In one embodiment, the consumer can establish the quantity of subsequent discounts by either selecting certain gift cards  140 , purchasing a predetermined quantity of subsequent discounts when procuring the gift card, procuring the card at a certain retailer which would offer a higher quantity of subsequent discounts, and the like. For example, each subsequent discount may be $0.25 each, where the discount may be 10%, 15%, etc. Under those conditions, the consumer would result in a net savings for any purchase over $2.50. Once the quantity of predetermined discounts is established, the quantity is entered into the system and a server records the information (step  462 ) in storage medium  114 . If, in block  218 , the purchase amount for the items is not greater than the current monetary balance of card  140 , the process is directed to block  220  (not shown in this diagram) where the purchase amount is deducted from the monetary balance of card  140 . The new monetary balance of card  140  is stored in storage medium  114  until the next time the user proffers card  140  for purchase of items from the retailer, and the process ends at block  240  (not shown in this diagram). The process continues the same cycle returning to block  218  until the purchase amount exceeds card balance, wherein at which time, the card indicates that a subsequent discount is now applicable (block  464 ). The system polls the storage medium  114  to determined a quantity of remaining subsequent discounts that are available (block  464 ). In a condition where the remaining subsequent discounts are depleted, the process ends  240 . In a condition where at least one remaining subsequent discount exists, the consumer is asked if they desire to apply a subsequent discount to the purchase (block  466 ). If the consumer decides to wait to use the subsequent discount, the recorded quantity remains unchanged and the process returns to a point awaiting execution of block  218 . If the consumer decides to apply the subsequent discount to the purchase, the merchant applies the subsequent discount to the total purchase amount during block  354 . The transaction is completed with the consumer providing payment for the total, reduced amount due as prescribed in block  356 . Payment can be provided using cash, credit, a financial transfer, a cash equivalent, and the like. In parallel, the quantity of available subsequent discounts is reduced by a quantity of one as directed in block  468  retaining accurate use of the total number of originally available subsequent discounts. The process continues determining if the quantity of subsequent discounts is depleted (block  470 ). If a balance shows at least one subsequent discount is still available, then the process returns to a point awaiting execution of block  218 . If the subsequent discounts are depleted, the process can suggest that the cardholder replenish the gift card  140  (block  232 ). The cardholder can decide against replenishing the gift card  140  and the process ends  240 . When the cardholder decides to replenish the gift card  140 , the process proceeds to block  234  where the user tenders a desired amount of money to add to the balance of gift card  140 . In block  236  the new monetary balance of gift card  140  is stored in the database in storage medium  114  until the data is required when gift card  140  is again used. In parallel, a new predetermined quantity of subsequent discounts (step  460 ) is established for application to purchases made after depletion of the card balance and the process is repeated. 
     The above embodiments utilize remotely located searchable storage mediums  114  for use storage and retrieval of the data. In another embodiment, the information can be provided directly upon a storage medium  542 ,  560  integrated onto a gift card  540  as presented in the exemplary embodiment illustrated in  FIG. 5 . The gift card substrate  540  can be fabricated of any reasonable material for the application, including plastic, laminated plastic, molded plastic, a composite, such as carbon fiber, metal, and the like. The storage medium can be a magnetic data strip  542 , an electronic data medium  560 , or any other known storage media. A first exemplary storage medium embodiment utilizes the magnetic data strip  542  is adhesively attached to an exterior surface of the gift card substrate  540 . Data can be read from and updated to the magnetic data strip  542  in a manner similar to an audiocassette tape. The data can include a card balance, a quantity of subsequent discounts that remain available, a retailer name, a card number, and the like. A second exemplary storage medium embodiment utilizes the electronic data medium  560  for obtaining, updating, and storing respective data. The electronic data medium  560  can be accessed using any known means, including a passive wireless interface  562  (as illustrated), a mechanical interface, such as electro-mechanical contacts, and the like. A subsequent balance usage indicator  550  is provided in any one-time use configuration, such as a scratch off panel, wherein the merchant adheres to directions for use upon depletion of monetary balance  552  printed upon the gift card substrate  540 . 
     In use, the merchant would retrieve any remaining balance from the storage medium  542 ,  560  on the gift card  500 . When the monetary balance is depleted, the merchant could then apply the one time subsequent discount to the purchase. Should the consumer elect to wait, the consumer simply retains the gift card  500 . Where the consumer elects to apply the subsequent discount to the purchase, the merchant reduces the sales total accordingly. The merchant then follows the directions for use upon depletion of monetary balance  552  to indicate that the subsequent discount has been used. In the physical embodiment, the merchant removes the scratch off coating applied onto the subsequent balance usage indicator  550 . It is understood that where multiple subsequent discounts may be offered, the subsequent discount gift card  500  would include a plurality of subsequent balance usage indicators  550 ; one subsequent discount gift card  500  for each respective subsequent discount. In the electronic embodiment, the merchant revises the recorded data within the storage medium  542 ,  560  using a method and equipment respective to the selected storage medium  542 ,  560 . The electronic format enables the consumer the ability to replenish the monetary value as well as the quantity of available subsequent discounts. 
     Since many modifications, variations, and changes in detail can be made to the described preferred embodiments of the invention, it is intended that all matters in the foregoing description and shown in the accompanying drawings be interpreted as illustrative and not in a limiting sense. Thus, the scope of the invention should be determined by the appended claims and their legal equivalence.