Abstract:
A value management system which facilitates substantially real-time exchange of loyalty value during transactions. The value management system includes an exchange computer for acting as an intermediary between a loyalty member computer and a loyalty system on behalf of a loyalty member. The exchange computer is for storing login information of the loyalty member, for accessing a loyalty account of the loyalty member within the loyalty system using the login information, for determining a loyalty value associated with the loyalty account, for performing a transaction with the loyalty member involving a change in the loyalty value in exchange for other value, and for charging a fee from the loyalty member in return for the transaction.

Description:
BACKGROUND 
       [0001]    Customers earn loyalty credits for frequenting service providers. These credits appear in various units of measurement but most often take the form of “points” or, in the case of air travel, “miles”. 
         [0002]    Service providers assign a currency value to points. Most often, this value is used for internal accounting purposes. Often, points also have an external currency value, allowing marketers of related goods and services to purchase blocks of points to be offered to customers as incentives for ancillary purchases. For example, sometimes credit card providers allow customers to convert points to actual cash value on their statements, while others allow customers to donate to a charity which has a tax benefit. 
         [0003]    Other types of programs have trapped value. For example, cell phone providers offer minutes of calling time. Gift card providers offer gift cards containing value exchangeable only with a particular provider. 
         [0004]    For purposes of this application, the term “points” covers all forms of value including, but not limited to, loyalty points and miles. 
         [0005]    Present day programs offer a limited number of ways to redeem and use points. Therefore, it would be desirable to provide a value management system that offers more ways to exchange and redeem points. 
       SUMMARY 
       [0006]    A value management system is provided. 
         [0007]    The value management system includes an exchange computer for acting as an intermediary between a loyalty member computer and a loyalty system on behalf of a loyalty member. The exchange computer is for storing login information of the loyalty member, for accessing a loyalty account of the loyalty member within the loyalty system using the login information, for determining a loyalty value associated with the loyalty account, for performing a transaction with the loyalty member involving a change in the loyalty value in exchange for other value, and for charging a fee from the loyalty member in return for the transaction. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0008]      FIG. 1  is a block diagram of an example value management system. 
           [0009]      FIG. 2  illustrates an example operation of the value management system. 
           [0010]      FIG. 3  illustrates an example transaction method involving operation of the value management system and a provider system. 
       
    
    
     DETAILED DESCRIPTION 
       [0011]    Referring now to  FIG. 1 , example system  10  includes computer  12 , which may include one or more computers. 
         [0012]    Computer  12  includes a processor, memory, and program and data storage. Computer  12  may execute an operating system such as a Microsoft operating system. Computer  12  further include graphics circuitry for connecting to a display, network circuitry for connecting to network  30 , and other circuitry for connecting to other peripherals, such as a printer, a mouse, and a keyboard. 
         [0013]    Computer  12  may include a web server connected to the World Wide Web (WWW or “web”) and provide web content, including web pages. Value management system  10  may also be capable of sending and receiving messages, including but not limited to electronic mail (e-mail) messages and Short Message Service messages (text messages). 
         [0014]    Computer  12  executes value management software  14 . Value management software  14  creates user profiles  16 , stores user data in user repositories  18 , stores points and/or cash money value in user wallets  20 , connects with loyalty systems  50  to manage loyalty accounts  52  on behalf of users, and interacts with value exchange software  22  to buy, sell, or exchange user points. 
         [0015]    When a user logs into value management system  10  for the first time, value management software  14  instructs the user to create an account  24 . Value management software  14  creates a new profile  16 , a new repository  18 , and a new wallet  20  associated with account  24 , and stores user account information in user profile  16 . Users may later update their profiles  16 . 
         [0016]    The user may be instructed to choose a unique user identifier and a password and then may be asked to input loyalty account information for loyalty accounts  52 , including account numbers, user identifiers, and passwords. Value management software  14  uses the loyalty account information to connect to loyalty systems  50 , which are maintained by providers that offer loyalty programs. 
         [0017]    Users connect to value management system  10  through network  30 , which may include any combination of wireless or wired networks, including a global communication network, also known as the Internet. 
         [0018]    Users may use any available computing and communication device, such as mobile communication device  80 , or personal computer  90  to connect to value management system  10 . 
         [0019]    Provider systems  40  facilitate acceptance of points for goods or services offered by the providers. Providers register with value management system  10  to establish limited permission levels for checking and transferring customer points during transactions. Value management system  10  converts points received from customers into cash money value. 
         [0020]    Provider systems  40  may include one or computers coupled to value management system  10  via network  30 . For example, provider systems  40  may further include one or more of kiosk  42 , point-of-sale or point-of-service (POS) terminal  44 , and server computer  46  for completing sales of goods or services. Server computer  46  may include a web server with web pages for completing a transaction with mobile communicating device  80  or personal computer  90 . 
         [0021]    Providers of goods and/or services may offer loyalty programs  50 . Some providers may not have loyalty programs but nevertheless accept points in exchange for goods and/or services. 
         [0022]    Loyalty systems  50  determine when points are earned, credit earned points to user loyalty accounts  52 , and debit points from user loyalty accounts  52 . Loyalty systems  50  may include one or computers coupled to value management system  10  via network  30 . 
         [0023]    Example providers that do offer loyalty programs and maintain loyalty systems  50  on behalf of users include airlines, hotels, rental car companies, amusement parks, and credit card companies. Other companies are also envisioned. 
         [0024]    Value management software  14  further maintains user repositories  18  as part of user accounts  24 . User repositories  18  may contain information regarding user transactions that earned points and user transactions that spent or exchanged points from providers with loyalty systems  50 . User repositories  18  may further include loyalty account information and statuses, bank account and credit card account information, including credit card rates, to facilitate exchange of points to and from cash money value. Cash money value may be deposited in or withdrawn from bank accounts  62  via bank systems  60 . Cash money value may also be charged to credit card accounts  72  via credit card systems  70 . 
         [0025]    Bank systems  60  and credit card systems  70  may include one or computers coupled to value management system  10  via network  30 . 
         [0026]    User repositories  18  are searchable and the resulting data can be sorted. Examples of data searched may include but not be limited to credit card transactions, airline transactions, hotel transactions, and rental car transactions. 
         [0027]    In an example embodiment, a user would authorize value management system  10  to search, mine, use, and share repository data with value management system  10 , loyalty systems  50 , and provider systems  40 . 
         [0028]    Value management system  10  facilitates action of a Market Maker in order to broker point exchanges between one user or company to another user or company. For example, value management system  10  may complete the transfer of airline miles from one user to another user. The users may not necessarily be members of the same airline loyalty program. 
         [0029]    A market maker is defined for this purpose as a company holding points of member users that quotes both a buy price and a sell price for the points. Prices may be reflected in any financial currency, or in any commodity held that could be converted into points. The Market Maker makes a profit on the bid-offer spread or “turn.” 
         [0030]    For this purpose, value management system  10  executes value exchange software  22 , which accepts bids and offers for points. Value exchange software  22  also keeps the spread or difference between the bid and offer. The bid-offer spread is the difference between the price quoted by value exchange software  22  for an immediate sale (bid) and an immediate purchase (ask). The size of the bid-offer spread is a measure of the liquidity of the market and the size of the transaction cost. The more demand for points, the lower the spread is between the bid and ask prices. The less demand for points, the higher the spread is between the bid and ask prices. 
         [0031]    Value exchange software  22  may exchange points based upon a common currency, such as United States dollars. Users may request that there points from different programs be converted to and from the common currency. 
         [0032]    Value exchange software  22  may exchange points into a common point system, or exchange points. Exchange points have a value in the common currency. 
         [0033]    If users sell points, value exchange software  22  may transfer the proceeds from the sale in the common currency to user bank accounts. Using value exchange software  22 , users may additionally sell points, converting them into the common currency, to make other purchases. 
         [0034]    If users purchase points, value exchange software  22  may charge user credit card accounts  70  for the cost of the purchase in the common currency. 
         [0035]    If users exchange points in one program for those of another, value exchange software  22  may establish exchange rates based upon the common currency for the different points. 
         [0036]    For example, a user may wish to convert points from a first airline into points of a second airline for the purpose of purchasing a flight with the second airline, or purchasing some other good or service from the second airline, such as a baggage fee. 
         [0037]    Value exchange software  22  may broker the transfer by first converting the points from the first and second airlines into first and second amounts of exchange points while maintaining a spread, e.g., 10,000 miles equals 9,975 exchange points. The user need not be aware of the transfer into exchange points. 
         [0038]    Providers with loyalty programs may participate with value management system  10  to provide directed offerings of goods or services based upon point exchanges and trading. These providers must agree to allow their points to be exchanged and/or converted into a currency. Value exchange software  22  implements the exchange of points for the goods or services. For example, airline passengers could exchange points for baggage fees. 
         [0039]    Providers without loyalty programs may also participate to allow points to be exchanged and/or converted into a currency. It is envisioned that assisted-service computer systems and/or self-service computer systems would be equipped to handle alternative payment using points. 
         [0040]    For example, a participating restaurant may allow airline passengers to exchange points for food at the participating restaurant. It is envisioned that food ordering systems at the restaurant would be equipped to handle alternative payment using points. The participating restaurant would exchange points received as payment for a value of common currency. 
         [0041]    As another example, a participating grocery may allow customers to exchange points for goods at the participating grocery. It is envisioned that checkout systems at the grocery would be equipped to handle alternative payment using points. The participating restaurant would exchange points received as payment for a value of common currency. 
         [0042]    Value management system  10  also scores customers based upon demographics, loyalty, purchases and credit history. 
         [0043]    It is envisioned that service providers would be able to see points data of other service providers that have exchanged points with a user and thus contribute to a common customer scoring method. Service providers may use the same scoring method to rate its other customers and to acquire new customers. 
         [0044]    For example, if one airline could see the elite status of a customer with another airline, the one airline could use value management system  10  to generate pre-approved offers to lure that customer to change providers. 
         [0045]    This is commonly known in the industry as a “challenge.” An elite customer calls another service provider to get the benefits of elite status prior to achieving elite status through conventional means under the frequent flyer program. The user does this by calling the provider and stating that they are willing to switch brands if they are offered the elite status offered by their current brand of choice. The user then usually has to prove this by emailing or faxing proof of that status, usually through a statement, and then completing a certain amount of stays, flights, miles, points, etc. within a certain amount of time to maintain that status. The system above would automate this process and targeting of high value customers for the providers. 
         [0046]    Any provider could set up offers where they could reward customers based upon future activity. For example, if a customer only had enough points for 3 days of hotel stay, the provider could give options to the user for ways to extend additional days either through payment, exchange of other points or challenges as described above. 
         [0047]    Referring now to  FIG. 2 , an example operation of value management system  10  is illustrated. In this example, a user operates mobile communication device  80 ; however, operation using personal computer  90  may be similar. Mobile communication device  80  is equipped with web browser software for downloading and displaying web pages of value management system  10 , provider systems  40 , and loyalty systems  50 . 
         [0048]    In step  100 , mobile communication device  80  connects to loyalty management system  10  under user control. Mobile communication device  80  executes web browser software under user control, and the user enters or otherwise selects the address or uniform resource locator (URL) of the loyalty management system web site. 
         [0049]    In step  102 , mobile communication device  80  displays a login prompt from value management system  10  and records user login credentials. If a user is a new user without an account, then value management system  10  creates a new account, including a user profile  16 , user repository  18 , and user wallet  20 . 
         [0050]    In step  104 , mobile communication device  80  displays transaction options such as account management, buy points, sell points, and transfer points and records user selection of one of the transaction options. 
         [0051]    If the user selects “account management” in step  106 , mobile communication device  80  facilitates account management in step  108 . For example, mobile communication device  80  may display options for changing user profile  16 , viewing user repository  18 , viewing user wallet  20 , withdrawing money or points, and depositing money or points. 
         [0052]    If the user elects to buy points in step  110 , mobile communication device  80  may facilitate a buy points transaction in step  112 . Mobile communication device  80  may display transaction options for buying points and record user selections. Mobile communication device  80  may then display fields for entering or selecting the number of points desired to buy, a desired purchase price, and the method of payment, such as credit card, Pay Pal account, direct charge against a bank account, or other method identified in user profile  16 . If value management system  10  is able to satisfy the user&#39;s conditions for purchase, value management system  10  processes payment and alerts the purchaser that the buy order has been completed. Mobile communication device  80  may display verification that desired points have been added to user wallet  20 . 
         [0053]    If the user elects to sell points in step  114 , mobile communication device  80  may facilitate a sell points transaction in step  116 . Mobile communication device  80  may display transaction options for selling points and record user selections. Mobile communication device  80  may then display fields for entering or selecting the number of points desired to sell, a desired sale price, and preferred method of depositing proceeds from the sale, such as direct deposit to a bank account, or other method identified in user profile  16 . If value management system  10  is able to satisfy the user&#39;s conditions for sale, value management system  10  completes the sale, and alerts the seller that the sell order has been completed. Mobile communication device  80  may display verification that desired points have been removed from wallet  20 . 
         [0054]    If the user elects to transfer points to another user in step  118 , mobile communication device  80  may display options for transferring points to another user in step  120 . For example, one user may wish to transfer frequent flyer miles from a loyalty system  50  to another user. As another example, one user may wish to transfer points to a charity, the charity then selling the points for cash money. 
         [0055]    Mobile communication device  80  may display fields for entering or selecting the number of points desired to transfer, the desired recipient user, and the fee for the transfer. Value management system  10  completes the transfer, processes payment using bank account information in user profile  16 , and alerts the user that the order has been completed. Mobile communication device  80  may display verification that desired points have been removed from wallet  20 . 
         [0056]    Inherent in the exchange rate are any fees due for using value management system  10 . Alternatively, value management system may charge a separate transaction fee. 
         [0057]    With reference to  FIG. 3 , an example transaction method involving operation of value management system  10  and provider system  40  is illustrated. In this example, value management system  10  facilitates a transaction in which a user exchanges points from one or more loyalty systems  50  for goods or services sold by a provider. The provider may or may not have a loyalty system  50  and the points being exchanged may be from the provider loyalty system or from other loyalty systems  50  of other providers. 
         [0058]    An example transaction may be implemented by a provider POS terminal  42 , a provider kiosk  44 , or remotely using mobile communication device  80  or personal computer  90  as a web-based transaction with provider system  40 . 
         [0059]    In step  200 , provider system  40  records customer selections for goods or services. Selections may be made by a user as a self-service transaction or by an assistant as an assisted transaction. 
         [0060]    In step  202 - 204 , provider system  40  records selection of a payment option from the customer. If the customer chooses to pay with points, operation continues to step  206 . A customer may further choose a particular type of points to use as payment and may also choose to pay with a combination of points and some other payment method, such as cash or credit from bank account  62  or credit card account  72 . 
         [0061]    In step  206 , provider system  40  connects with value management system  10  to determine how many points would be required to pay for the goods or services based upon the current market price. Provider system  40  displays this information for the customer to consider in making a payment method decision from among different payment options. The provider has registered with value management system  10  in advance. 
         [0062]    In steps  208 - 210 , provider system  40  connects to value management system  10  and requests that value management system  10  determine whether the customer has sufficient points to pay for the goods or services. Value management system  10  accesses the customer&#39;s repository  18  to obtain loyalty account information and then connects to corresponding loyalty systems  50  to obtain points information. 
         [0063]    The provider has registered with value management system  10  to establish limited permission levels for requesting checks of customer point totals and transfers of customer points during transactions. If value management system  10  determines that the customer has sufficient points, operation continues to step  212 . Otherwise, operation returns to step  204 . 
         [0064]    In step  212 , provider system  40  connects to value management system  10  and requests that value management system  10  withdraw sufficient points from loyalty systems  50  to pay for the goods or services. Value management system  10  connects to loyalty systems  50  and withdraws points to customer wallet  20 . Value management system  10  converts the withdrawn points in customer wallet  20  to cash money value. 
         [0065]    Inherent in the exchange rate are any fees due for using value management system  10 . Alternatively, value management system may charge a separate transaction fee. 
         [0066]    In step  214 , provider system  40  receives the cash money value. Value management system  10  may transfer the cash money value to a provider bank account. Value management system  10  removes the cash money value from the customer wallet  20 . 
         [0067]    In step  216 , provider system  40  may generate a receipt or other acknowledgment indicating that the transaction is complete and provide the receipt to the customer. For example, provider system  40  may provide the receipt as part of a web page and/or send the receipt to a customer email address. Value management system  10  may also generate a message to the customer indicating that points have been withdrawn in exchange for the transaction. 
         [0068]    Advantageously, from the customer&#39;s perspective, the transaction occurs in real-time. Communications between provider system  40  and value management system  10 , and between value management system  10  and one or more loyalty systems  50  occur in real-time. 
         [0069]    Although particular reference has been made to certain embodiments, variations and modifications are also envisioned within the spirit and scope of the following claims.