Abstract:
A method and program product for conducting business transactions, transferring product ownership and handling product returns with paperless receipts. Biometric data and product or transaction specific identification information is included with electronic receipts generated for each purchase. The same information may be collected when a product is presented for a return and refund that is based on an electronic or paper receipt. The information collected at the return is compared against the same information in the electronic receipt, automating the return-handling process and reducing the frequency of fraudulent returns.

Description:
CROSS REFERENCE TO RELATED APPLICATIONS  
       [0001]     The present invention is a continuation in part of published U.S. patent application Ser. No. 10/430,824 (Attorney Docket No. BLD920030021US1), entitled “Point-of-Sale Receipt Electronic Generation” to Joan L. Mitchell et al., filed May 6, 2003 and published Nov. 11, 2004, publication No. 2004/0225567 A1; and related to U.S. Pat. No. 6,883,706 B2 (Attorney Docket No. BLD920030020US1), entitled “Point-of-Sale Bill Authentication” to Scott D. Mastie et al., issued Apr. 26, 2005; to published U.S. patent application Ser. No. 10/446,204 (Attorney Docket No. BLD920030019US1), entitled “Expense Accounting Data Management Based on Electronic Expense Document” to Joan L. Mitchell et al., filed May 27, 2003 and published Dec. 2, 2004, publication No. 2004/0243489 A1; and to U.S. patent application Ser. No. 11/______ (Attorney Docket No. BLD920050045US1), entitled “System And Method of Directly Providing Electronic Receipts” to Scott D. Mastie et al., filed coincident herewith; all assigned to the assignee of the present invention and incorporated herein by reference. 
     
    
     BACKGROUND OF THE INVENTION  
       [0002]     1. Field of the Invention  
         [0003]     The present invention generally relates to business transactions and more particularly to returning goods purchased as in-store business transactions and through self service transactions at electronic Point of Sale kiosks and the like.  
         [0004]     2. Background Description  
         [0005]     Currently, retail stores typically produce a paper receipt reflecting a purchase or purchases by each customer. Normally, a point-of-sale terminal generates the paper receipt, which lists each item purchased. Traditionally, the merchant passes the paper receipt to the customer, which the customer must retain for any allowed returns. Customers frequently discard or misplace paper receipts and, in the case of gifts, may never receive a gift receipt. However, merchants normally require the original paper receipt to return items for refund. Consequently, if a customer fails to produce the receipt, at best, the customer may be allowed to exchange the item for comparable merchandise or merchandise of the same value.  
         [0006]     One reason merchants require original receipts is that during the Christmas season, especially, thieves target cars with bags in sight. Without a receipt, a thief cannot return stolen goods. If, however, the receipt is in a bag with merchandise, after breaking into the car and stealing the packages, the thief has the merchandise and the receipt. The thief can make the return and the customer is left with auto damage and the bill. Consequently, retail clerks have begun asking if purchasers want their receipts placed in the bag with their purchases or kept separately. In a further effort to discourage thieves, some merchants insist on only refunding money to the credit card account used originally for purchasing returned items. This can be awkward for gifts, for example, where a newlywed couple/recipient may prefer immediate, unannounced access to the purchase money without notifying the gift-giver of having returned the gift.  
         [0007]     Thus, there is a need to allow customers to return goods even without a paper receipt, and more particularly, to allow someone with valid possession of purchased merchandise to make such returns while preventing fraudulent returns and while discouraging theft.  
       SUMMARY OF THE INVENTION  
       [0008]     It is therefore a purpose of the invention to eliminate the need for paper receipts;  
         [0009]     It is another purpose of this invention to reduce the incidence of fraudulent returns in retail sales;  
         [0010]     It is yet another purpose of the invention to eliminate the need for paper receipts, while allowing returns for purchased goods without requiring paper receipts, while reducing the incidence of fraudulent returns in retail sales.  
         [0011]     The present invention is related to a method and program product for conducting business transactions, transferring product ownership and handling product returns with paperless receipts. Biometric data and product specific identification information may be included with electronic receipts generated for each purchase. The same information is collected when a product is presented for a return and refund that is based on an electronic receipt. The information collected at the return is compared against the same information in the electronic receipt. As long as the information matches, the return is accepted. 
     
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0012]     The foregoing and other objects, aspects and advantages will be better understood from the following detailed description of a preferred embodiment of the invention with reference to the drawings, in which:  
         [0013]      FIG. 1  shows an example of a preferred point-of-sale (POS) terminal electronic receipt generation/electronic return environment, for transacting business at POS terminals.  
         [0014]     FIGS.  2 A-B show an example of generating electronic receipts for use in electronic returns according to a preferred embodiment of the present invention.  
     
    
     DESCRIPTION OF PREFERRED EMBODIMENTS  
       [0015]     Turning now to the drawings, and more particularly,  FIG. 1  shows an example of a preferred point-of-sale (POS) terminal electronic receipt generation/electronic return environment  10 , customer location (i.e., identified with a client business)  12  and point-of-sale terminal  14  (hereinafter “POS terminal  14 ”), such as described in published U.S. patent application Ser. No. 10/430,824 (Attorney Docket No. BLD920030021US1), entitled “Point-of-Sale Electronic Receipt Generation” to Joan L. Mitchell et al., filed May 6, 2003, published Nov. 11, 2004, publication No. 2004/0225567 A1, assigned to the assignee of the present invention and incorporated herein by reference. Customer locations  12  (e.g., a wallet carried by a customer) include, for example, cash  16 , a check  18 , a credit card  20  and/or a smart card  22 , or any other suitable well known payment mechanism(s) for paying for merchandise, e.g., gift certificates or store credits. Each customer location  12  may also communicate with POS terminal  14  using a personal digital assistant (PDA)  24  or any other suitable handheld computer or communication system, with personal storage and an appropriate communication port (not shown), e.g., infrared (IR) or radio frequency identification (RFID). POS terminal  14  may be a self-service electronic POS kiosk and is equipped to conduct each sales transaction, generates an electronic receipt  26  for each and, optionally, provide a conventional paper receipt  28 . According to a preferred embodiment of the present invention, purchasers may return purchases based solely on electronic receipts, even when the original paper receipt has been destroyed, lost or is otherwise no longer available.  
         [0016]     As used herein for example only, a customer, shopper or purchaser (used interchangeably) at a customer location  12  may be identified with a private or public concern and is conducting a transaction with a merchant or other business concern. The private concern may be, for example an individual, a business or other organization or business. Thus, a customer/purchaser may be a member of the household, a business employee or a member of a private organization or a government employee. Similarly, although a typical merchant may be located, for example, at a retail place of business, the business concern  30  may be any business or non-profit private or public organization that issues receipts for collected money, e.g., in exchange for purchases. Preferably, the POS terminals  14  are located with the business concern  30 , e.g., on the premises of a department or grocery store or, any place of business that normally requires proof of purchase for returns. Further, POS terminal  14  kiosks may include dedicated or self-service kiosks such as, for example, a Wedding Registry kiosk, a Bridal Shower kiosk, a New Baby kiosk, a Bar Mitzvah kiosk, or any other kiosk set up for a special family or person event.  
         [0017]     Further, each POS terminal  14  may include an imager  40 , a check/currency inserter  42 , a camera (e.g., a digital camera, web cam or IR cam)  44 , a thumb reader  45 , a receipt instruction receiver  46  with a receipt destination retriever  62 , an electronic receipt generator (ERG)  48  with an authenticating data generator (ADG)  50 , a transmitter  52  and any other components (OC)  54 . Imager  40  converts cash (paper currency or bills)  16 , and/or checks  18  into images  58  that may be inserted by check/currency inserter  42  into a paper receipt,  28  an electronic receipt  26  or both for recordation. Electronic receipt generation and storage is also described, for example, in published U.S. patent application Ser. No. 10/446,204 (Attorney Docket No. BLD920030019US1) entitled “Expense Accounting Data Management Based on Electronic Expense Document” to Joan L. Mitchell et al., filed May 27, 2003, published Dec. 2, 2004, publication No. 2004/0243489 A1, assigned to the assignee of the present invention and incorporated herein by reference.  
         [0018]     According to a preferred embodiment of the present invention, personal electronic receipts may be accompanied by purchaser biometric data, e.g., a digital photo, thumbprint, or an IR signature. These personal electronic receipts are delivered to the purchaser coincident with purchases, such as described in U.S. patent application Ser. No. 11/______ (Attorney Docket No. BLD920050045US1), entitled “System And Method of Directly Providing Electronic Receipts” to Scott D. Mastie et al., filed coincident herewith, assigned to the assignee of the present invention and incorporated herein by reference. Once delivered, the personal electronic receipts may be retrieved from electronic storage, e.g., in PDA/other handheld device, or recalled merely based on accompanying biometric/other data. Since all of this unique information is captured in the electronic receipt, paper receipts are unnecessary for most users. Further, for added security/authentication similar biometric data may accompany any electronic returns that are based solely on electronic receipts. For example, a digital picture or thumbprint may be taken of each person returning merchandise, e.g., by camera  44 , or a thumb reader  45 .  
         [0019]     Receipt instruction receiver (RIR)  46  may include a destination retriever (DR)  62  and receive receipt instructions (RI)  60 . Each receipt instruction  60  includes a Receipt Destination Identifier (RDI)  64  and a content instruction (CI)  66 . A receipt instruction  60  reflects communicated customer preferences, e.g., provided verbally and manually entered to POS terminal  14  or electronically generated. Electronically generated customer preferences may be gathered, for example, from an electronic payment from, e.g., a credit card  20 , a smart card  22 , a PDA  24  or any other suitable electronic payment mechanism. Each RDI  64  expressly or implicitly indicates where to send a corresponding electronic receipt. An RDI  64  may expressly state a receipt destination  65  as, for example, an Internet protocol (IP) address, a mailing address, an e-mail address, e.g., for a non-volatile storage. Customer identification may imply a receipt destination  65  stored in a receipt destination database  68 , e.g., by business name, by credit card number, by smart card identification, or by PDA based IR communications.  
         [0020]     So, with each purchase the destination retriever  62  retrieves implied destinations from receipt destination database  68 . The electronic receipt generator  48  generates an electronic receipt  26  and a personal electronic receipt  27  for each transaction, e.g., from date and time; merchant; issuing agent; merchant address and customer specific information. Electronic receipts may be in a standard format, e.g., electronic data interchange (EDI) format or personalized for electronic receipts  26  and personal electronic receipts  27  and based on content instruction  66 , e.g., indicated in a content database  70 . Authentication data generator  50  can provide transaction authentication data  72  for confirming that an electronic receipt  26  has not been altered. For example, authentication data  72  may include receipt contents, date, time, a merchant identification or, biometric data collected from the purchaser. The authentication data  72  may be stored at a merchant system  74  for access by receipt destination  65  with each receipt  26  or transmitted separately to receipt destination  65 . The transmitter  52  communicates electronic receipts  26 , personal electronic receipts, and authentication data  72  to receipt destinations  65 , the customer location  12  and/or merchant system  74 . Electronic returns are based on information included in the personal electronic receipt  27 , and made through substantially the reverse process as electronic receipt generation, as set forth in further detail hereinbelow.  
         [0021]     The POS terminal  14  may include other components  54 , such as for example, a keyboard, a central processing unit (CPU), a monitor, a bar code scanner, a telecommunications system, a credit card authentication system, a smart card authentication system, a PDA communications system, RFID detection modules and/or a cash drawer. The receipt destination  65  may include an expense accounting system  80  such as a customer/employer expense reporting system, a customer personal expense tracking system (e.g., Quicken®, Microsoft Money®, TurboTax® or a spreadsheet application) and/or a customer accountant expense tracking system. Also, the expense account system  80  may include an expense categorizer (EC)  82  categorizing each electronic receipt  26  into an expense category, e.g., clothing, food, or entertainment. A tax data collector (TDC)  84  gathers tax related data in electronic receipts  26 , e.g., sales tax, deductible expenses, deductible donations, and medical expenses. A tax authority (TA)  86  (e.g., the US Internal Revenue Service (IRS), a state tax department, or foreign equivalent thereof) may provide tax related information or, tax related information may be otherwise provided. Also, the receipt destination  65  may include appropriate receipt storage  88  for long term archiving.  
         [0022]     FIGS.  2 A-B show an example of generating personal electronic receipts for use in electronic returns according to a preferred embodiment of the present invention. In particular  FIG. 2A  shows the steps  100  in generating personal electronic receipts that begins in step  102  by a customer presenting goods for purchase. As noted hereinabove, biometric data may be collected in step  104  to accompany each personal electronic receipt, including for example, the purchaser&#39;s digital photo, thumbprint, or IR signature. Also, in step  106  information is collected on the goods being purchased so that each personal electronic receipt may include itemized serial numbers (S/Ns), if known, listed with each item. So, for example, if the merchandise is tagged with RFIDs or a unique barcode that is scannable with a typical barcode scanner, the scan may include respective S/N for listing on the personal electronic receipt. When, for example, the merchandise is not tagged, such detail may be optional, e.g., included/required only for merchandise above a threshold value. So, in step  108  in this variation, after scanning for a basic purchase, a secondary scan may be required for any item that exceeds the threshold, e.g., items priced above $100 or any other selected financial threshold. In this second scan in step  110  the POS terminal  14  collects the unique S/N of the device or the clerk enters the S/N with the purchase price, to capture the unique S/N for generating the personal electronic receipt in step  112 . This personal electronic receipt may aid any future warranty claim and may be required for an electronic return. In step  114  the electronic receipt is passed to the purchaser, e.g., transmitted by IR, Bluetooth or WiFi to the customer&#39;s PDA.  
         [0023]     Also, since the personal electronic receipt is an itemized list of purchased items, the purchaser may electronically transfer ownership with the right to return to someone else. Moreover, multiple owners may be included in an electronic receipt for future ownership transfers, e.g., for gifts. Thus, such electronic receipts may be used to establish an electronic “chain of title” for nearly any personal property. So with each gift purchase, for example, the electronic receipt may list the original owner as well as the intended recipient(s) down the intended electronic “chain of title” to allow returning the gifts at any point before they are given. An errand-running agency may simply and conveniently convey personal electronic receipts to their principals with transfer of the purchased goods. Once these personal electronic receipts are conveyed to the purchaser/owner in step  114 , the purchaser/owner may return the goods based solely on the personal electronic receipt. Also, the recipients, e.g., a wedding couple as well as a relative who was likely to run errands, may be listed with the purchaser. A grandparent&#39;s gift to a grandchild through the child&#39;s parents, for example, may be replaced or refunded at the gift destination, i.e., by the parents and/or child, without requiring either to travel back to the grandparent&#39;s location for the refund/exchange. In all such cases, the invention allows the final recipient of a gift to be authorized to handle the exchange or cash-equivalent of a gift, while precluding any intermediate parties (intended or unintended) from laying claim to the gift.  
         [0024]      FIG. 2B  shows an example of the steps  120  of making an electronic return according to a preferred embodiment of the present invention. Upon presenting the goods for return in step  122 , the purchaser may retrieve the corresponding personal electronic receipt in step  124 , e.g., from the PDA/other handheld device, either in addition to a paper receipt, or replacing the paper receipt entirely with an electronic receipt. Then, the purchaser passes the electronic receipt to the merchant, e.g., by uploading the personal electronic receipt substantially the same as it was downloaded. Alternately, if an RFID tag or barcode label is still attached to goods being returned, the merchant may recall the personal electronic receipt based on the tag/label and accompanying biometric/other data. Preferably, in step  126  the merchant collects biometric data to accompany the electronic return for added security/authentication. So, for example, the merchant may take a digital picture of each person returning merchandise. The merchant also gathers identifying data from the goods being returned. In step  128  the merchant compares the gathered data with the personal electronic receipt and, if there is a match, in step  130  the merchant completes the return. Otherwise, if the gathered data does not match the personal electronic receipt, then in step  132  the merchant can decide whether to just refuse the return in step  134  or, take other appropriate action, e.g., by notifying the authorities and providing a digital image of a suspected party.  
         [0025]     Advantageously, personal electronic receipts and electronic returns are convenient for both the merchant and the customer. Electronic returns facilitate fraud detection, making it relatively easy to identify suspicious activity, e.g., where the original purchaser has reported a theft. Fraud may be detected, for example, by identifying someone that is making an extraordinary number of returns, but to several different sales clerks over a relatively short period of time. This type of activity might not normally arouse suspicion, even though all of the return activity, taken as a whole, appears otherwise. Also, items may be returned where the collected original biometric data does not match that for the return, for example, and no transfer of ownership has been recorded. Discovering the discrepancy warns the merchant to take action, e.g., question the returner or notify the proper authorities. Also, often enough, customers may mistakenly return the wrong item to the wrong store, e.g., due to a memory lapse or confusion. By comparing the serial number of items being returned to items that were sold and listed in the personal electronic receipt, the merchant can identify such errors. The merchant can also utilize the information in the electronic receipt to augment the refund/exchange process, in the case when a paper receipt is presented.  
         [0026]     Thus, merchants may allow (line-item) returns of merchandise based on a personal electronic receipt or biometric data rather than insisting on a paper receipt. Returns may be made based, for example, solely on the returner&#39;s thumbprint. Merchants can verify that the returns are for legitimately purchased goods, using long term image storage and associated coded data for superior customer service while reducing/preventing the incidence of fraudulent returns, and the labor and paperwork required to manage exchange/returns via paper receipts. This reduces lost income to the merchant from fraudulent returns. Since the individuals involved in each purchase (i.e., the purchaser and the merchant) are aware of specifics for every purchase, confused returns and falsely contested purchases occur much less frequently. With or without a paper receipt the merchant&#39;s return desk can handle returns efficiently just by having access to the purchase record database. An item&#39;s barcode number, for example, accompanied by the returner&#39;s drivers license, biometric data, or another suitable customer verification check, may provide sufficient confirmation that the returner was the purchaser or that the purchase was made on the returner&#39;s behalf or prior to a valid transfer of ownership.  
         [0027]     While the invention has been described in terms of preferred embodiments, those skilled in the art will recognize that the invention can be practiced with modification within the spirit and scope of the appended claims. It is intended that all such variations and modifications fall within the scope of the appended claims. Examples and drawings are, accordingly, to be regarded as illustrative rather than restrictive.