Abstract:
The present invention provides a system that allows merchants to donate a portion of each sale to every customer participating in the discount program directly to the fundraiser chosen by the customer. Customers are incentivized to use the card at participating merchants because the discounts received from using the card can be significantly greater than the initial cost of the card. The system of the invention can be implemented on a card that can serve the dual purpose of being a discount card as well as a number of other cards utilized by customers. By having more than one function for the card, customers are encouraged to utilize the discount feature more routinely because of the convenience of carrying one card with multiple functions.

Description:
BACKGROUND OF THE INVENTION 
       [0001]    Providing incentives to customers and companies to donate money to a charitable organization has been a challenge to charitable organizations for many years. Those charitable organizations that are successful at providing such incentives are able to raise money for the organization that would not have been possible otherwise. 
         [0002]    One of the incentives that has been provided in the past is to give the person who contributes funds to the organization a discount card that can be used to receive a discount from participating merchants. This method has been improved upon by not only allowing the organization to earn money from the sale of the cards, but also by setting up a system whereby the merchant agrees to set aside a portion of every sale using the discount card to be paid indirectly to the organization. 
         [0003]    Most fund raising today involves selling something (cookies, car washes, magazines, popcorn, etc.). The item being sold is either given to the fundraising entity free or provided at cost. It is then sold to the customer at or near MSRP where the fundraising entity keeps the difference. This typically results in a net gain to the fundraiser of anywhere between 20% and 80%. It would be desirable to increase the percentage net gain to the fundraiser. It would also be desirable to provide a system for increasing the net gain to the fundraiser without increasing the overhead or requiring large capital expenditures by the fundraisers. 
         [0004]    Finally, it would be desirable to provide a card that can serve as a discount card for a fundraising entity as well as other cards used by a customer so that the customer need not carry a separate card to take advantage of the discount program. Providing a multi-function card system to retailers at no charge other than the cost of providing discounts on sales would result in retailers welcoming the system, and in combination with making a single card available to the customer for multiple purposes, would result in a proliferation in the use of such discount cards. The cost of the cards to consumers can be minimal compared to what they will save in the form of discounts. 
       SUMMARY OF THE INVENTION 
       [0005]    The present invention overcomes the problems with the prior art by providing a system that allows merchants to donate a portion of each sale to every customer participating in the discount program directly to the fundraiser chosen by the customer. Customers are incentivized to use the card at participating merchants because the discounts received from using the card can be significantly greater than the initial cost of the card. By contributing a percentage of each sale directly to a charitable entity recognized by the IRS, the merchants receive a tax deduction for their contributions that would not be realized if the contribution had been made first to an non-exempt third party. By participating in the program, merchants effectively receive promotions at the cost of providing a discount on products sold to the participating customers. Thus, the program is an effective advertising program in that it does not cost anything to the vendor unless the vendor makes a sale. 
         [0006]    In one embodiment of the invention, the system of the invention can be implemented on a card that can serve the dual purpose of being a discount card as well as a number of other cards utilized by customers. For example, in addition to the discount card information, the card could contain all of the information necessary for the card to be used as a credit/debit card, a hotel room key, a gas card or other loyalty card, a rewards card, a medical records key, etc. By having more than one function for the card, customers are encouraged to utilize the discount feature more routinely because of the convenience of carrying one card with multiple functions. 
         [0007]    In short, retailers and consumers alike have significant incentives to use the program of the present invention because retailers acquire more business, consumers save money, and fundraisers raise more money without the expense of the overhead associated with implementing a discount program. The consumer does nothing but use his or her card normally to make purchase transaction, and the discount can be automatically applied to a sale by a participating retailer. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0008]      FIG. 1  is a diagram of a fundraising system in accordance with an embodiment of the invention. 
           [0009]      FIG. 2  is a diagram of a fundraising system in accordance with an alternative embodiment of the present invention. 
           [0010]      FIG. 3  is a diagram of an alternative embodiment of the present invention showing multiple uses of a single card held by a consumer. 
           [0011]      FIG. 4  is a diagram of an alternative embodiment of the present invention showing the implementation of a medical records key on a card held by a consumer. 
           [0012]      FIG. 5  is a flowchart showing a process for utilizing a smart phone as a POS port in accordance with an alternative embodiment of the present invention. 
       
    
    
     DETAILED DESCRIPTION 
       [0013]    Referring now to  FIG. 1 , a diagram of a fundraising system in accordance with an embodiment of the invention is illustrated. In this embodiment, a vendor  105  in the business of providing infrastructure to charities and fundraisers provides a set of forms and blank cards  110  to the fundraiser  120 . The cards  110  may be preprinted with the fundraiser&#39;s logo  115  and may be in the form of a magnetic swipe card, a smart card, a card embedded with an RFID chip, a card imprinted with a bar code, a combination of those items, or some other format that is now available or may be available in the future. 
         [0014]    The fundraising entity  120  then sells these cards to their customers  125 . The customer fills out the form, pays the money, and is given a card or sent a card depending on the level of personalization. The fundraising entity  120  then fills out the form, entering all the appropriate information (via an electronic transfer of information) to the vendor  105 . The card can be activated upon receipt of the information by the vendor or in any other manner known in the art. Alternatively, an online website address may be provided to the customers  125  so that the customer may go to the vendor&#39;s website to enter the appropriate information to activate the card. In one embodiment of the invention, half of the cost of the card to the customer goes to the fundraising entity and the other half goes to the vendor to cover expenses. 
         [0015]    In one embodiment, by purchasing the cards  150  the customers  125  are allowed a predetermined fixed amount of discounts at participating merchants  130 ,  140 . For example, the fundraiser  120  can sell $10 cards that give the customers  125  $50 worth of discounts. Once those $50 worth of discounts have been exhausted, the card  150  no longer grants additional discounts unless the customer renews the card. There is no minimum lifespan for the card and it may be renewed indefinitely. In one embodiment, the cardholder commits to the fundraiser from which he or she bought the card for a certain period, such as one year. In an alternative embodiment, a percentage discount can be applied to each transaction with a participating merchant for a certain period of time. 
         [0016]    Once the fundraiser starts, the fundraising entity  120  can be given access to the vendor&#39;s servers  160  (via a web site or other format). This allows the fundraising entity  120  to see who their participants are, how much money has been raised both by the direct sales of the cards and from the participating merchants, and which cards&#39; funds are depleted. 
         [0017]    When the customer goes to a participating merchant  130 ,  140  (restaurant, retailer, wholesaler, etc.) and purchases an item, the customer&#39;s card  150  is processed through the merchant&#39;s “point of sale” (POS) machine prior to swiping a credit card or other form of payment. The results of this action will instruct the merchant  130 ,  140  as to the dollar amount of the discount  135 ,  145  the merchant should give the customer for the purchase. The discount is then applied to the bill and then the difference is paid by the customer. By agreeing to participate, the merchants  130 ,  140  agree to contribute the amount of the respective discounts  135 ,  145  to the fundraising entity  120  in the form of charitable donations  155 . The amounts owed to the fundraising entity can be tabulated in the vendor&#39;s database  160  and submitted directly by the merchants  130 ,  140  to the fundraising entity  120  on a monthly basis. A monthly invoice can be sent by the vendor  105  to the merchants  130 ,  140  detailing how much was given in discounts and how much merchant owes to the associated fundraiser. 
         [0018]    The merchants  130 ,  140  can also be given access to the vendor&#39;s servers  160  via the vendor&#39;s website to allow the merchants  130 ,  140  the option of creating a variety of reports detailing various data collected. These reports can include how much they have given out in actual cash discounts, how much they have paid in tax deductable donations  155 , how much in purchases they have generated from customers  125  and more. 
         [0019]    The customers  125  may also be given access to the vendor&#39;s web site so that they can see exactly how much money has been contributed to the fundraising entity  120 . Additionally, the customers  125  can determine how much money is left in discounts, what merchants  130 ,  140  participate (as well as link to their websites), and can renew their cards  150  if so desired. Finally, the customers  125  can change their choice of fundraising entity at the start of the second year. 
         [0020]    The system described above encourages merchants  130 ,  140  to participate in the program by providing tax incentives as well as advertising benefits. Being a participant gives a merchant a means for participating in local fundraisers  120  without just handing over a check. Participation provides advertising to the merchant and adds traffic to the vendor&#39;s place of business. The vendor has the added incentive of enabling the portion of the discount granted to the customer to be treated as a tax deductible donation as allowed by the IRS. Although  FIG. 1  shows only one fundraiser, multiple fundraisers can participated with vendor  105 , thus capitalizing on the economies of scale realized by the vendor  105  to reduce the expense of the infrastructure necessary to implement the program. 
         [0021]    The vendor  105  provides the technology and infrastructure that is responsible for collecting the data and funds. The vendor  105  can also be responsible for signing up merchants  130 ,  140  to participate in the program. This creates efficiency in that the merchant need only be signed up once to participate with the vendor. Thus, the vendor can get the agreement of merchants and consequently obtain agreement by the merchant to participate in any fundraising event facilitated by vendor under conditions agreeable to the merchant and the vendor. By taking responsibility for implementing the program, the vendor helps the fundraisers save money on the overhead that would be necessary for the fundraising entity to implement its own program. Economies of scale are also realized by allowing the vendor to serve multiple fundraisers with the same merchants  130 ,  140 . 
         [0022]    Referring now to  FIG. 2 , an alternative embodiment of the present invention is illustrated. The invention operates generally in the same way as the invention described above with reference to  FIG. 1 . However, instead of requiring the customers  125  to submit another card as payment for the discounted transaction, the card  110  may also grant access to the customer&#39;s credit card or debit card information such that when the card is processed, the POS system causes the vendor&#39;s server  160  to look up the available payment options  205  and allows the customer to select  210  via the POS system a choice of payment options—e.g., Visa, Mastercard, American Express, debit card, or other forms of electronic payment that can be conducted over today&#39;s POS systems of other processing systems yet to be developed. In this manner, the customers  125  can add certain payment methods via a connection to the vendor&#39;s server. Alternatively, the forms of payments available may be stored on and retrieved directly from the card  110  by the POS system. Once the payment information is received, the payment for the transaction is processed in the normal manner  215 . 
         [0023]    Referring now to  FIG. 3 , a diagram showing an alternative embodiment of the present invention is illustrated. There are a number of other uses for which the card  110  may be utilized to prevent the customer from having to carry multiple cards, thereby encouraging the use of the fundraising discount feature  300  of the card. For example, the card  110  could be used as a hotel key  305 , car key  310 , house key  315 , medical records key  320 , loyalty/rewards card  325 , stored payment card  330  and stored value card  335 . 
         [0024]    For example, upon checking in at a hotel, the card  110  is provided to the desk clerk  338 , and the desk clerk  338  uploads the door code information  340  to the card  110 . The card  110  could be used in a similar manner as a home key  315  or office door key. To be used as a car key  310 , the card is presented to the dealership  350  where the car is purchased and the car&#39;s ignition system information is stored  345  on the card  110 . The card  110  could be used as a medical records key  320  to allow access to certain secure information on a computer server. The card  110  may also contain the myriad of loyalty cards that the typical person utilizes. Instead of having to carry multiple individual loyalty cards, all pertinent data may be contained on one card  110 . Thus, when the user makes a payment at a merchant that accepts loyalty cards, the user may present the card  110  and the loyalty storage mechanisms will update as if the merchant&#39;s original loyalty card had been presented. 
         [0025]    To accommodate the various alternative uses of the card described above, the card would need to be compatible with the alternative use. For example, to be used as a car key  310 , the car&#39;s ignition system could utilize a smart card reader. Alternatively, an RFID chip can be embedded into the card  110  to act as a replacement for the key fobs currently available today for many cars having push-to-start ignition systems. 
         [0026]    Referring now to  FIG. 4 , a diagram showing the implementation of a medical records key in accordance with an embodiment of the present invention is illustrated. To allow access to medical records, a biometric print (usually in the form of a fingerprint but could also be in the form of an iris scan, retinal scan, hand print, earlobe print, or any other viable biometric identity) can be stored on the card  110 . The biometric print, along with a password known by the customer  125 , create a unique encryption key. This key is used to encrypt and decrypt the medical records. The medical records can be stored, in their encrypted format on the vendor&#39;s servers  160 . To protect the confidentiality of the customer&#39;s records, the only identifying information is an encrypted identifier. This identifier can be created in advance using the biometric print and the customer&#39;s password. Using an encrypted identifier in this manner to identify the medical records ensures total anonymity of the encrypted records to all vendor personnel. 
         [0027]    When the customer goes to the doctor  410  or the hospital  420 , the card  110  is processed by a reader. The reader prompts the customer  125  to enter his or her password and a biometric print is obtained from the customer  125 . These items are combined to create an encryption key  430  that is sent to the vendor&#39;s servers  160  where a lookup is performed to match the encryption key with the previously created encrypted identifier. Once a match is found, the customer&#39;s encrypted records  435  are downloaded to the health care provider&#39;s systems through a virtual tunnel  440 . The health care provider can then decrypt the medical records using the encryption key. As updates are made to the records, the same process is used in reverse to store those updates. 
         [0028]    In an alternative embodiment, the system of the present invention could be implemented utilizing a smart phone. Thus, the customer need not carry any cards at all to utilize the system of the present invention. This can be accomplished by storing the information necessary on the SIM card of a GSM based cell phone or other memory device for the phone or other personal device. Alternatively, a smart phone itself can be used as a POS port with a smart card reader, thus enabling the user to make payments, transfer money, and undertake most transactions through the smart phone for goods and services. 
         [0029]    Referring now to  FIG. 5 , a flowchart showing a process for utilizing a smart phone as a POS port in accordance with an embodiment of the present invention is illustrated. A transaction is initiated by inserting a smart card  510  into a smart phone equipped with a smart card reader. When the card is inserted into the smart phone, the smart phone identifies the card and connects to the vendor&#39;s servers via a data connection (HTTP, SHTTP, HTTPS, SSL, VPN, or other IP oriented connection methodology). 
         [0030]    Once the connection has been established, the server identifies the smart phone (via its ESN) and associates it with the card (via data transmitted by the smartcard reader). The customer may then be asked to validate his identity  530 . Once the customer&#39;s identity is validated, the smart phone presents the user with screens allowing the user to select the method of payment and the payment amount  540 . For example, the smart card may be associated with numerous payment options on the vendor&#39;s servers including debit cards, credit cards, bank transfer, cash value card, and other forms of payment that may be used today or in the future. The customer inputs his or her selection  550 . 
         [0031]    Once all the required information has been entered and validated, the vendor&#39;s servers process the transaction request  560  and upon approval of the request, a notification of acceptance is sent to the smart phone. This system thus enables anyone with a smart phone equipped with a smart card reader to process POS transactions anywhere a data connection is available, opening up opportunities for retailers and reducing the cost of processing POS transactions by eliminating much of the equipment normally required for a retailer to accept such payment methods. 
         [0032]    Although the invention hereof has been described by way of a preferred embodiment, it will be evident that other adaptations and modifications can be employed without departing from the spirit and scope thereof. The terms and expressions employed herein have been used as terms of description and not of limitation; and thus, there is no intent of excluding equivalents, but on the contrary it is intended to cover any and all equivalents that may be employed without departing from the spirit and scope of the invention.