Abstract:
The present invention includes networks, methods, and systems for encouraging the timely payment of bills and, more specifically, to networks, methods and systems by which rewards are granted to promote the timely payment of bills.

Description:
CROSS-REFERENCE TO RELATED APPLICATION 
       [0001]    This application claims the benefit of priority under 35 U.S.C. § 119(e)(1) to U.S. Provisional Application Ser. No. 60/983,534, filed Oct. 29, 2007, the disclosure of which is hereby incorporated herein, in its entirety, by this reference. 
     
    
     FIELD OF INVENTION 
       [0002]    The present invention relates generally to networks, methods, and systems for encouraging the timely payment of bills and, more specifically, to networks, methods and systems by which rewards are granted to promote the timely payment of bills. 
       SUMMARY 
       [0003]    A network that incorporates teachings of the present invention includes at least three different parties: a payment receiver, or vendor; a group of bill payers, or consumers, obligated to remit payment to the vendor; and at least one reward partner. In some embodiments, a network according to the present invention may also include an administrator. The vendor is a party to which a regular (e.g., monthly, quarterly, annual, etc.) payment, or bill, is due. The consumer is the party who is responsible for making the payment. The reward partner is a third party that directly or indirectly grants rewards to a consumer when that consumer&#39;s bills to the vendor are paid on time and in full. The rewards may include incentives (e.g., discounts, rebates, credits, products, etc.) that are intended to increase the consumer&#39;s exposure to the reward partner&#39;s business. The vendor uses the rewards as incentive to encourage consumers to pay their bills on time. 
         [0004]    Additionally, in some embodiments, a network according to the present invention may include a fourth party administrator. The administrator may establish relationships between vendors and one or more reward partners. The administrator may also administer and manage the relationship between the vendor, each reward partner, and the consumers. In administering and/or managing the relationship between the other parties to a network of the present invention, an administrator may keep an accounting of any rewards that are accrued by and/or used by each participating consumer. In addition, the administrator may perform other tasks relating to the network, such as receiving payments from the consumers on behalf of the vendor and granting rewards to customers on behalf of a reward partner or vendor. The administrator may also monitor consumers&#39; buying habits, provide that information to reward partners or other parties (e.g., potential vendors, potential reward partners, etc.) that may benefit from such information, and perform other tasks that relate to the development and maintenance of a network that incorporates teachings of the present invention. 
         [0005]    One or more reward partners may directly or indirectly grant one or more rewards to each consumer in the network when that consumer&#39;s payment obligation or obligations are paid on time. The reward partner&#39;s potential benefit for providing rewards includes increased exposure the reward partner&#39;s business by enticing existing and potential customers, such as consumers that receive the rewards, to exploit the rewards and obtain goods or services from the reward partner. 
         [0006]    The availability of rewards for timely payment, especially when advertised, may attract additional business to the vendor. In addition, by conditionally granting rewards, the vendor incentivizes its customers, the consumers, to meet the conditions (e.g., timely payment of bills) necessary for receipt of the rewards. Since rewards are provided by a third party reward partner, the payment receiver incurs little or no expense in granting the rewards. In fact, as the number of consumers that pay their bills on time increases, the vendor&#39;s expenses associated with the collection of late payments decrease. As a result, the vendor may actually save money by participating in a network according to the present invention. 
         [0007]    Consumers receive rewards when their bills are paid on time. The rewards that are received may provide the consumers with monetary savings for goods or services the bill payers may have already had an interest in purchasing. When rewards are used to encourage consumers to pay their bills on time, the consumers may also benefit by avoiding additional charges that may have otherwise been incurred by late payment of bills, as well as by an improved credit rating. 
         [0008]    When a network of the present invention includes a fourth party administrator, the fourth party administrator may establish the network, including relationships between a vendor and one or more reward partners, monitor or even administer a vendor&#39;s accounts receivable, and/or grant rewards. Optionally, the fourth party administrator may monitor, or track, use of the rewards, buying habits of targeted consumers, and the like. Such information may be used to determine the potential desirability of different types of rewards to consumers, payment trends, and/or the use of rewards, as well as the benefits that each reward partner gleans by participating in a network that incorporates teachings of the present invention. The fourth party administrator may include a single party, or a plurality of parties that perform different tasks to establish and administer a network according to the present invention. 
         [0009]    Systems of the present invention are configured or, in the case of computer operated systems, programmed to administer one or more features of the network. As an example, a system of the present invention may be configured or programmed to monitor or administer a payment receiver&#39;s accounts receivable, to track payment trends, to observe the types of rewards that are chosen by bill payers that pay their bills on time, and/or to monitor use and/or accumulation of rewards that have been granted to bill payers. Additionally, a system of the present invention may evaluate data obtained from monitoring activities to provide reward partners with meaningful information about the effectiveness of their advertising and/or marketing efforts in a network that incorporates teachings of the present invention, or to entice potential vendors and/or reward partners into participating in such a network. 
         [0010]    In some embodiments, a system of the present invention includes a billing element and a reward management element. The billing element may be accessed by a vendor or by another party acting on behalf of the vendor. Among other functions, the billing element may administer period billing and the granting of rewards when timely payments are received. The reward management element may be accessed by a consumer, where the consumer may select, monitor, and redeem rewards. Such a system may also include computers by which various elements are accessed by the parties that participate in a network of the present invention to effect other aspects of such a network. 
         [0011]    In another aspect, the present invention includes methods for developing networks that promote the timely payment of bills. The networks may be developed by fourth party administrators, or by rewards partners or payment receivers. 
         [0012]    Other aspects, features, and advantages of the present invention will become apparent to those of ordinary skill in the art through consideration of the ensuing description, the accompanying drawings, and the appended claims. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0013]    In the drawings, which illustrate various features of different aspects of the present invention: 
           [0014]      FIG. 1  is a schematic diagram of an embodiment of a network according to the present invention; and 
           [0015]      FIG. 2  is a schematic diagram of another embodiment of a network that incorporates teachings of the present invention. 
       
    
    
     DETAILED DESCRIPTION 
       [0016]    With reference to  FIG. 1 , a schematic representation of a reward network  10  that incorporates teachings of the present invention is shown. Reward network  10  includes at least three parties: a vendor  12 , a plurality of consumers  14 , and at least one reward partner  16 . 
         [0017]    Vendor  12  provides something of value to consumers  14 , as represented by arrow  32 . As an example, vendor  12  may be a landlord. In other examples, vendor  12  may be a utility company, a lender, a lessor, or the like. 
         [0018]    Consumers  14  are parties (e.g., businesses, individuals, etc.) that incur obligations to vendor  12  in return for receiving the something of value provided by vendor  12 . The obligation of each consumer  14  to vendor  12  is represented by arrow  24 . The obligation may be in the form of the requirement to pay a periodic bill. The periodic bill may comprise a fixed or variable bill that may be due on a regular basis (e.g., weekly, bimonthly, monthly, quarterly, annually, etc.) by a series of predetermined deadlines. Consumers  14  may be tenants, utility consumers, borrowers, lessees, or the like. If consumers  14  fail to meet their periodic obligation of paying vendor  12  on time, they may suffer any number of negative consequences, including, but not limited to, late fees and a reduced credit rating. Additionally, in some instances, such as when consumers  14  receive a service from vendor  12 , late-paying consumers  14  may temporarily lose that service. The consequences for non-paying consumers  14  may be even more severe, and include, without limitation, permanent loss of service, eviction, collection, and loss of deposits or collateral. Despite the negative implications for failing to make periodic payments by predetermined deadlines, many consumers  14  continue to pay their bills late or only remit partial payment. 
         [0019]    The presence of one or more third parties, the reward partners  16 , in network  10  introduces some positive motivation for consumers  14  to make timely and full payments to a vendor  12 . A reward partner  16  is a party that is desirous to advertise its business to an identifiable, or known, group of consumers and entice that group of consumers to increase the consumers&#39; exposure to reward partner&#39;s  16  business. Through an established relationship with vendor  12  in network  10 , reward partner  16  may advertise directly to consumers  14  of vendor  12 . Reward partner  16  may attract business, or advertise, in return for making one or more rewards  26 , symbolized as an arrow, available to vendor&#39;s  12  consumers  14  that meet their periodic obligations (e.g., pay their bills) on time and in full. 
         [0020]    A reward  26  may be provided for a single timely and full payment. Alternatively, a reward  26  may be earned for a predetermined number of timely and full payments (e.g., sequential or non-sequential). 
         [0021]    A reward  26  may be embodied as a financial incentive for a consumer  14  to increase his, her, or its exposure to reward partner  16 . Alternatively, reward  26  may be a non-financial incentive for increasing a consumer&#39;s  14  exposure to reward partner  16 . Examples of rewards  26  that may be provided by a reward partner  16  include, but are not limited to, coupons, rebates, credits (e.g., gift cards, etc.), products (e.g., a product that is most useful with, or useful only with, another product, such as audio/video components, cellular telephone accessories, a battery for a portable drill, etc.) and a variety of other considerations. In some embodiments, rewards  26  may be provided directly to a consumer  14 . In other embodiments, a reward  26  may be provided indirectly from one reward partner  16  to consumer  14 ; for example, as a credit that may be used when consumer  14  purchases goods or services from another reward partner  16 . 
         [0022]    In some embodiments, a network  10  of the present invention may include more than one category of reward partners  16 . A specific embodiment of such a network  10  includes first-level reward partners  16 , who participate in network  10  (i.e., provide rewards) on a regular basis, as well as second-level reward partners  16 , who may participate in network  10  on a limited (e.g., irregular, temporary, periodic, etc.) basis. Examples of second-level reward partners  16  include companies that typically do not market by offering discounts, but that may find themselves in an unusual situation where offering discounts may move inventory or otherwise improve business (e.g., a theater that is usually popular, but exhibits an unpopular show; a retail store with an unanticipated overstock of one or more products; a retail store attempting to move seasonal items, etc.). 
         [0023]    Rewards  26  may be granted to consumers  14  by reward partner  16 , which may increase a reward partner  16 &#39;s exposure to consumers  14 . Alternatively, rewards  26  may be granted to consumers  14  in a way that shields the identities of specific consumers  14  from reward partner  16 . For example, vendor  12  may distribute rewards  26  to consumers  14  that have fulfilled their period obligations. As another alternative, as described in further detail hereinafter, another, fourth, party may distribute rewards  26  to consumers  14  upon meeting their periodic obligations, or to vendor  12 , who then distributes rewards  26  to consumers  14 . 
         [0024]    Reward partners  16  may be allowed to periodically (e.g., once every month, once every quarter, once every six months, once each year, etc.) change the reward or rewards that are available to consumers  14 . 
         [0025]    An example of a reward partner  16  is a local retail store or restaurant, or retailer, that would like to increase the number of people visiting its premises, or “foot traffic.” The type of reward or rewards that are made available by such a business may require consumers  14  who receive the reward or rewards to visit the premises to redeem the reward. By enticing consumers  14  to visit the premises, the probability that consumers  14  will purchase additional products from reward partner  16  increases. 
         [0026]    As another example, reward partner  16  may be a business that provides a delivery service (e.g., a restaurant, a courier, etc.). When consumers  14  redeem rewards provided by such a reward partner  16 , consumers  14  will be exposed and hopefully grow accustomed to the convenience of the service provided by reward partner  16 . 
         [0027]    In another example, vendor  12  may rent a residence (e.g., a home, an apartment, etc.), consumer  14  may be an individual tenant, and reward partner  16  may be a home builder. By paying his or her rent on time (e.g., by the due date, not within any grace period thereafter) for a predetermined cumulative number of periods of time (e.g., six months, one year, etc.), consumer  14  may earn a credit toward the purchase of a home. Such a reward may be earned incrementally for each timely fulfillment of a consumer&#39;s  14  obligation to vendor  12 , up to a maximum amount. Alternatively, a reward may be granted when a consumer&#39;s  14  periodic obligations to vendor  12  have been met for a predetermined number of cumulative payment periods, regardless of whether consumer  14  fails to make a timely payment while earning credit toward a reward. As another alternative, a reward may be granted when a consumer&#39;s  14  obligations to vendor  12  are fulfilled for a predetermined number of consecutive payment periods, in which case a consumer  14  cannot miss any payments while earning credit toward the reward (e.g., to prove to reward partner  16  that consumer  14  will be a reliable, or low-risk, debtor). 
         [0028]    Of course, any other type of party that is interested in attracting customers may also be a reward partner  16 . 
         [0029]    In operation of network  10 , a vendor  12  may, by participating in network  10 , advertise to potential consumers  14  that they may receive rewards merely for meeting their obligations on time. Advertisement by vendor  12  to potential consumers  14  is represented by arrow  32 . 
         [0030]    Each consumer  14  may, upon entering a relationship with vendor  12 , or at some point following the establishment of such a relationship, register to participate in network  10  or otherwise opt in to network  10 . In some embodiments, a consumer  14  that chooses to participate in network  10  decide to receive rewards from one or more reward partners  16  that participate in that network  10 . 
         [0031]    Alternatively, a consumer&#39;s  14  presence in network  10 , merely by virtue of that consumer&#39;s  14  entering into a relationship with vendor  12 , may automatically qualify that consumer  14  for participation in network  10 . When a consumer  14  is automatically enrolled in a network  10 , that consumer may immediate begin to accrue rewards  26  from one or more reward partners  16 , regardless of whether that consumer  14  has activated his or her account. Upon activating his or her account, that consumer  14  may then redeem his or her rewards  26 . 
         [0032]    Each consumer  14  within network  10  may preselect one or more reward partners  16  from a predetermined group of reward partners (e.g., those participating in network  10 ) whose rewards will be made available to that consumer  14  when that consumer  14  fulfills its periodic obligation in a timely manner. Alternatively, a consumer  14  may preselect a predetermined number of (one or more) rewards, from a group of rewards that are available to consumers  14  participating in network  10 , that will be granted once that consumer  14  meets a periodic obligation. The number of rewards  26  available to each customer  14  may be limited by number, value, or in some other manner. In some embodiments of network  10 , it is possible, although not necessary, that the value of rewards  26  granted to a consumer  14  for meeting a single periodic obligation, if redeemed, may exceed the monetary amount of that obligation. Additionally, consumers  14  may periodically (e.g., once every quarter, once every six months, once each year, etc.) reselect rewards that may be received during the ensuing period of time in the event that the periodic obligations of consumer  14  are met during that ensuing period of time. The frequency with which consumers  14  may reselect potential rewards  26  may coincide with the frequency with which reward partners  16  are allowed to vary the reward or rewards they provide. By allowing consumers  14  to preselect one or more reward partners  16  or rewards  26 , consumers  14  are likely to think about the preselected reward partners  16  or rewards  26  each time they remember their periodic obligation to vendor  12 , creating an advertising impression that may inherently increase the level of one or more reward partners  16  exposure to consumers  14 . 
         [0033]    In some embodiments, a network  10  may be configured to prevent unwanted solicitation of consumers  14  in that network  10  by the reward partners  16  who participate in that network  10 . In a specific embodiment, each reward partner  16  may only be permitted to provide solicitations (e.g., printed advertisements, e-mails, etc.) to a consumer  14  when that consumer  14  has “opted in,” or affirmatively chosen to receive rewards from that reward partner  16 . Each consumer  14  within a network  10  may chose to receive rewards from one or more reward partners  16  in that network  10 . A consumer  14 &#39;s choices may be made in any suitable manner (e.g., in writing, by accessing a consumer  14 —dedicated page on a website associated with network  10 , etc.). 
         [0034]    In return for providing rewards  26  to consumers  14  that meet their periodic obligations, each reward partner  16  may receive business from one or more consumers  14 , as symbolized by arrow  34 . 
         [0035]    Turning now to  FIG. 2 , in addition to a vendor  12 , consumers  14 , and at least one reward partner  16 , another embodiment of network  10 ′ of the present invention may optionally include one or more administrators  18 . An administrator  18  may set up network  10 ′. For example, administrator  18  establishes a relationship between a vendor  12  and one or more reward partners  16 , as represented by arrows  28 . Reward partner  16  and/or vendor  12  may pay administrator  18  for the opportunity to participate in a network  10 ′ that incorporates teachings of the present invention, as symbolized by arrows  42  and  46 . 
         [0036]    In addition to establishing network  10 ′ and establishing relationships between vendor  12  and one or more reward partners  16 , administrator  18  may perform a variety of other tasks. For example, administrator  18  may receive payments on behalf of vendor  12  and/or monitor whether or not consumers  14  have met their obligations to vendor  12 . As another example of an administrator  18 &#39;s responsibilities, once an administrator  18  receives confirmation that a consumer&#39;s  14  periodic obligation has been fulfilled, administrator  18  may grant one or more rewards to that consumer  14 , a service that may be paid for by a reward partner  16 , at arrow  46 , whose reward is granted to consumer  14 . 
         [0037]    Administrator  18  may, in some embodiments, be compensated by vendor  12 , as symbolized by arrow  42 . When vendor  12  compensates administrator  18 , the compensation may comprise a relatively nominal sum (e.g., $0.50 per consumer  14  per month, $1.00 per consumer  14  per month, etc.). If the per-consumer  14  compensation from vendor  12  to administrator  18  is relatively nominal, little or no additional expense will be incurred by each consumer  14  within a network  10 ′ of the present invention. 
         [0038]    In a further example, administrator  18  may track the accumulation of rewards by one or more consumers  14 , the redemption of rewards by one or more consumers  14 , and/or the buying habits of individual consumers  14  or the collective group of consumers  14  within a particular network  10 ′. The data that is collected may be used to identify buying trends, additional products or services that may be of interest to a targeted group of consumers, the effectiveness of a particular reward partner&#39;s  16  advertising efforts within network  10 ′, as well as other information that may be useful to others. The information that is obtained from administrator&#39;s  18  monitoring efforts may be presented to a reward partner  16 , a service for which administrator  18  may receive compensation from reward partner  16  at arrow  46 . Alternatively, the information obtain from administrator&#39;s  18  monitoring efforts may be provided to parties, such as potential vendors and reward partners, that may be interested in participating in a network according to the present invention. 
         [0039]    While an administrator  18  may receive compensation for a variety of services, in various embodiments, reward partners  16  are the primary source of an administrator&#39;s compensation. 
         [0040]    In some embodiments, a reward partner  16  may compensate an administrator  18  for each consumer  14  that “opts in,” or chooses to receive that reward partner&#39;s rewards. Such compensation is agreed upon between administrator  18  and reward partner  16  in advance. Administrator  18  may be compensated on a one-time basis or periodically. In a specific embodiment, a reward partner  16  may pay administrator  18  a predetermined monthly fee (e.g., $0.50, $1.00, etc.) for each consumer  14  that chooses to receive rewards from that reward partner  16 . 
         [0041]    In other embodiments, a reward partner  16  may compensate an administrator  18  for each consumer  14  within a network  10 ′ where that reward partner  16 &#39;s rewards are available. In such embodiments, compensation is not based upon an affirmative choice act by or on the part of any consumer  14 ; rather, administrator  18  receives a predetermined amount for the number of consumers  14  within network  10 ′ at a particular point in time. One or more (e.g., each) reward partner  16  within network  10 ′ may pay administrator  18  a predetermined amount of money (e.g., $0.05, $0.10, $0.25, etc.) at the beginning of a particular period of time (e.g., month) for each consumer  14  who is qualified to participate in network  10 ′ at the beginning of that particular period of time. 
         [0042]    In some embodiments, administrator  18  may receive compensation from a reward partner  16  when a consumer  14  redeems one or more rewards from that reward partner  16 . In more specific embodiments, an administrator  18  may receive compensation in the form of a commission, a fixed payment amount for each unit sale, or the like. 
         [0043]    As rewards  26  may be provided at little or no cost to vendor  12 , rewards  26  may be made available and/or provided to consumers  14  without directly or indirectly increasing the cost to consumer  14  of doing business with vendor  12 . 
         [0044]    A network  10 ,  10 ′ according to the present invention may be administered in accordance with rules that protect each consumer&#39;s  14  privacy, prevent unwanted advertisement by reward providers  16  within network or others (e.g., span, junk mail, etc.), impose limitations on the availability of incentives from reward partners  16  that are targeted to consumers  14  outside of the scope of consumers&#39;  14  obligations to vendor  12 , as well as a variety of other rules that maintain the primary purpose of network  10 ,  10 ′ to encourage consumers  14  to meet their obligations on time without increasing the cost for consumers  14  in meeting those obligations. 
         [0045]    With continued reference to  FIGS. 1 and 2 , a system of the present invention may include one or more computers associated with each participant in network  10 ,  10 ′. 
         [0046]    A consumer  14  accessible element of the system may enable each consumer  14  to manage his or her account. A consumer account may be activated as a consumer  14  accesses the system (e.g., via a computer through an internet connection, etc.), searches for the appropriate vendor  12 , and selects one or more reward partners  16 . In some embodiments, a consumer  14  may also be required to input personal information and/or accept any terms and conditions that are required for participating in network  10 ,  10 ′. 
         [0047]    A system according to the present invention may also include a billing element. The billing element may administer periodic billing of consumers on behalf of the vendor, as well as consumers&#39; accounts receivable. The billing element may store information about each reward partner or reward that was selected (e.g., affirmatively preselected, selected by default, etc.) by a particular consumer. Upon determining that a consumer&#39;s bill has been paid in full and on time, the billing element may trigger the granting of one or more rewards, including one or more rewards from one or more preselected reward partners, or one or more preselected rewards, to that consumer. 
         [0048]    As a consumer  14  earns rewards  26 , he or she may redeem rewards through the system by selecting any rewards that are to be redeemed. In some embodiments, reward  26  redemption may be effected electronically, such as by crediting a consumer  14 &#39;s account with a particular reward partner  16  and verified by way of a statement from that reward partner  16  (e.g., a line item on bill, etc.). In other embodiments, a consumer  14  may redeem a reward  26  by printing a reward certificate or coupon, which may then be presented to the reward partner  16 . 
         [0049]    In addition to a billing element, a system of the present invention may include a tracking element. The tracking element may be configured to track a consumer&#39;s use of rewards; monitor the purchases of individual consumers or a group of consumers belonging to a particular network, the accumulation of rewards by individual consumers or a group of consumers belonging to a particular network; and/or the buying habits of individual consumers belonging to a particular network or a group of consumers in the network. 
         [0050]    In addition to such monitoring, the tracking element may be configured to analyze the monitored information. The information may be analyzed and evaluated for a variety of purposes, including, without limitation, the identification of goods or services that would likely be desirable to a targeted group of consumers. With such information, additional goods or services may be made available to consumers, as many rewards for enticing the consumers to obtain such goods or services. 
         [0051]    The tracking element may also be configured to evaluate the effectiveness of a particular reward partner&#39;s advertising efforts within a network that incorporates teachings of the present invention. 
         [0052]    Additionally, the tracking element may be configured to present the information that is obtained from monitoring efforts in a way that will be of use or interest to reward partners who participate in a network, as well as potential reward partners and vendors that may have an interest in participating in a network that incorporates teachings of the present invention. 
         [0053]    Although the foregoing description contains many specifics, these should not be construed as limiting the scope of the present invention, but merely as providing illustrations of some of the presently preferred embodiments. Similarly, other embodiments of the invention may be devised which do not depart from the spirit or scope of the present invention. Features from different embodiments may be employed in combination. The scope of the invention is, therefore, indicated and limited only by the appended claims and their legal equivalents, rather than by the foregoing description. All additions, deletions and modifications to the invention as disclosed herein which fall within the meaning and scope of the claims are to be embraced thereby.