Abstract:
A mobile loyalty system for preventing fraudulent redemption of a reward is disclosed which comprises a mobile communication device having a screen and configured to run a mobile application for obtaining a code representative of a visit to a merchant, the mobile application for transmitting information associated with obtaining the code representative of the visit to the merchant and for receiving information associated with a reward to be redeemed at the merchant, the screen for displaying the reward to be redeemed and a motion element for preventing fraudulent redemption of the reward.

Description:
BACKGROUND 
       [0001]    This disclosure relates to a system and method for implementing a customer loyalty program and more particularly to a system and method for implementing a mobile loyalty program through the use of a cellphone, smart phone, or other telecommunications device that prevents fraudulent redemption of a reward. 
         [0002]    Customer loyalty programs are used by merchants and businesses to retain customers. It is typically less expensive to retain a customer than to attempt to attract a new customer. Some examples of the types of loyalty programs established by merchants require a customer to have a punch card, a gift card, or a debit-type card. Every time a customer visits the merchant and makes a purchase the card will be credited for the purchase. However, such programs have problems in that the customer must always remember to bring the card to the merchant when a new purchase is being transacted. If the customer forgets to bring the card then some loyalty programs allow the customer to enter the transaction via the Internet. However, the customer must take the time to enter the information. Forgetting or losing the card and not being credited for the purchase may have an adverse impact on the customer and the loyalty program. 
         [0003]    Another type of loyalty program consists of a coupon being printing on the back of a receipt of a customer. For example, a grocery store will print out a coupon that requires the customer to return to the store to use the coupon on another purchase. However, this type of loyalty program requires the customer to remember about the coupon and to bring the coupon back to the grocery store. If the coupon is not used this may defeat the whole purpose for the loyalty program. 
         [0004]    In order to avoid some of the problems associated with these loyalty program, one loyalty program that has been suggested uses a smart phone or other mobile device to interact with a computerized loyalty system. In the proposed system, a customer downloads a loyalty program application onto the smart phone and uses the application to join the loyalty program and to interact with the loyalty program. When a customer enters into a transaction at a merchant that is running the loyalty program, a code image, such as an QR (Quick Response) code is generated for the particular customer to use to record a credit in the loyalty program. The QR code must be generated for each customer for each transaction. Once the QR code is generated the QR code may be photographed or scanned by the smart phone and this code may be sent to a loyalty system server associated with the merchant. The loyalty system server uses the transmitted information to credit the account of the customer. Although such a system may be useful, one problem associated with its use is that there is no fraud prevention mechanism available or built into the system to prevent multiple redemption of a single reward. 
         [0005]    Therefore, it would be desirable to have a mobile loyalty system that prevents fraudulent redemption of a reward. For example, it would be advantageous to have a mobile loyalty system that prevents fraudulent redemption of a reward being offered by a merchant by alerting the merchant that the reward has been redeemed. It would also be advantageous to have a mobile loyalty system that does not require the generation of QR codes for each individual customer for each individual transaction. 
       SUMMARY 
       [0006]    In one form of the present disclosure, a mobile loyalty system for preventing fraudulent redemption of a reward is disclosed which comprises a mobile communication device having a screen and configured to run a mobile application for obtaining a code representative of a visit to a merchant, the mobile application for transmitting information associated with obtaining the code representative of the visit to the merchant and for receiving information associated with a reward to be redeemed at the merchant, the screen for displaying the reward to be redeemed and a motion element for preventing fraudulent redemption of the reward. 
         [0007]    In another form of the present disclosure, a mobile loyalty system comprises a mobile communication device having a screen and configured to run a mobile application for obtaining a code representative of a visit to a grouping of merchants, the mobile application for transmitting information associated with obtaining the code representative of the visit to one of the merchants within the grouping of merchants and for receiving information associated with a reward to be redeemed at any of the merchants within the grouping of merchants, the screen for displaying the reward to be redeemed and a motion element for preventing fraudulent redemption of the reward. 
         [0008]    In yet another form of the present disclosure, a method for conducting a mobile loyalty system comprises the steps of enrolling in a mobile loyalty system, visiting a merchant that has the mobile loyalty system, scanning a code located at the merchant to indicate that the merchant was visited and to obtain a credit toward a reward to be offered by the merchant, accumulating a predetermined number of credits to obtain a reward to be redeemed, receiving a notification that the reward is redeemable, and displaying a motion element that indicates that the reward must be redeemed in a predetermined period. 
         [0009]    In light of the foregoing comments, it will be recognized that the present disclosure provides a system and method for implementing a mobile loyalty program that prevents fraudulent redemption of a reward. 
         [0010]    The present disclosure provides a system and method for implementing a mobile loyalty program in which a reward must be redeemed within a certain time limit. 
         [0011]    The present disclosure provides a system and method for implementing a mobile loyalty program in which a reward may only be redeemed in a certain geographical area. 
         [0012]    The present disclosure provides a system and method for implementing a mobile loyalty program in which a reward may be redeemed at a grouping of associated merchants or stores. 
         [0013]    The present disclosure provides a mobile loyalty system that enables a customer of a merchant to use a smart phone or other mobile device to easily participate in the mobile loyalty program that prevents fraudulent redemption of a reward. 
         [0014]    These and other advantages of the present system and method for implementing a mobile loyalty program will become apparent after considering the following detailed specification in conjunction with the accompanying drawings, wherein: 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0015]      FIG. 1  is a block diagram of a mobile loyalty system constructed according to the present disclosure; 
           [0016]      FIG. 2  is an illustration of a screen which may be presented during use of the mobile loyalty program constructed according to the present disclosure; 
           [0017]      FIG. 3  is an illustration of a screen which may be presented during use of the mobile loyalty system constructed according to the present disclosure; 
           [0018]      FIG. 4  is an illustration of a screen which may be presented during use of the mobile loyalty system constructed according to the present disclosure; 
           [0019]      FIG. 5  is an illustration of a screen which may be presented during use of the mobile loyalty system constructed according to the present disclosure; 
           [0020]      FIG. 6  is a flow chart diagram of an operation of a mobile loyalty system of the present disclosure; and 
           [0021]      FIG. 7  is a block diagram of another embodiment of a mobile loyalty system constructed according to the present disclosure. 
       
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
       [0022]    Referring now to the drawings, wherein like numbers refer to like items, number  10  identifies a mobile loyalty reward system constructed according to the present disclosure. With reference now to  FIG. 1 , the system  10  is shown to comprise a loyalty server system  12  that is connected to a communications network such as the Internet  14  via a connection  16 . The server system  12  may comprise a computer network that is capable of storing software programs and data. The server system  12  may comprise a single computer system or a number of computer systems grouped together. By way of example, the computer  12  may be a computer having a microprocessor, memory, a hard drive having stored thereon an operating system and other software, input devices such as a mouse, a CD-ROM drive, and a floppy disk drive. Other ancillary devices may be included such as a printer, a scanner, a modem, a router, or other network devices that allow the loyalty server system  12  to be connected to the Internet  14 . The connection  16  may take on various forms such as a telephone line, cable, ISDN lines, fiber optic lines, wireless connections, microwave, radio, satellites, or other connection devices or means. 
         [0023]    A customer mobile device  18  is also capable of being connected to the Internet  14  by a connection  20 . The connection  20  may take on the same form or forms as the connection  16 , but is typically a wireless connection or a WiFi connection. The customer mobile device  18  has a camera  22  and the capability of having a program such as an application  24  resident in the device  18 . The application  24  allows the camera  22  to capture an image, such as a loyalty code  26 , for processing the code  26 . The code  26  may be on a display at a merchant site, as will be discussed herein. The application  24  may be downloaded to the device  18  by the camera  22  capturing another image or code, through the use of a generic QR code reader application already resident on the device  18 , that directs this application on the device  18  to a website to download the application  24  or by visiting a merchant website and downloading the application  24 . The application  24  may require the customer to fill out various registration screens by inputting information through the device  18 . The code  26  is a loyalty code which provides for various loyalty products or services to be rewarded to the user of the device  18 . The customer mobile device  18  may be a smart phone, an iPod touch, a personal digital assistant (PDA),an iPad, tablet, device that has WiFi connectivity, or other mobile communications device capable of sending and receiving data over a wireless network. 
         [0024]    Once the registration of the application with the merchant is completed, the customer may photograph the loyalty code  26  by use of the application  24  and the camera  22 . The customer must perform this step at the merchant&#39;s store. The code  26  is transmitted to the loyalty server system  12  via the wireless network  14 . The loyalty server system  12  manages the mobile loyalty system  10  and will credit the customer&#39;s account with a loyalty visit once the code  26  is received. As can be appreciated, the loyalty code  26  is used to track or credit a visit and it may not be necessary for a transaction or a purchase to occur at any visit. 
         [0025]    The customer mobile device  18  operates on a mobile software platform such as iPhone OS (Operating System), Android OS, Palm WebOS, Windows Mobile, or other similar mobile software platform. The camera  22  is capable of capturing the code  26  and is controlled by software installed on the device  18 . The code  26  captured by the camera  22  is decoded for use by the application  24 . For example, if the code  26  is an QR code then this code will be decoded into a digital form to be used by the application  24 . This decoded information may be encoded or encrypted by the application  24  and then submitted to the loyalty service system  12  via the wireless network  12 . 
         [0026]    As previously indicated, the loyalty code  26  is a QR code that may be displayed on a placard near a register or at various other locations within a merchant&#39;s store or premises. A customer may enter a merchant&#39;s store and photograph the code  26  with the use of the device  18 . However, due to the fraud prevention elements of the mobile loyalty system  10  and as will be explained further herein, the photographing or scanning of the code  26  to obtain a credit for a visit is limited. Although a QR code has been disclosed, it is also possible to use other codes that may be scanned or photographed by the device  18 . By way of example only, another such code is a bar code or any other code that has information or data embedded therein. The loyalty code  26  may contain information or data such as a string of alphanumeric data may be in the form of a web address or a Uniform Resource Identifier (URI). The string of alphanumeric data may include the location of the merchant or a grouping of merchants, as will be discussed further herein. 
         [0027]    The mobile loyalty system  10  has fraud prevention elements incorporated therein which comprise the ability to indicate to the customer when a reward is available, at which merchant location a reward is available, or at which locations of a merchant or a group of merchants a reward is available. In particular, once a reward is available, a customer will be notified or alerted that a reward has been earned and will be provided an indication as to when the reward will expire. This notification may be shown to the merchant and the reward will be granted or provided to the customer. This notification and the fraud prevention element will be discussed more fully herein. The customer may also be notified of the reward and will be provided an indication as to where the reward may be redeemed. Further, the customer may also be notified that a reward has been earned and will be provided an indication as to what merchant or group of merchants will honor the reward. 
         [0028]      FIG. 2  illustrates a screen  40  that may be displayed on the device  18  that has installed therein the application  24 . The screen  40  has an icon or button  42  that may be pressed to open the application  24 . The icon  42  indicates that the application  24  has been installed on the device  18 . The screen  40  also has one or more icons or buttons  44  that may be operated to open other applications resident in the device  18 . For example, the icon  44  may be pressed to open a screen to dial a phone number. Once the icon  42  is pressed or selected another screen will open which will allow the customer to operate the application  24 . The device  18  may have other switches or selection devices that may be pressed to operate the device  18 , such as the button  46 . 
         [0029]    With reference now to  FIG. 3 , a screen  50  is shown which is displayed to the customer once the customer has selected the icon  42 . The screen  50  may include an icon  52  that may be pressed by the customer to scan an QR code to log a visit or purchase at a merchant&#39;s store. The icon  52  may be linked to an internal QR code scanner program or application resident in the device  18 . The icon  52  may include a logo or a message, such as an instruction, to identify the use of the icon  52 . For example, the logo or trademark of the merchant may be displayed in the icon  52 . Also, a message such as “Push To Scan &amp; Log Your Visit” may be placed in the icon  52  to instruct the customer. The screen  50  may include other icons, such as icons  54 ,  56 ,  58 , and  60 . The icon  54  may be used to hyperlink the customer to a merchant&#39;s customized mobile ordering menu to order in advance of visiting the merchant&#39;s store or establishment. The icon  56  may be used to provide a list of deals or coupons that are available at local franchises, the distance from each location, and an opportunity to redeem each deal or coupon. The icon  58  may be available to provide an exclusive offer to the customer and allow for an incentive reward to be offered for scanning the QR code for the first time. The icon  60  may be provided to indicate if a reward is available to the customer who has joined a loyalty program being offered by the merchant. As can be appreciated, the icons  54 ,  56 ,  58 , and  60  may be programmed for other uses or applications. 
         [0030]      FIG. 4  depicts a screen  70  that may be displayed to the customer when the customer has selected the icon  60 . The screen  70  may include a box  72  that may display a message that indicates that a reward has been earned by the customer who is a member of a loyalty program being offered by the merchant. For example, once a customer has visited a merchant a preset number of times, whether or not a purchase has been made, and the customer has scanned the QR code, the customer will be offered a reward. The box will include information about the reward being offered and when the reward has to be redeemed. The screen  70  also has fraud protection device  74 , such as a box, or an icon, or a display element. The fraud protection device  74  is shown as a quarter of an hour display. The device  74  is also displayed in a transitory format in that the device  74  will be blinking, flashing, or moving. In this manner, the customer may show the screen  70  to the merchant to indicate that the reward has been earned and that the device  74  is moving, flashing, or blinking to indicate that the reward has not yet been redeemed. If the reward is not redeemed within this time period then the device  74  will time out and will not longer be displayed. For example, although the device  74  has been shown to be a quarter of an hour other time periods are possible and contemplated. In this particular example, the device  74  will count down and the reward has to be redeemed in fifteen minutes or the reward is forfeited. The device  74  may also include a digital clock component that will count down from fifteen minutes to zero minutes. Once the digital clock counts down to zero the device  74  will no longer be moving, flashing, or blinking. This will indicate to both the customer and the merchant that the reward was not redeemed and the time period for redemption has expired. It is also possible that the device  74  will disappear from the screen  70  to indicate to the customer that the reward is no longer available to be redeemed. The screen  70  may also include an icon or box  76  that may be pressed or selected by the customer or merchant to indicate that the reward has been redeemed. For example, when the customer shows the screen  70  to the merchant, the merchant will see the reward being offered in the box  72 . The merchant may then provide the reward to the customer and request that the customer press the box  76  which will either stop or disable the device  74  from moving or delete the device  74  from the screen  70 . With the use of the device  74 , fraudulent redemption of a reward is prevented. It is also contemplated that the device  74  will blink, flash, or move in a predetermined sequence or rate or a random sequence or rate to further prevent a fraudulent redemption of a reward. For example, the device  74  may flash on for two seconds then flash off for one second in a continuous manner until either the reward is redeemed or the time period set for redemption has expired. Further, it is possible that the entire screen  70  may move, blink, flash, scroll, or crawl to indicate that a reward redemption period is active. 
         [0031]    With reference now to  FIG. 5 , a screen  80  is shown that may be displayed to the customer when the customer has selected the icon  60  depicted in  FIG. 3 . The screen  80  includes a box  82  that may display a message that indicates that a reward has been earned by the customer who is a member of a loyalty program being offered by the merchant. The screen  80  also has fraud protection device  84 , such as a box, or an icon, or a display element. The fraud protection device  84  is displayed in a transitory format in that the device  84  will be blinking, flashing, or moving. In this manner, the customer may show the screen  80  to the merchant to indicate that the reward has been earned and that the device  84  is moving, flashing, or blinking to indicate that the reward has not yet been redeemed. It is also possible that the device  84  will scroll or crawl across the screen  80  in a continuous manner. Within the device  84  may be displayed an expiration message. The expiration message will indicate to the customer when the reward shown in the box  82  must be redeemed or the reward will expire. The device  84  also functions to indicate that the reward has been redeemed in that the device  84  may be pressed by the customer or the merchant to indicate redemption of the reward. For example, the customer shows the screen  80  to the merchant, the merchant will see the reward being offered in the box  82 . The merchant may then provide the reward to the customer and request that the customer press the box  84  which will either stop or disable the device  84  from moving or delete the device  84  from the screen  80 . With the use of the device  84 , fraudulent redemption of a reward is prevented. It is also contemplated that the device  84  will blink, flash, scroll, or move in a predetermined sequence or a random sequence to further prevent a fraudulent redemption of a reward. Although only the boxes  82  and  84  were shown in the screen  80  it is also possible that other boxes may be displayed in the screen  80 . Further, it is possible that the entire screen  80  may move, blink, flash, scroll, or crawl to indicate that a reward redemption period is active. 
         [0032]      FIG. 6  is a flow chart diagram  100  of the general operation of the system  10 . In an initial step  102 , a customer will enroll in a loyalty program being offered by a merchant. The customer may enroll in the loyalty program by various methods. For example, the customer may see an ad in a magazine or at a website that the merchant is offering the loyalty program and the customer will be directed to a website to enroll in the loyalty program. The merchant may also have a sign in the merchant&#39;s store with the sign having an QR code  26  that the customer may scan by use of the customer&#39;s device  18  to be directed to a website to enroll in the loyalty program. The enrollment process may include the customer entering information such as the customer&#39;s name, email address, and a password. The enrollment process does not require that the customer be at the merchant&#39;s site or store. Once the customer has enrolled in the loyalty program the customer may begin to use the loyalty program. The merchant may offer a reward for enrolling in the loyalty program. In a next step  104 , a customer will scan a visit or a transaction by use of the customer&#39;s device  18 . The merchant may have a sign or a number of signs in the merchant&#39;s store for the customer to scan. For example, a sign having the QR code  26  on it may be placed on every table of a restaurant. Although a transaction is preferred, a transaction is not required to accumulate a reward. The customer may be credited for a visit to the merchant&#39;s store without having to complete a transaction or purchase. However, the application  24  will only allow a credit for a predetermined time period. For example, the customer may scan the QR code  26  numerous times during a visit, but the customer&#39;s loyalty program account will only be credited for a single visit. The system  10  may limit the customer to a single credit for a predetermined time period. For example, the customer may only be able to obtain a credit for a twenty-four hour time period. In this manner, the customer may visit the merchant&#39;s store on a Monday and scan the QR code  26  to obtain a credit for the visit on Monday and then visit the merchant&#39;s store on a Wednesday and scan the QR code  26  to obtain another credit for the visit on Wednesday. If the customer were to visit the merchant&#39;s store twice on Monday and scan the QR code  26  twice then the customer may only receive credit for a single visit due to the time limit imposed by the system  10 . It is also possible that the system  10  may include a shorter time limit, such as four hours between being able to scan a visit, or a longer time limit. Some merchants may require that a transaction or purchase be made in order to obtain a credit. In this case, it is contemplated that the QR code  26  will be printed on the receipt and the customer may scan the QR code  26  on the receipt. The mobile device  18  sends the decoded transaction information from the QR code  26  and customer authentication information to the loyalty server system  12  which uses this information to credit a loyalty program account of the customer. 
         [0033]    In a next step  106 , the customer has accumulated enough credits to earn a reward. The customer is notified of the reward when the customer presses icon  60  and is presented with either the screen  70  or the screen  80 . It is also possible that the customer will be sent an email to alert the customer that a reward has been earned and is available for redemption. Once the reward has been earned, in a next step  108 , the customer visits the merchant&#39;s store and presents either the screen  70  or the screen  80  to the merchant. The merchant will be able to view the reward earned and that the reward has not been previously redeemed by viewing the movement of the device  74  or the device  84 . Once the reward has been delivered or redeemed, the box  76  or the device  84  may be pressed. The customer may begin to accumulate other credits to obtain another reward by returning to the step  104  where the customer may scan the QR code at the next visit to the merchant&#39;s store. 
         [0034]    Referring now to  FIG. 7 , a mobile loyalty system  150  is shown comprising a loyalty server system  152  that is connected to a communications network such as the Internet  154  via a connection  156 . A grouping of merchants  158  may be connected to the communications network  154  via a wireless connection  160 . Although a wireless connection  160  is shown, it is also possible that the grouping of merchants  158  may be connected to the loyalty server system  152  by other connections such as a wireless network connection, a local area network, a wide area network, or a gateway. The grouping of merchants  158  may, by way of example only, be a franchisee that has multiple locations in a geographical area. Each location may be part of the mobile loyalty system  150 . A customer mobile device  162  is also capable of being connected to the Internet  154  by a wireless connection  164 . The customer mobile device  162  has a camera  166  and the capability of having a program such as an application  168  resident in the device  162 . The application  168  can control operation of the camera  166  to capture an image, such as a loyalty code  170 , for processing the code  170 . The code  170  may be on a display at every location of the grouping of merchants  158 . The application  168  may be downloaded to the device  162  by the camera  166  capturing another image or code, through the use of a generic QR code reader or scanner application already resident on the device  162 , that directs this application on the device  162  to a website to download the application  168  or by visiting a merchant website and downloading the application  168 . The application  168  may require the customer to fill out various registration screens by inputting information through the device  162 . The code  170  is a loyalty code which provides for various loyalty products or services to be rewarded to the user of the device  162 . As has been previously indicated, the customer mobile device  162  may be a smart phone, an iPod touch, a personal digital assistant (PDA),an iPad, tablet, device that has WiFi connectivity, or other mobile communications device capable of sending and receiving data over a wireless network. 
         [0035]    Once the registration of the application  168  with the grouping of merchants  158  is completed, the customer may photograph or scan the loyalty code  170  by use of the application  168  and the camera  166  at any of the locations of the grouping of merchants  158 . The customer must perform this step at any of the locations the grouping of merchants  158 . The code  170  is transmitted to the loyalty server system  152  via the wireless network  154 . The loyalty server system  152  manages the mobile loyalty system  150  for the grouping of merchants  158  and will credit the customer&#39;s account with a loyalty visit once the code  170  is received. As can be appreciated, the loyalty code  170  is used to track or credit a visit or transaction and it may not be necessary for a transaction or a purchase to occur at any visit to receive a credit. 
         [0036]    The mobile loyalty system  150  has fraud prevention elements incorporated therein which comprise the ability to indicate to the customer when a reward is available, at which merchant location a reward is available, or at which locations of a merchant or a group of merchants a reward is available. In particular, once a reward is available, a customer will be notified or alerted that a reward has been earned and will be provided an indication as to when the reward will expire. This notification may be shown at one of the locations within the grouping of merchants  158  and the reward will be granted or provided to the customer. The customer may also be notified of the reward and will be provided an indication as to where the reward may be redeemed. 
         [0037]    The loyalty mobile system  150  has a fraud prevention feature incorporated into the application  166 . The fraud prevention feature is the same as has been described with respect to the screen  70  or the screen  80 . In particular, the fraud prevention feature is displayed in a transitory format on a screen of the device  162  that will be blinking, flashing, or moving. In this manner, the customer may show the screen to the merchant at any of the locations within the grouping of merchants  158  to indicate that the reward has been earned and needs to be redeemed within a certain time limit. 
         [0038]    In operation of the mobile loyalty system  150 , the customer once enrolled in the system  150  will be able to accumulate credits toward a reward at multiple locations of a merchant within the grouping of merchants  158 . For example, a grouping of merchants  158  may include several of the same restaurants located at various diverse locations. One location may be close to the customer&#39;s house and another location may be near the customer&#39;s office. The customer may visit the location near the customer&#39;s house on one day and obtain a credit and the customer may visit the location near the customer&#39;s office on another day and obtain another credit toward a reward. In this manner, the customer is loyal to the grouping of merchants  158  and not to one particular location. It is also possible that different stores, such as different restaurants, may be within the grouping of merchants  158 . For example, the customer may earn a reward and the merchant may provide the reward at a location that is under performing to drive traffic to the under performing location. 
         [0039]    As can be appreciated, loyalty server system  12  or  152  may be implemented by use of one or more servers or other computers. The servers  12  or  152  may be located at the location of the merchant&#39;s store, or at one of the locations of the grouping of merchants  158 , or at a remote location. The loyalty server system  12  or  152  may include a database for storing customer account information for customers that enroll in the mobile loyalty system  10  or  150 . The database may contain information such as customer name, password, phone number, email address, house address, and accumulated credits. 
         [0040]    From all that has been said, it will be clear that there has thus been shown and described herein a mobile loyalty system and method which fulfills the various advantages sought therefore. It will become apparent to those skilled in the art, however, that many changes, modifications, variations, and other uses and applications of the subject mobile loyalty system and method are possible and contemplated. All changes, modifications, variations, and other uses and applications which do not depart from the spirit and scope of the disclosure are deemed to be covered by the disclosure, which is limited only by the claims which follow.