Patent Publication Number: US-2003229539-A1

Title: Rebate issuance system and methods

Description:
BACKGROUND OF THE INVENTION  
       [0001] This invention relates generally to the field of rebates. More specifically, the invention relates to various types of rebates that may be provided at the time of purchase.  
       [0002] Rebates are a popular way for merchants to market their goods or services. Unfortunately, the process for obtaining a rebate following the purchase of an item can be difficult, time consuming and frustrating for the consumer. For example, one typical process for obtaining a rebate requires the consumer to submit a host of paperwork to the manufacturer to request the rebate. This paperwork may include: a rebate form, a receipt of purchase, a proof of purchase, such as a UPC symbol cut from the packaging, and the like. If any of the required paperwork is missing, if the rebate form is filled out incorrectly, or if certain deadlines are not met, the rebate may be denied. This process may become more frustrating because the proper rebate form may be difficult or time consuming to locate. Further, even if the process is properly followed, the time to actually receive the rebate can be extremely time consuming, sometimes being six months or more. In some cases, this is because manufacturers may contract with special rebate companies to handle their rebates. If a rebate is delayed or the paperwork is lost, the consumer faces an uphill battle in following up with the manufacturer to make sure the rebate is paid. For example, if the consumer does not make a copy of the paperwork, the consumer has no way of proving that the item was purchased.  
       [0003] While some reforms to this process have been implemented, such as by posting rebate forms in the store or on-line, the process is still time consuming and frustrating to the consumer. Moreover, the consumer may still face significant time delays in receiving the rebate.  
       BRIEF SUMMARY OF THE INVENTION  
       [0004] The invention provides various methods, systems and devices for providing rebates. According to one method, information on an item being purchased is received at a host computer. Also received at the host computer is a request to receive a rebate that is associated with the item. This information may conveniently be transmitted to the host computer from a point of sale device where the item is purchased. The host computer may transmit to a payment device information usable by the payment device to provide the rebate. In this way, information needed to qualify for a rebate may be electronically gathered at the time of sale and used to generate the rebate.  
       [0005] In one aspect, the host computer may be employed to determine whether a rebate is associated with the item based on the information transmitted from the point of sale device. The host computer may then transmit to the point of sale device information indicating that a rebate applies. In some cases, the point of sale device may be used to determine whether a rebate is associated with the item.  
       [0006] Once a rebate has been qualified for or requested, a variety of payment options may be selected. These options may be provided to the consumer at the point of sale device. Further, the selected option may be entered into the point of sale device and transmitted to the host computer. For example, in one aspect the payment device may comprise a printer. In this way, the host computer may transmit information usable by the printer to print a negotiable instrument, such as a money order or a check. As another option, the printer may print a rebate coupon. The rebate coupon may conveniently include some or all information needed to qualify for the rebate. For example, the printer may print information into the required fields of the rebate coupon, such as the purchaser&#39;s name, address and phone number (or other personal information), the date and time of the purchase, the store where the item was purchased, a UPC symbol associated with the purchased item, and the like. To do so, the host computer system may be configured to access the rebate rules associated with the purchased item and to use the information supplied by the purchaser when making the purchase to satisfy the rules. This information is then printed on the rebate coupon. The purchaser may then mail the completed rebate coupon to redeem the rebate.  
       [0007] In another alternative, the payment device may comprise a cash dispensing machine, such as an ATM, and the host computer may transmit information to the cash dispensing machine to dispense the rebate in cash. As a further option, the payment device may comprise an electronic account, such as a bank account, credit account, stored value account, investment account, or the like. The host computer may then transmit information to the electronic account to apply a rebate credit to the account.  
       [0008] In another embodiment, the invention provides a computer system for providing rebates. The system comprises a host computer having an input interface and an output interface. Further, a memory device is associated with the host computer. The host computer is configured to receive at the input interface information on an item being purchased as well as a request to receive a rebate that is associated with the item. The output interface is configured to transmit to a payment device information usable by the payment device to provide the rebate. In one aspect, the memory device may include information on rebate rules. In this way, the host computer may be used to determine whether a rebate is associated with the item using the rebate rules.  
       [0009] The system may also include a point of sale device that comprises a housing having a display screen, at least one entry device, a memory, a processor, and a communication device. The point of sale device may be used to receive information on an item being purchased using the entry device and to transmit this information to the host computer. The point of sale device may also be used to receive information from the consumer requesting that the rebate be provided, and to transmit this information to a host computer using the communication device.  
       [0010] In some cases, the memory may include rebate rules so that the point of sale device may be used to determine whether a rebate is associated with the item. In another option, the point of sale device may be configured to request an input as to whether the rebate is to be provided using the display screen.  
       [0011] In one option, a record indicating that the rebate has been provided to the consumer may be stored. This may be transmitted to the vendor or retailer for accounting purposes. This record may also be used in the event that the consumer wishes to return the item.  
       [0012] The system may utilize a variety of payment devices. For example, the payment device may comprise a printer to print negotiable instruments or rebate coupons based on information supplied from the host computer. As another example, the payment device may comprise a cash dispensing machine for dispensing cash. As a further example, the payment device may comprise an electronic account to which the rebate may be credited based on information transmitted from the host computer. 
     
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
     [0013]FIG. 1 is a schematic diagram of a system for providing rebates according to the invention.  
     [0014]FIG. 2 is a schematic diagram of a point of sale device that may be used with the system of FIG. 1.  
     [0015]FIG. 3 illustrates a display screen of the point of sale device of FIG. 2 that displays a query as to whether a rebate is wanted.  
     [0016]FIG. 4 illustrates a display screen of the point of sale device of FIG. 2 that displays a query as to the form of the rebates.  
     [0017]FIG. 5 is a flow chart illustrating one method for providing a rebate according to the invention. 
    
    
     DETAILED DESCRIPTION OF THE INVENTION  
     [0018] The invention provides various systems and techniques for providing rebates to consumers. Such rebates may be provided to the consumer at or near the time of purchase, or at another time as selected by the consumer. Further, the consumer may select to receive the rebate at the location where the item is purchased, or at a remote location. As another option, the consumer may elect the form in which the rebate is to be paid. As used herein, a rebate may include any type of value that may be represented in the form of a payment instrument, such as a negotiable instrument, a coupon, a card, or the like. For example, the consumer may request the rebate to be paid in the form of a negotiable instrument, such as cash, a check, a money order, or the like. As another example, the rebate may be in the form of a credit to an account of the consumer, such as a bank account, a credit account, an investment account, a stored value account, or the like. As a further example, the rebate may comprise any one of a variety of coupons, such as discounts off a subsequent purchase, offers for free items or services, free items with the purchase of another item, or the like.  
     [0019] In some cases, a message may be provided to the consumer giving the status of a rebate. For example, when making a purchase the consumer may be provided with information as to how many more purchases are needed within a certain time before qualifying for rebate. This information may be displayed on a point of sale device. Optionally, this information could be printed on a receipt using the point of sale device. A similar processing may be used when a consumer qualifies for a rebate whether or not the consumer chooses to redeem the coupon at that time.  
     [0020] The invention may also use a value exchange engine that permits an earned rebate to be exchanged for another type of rebate. This may be accomplished in a manner similar to that described in copending application Ser. No. 09/955747, filed Sep. 18, 2001 (020375-000300US), the complete disclosure of which is incorporated by reference. Hence, after qualifying for a rebate, the consumer may request that it be exchanged for another type of rebate that may then be printed out and provided to the consumer. For example, if the consumer qualifies for a coupon, the consumer may request that this be converted to a negotiable instrument. For instance, a coupon for a free soda may be converted to a negotiable instrument. The host computer system may use a rules engine to determine the conversion, such as 25 cents. If this is accepted by the consumer, a file may be sent to the printer to print a 25 cent money order. As another example, a coupon for a free candy bar may be exchanged for a buy one get one free coupon for ice cream. The rules engine may be programmed to provide possible value exchanges.  
     [0021] One particular advantage of the invention is that all of the information needed to qualify for a rebate may be provided at the time of purchase. For example, when purchasing an item, information about the item is typically scanned into a computer, often using a bar code reader. This information may also be used to determine the price of the item. Many retailers also request information about the consumer and enter this into the computer. For example, when making a purchase, the consumer may provide a loyalty card that is scanned into the computer. Types of information that may be requested may include phone number, zip code, name, address and the like. In this way, the purchases may be associated with information about the consumer that is stored within a database. As another example, information about the consumer may be directly entered into a point of sale device, or obtained from records associated with the consumer&#39;s credit or debt card that is used to make payment.  
     [0022] Hence, at the point of sale a wide variety of information associated with the purchase of the item may be electronically stored, such as the name of the item, the price of the item, the time and location of the purchase, the form of payment used to make the purchase, and personal information on the consumer. This information may then be electronically processed to determine if the consumer qualifies for a rebate. If so, the consumer may elect to receive the rebate according to a variety of options. In this way, the consumer is not required to separately submit a host of paperwork in order to qualify for a rebate. Moreover, the consumer may be provided with a variety of options as to how the rebate may be paid, such as when, where and how the rebate is to be paid.  
     [0023] Referring now to FIG. 1, one embodiment of a system  10  for providing rebates will be described. System  10  comprises a point of sale device  12  that communicates with a host computer system  14 . Point of sale device  12  may be employed to capture information needed to complete the purchase of an item. As such, point of sale device  12  may include associated equipment, devices and the like that are used in making a transaction. For instance, when making a purchase, bar code information may be scanned from the item and used to extract information about the item from a database. Also, information from consumer loyalty cards may be scanned in a similar manner. Point of sale device  12  may be configured to incorporate or communicate with any such devices or systems. Further, point of sale device  12  may include other components to facilitate a purchase, such as payment information entry components, signature capture components, key pads, keyboards, display screens, biometric data capture components, speakers, printers, processors, software, memory, communication devices and the like. Examples of suitable point of sale devices are described in copending U.S. application Ser. No. 10/116689, filed Apr. 3, 2002, entitled Systems and Methods for Performing Transactions at a Point-of-Sale (attorney docket no. 20375-002411), the complete disclosure of which is herein incorporated by reference.  
     [0024] One specific example of how point of sale device  12  may be constructed is illustrated in FIG. 2. Point of sale device  12  comprises a housing  16  having a keypad  18  for entering various types of information. The keys of keypad  18  may permit the entry of numbers of letters, or may be function keys for performing various functions. Device  12  further includes a display screen  20  for displaying information relating to a transaction. A card reader  22  is also provided for reading information from cards, such as payment information, identification information, or the like.  
     [0025] Device  12  may communicate with host computer system  14  using a wide variety of communications systems, such as by a phone network, a wide area network, such as the Internet, a local area network, a wireless network, or the like.  
     [0026] Also in communication with host computer system  14  is a payment device  24 . Payment device  24  may communicate with host computer system  14  using any of the networks described above. Payment device  24  is employed to provide the rebate payment to the consumer. In some cases, payment device  24  may directly communicate with point of sale device  12 . For instance, point of sale device  12  may be connected to an attached printer, such as an FDX-400 printer, from AXIOHM. Further, in some cases, point of sale device  12  may itself function as a payment device. Payment device  24  may pay rebates in a variety of forms. For example, payment device  24  may comprise a printer that is configured to print negotiable instruments, such as money orders, checks, and the like. These may be printed in the name of the customer since this information may be input into point of sale device  12 . Printer  24  may be a secure printer to ensure that negotiable instruments may only be printed based on instructions from host computer system  14 . One example of such a secure printer is described in U.S. Pat. No. 5,774,879, the complete disclosure of which is herein incorporated by reference. Printer  24  may conveniently be provided at a location near point of sale device  12 , such as at a customer service location or even adjacent to point of sale device  12  itself, so that the consumer may pick up the printed rebate just after making the purchase. In some cases, printer  24  may be coupled to point of sale device  12  so that once the rebate is approved, printing instructions may be transmitted directly from point of sale device  12  to payment device  24 .  
     [0027] In one option, payment device  24  may be configured to print a rebate coupon that may be presented in the traditional manner to obtain a rebate. The rebate coupon may be a blank form that is to be filled in by the consumer, or may be filled out based on information obtained using the point of sale device  12 . For example, printer  24  may be configured to print some or all of the information needed to complete the coupon directly on the coupon. In this way, the purchase may simply mail the rebate coupon to the location printed on the coupon. Host computer system  14  may be configured to determine what information needs to be printed on the coupon based on the rules stored at host computer system  14 . The information needed to complete the coupon may be input at the point of sale device  12  and may include information such as personal information on the purchaser, information regarding the purchase of the item, information on the item, and the like. If additional information is needed, the point of sale device  12  may prompt the customer for this information.  
     [0028] Point of sale device  12  and/or host computer system  14  may log a record of each rebate coupon that is printed. This information may be transmitted to the provider of the rebate for their records. Further, when the rebate provider receives a completed rebate coupon, the rebate provider may access host computer system  14  to make sure that the item was not returned. If so, the rebate may be denied.  
     [0029] In another embodiment, payment device  24  may be a cash dispenser. For example, payment device  24  may comprise a cash register near point of sale device  12  or at a customer service location. When a cash payment is made, information on the payment may be transmitted to host computer system  14  so that the retailer may be credited for the payment.  
     [0030] Payment device  24  may also take the form of an electronic account that may be used to electronically store the rebate. This electronic account may be incorporated into host computer system  14  or may comprise a separate computer system. Once the rebate information is electronically stored, it may be used in a variety of ways to provide the payment to the consumer or a designee of the consumer. For example, while at point of sale device  12 , the consumer may indicate that she wishes to receive the rebate at the time that payment is made by directly crediting an account of the consumer. This may be accomplished by inputting the account information into point of sale device  12  using any of its entry devices. For instance, a card having the account information may be swiped through reader  22  (or scanned), or keypad  18  may be used to enter the account information. Other readers that may be used include MICR readers, smart cart readers, and the like. The account information is then transmitted to host computer system  14  and stored as an electronic account. Host computer system  14  or payment device  24  may transmit the request to the appropriate system that handles the account so that the account may be credited as described hereinafter. Such a system may comprise a credit card network, an ACH transfer system, a stored value system, or the like. Host computer system  14  may also be used to debit an account of the manufacturer to complete the transaction.  
     [0031] Alternatively, the electronic account may function as a stored value account to permit the consumer to access the value at a later time using a variety of systems and to receive the payment in a variety of forms. Merely by way of example, any payment system that is capable of interfacing with host computer system  14  or payment device  24  may be used. Such examples may include financial kiosks, ATMs, money transfer systems bill payment systems, credit card systems, banks or other financial institutions, including ACH transfer systems, stored value systems, investment systems, cash payout devices, money order printers, and the like. Examples of such payment systems are described in copending U.S. application Ser. No. 10/045,313, filed Jan. 4, 2002, the complete disclosure of which is herein incorporated by reference. Such systems may be operated by separate entities which may provide access to the consumer through the Internet, voice response systems, customer service representatives, or the like. For example, a consumer may visit a money transfer location and request the money be transferred to another person. At the money transfer location, the request may be transmitted to host system  14  or payment device  24  to complete the transfer. In a similar manner, a cash payout may be made by accessing the account information, making the payment, and providing a corresponding debit to the account. Host system  14  or payment device  24  may also include an interface to permit the consumer to directly access their stored value account. For example, the consumer may log onto a web site and view their account information. From this web site, the consumer may request to transfer the value to a specific account.  
     [0032] Host computer system  14  may optionally be coupled to a credit card transaction network to facilitate the acceptance of credit cards by the merchant when the consumer makes a purchase. In such a case, host computer system  14  may be configured to process credit card transactions for one or more merchant banks. The credit card transaction network further comprises a merchant association computer system  26  and an issuing bank computer system  28 . To complete a credit card transaction, a cardholder presents a credit card to purchase goods or services from a merchant. The merchant transmits an authorization request to its merchant bank. As just described, the merchant bank may contract with another entity to maintain computer system  14  that stores and processes account information for the merchant bank&#39;s customers. Because the merchant bank typically does not have direct access to information regarding cardholder account status, the merchant bank may forward the request to a card association, such as to merchant associate computer system  26  (e.g., Visa or MasterCard) for authorization.  
     [0033] If the transaction is authorized, an authorization code is returned to the merchant. The merchant completes the sales transaction with the cardholder by delivering the goods or services and obtaining in exchange a ticket representing the cardholder&#39;s agreement to pay the card issuer. The ticket is typically a piece of paper (usually signed by the cardholder) or the electronic equivalent. The ticket provides sufficient information to identify the cardholder, the card used, the merchant, and the amount of the sales transaction.  
     [0034] Next, the merchant collects payment for the sales transaction by presenting the ticket to the merchant bank. Typically, the merchant accumulates tickets from a number of sales transactions (e.g., all transactions from one day) and presents a batch of tickets together to the merchant bank. The merchant bank acquires the ticket and deposits funds into the merchant&#39;s account. In general, the amount of funds deposited into the merchant&#39;s account is less than the amount of the sales transaction by a percentage (the “discount rate”) established between the merchant and the merchant bank. The merchant bank may also maintain a reserve against the merchant account by temporarily withholding part of the funds in order to cover the risk that the merchant bank is not subsequently repaid by a card issuer for any of the merchant&#39;s transactions. Funds held in reserve are usually released to the merchant account after some period of time.  
     [0035] The merchant bank then settles with the card issuer by presenting the ticket to the card issuer, e.g., by using issuing bank computer system  28 . Settlement requests are generally processed in batches and routed through the card association rather than being sent directly to the card issuer. The card issuer transfers funds to the merchant bank in exchange for the ticket. The amount of finds transferred is, in general, less than the amount of the sales transaction because the card issuer deducts an “interchange fee” reflecting the delay between the card issuer&#39;s payment to the merchant bank and the cardholder&#39;s payment to the card issuer. At some point after settlement, the card issuer bills the cardholder for the full amount of the transaction, and the cardholder pays the card issuer according to the terms of their agreement.  
     [0036] In a transaction where a private label credit card is used, the processing is similar, except that the merchant bank and the card issuer are generally the same entity. Thus, the merchant bank is able to authorize the transaction, and a settlement between the card issuer and the merchant bank is not required.  
     [0037] While processing the credit card transaction, such as when the transaction is being authorized, host computer system  14  may determine if the consumer qualifies for a rebate. If the consumer qualifies, and requests the rebate be credited to his credit card account, host computer system  14  may transmit the credit to the issuing bank computer system  28 . A similar process may be used to credit a bank account using an ACH transfer, or to credit a stored value account of a retail association.  
     [0038] In the event that the item is returned following the payment of a rebate, host computer system  14  may be accessed to determine whether a rebate was paid. If so, the consumer may be credited for the purchase price less the amount of the rebate.  
     [0039] As illustrated in FIG. 3, point of sale device  12  may be configured to produce a display  30  on display screen asking the consumer whether she wishes to receive the rebate at the time of purchase. A response to the question may be entered using keypad  18  (see FIG. 2). This query may be generated by software stored in point of sale device  12  or from information transmitted from host computer system  14 . If the consumer decides not to receive the rebate at the time of purchase, an electronic record of the rebate may be stored so that the consumer may receive the rebate by accessing the electronic record using any of the techniques described herein. Of course, the rebate may also be obtained in the traditional manner.  
     [0040] If the consumer decides to receive the rebate at the time of purchase, the consumer may be provided with various options for selecting the form of payment. For example, FIG. 4 illustrates a display  32  of display screen  20  having various options for receiving the rebate. These options may be selected using keypad  18 . If a check or money order is selected, a file may be transmitted to a printer to permit the negotiable instrument to be printed. If cash is selected, a cash payment may be made to the consumer, and the amount of payment entered into point of sale device  12  so that the retailer may be credited. If the consumer elects to credit an account, an electronic record of the rebate may be stored so that the consumer may subsequently receive the rebate using any of the techniques described herein.  
     [0041] Referring now to FIG. 5, one method for providing a rebate will be described. Initially, the consumer selects the item and provides it to the merchant. The merchant enters information regarding the item into point of sale device  12  as shown in step  40 . This may be accomplished by scanning a bar code on the item with a scanner and transmitting this information to point of sale device  12 . The consumer also provides payment for the item as shown in step  42 . If the payment is made using a credit or debit card, the card may be swiped through point of sale device  12  as previously described. If payment is made by cash or check, a record of the type of payment may be input into point of sale device  12  for storage at host computer system  14 .  
     [0042] At step  44 , a determination as to whether a rebate applies is made. This determination may be based on rules stored in point of sale device  12  or in host computer system  14 . Conveniently, this determination may be made while the consumer&#39;s credit card is being authorized. As an example of the rules that may be applied, a manufacturer may offer a $15 rebate if the consumer purchases two of its products at the same time. Point of sale device  12  may then transmit information on the items purchased to host computer system  14  that verifies the products and determines that the consumer qualifies for the rebate. This information is then transmitted back to point of sale device  12 .  
     [0043] As shown in step  46 , the consumer may then be asked whether she wishes to receive the rebate now or at a later time. Conveniently, a response to this query may be input into point of sale device  12  and transmitted to host computer system  14 . If the consumer wishes to receive the rebate at a later time, an electronic record of the rebate is stored so that the consumer may access the electronic record to receive payment using any of the techniques described herein. If the consumer wishes to receive payment at the time of purchase, the consumer is asked the form of payment of the rebate as shown in step  48 . The form of payment may be any of the forms described herein. A response to this question may conveniently be input into point of sale device  12  and transmitted to host computer system  14  as shown in step  50 .  
     [0044] Based on the response from the consumer, a command may be sent to the payment device to provide the payment to the consumer as shown in step  52 . For example, if the consumer wishes to receive payment by a check or money order, point of sale device  12  or host computer system  14  may send instructions to a printer to print the requested negotiable instrument. The consumer may then receive the printed negotiable instrument while at the store. In this way, the rebate qualification information is captured at the point of sale, and the consumer is also able to receive the rebate at essentially the same time and place of sale.  
     [0045] Host computer system  14  may store a record that the consumer has qualified for rebate. This information may be transmitted to an accounting system of the ultimate provide of the rebate. Information on when the rebate has been provided to the consumer may also be transmitted. In this way, the rebate provider will have a record of rebates that have been both qualified for and redeemed. This information may be transmitted electronically, by facsimile, by post, or the like. Information on redemption may also be accessed when an item is returned so that the full price will not be paid back to the consumer.  
     [0046] As one option, when such information is provided to the rebate provider, it may include privacy preferences supplied by the consumer. For example, the consumer may indicate at the time of purchase that they would like not marketing materials from the rebate provider, or would like only selected materials or would like any materials.  
     [0047] The invention has now been described in detail for purposes of clarity and understanding. However, it will be appreciated that certain changes and modifications may be practiced within the scope of the appended claims.