Patent Publication Number: US-10762523-B2

Title: Methods and systems for applying promotions to payment transactions

Description:
BACKGROUND OF THE INVENTION 
     This invention relates generally to applying a promotion program to payment transactions and, more particularly, to network-based methods and systems for enabling an account holder to select a promotion program offered by a merchant or an issuer, and applying promotion codes associated with the promotion program to a payment transaction between the merchant and the account holder using a bankcard network. 
     Historically, the use of “charge” cards for consumer transaction payments was at most regional and based on relationships between local credit issuing banks and various local merchants. The payment card industry has since evolved with the issuing banks forming associations (e.g., MasterCard®) and involving third party transaction processing companies (e.g., “merchant acquirers”) to enable cardholders to widely use charge cards at any merchant&#39;s establishment, regardless of the merchant&#39;s banking relationship with the card issuer. 
     For example,  FIG. 1  of the present application shows an exemplary multi-party payment card industry system for enabling payment-by-card transactions in which the merchants and issuer do not need to have a one-to-one special relationship. Yet, various scenarios exist in the payment-by-card industry today, where the card issuer has a special or customized relationship with a specific merchant, or group of merchants. These special or customized relationships may, for example, include private label programs, co-brand programs, proprietary card brands, rewards programs, and others. Rewards programs typically involve the award of rewards points to a consumer based upon certain incentivized actions taken by the consumer, such as the purchase of a certain value of goods or services from a particular merchant. Rewards points may be referred to by a particular rewards program as “rewards dollars,” “rewards miles,” or other descriptive name. The consumer then has the option of redeeming his or her accumulated rewards points according to rewards program rules to obtain better terms for a later transaction. The costs of providing such rewards program incentives to the cardholder may be borne solely by the issuer, jointly by the issuer and a merchant or third party, or solely by a merchant or third party, depending upon the type and sponsorship of the rewards program. 
     Special or customized issuer-merchant relationships such as rewards programs often require direct communications between the parties for transaction authorization and/or clearing (e.g., for financial transactions and rewards points redemptions). Further, the issuer may be required to maintain back office processes to manage the financial and rewards program aspects of these special or customized relationships. Alternatively, the issuers may exploit communications through merchant acquirers to facilitate indirect communications with the merchants. 
     Consideration is now being given to ways of improving implementations of the special or customized issuer-merchant relationships in the payment-by-card industry. In particular, attention is being directed to utilizing legacy general purpose bankcard infrastructure to support the transaction routing, merchant accounting, and financial settlement for these special or individualized relationships. 
     At least some known special or customized issuer-merchant relationships include rewards programs or other special offers (e.g., financing) that are applied to purchases made by account holders or customers using a payment card over a bankcard network. Typically, in these cases, the merchant is required to record any redemption of rewards program points by an account holder at the point of sale, apart from the standard payment card transaction. Furthermore, typically in these cases, merchant acquirers&#39; systems must be modified to accommodate rewards program parameters, and/or the merchant must communicate directly with the issuer or cardholder, in order to enable reimbursement and tracking of rewards program usage. Consideration is now being given to ways to enable account holders to register in a rewards program/special offer being offered by a merchant and then apply the rewards program/special offer to a payment transaction between the merchant and the card holder using a payment card over a bankcard network. 
     BRIEF DESCRIPTION OF THE INVENTION 
     In one aspect, a method for applying promotion codes to a payment transaction using a computing device is provided. The computing device includes a promotion application in communication with a server system. The payment transaction includes a purchase made by a cardholder using a payment card over a payment card network. The method includes providing, by the promotion application, promotion data to the computing device, wherein the promotion data includes at least one merchant participating in the payment card network, at least one promotion program offered by the at least one merchant to the cardholder, and promotion codes associated with the at least one promotion program. The method further includes displaying, by the promotion application, the at least one promotion program on the computing device, receiving a selection of the at least one promotion program from the cardholder using the computing device, and sending the promotion codes associated with the selected promotion program to the server system for a payment transaction that corresponds to the selected promotion program. 
     In another aspect, a network-based system for applying promotion codes to a payment transaction is provided. The payment transaction includes a purchase made by a cardholder using a payment card over a payment card network. The system includes a server system, and a computing device. The computing device includes a promotion application, a memory, and one or more processors. The one or more processors are programmed to store promotion data in the memory. The promotion data includes at least one merchant participating in the payment card network, at least one promotion program offered by the at least one merchant to the cardholder, and promotion codes associated with the at least one promotion program. The one or more processors are further programmed to receive a selected promotion program from the cardholder using the computing device, and send the promotion codes associated with the selected promotion program to the server system for a payment transaction that corresponds to the selected promotion program. 
     In yet another aspect, a promotion application for providing promotion programs to a computing device for a payment transaction made by a cardholder using a payment card over a payment card network is provided. The promotion application including instructions that cause one or more processors to access promotion data. The promotion data includes at least one merchant participating in the payment card network, at least one promotion program offered by the at least one merchant to the cardholder, and promotion codes associated with the at least one promotion program. The promotion application includes instructions that further cause the one or more processors to display the at least one promotion program on the computing device, receive a selection of the at least one promotion program from the cardholder using the computing device, and send the promotion codes associated with the selected promotion program to a server system for a payment transaction that corresponds to the selected promotion program. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         FIG. 1  is a schematic diagram illustrating an exemplary multi-party payment card industry system for enabling ordinary payment-by-card transactions in which the merchants and issuer do not need to have a one-to-one special relationship. 
         FIG. 2  is a simplified block diagram of an exemplary embodiment of a server architecture of a system, in accordance with one embodiment of the present invention. 
         FIG. 3  is an expanded block diagram of an exemplary embodiment of a server architecture of a system, in accordance with one embodiment of the present invention. 
         FIG. 4  is a schematic diagram illustrating an exemplary process for implementing special or customized issuer-merchant relationships in a payment-by-card system, in accordance with one embodiment of the present invention. 
         FIG. 5  is a schematic diagram illustrating authorization request process flows in the exemplary process shown in  FIG. 4 , in accordance with one embodiment of the present invention. 
         FIG. 6  is a schematic diagram illustrating clearing process flows in the exemplary process shown in  FIG. 4 , in accordance with one embodiment of the present invention. 
         FIG. 7  is a schematic diagram illustrating settlement flows in the exemplary process shown in  FIG. 4 , in accordance with one embodiment of the present invention. 
         FIG. 8  is a schematic diagram illustrating chargeback and adjustment flows in the exemplary process shown in  FIG. 4 , in accordance with one embodiment of the present invention. 
         FIG. 9  is a flowchart illustrating exemplary processes for implementing special or customized issuer-merchant relationships in a payment-by-card system as shown in  FIG. 4  and implemented using the system shown in  FIG. 2 . 
     
    
    
     DETAILED DESCRIPTION OF THE INVENTION 
     Described in detail herein are exemplary embodiments of systems and methods for implementing special or customized issuer-merchant relationships in the payment-by-card industry. The systems and methods include a cardholder that utilizes a payment card to make a purchase from a merchant, wherein the merchant has registered with a bankcard network such that the purchase made by the cardholder using the payment card can be processed over the bankcard network. 
     The systems and methods described herein facilitate enabling a cardholder to select a promotion offered by a merchant or an issuer for enticing the cardholder to make a purchase from the merchant and/or select a promotion offered by the issuer for enticing the cardholder to make purchases using the payment card associated with the issuer. The systems and methods then apply promotion codes associated with the selected promotion to a purchase made by the cardholder from the merchant. A promotion or promotion program, as described herein, is typically a special offer made by a merchant or issuer to a cardholder (e.g., 30 days same as cash, 90 days no interest, no payment due for 6 months, or a predetermined percentage (e.g., 10%) off a purchase price of a product or service, etc.) for enticing the cardholder to make a purchase from the merchant using the payment card. 
     The promotion programs described herein may also include participation in a rewards program or redemption of rewards points accumulated through a use of a payment card. A rewards program enables a cardholder to redeem rewards points accumulated previously to obtain better terms for a current transaction. For example, a rewards program may offer a cardholder an option to redeem 2,000 rewards points in order to receive 10% off of a purchase, or to redeem 500 rewards points and pay no interest for 6 months, or to redeem 800 rewards points and receive a $100 rebate. Accordingly, as described herein, the terms “special offers”, “promotions”, or “promotion programs” refer to any offer made by a merchant or an issuer to a cardholder that may or may not include the use of rewards points that result in an enticement (i.e., better terms or a reward) being made to the cardholder for making a purchase from the merchant with a payment card. 
     More specifically, the systems and methods described herein facilitate, for example, electronic submission of information using a client system, automated extraction of information, and web-based reporting for internal and external system users. A technical effect of the systems and methods described herein include at least one of (a) providing, by a promotion application, promotion data to a computing device, wherein the promotion data includes at least one merchant participating in the payment card network, at least one promotion program offered by the at least one merchant to the cardholder, and promotion codes associated with the at least one promotion program; (b) displaying, by the promotion application, the at least one promotion program on the computing device; (c) receiving a selection of the at least one promotion program from the cardholder using the computing device; and (d) sending the promotion codes associated with the selected promotion program to a server system for a payment transaction that corresponds to the selected promotion program. 
     The systems and processes are not limited to the specific embodiments described herein. In addition, components of each system and each process can be practiced independent and separate from other components and processes described herein. Each component and process also can be used in combination with other assembly packages and processes. 
       FIG. 1  is a schematic diagram  20  illustrating an exemplary multi-party payment card industry system for enabling ordinary payment-by-card transactions in which the merchants and issuer do not need to have a one-to-one special relationship. The present disclosure relates to a payment card system, such as a credit card payment system using the MasterCard® interchange network. The MasterCard® interchange network is a set proprietary communications standards promulgated by MasterCard International Incorporated® for the exchange of financial transaction data and settlement of funds between financial institutions that are members of MasterCard International Incorporated®. (MasterCard is a registered trademark of MasterCard International Incorporated located in Purchase, N.Y.). 
     In a typical payment card system, a financial institution called the “issuer” issues a payment card, such as a credit card, to a consumer, who uses the payment card to tender payment for a purchase from a merchant. To accept payment with the payment card, the merchant must normally establish an account with a financial institution that is part of the financial payment system. This financial institution is usually called the “merchant bank” or the “acquiring bank” or “acquirer bank.” When a consumer  22  tenders payment for a purchase with a payment card (also known as a financial transaction card), the merchant  24  requests authorization from the merchant bank  26  for the amount of the purchase. The request may be performed over the telephone, but is usually performed through the use of a point-of-sale terminal, which reads the consumer&#39;s account information from the magnetic stripe or chip on the payment card and communicates electronically with the transaction processing computers of the merchant bank. Alternatively, a merchant bank may authorize a third party to perform transaction processing on its behalf. In this case, the point-of-sale terminal will be configured to communicate with the third party. Such a third party is usually called a “merchant processor” or an “acquiring processor” or a “third party processor.” 
     Using the interchange network  28 , the computers of the merchant bank or the merchant processor will communicate with the computers of the issuer bank  30  to determine whether the consumer&#39;s account is in good standing and whether the purchase is covered by the consumer&#39;s available credit line. Based on these determinations, the request for authorization will be declined or accepted. If the request is accepted, an authorization code is issued to the merchant. 
     When a request for authorization is accepted, the available credit line of consumer&#39;s account  32  is decreased. Normally, a charge for a credit card transaction is not posted immediately to a consumer&#39;s account because bankcard associations, such as MasterCard International Incorporated®, have promulgated rules that do not allow a merchant to charge, or “capture,” a transaction until goods are shipped or services are delivered. However, with respect to at least some debit card transactions, a charge may be posted at the time of the transaction. When a merchant ships or delivers the goods or services, the merchant captures the transaction by, for example, appropriate data entry procedures on the point-of-sale terminal. This may include bundling of approved transactions daily for standard retail purchases. If a consumer cancels a transaction before it is captured, a “void” is generated. If a consumer returns goods after the transaction has been captured, a “credit” is generated. 
     After a transaction is captured, the transaction is settled between the merchant, the merchant bank, and the issuer. Settlement refers to the transfer of financial data or funds between the merchant&#39;s account, the merchant bank, and the issuer related to the transaction. Usually, transactions are captured and accumulated into a “batch,” which are settled as a group. More specifically, a transaction is typically settled between the issuer and the interchange network, and then between the interchange network and the merchant bank (also known as the acquirer bank), and then between the merchant bank and the merchant. 
     Financial transaction cards or payment cards can refer to credit cards, debit cards, and prepaid cards. These cards can all be used as a method of payment for performing a transaction. As described herein, the term “financial transaction card” or “payment card” includes cards such as credit cards, debit cards, and prepaid cards, but also includes financial transaction cards or payment cards that are stored on remote computing devices that may hold payment account information, such as mobile phones, personal digital assistants (PDAs), and laptops. 
       FIG. 2  is a simplified block diagram of an exemplary system  100 , in accordance with one embodiment of the present invention. In one embodiment, system  100  is a payment card system used for implementing special or customized issuer-merchant relationships. In another embodiment, system  100  is a payment card system configured to provide promotion data to a computing device using a promotion application stored thereon. The promotion data includes at least one merchant participating in the payment card network, at least one promotion program offered by the at least one merchant to the cardholder, and promotion codes associated with the at least one promotion program. Upon selection of a particular promotion program, the promotion application sends the promotion codes associated with the selected promotion program to the server system to be applied to a payment transaction that corresponds to the selected promotion program. 
     More specifically, in the example embodiment, system  100  includes a server system  112 , and a plurality of client sub-systems, also referred to as client systems  114 , connected to server system  112 . In one embodiment, client systems  114  are computers (e.g., remote computing devices) including a web browser, such that server system  112  is accessible to client systems  114  using the Internet. Client systems  114  are interconnected to the Internet through many interfaces including a network, such as a local area network (LAN) or a wide area network (WAN), dial-in-connections, cable modems and special high-speed ISDN lines. Client systems  114  could be any device capable of interconnecting to the Internet including a web-based phone, personal digital assistant (PDA), an interactive kiosk, or other web-based connectable equipment. A database server  116  is connected to a database  120  containing information on a variety of matters, as described below in greater detail. In one embodiment, centralized database  120  is stored on server system  112  and can be accessed by a promotion application  115  stored on each of client systems  114 . In an alternative embodiment, database  120  is stored remotely from server system  112  and may be non-centralized. 
     As discussed below, database  120  stores transaction data generated as part of sales activities conducted over the bankcard network including data relating to merchants, account holders or customers, and purchases. Database  120  may also include data relating to rewards programs and special offers being made by a merchant or issuer including a number of rewards points accumulated by each customer for a particular rewards program being administered by system  100 . As discussed below, information stored within database  120  may be either forwarded to promotion application  115  or automatically accessed by promotion application  115  in either real time (e.g., as soon as the information is available), periodically, or after a triggering event has occurred. 
       FIG. 3  is an expanded block diagram of an exemplary embodiment of a server architecture of a system  122 , in accordance with one embodiment of the present invention. Components in system  122 , identical to components of system  100  (shown in  FIG. 2 ), are identified in  FIG. 3  using the same reference numerals as used in  FIG. 2 . System  122  includes server system  112  and client systems  114 . Server system  112  further includes database server  116 , an application server  124 , a web server  126 , a fax server  128 , a directory server  130 , and a mail server  132 . A disk storage unit  134  is coupled to database server  116  and directory server  130 . Servers  116 ,  124 ,  126 ,  128 ,  130 , and  132  are coupled in a local area network (LAN)  136 . In addition, a system administrator&#39;s workstation  138 , a user workstation  140 , and a supervisor&#39;s workstation  142  are coupled to LAN  136 . Alternatively, workstations  138 ,  140 , and  142  are coupled to LAN  136  using an Internet link or are connected through an Intranet. 
     Each workstation,  138 ,  140 , and  142  is a personal computer having a web browser. Although the functions performed at the workstations typically are illustrated as being performed at respective workstations  138 ,  140 , and  142 , such functions can be performed at one of many personal computers coupled to LAN  136 . Workstations  138 ,  140 , and  142  are illustrated as being associated with separate functions only to facilitate an understanding of the different types of functions that can be performed by individuals having access to LAN  136 . 
     Server system  112  is configured to be communicatively coupled to various individuals, including employees  144  and to third parties, e.g., account holders, customers, auditors, etc.,  146  using an ISP Internet connection  148 . The communication in the exemplary embodiment is illustrated as being performed using the Internet, however, any other wide area network (WAN) type communication can be utilized in other embodiments, i.e., the systems and processes are not limited to being practiced using the Internet. In addition, and rather than WAN  150 , local area network  136  could be used in place of WAN  150 . 
     In the exemplary embodiment, any authorized individual having a workstation  154  can access system  122 . At least one of the client systems includes a manager workstation  156  located at a remote location. Workstations  154  and  156  are personal computers having a web browser. Also, workstations  154  and  156  are configured to communicate with server system  112 . Furthermore, fax server  128  communicates with remotely located client systems, including a client system  156  using a telephone link. Fax server  128  is configured to communicate with other client systems  138 ,  140 , and  142  as well. 
       FIG. 4  is a schematic diagram  400  illustrating an exemplary process for implementing special or customized issuer-merchant relationships in a payment-by-card system  100  (shown in  FIG. 2 ), in accordance with one embodiment of the present invention. System  100  exploits legacy payment-by-card industry infrastructure for implementing a special or customized issuer-merchant relationship. The legacy payment-by-card industry infrastructure includes traditional payment networks (e.g., general purpose bankcard payment network  440 ), which links entities such as the card issuer or bank (e.g., issuer  410 ), card acceptors (e.g., merchants  430 ), and third-party transaction processors (e.g., merchant acquirers  420 ). System  100  incorporates one or more specific processing modules (e.g., merchant screening module  450 , promotion code processing module  460 , merchant accounting system module  470 ) for processing special relationship transactions in payment network  440 . 
     In addition, system  400  includes promotion database  474 , cardholder database  476 , remote computing devices  478 , and rewards module  480 . System  100  may also include merchant computer  484  in communication with merchant database  486 . In an alternative embodiment, merchant computer  484  and merchant database  486  may include a computer associated with a sponsor of the promotion selected by the cardholder. As discussed in more detail in  FIG. 9  below, promotion database  474  is in communication with merchant screening module  450 , cardholder database  476 , merchant database  486 , promotion code processing module  460 , and merchant accounting system  470 . Cardholder database  476  is in communication with remote computing devices  478  and rewards module  480 . Rewards module  480  is also in communication with issuer  410 . In the example embodiment, merchant screening module  450 , promotion code processing module  460 , merchant accounting systems module  470 , promotion database  474 , cardholder database  476 , merchant database  486 , and rewards module  480  are all shown as separate modules or units. In alternative embodiments, the structure and functions of these modules or units can be easily merged in a single module or partitioned into further modules. Furthermore, separate modules may communicate information directly, or indirectly through other modules. 
     Remote computing devices  478 , also known as input devices, include such devices as a personal computer, a cellular telephone/smart phone, a personal digital assistant (PDA), an interactive kiosk, or other web-based connectable equipment that can be configured to communicate with cardholder database  476 . In one embodiment, remote computing devices  478  are configured with Near Field Communication technology (NFC) that enables remote computing devices  478  to perform contactless financial transactions such as those requiring a credit card. The user may select credit card information stored in remote computing device  478  and perform contactless payments in a quick way by “tapping” or “waving” remote computing device  478  in front of a contactless reader terminal (e.g., a point of sale device) to make a purchase from a merchant. 
     In practice, an issuer  410  who has a special relationship or program with specific merchants registers the program in merchant database  486  through the bankcard network  440  for tracking card transactions and associating features (e.g., benefits such as special pricing) of the program with the card transactions. Card transaction data (“transactions”) from various merchant sites  430  may be collected in a conventional manner, for example, by merchant acquirer  420  or other traditional entities who then submit the transaction to network  440  for forwarding to issuer  410 . The transactions may be formatted in a conventional manner (e.g., according to any suitable payment industry standards used on network  440 ). In another embodiment, a merchant, using merchant computer  484 , can transmit or upload promotion programs into merchant database  486 , which communicates with promotion database  474  such that a promotion application  479  on remote computing device  478  can access the different programs through cardholder database  476 . 
     In the example embodiment, promotion database  474  receives and stores promotion data from merchants participating in bankcard network  440 . Promotion database  474  may receive and store data for both rewards-based and non-rewards-based promotions. The promotion data includes at least one of a merchant name, a merchant identification (ID) number, promotion identifiers, transaction qualifications, terms of promotions and promotion codes. In other words, promotion database  474  stores data describing the different promotions or programs that a merchant registered with bankcard network  440  is offering to cardholders. These promotions may include programs such as 30 days same as cash, 90 days no interest, no payment due for 6 months, or a predetermined percentage (e.g., 10%) off the purchase price of the product or service, etc., to entice the cardholder to make a purchase from a merchant using the payment card. These promotions may also include rewards-based programs such as redeem 2,000 rewards points to receive 10% off a purchase, redeem 500 rewards points and pay no interest for 6 months, or redeem 800 rewards points and receive a $100 rebate. 
     After bankcard network  440  (e.g., MasterCard®) registers a merchant to participate in system  100  and promotion data is stored in promotion database  474 , the promotion data is then communicated and registered within merchant accounting system  470  as well as promotion application  479  running on remote computing device  478 . The promotion data may also transmitted to cardholder database  476  including a displayable list of available promotions or programs that are being offered to each cardholder. 
     Also in the example embodiment, rewards module  480 , also referred to as a “rewards platform,” stores parameters of one or more rewards programs. Each rewards program respectively may be sponsored solely by an issuer, jointly by an issuer and a merchant or third party, or solely by a merchant or third party. Rewards program parameters contained in rewards module  480  may include rules for tracking the accumulation and redemption of rewards points and for adjusting the issuer&#39;s financial records to reflect the cardholder&#39;s rewards program usage. In the example embodiment, rewards module  480  may also store data associated with rewards-based promotions analogous to the data stored in promotion database  474 , such as redeem 2,000 rewards points to receive 10% off a purchase, redeem 500 rewards points and pay no interest for 6 months, or redeem 800 rewards points and receive a $100 rebate. Alternatively, all such rewards-based promotion data may be received and stored directly along with non-rewards-based promotion data in promotion database  474 , or promotion database  474  and rewards module  480  may be combined in a single platform. Rewards-based promotion data stored in rewards module  480  is also in communication with cardholder database  476  such that a cardholder can access the number of rewards points the cardholder has accumulated from prior purchases. 
     In the example embodiment, promotion application  479  running on remote computing device  478  automatically accesses (e.g., without user intervention) cardholder database  476  such that promotion data including the list of available promotions being offered to the cardholder is displayed on remote computing device  478 . Promotion application  479  may access the promotion data in real time (e.g., as soon as the promotion data becomes available), periodically (for example, every 10 seconds), or based on a triggering event. In one embodiment, a triggering even may be when remote computing device  478  is turned on, awakened, or it is determined (via global positional system data) to be near a particular location, such as near a particular merchant. The cardholder may pre-register card information within promotion application  479  to automatically associate promotion application  479  with the cardholder&#39;s payment card account. In addition, the cardholder pre-registers any log-in information that then may be communicated by the cardholder at the time the promotion is selected from remote computing device  478 . As part of this pre-registration process, promotion application  479  may be configured to receive/access regular notifications regarding available rewards promotions (or other promotions) from participating local merchants, the issuer, or the bankcard network. 
     In a further embodiment, other promotions may be accessed by remote computing device  478  through smart posters, for example, billboards or posters. Smart posters may be displayed in a public area and are equipped with a unique NFC tag, typically a radio frequency identification (RFID) tag or unpowered NFC tag, is embedded in them. The NFC tag enables a customer to place remote computing device  478  adjacent to a touchpoint within the poster that is associated with the tag in order to engage with the advertised product. In one embodiment, engagement with an NFC tag provides promotion application  479  special program offers or connects remote computing device  478  to a website associated with the product where the customer can purchase the advertised product, and/or gain extra information about the product. Engaging with the NFC tag may also register promotion application  479  on remote computing device  478  for reception of other promotion programs. 
     In another embodiment, promotions may be accessed by one remote computing device  478  through another remote computing device  478 . For example, an interactive kiosk may communicate with promotion database  474  and therefore store promotion data from merchants (e.g., merchants within a shopping area where the interactive kiosk is located) participating in bankcard network  440 . The interactive kiosk may receive and store data for both rewards-based and non-rewards-based promotions. The interactive kiosk stores data describing the different promotions or programs that a merchant registered with bankcard network  440  is offering to cardholders. To access the promotions stored on the interactive kiosk, another remote computing device  478  (e.g., a smart phone) communicates with the interactive kiosk using, for example, NFC technology. As such, promotion application  479  on the smart phone may be updated with the promotions accessed from the interactive kiosk. Alternatively, promotion application  479  may provide the interactive kiosk with personal information (e.g., payment card information) of the cardholder when the smart phone communicates with the interactive kiosk via NFC. As such, the interactive kiosk may interact with bankcard network  440  and display promotion programs applicable to the cardholder on a display of the interactive kiosk. 
     Once displayed on either the smart phone or the interactive kiosk, the cardholder can then select one or more of the promotions from the list of available promotions. By selecting one of the promotions, the cardholder is then registered within system  100  to receive the terms and conditions being offered as part of the promotion upon making a purchase from the merchant with a payment card over bankcard network  440 . In an alternative embodiment, a cardholder can register for a promotion within system  100  after making a purchase from a participating merchant with a payment card over bankcard network  440  provided that the promotion selection is completed prior to the transaction being cleared through the bankcard network. 
     After a cardholder selects a promotion, cardholder database  476  in communication with rewards module  480  determines whether the cardholder has a sufficient amount of accumulated rewards points if a rewards-based promotion is selected. In an alternative embodiment, promotion application  479  only displays those rewards-based promotions that the cardholder has sufficient number of accumulated points to satisfy. 
     The promotion codes associated with the promotion selected by the cardholder are then transmitted to promotion code processing module  460  such that the transaction corresponding to the selected promotion may be tagged for proper processing. Promotion code processing module  460  is configured to apply the corresponding promotion codes to the cardholder payment transaction when the cardholder makes the purchase from the merchant that corresponds with the selected promotion program. In other words, when the cardholder purchases the product or service associated with the cardholder selected promotion using a payment card over bankcard network  440 , promotion code processing module  460  applies the appropriate promotion codes to the cardholder payment transaction, after the transaction has been validated, such that the selected promotion is applied to the cardholder purchase. 
     After promotion code processing module  460  validates the transaction for the selected rewards-based promotion, cardholder database  476  receives notification that the transaction has been validated. Cardholder database  476  then transmits the rewards debit entry to rewards module  480  for recording. 
     More specifically, after a cardholder selects an available promotion and a transaction is submitted to bankcard network  440 , the transaction is interrogated to determine if the transacting merchant and issuer have a relationship that corresponds to a registered program which covers the transaction and if the cardholder has registered for a promotion that covers the transaction. During an authorization, merchant screening module  450  determines whether the cardholder has registered for a promotion program. If the cardholder has not registered for a promotion program, the system may bypass promotion code processing module  460  and continue with the authorization process. If, however, merchant screening module  450  determines the cardholder has registered for a promotion program, the system directs the transaction to promotion code processing module  460  for validation including determining whether the transaction is validated as covered or, conversely, designated as not covered by a registered program and if covered, may optionally include the promotion codes on the authorization request sent to issuer  410 . The validation may involve the use of suitable algorithms to apply a specific set of criteria which define the relationship or program. The specific set of criteria may, for example, include transaction parameters such as the merchant type and identity, the cardholder identity, the nature of the transacted goods or services, and the location, time and dollar value of the transaction. For the case where the validated transaction is one for which the cardholder selected a program involving a rewards point redemption, rewards module  480  receives data associated with the completed transaction. Rewards module  480  in turn posts confirmed rewards points redemptions to the cardholder&#39;s rewards program account and generates adjustment records for any immediate effect of the redemption on the cardholder&#39;s account with issuer  410 , for example to reflect rebates obtained directly from the issuer by the cardholder in exchange for redeeming rewards points. 
     Next, at promotion code processing module  460 , the validated transaction may be flagged if it qualifies for special pricing under the rewards program or other registered promotion program. For the case where the transaction qualifies for special pricing under the rewards program or other registered promotion program, the merchant accounting system module  470  is configured to calculate the differential between the special pricing for the specific transaction under the program and the standard pricing of a normal bankcard transaction (i.e., which is not covered by the program). Merchant accounting system module  470  is further configured to summarize transaction activity using a number of configurable variables, to report adjustments to the issuer&#39;s interchange, to generate payment files to credit or debit merchants&#39; accounts on behalf of the issuer for the differential, and to provide miscellaneous reports to both the issuer and merchants to facilitate reconcilement. Merchant accounting system module  470  may also be configured to create a record for payments to be made by a program sponsor for engaging in the promotions. The settlement procedures for the standard value of the transaction between the acquirer  420  and issuer  410  are the same or similar to those used in a conventional payment card program as shown in  FIG. 1 . 
     From the cardholder&#39;s perspective, system  100  advantageously creates flexibility in the use of rewards program points. System  100 , for example, enables the cardholder to use a cell phone or other portable communications or network-enabled device, or a interactive kiosk, to track current rewards point totals and to become aware of the most current rewards-based promotions and other promotions while shopping. The cardholder may also benefit by receiving notifications through a promotion application of special rewards-based or non-rewards-based promotions from area merchants or from the issuer. 
     From the issuer&#39;s perspective in the context of implementing special relationships, system  100  advantageously eliminates the need to establish connectivity directly with merchants (and/or one or more acquirers) to implement the special relationships. Further, system  100  reduces back office processing requirements on the issuer. System  100  also allows the issuer to independently manage the special relationships with the merchants without third party (e.g., an acquirer) involvement. The issuer can, for example, independently manage rewards programs and proprietary pricing structures directly with merchants without having to go through an acquirer. Further, system  100  allows the issuer to offer pricing plans that are not transaction-based. System  100  allows the issuer to use the same payment network infrastructure to process chargebacks and make adjustments directly with merchants. 
     From the merchants&#39; perspective, system  100  provides special relationship processing, which is transparent to merchants&#39; acquirers. Further, system  100  improves settlement as all transactions including those associated with the special relationship are settled through the general purpose bankcard process instead of ad hoc systems specific to the special relationships. Merchants also may expect improved pricing from issuers due to infrastructure efficiencies in system  100 . System  100  also advantageously provides merchants with the ability to offer reward program incentives to improve sales without developing point-of-sale infrastructure to support the rewards program. 
     From the merchant acquirers&#39; perspective, system  100  advantageously allows transparent passthrough of the special relationship related processing without imposing any specific coding or setup requirements related to the special relationships on the acquirers. Yet, system  100  advantageously increases bankcard transaction volume by including the special relationship transactions in the acquirers&#39; settlement with issuers. 
     From the bankcard network&#39;s perspective in the context of implementing special relationships, system  100  advantageously establishes special relationships between merchants and cardholders. System  100  may also convert at least some private label transactions into transactions using the payment card associated with the bankcard network. System  100  also creates opportunities for partnerships with cellular telephone companies and/or software application companies that create promotion applications (e.g., promotion application  479 ) that run on remote computing devices  478  because system  100  enables cardholders to register for promotion programs using cellular telephones/a promotion application, wherein these cardholder initiated promotion programs are then applied to purchase transactions made by the cardholder from a merchant. System  100  also provides incentive for acquirers and issuers to process transactions through bankcard network  440 . System  100  may also generate new revenue streams between merchants and cardholders directly. 
     From a program sponsor&#39;s perspective, system  100  can reduce liabilities from accrued rewards points by allowing more flexible rewards point redemptions. 
     Conventional card transaction data processing involves clearing, authorization, chargebacks and adjustments, settlements, and other front or back end processes. During the clearing process, the acquirer provides the appropriate issuer data required to identify the cardholder&#39;s account and the dollar amount of the sales. When the issuing bank gets this data, the bank posts the amount of the sale as a draw against the cardholder&#39;s available credit and prepares to send payment to the acquirer. Authorization involves the acknowledgment by the issuer that a particular account may be charged for the amount of the sale. In the settlement process, the issuer sends a record of money that is being transferred from its account to that of the acquirer, who then pays the merchant. Funds are settled between issuers and acquirers through selected bank accounts. Chargebacks and adjustments processes relate to a card transaction that is billed back to the merchant after the sale has been settled. More specifically, a transaction is typically settled between the issuer and the interchange network, and then between the interchange network and the merchant bank (also known as the acquirer bank), and then between the merchant bank and the merchant. 
     The authorization, clearing, chargebacks and adjustments, and settlements processes for card transactions in system  100  are further described in more detail herein with reference to  FIGS. 5-8 , respectively. 
       FIG. 5  is a schematic diagram  500  illustrating authorization request process flows in the exemplary process shown in  FIG. 4 , in accordance with one embodiment of the present invention. Components shown in  FIGS. 5-8  that are identical to components of diagram  400  (shown in  FIG. 4 ), are identified in  FIGS. 5-8  using the same reference numerals as used in  FIG. 4 . The authorization requests may have the same format as standard general purpose bankcard authorization requests. The authorization request is a result of cardholder  510  using a payment card (e.g., a payment card stored on remote computing device  478 ) to complete a transaction with merchant  430 . The flow of these authorization requests from merchant  430  via acquirer  420  to network  440  can utilize existing flow paths established for ordinary card transactions. Then, network  440  routes the authorization requests to merchant screening module  450  for verification that the requesting merchants are included in a registered program. In the case of rewards-based transactions, merchant screening module  450  may also be configured to reduce the authorization amount by the amount of the promotion reduction. 
     Merchant screening module  450  may be configured to process the authorization requests, for example, to optionally cross-reference merchant IDs, authorize, decline, or pass on the request to issuer  410  systems for further processing. In some embodiments of system  100  (shown in  FIG. 2 ), merchant screening module  450  may be further configured to route a specific card number transaction to different issuer systems depending on specific criteria met by the transaction (e.g., merchant number, dollar amount, etc.). In the case of non-financial rewards transactions, merchant screening module  450  may be configured to capture and store transactions for later submission into a nightly clearing process. Additionally, merchant screening module  450  could be configured to pass a transaction onto module  460  to include the appropriate promotion codes in the authorization request and then communicate with the issuer so that the issuer can make the appropriate decisions for example in the cases of transactions involving installments or lines of credit. 
       FIG. 6  is a schematic diagram  550  illustrating clearing process flows in the exemplary process shown in  FIG. 4 , in accordance with one embodiment of the present disclosure. In the example embodiment, payment card transaction data (i.e., clearing records) may have the same format as standard general purpose bankcard clearing records. Like the flow of the authorization requests, the flow of these records from merchant  430  via acquirer  420  to network  440  can utilize existing flow paths and standard interchange rates established for ordinary card transactions (i.e., non-special relationship transactions). Network  440  may route the clearing records to merchant screening module  450  as part of nightly clearing to include the appropriate cross referencing merchant identifications (IDs), and to flag records from merchants not included in the registered programs. Optionally, the merchant screening module  450  may be a secondary process performed outside of the clearing process. 
     Cardholder database  476  receives data relating to a promotion selected by a cardholder, and determines whether the cardholder has a sufficient amount of accumulated rewards points when a rewards-based promotion is selected from its communication with rewards module  480 . The promotion data is then transmitted to merchant screening module  450 . Merchant screening module  450  receives the indicator from promotion database  474 . Merchant screening module  450  also determines whether the merchant is registered with network  440 . Promotion code processing module  460  determines whether the transaction is covered by the promotion selected by the cardholder. If a covered transaction involves a rewards point redemption, rewards platform  480  receives data associated with the completed transaction and generates separate transaction clearing records for any immediate effect of the redemption on the cardholder&#39;s account with issuer  410 , for example to reflect rebates obtained by the cardholder directly from the issuer in exchange for redeeming rewards points. Alternatively, the original clearing transaction can be adjusted to reflect the discounted amount. 
     In addition, after merchant screening module  450  determines that the merchant is registered with network  440  and that the transaction is covered by the promotion selected by the cardholder, network  440  then routes the clearing records to promotion code processing module  460  to generate the appropriate codes under registered programs so that the appropriate discount differentials can be calculated for the merchants covered by the programs. Next, network  440  routes the clearing records to the merchant accounting system module  470  to calculate the discount differential for individual clearing records. The discount differential may be based on any number of configurable variables. For example, the discount differential may be based on discount rates, which may be listed in merchant account records available on the network, and on the promotion codes, if any. Further, in the case of a rewards program, merchant accounting system module  470  may be configured to calculate the fees to be charged to the merchant for participation in the rewards program. 
     Next in the clearing process, merchant accounting system module  470  forwards the clearing records to issuer  410 , records transactions and summarizes them by a number of configurable variables to debit or credit differential to merchant accounts, and provides reporting to the merchants and issuer  410 . 
       FIG. 7  is a schematic diagram  600  illustrating settlement flows in the exemplary process shown in  FIG. 4 , in accordance with one embodiment of the present disclosure. Bankcard network  440  settles funds with acquirer  420  using standard interchange rates and settlement processes. Similarly, issuer  410  settles funds with bankcard network  440  using standard interchange rates and settlement processes. It is noted that in system  100 , merchant accounting system module  470  can create payment files to move debit/credit funds directly between the merchants&#39; and issuer&#39;s accounts for the differential amounts or the fees involved in rewards programs or other programs. 
     More specifically, a transaction is typically settled between the issuer and the interchange network, and then between the interchange network and the merchant bank (also known as the acquirer bank), and then between the merchant bank and the merchant. In addition, in the case where a rewards-based program is sponsored by a sponsor, settlement may also have to occur between the issuer and the sponsor of the discount amount. 
       FIG. 8  is a schematic diagram  650  illustrating chargeback and adjustment flows in the exemplary process shown in  FIG. 4 , in accordance with one embodiment of the present invention. In system  100 , chargebacks and adjustments that conform to standard bankcard policies are processed through existing flow paths with issuer  410  submitting records through the bankcard network  440  to acquirers  420 . Similarly, acquirers  420  utilize existing process flow paths back to merchants  430  for chargebacks and adjustments that conform to standard bankcard policies. 
     However, as shown in  FIG. 8 , chargebacks and adjustments that have unique properties because of the special relationship between the Issuer  410  and merchants  430  are processed through merchant accounting system module  470 . Such chargebacks are processed directly between issuer  410  and merchants  430 . The chargebacks can be for an entire amount of the transaction, or strictly for the portion of the chargeback that exceeds standard bankcard policies, as appropriate under specific programs. Similarly, adjustments for any of the special programs are processed directly with the merchant accounts in the same manner, and can be included in the summarized transaction activity used to credit/debit funds and provide reporting. Merchant accounting system module  470  is also configured to communicate with rewards module  480  to credit rewards points when appropriate. 
     While the present application describes what are believed to be the preferred embodiments of the present invention, those skilled in the art will recognize that further changes and modifications may be made thereto without departing from the spirit of the invention, and it is intended to claim all such changes and modifications that are within the spirit of the invention. For example, in  FIGS. 4-8  and the related description merchant screening module  450 , promotion code processing module  460 , merchant accounting systems module  470 , rewards module  480 , promotion database  474  and cardholder database  476  are shown as separate modules or units. However, it is readily understood that the structure and functions of these modules can be easily merged in a single module or partitioned into further modules. 
     It also will be understood that the systems and methods of the present invention can be implemented using any suitable combination of hardware and software. The software (i.e., instructions) for implementing and operating the aforementioned systems and methods can be provided on computer-readable media, which can include without limitation, firmware, memory, storage devices, micro controllers, microprocessors, integrated circuits, ASICS, on-line downloadable media, and other available media. 
       FIG. 9  is a flowchart  700  illustrating exemplary processes for implementing special or customized issuer-merchant relationships in a payment-by-card system as shown in  FIG. 4  and implemented using the system  100  shown in  FIG. 2 . System  100  prompts a cardholder to select a promotion program offered by a merchant registered with a bankcard network such that promotion codes associated with the selected promotion program are automatically applied to the cardholder&#39;s payment transaction with the merchant. 
     More specifically, the technical effect of the processes and systems described herein is achieved by storing  702  promotion data in a promotion database for merchants participating in the bankcard network including a merchant name, a merchant identification (ID) number, promotion identifiers, transaction qualifications including whether the promotion is a rewards-based promotion, terms of promotions and promotion codes. Rewards data is also stored  704  in a rewards module for rewards program sponsors participating in the bankcard network including a sponsor of each rewards program, a number of accumulated points for each cardholder, and rules for tracking the accumulation and redemption of rewards points. In one embodiment, the promotion data and rewards data may be communicated between the promotion database and the merchant computer. The merchant computer may also include a sponsor computer wherein the sponsor is the party sponsoring the promotion rewards-based program. 
     In the example embodiment, the system registers  706  the promotion data stored within the promotion database with the merchant accounting system module, and transmits  708  the promotion data to a cardholder database. The cardholder database is accessible by a plurality of cardholders using a promotion application running on remote computing devices such a personal computer, PDA, cellular phone or a point of sale device at the merchant. The promotion data stored in the promotion database includes a displayable list of available promotions for each cardholder including rewards-based promotions and non-rewards based promotions. Before displaying the list of available promotions, the system determines  710  the number of rewards points already accumulated by the cardholder and a promotion application only displays those promotions wherein the cardholder has a sufficient number of accumulated rewards points to satisfy the promotion. 
     The cardholder then selects  712  at least one promotion from the list of available promotions using a remote computing device. The selected promotion data is communicated from the cardholder database to the merchant screening module. 
     After selecting  712 , cardholder database creates a rewards debit entry to be applied to the accumulated rewards points. After receiving  714  the selected promotion data at the merchant screening module including the associated transaction codes and transaction qualifications, the promotion codes associated with the selected promotion data are transmitted  716  to the promotion code processing module for application to a payment transaction satisfying the transaction qualifications. 
     Once the cardholder then initiates  718  a purchase transaction from the merchant using, for example, a payment card or NFC technology (e.g., “tapping” or “waving” the remote computing device in front of a point of sale device) to make a purchase with a payment card stored on the remote computing device over the bankcard network, the merchant screening module interrogates  720  the authorization for the transaction to determine whether the transacting merchant and issuer have a relationship that corresponds to a registered program which covers the transaction and whether the cardholder has registered for a promotion that covers the transaction. 
     At the merchant screening module, the system determines whether the cardholder has registered for a promotion program. If the cardholder has not registered for a promotion program, the system may bypass the promotion code processing module and continue with the authorization process. If, however, the merchant screening module determines that the cardholder has registered for a promotion program, the system directs the transaction to the promotion code processing module for validation including determining whether the transaction is validated as covered or, conversely, designated as not covered by a registered program and if covered, may optionally apply the promotion code on the authorization request forwarded to the issuer. The validation may involve the use of suitable algorithms to apply a specific set of criteria which define the relationship or program. The specific set of criteria may, for example, include transaction parameters such as the merchant type and identity, the cardholder identity, the nature of the transacted goods or services, and the location, time and dollar value of the transaction. 
     Specifically, the promotion code processing module determines  722  whether the authorization of the payment transaction satisfies the transaction qualifications. If the promotion code processing module validates the transaction, the cardholder database receives  724  a notification that the selected rewards-based promotion transaction has been validated, and the promotion code processing module applies  726  the promotion codes to the transaction and forwards  728  the authorization request to the issuer. 
     During the clearing process, the clearing for the transaction is submitted  730  by the merchant into the bankcard network. The clearing for the transaction is interrogated  732  at the merchant screening module to determine if the cardholder has registered for a promotion program. If so, the merchant screening module forwards the transaction to the promotion code processing module for additional processing, including applying  734  promotion codes and further processing in the merchant accounting system module. The cardholder database transmits  736  the rewards debit entry to the rewards platform for recording. The system also forwards  738  the clearing for the transaction with promotion codes to the issuer. 
     For the case where the transaction qualifies for special pricing, merchant accounting system module calculates the differential between the special pricing for the specific transaction under the program and the standard pricing of a normal bankcard transaction (i.e., which is not covered by the program). The merchant accounting system module also summarizes transaction activity by a number of configurable variables, to report adjustments to the issuer&#39;s interchange, to generate payment files to credit or debit merchants&#39; and/or a third party&#39;s accounts on behalf of the issuer for the differential, and to provide miscellaneous reports to the issuer, third party, and merchants to facilitate reconcilement. In addition, for the case where the transaction involves a rewards point redemption, rewards platform posts confirmed rewards points redemptions to the cardholder&#39;s rewards program account and generates adjustment records for any immediate effect of the redemption on the cardholder&#39;s account with the issuer, for example to reflect rebates obtained by the cardholder directly from the issuer in exchange for redeeming rewards points. 
     In one embodiment, a computer program is provided, and the program is embodied on a computer readable medium and utilizes a Structured Query Language (SQL) with a client user interface front-end for administration and a web interface for standard user input and reports. In an exemplary embodiment, the system is web enabled and is run on a business-entity intranet. In yet another embodiment, the system is fully accessed by individuals having an authorized access outside the firewall of the business-entity through the Internet. In a further exemplary embodiment, the system is being run in a Windows® environment (Windows is a registered trademark of Microsoft Corporation, Redmond, Wash.). The application is flexible and designed to run in various different environments without compromising any major functionality. 
     While the invention has been described in terms of various specific embodiments, those skilled in the art will recognize that the invention can be practiced with modification within the spirit and scope of the claims.