Patent ID: 8407083

Claim:
A system for managing reward reversals in connection with a loyalty program, comprising: a computer comprising control logic configured to receive information relating to a previously completed transaction that is to be reversed including a total value being returned and a total value of the previously completed transaction, the previously completed transaction being associated with an account linked to the loyalty program governed by one or more rules including an expiration limit on when the previously completed transaction can be reversed and an override of the expiration limit, wherein the total value being returned is less than the total value of the previously completed transaction, control logic configured to determine reversal information for the transaction to be reversed, wherein the reversal information determination includes determining that the total value of the previously completed transaction had earned an accumulated reward, determining a new total transaction value to account for the total value being returned, and determining if the new total transaction value earns any accumulated reward, control logic configured to use the reversal information to back out the accumulated reward earned for the previously completed transaction, control logic configured to restore any reward that was redeemed as part of the previously completed transaction, control logic configured use the reversal information to add any accumulated reward for the new total transaction value to the account, control logic configured to determine whether the account has a negative reward value, control logic configured to create an escrow account upon the reversal of the previously completed transaction, the escrow account having the negative reward value, control logic configured to clear the escrow account upon one or more transactions completed after the reversal, and control logic configured to use the reversal information to reverse the previously completed transaction and update the account.