Patent ID: 8626577

Claim:
A method for providing a loyalty program for a plurality of merchants and a plurality of issuers, the method comprising: providing an issuer identifier to an issuer in the plurality of issuers, the issuer identifier maintained by a host and usable to generate a portable device identifier for a portable device issued by the issuer, the portable device configured to conduct purchases; generating a root credential associated with the host; providing an issuer credential to the issuer that is derived from the root credential, the issuer credential usable to derive a portable device credential that is associated with the portable device; providing one or more portable device parameters to the portable device; providing a corresponding unique acceptance point device credential, the issuer credential, the issuer identifier and one or more loyalty parameters associated with the issuer identifier to an acceptance point device located only at a store operated by a single merchant in the plurality of merchants; wherein the issuer identifier enables the acceptance point device to associate the portable device identifier for the portable device with the issuer when the portable device identifier is determined from communications between the portable device and the acceptance point device during a purchase; wherein the portable device credential enables the acceptance point device to authenticate the portable device using the issuer credential; wherein the one or more loyalty parameters enable the acceptance point device to determine at the store if the portable device is eligible for the loyalty program; wherein the acceptance point device is further configured to determine that the portable device is eligible for the loyalty program based upon the one or more portable device parameters, when the one or more portable device parameters are determined from communications between the portable device and the acceptance point device; and wherein the acceptance point device is configured to update and communicate appropriate incentives to the portable device.