CA2980045A1 - Credit card gift system and method - Google Patents
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- CA2980045A1 CA2980045A1 CA2980045A CA2980045A CA2980045A1 CA 2980045 A1 CA2980045 A1 CA 2980045A1 CA 2980045 A CA2980045 A CA 2980045A CA 2980045 A CA2980045 A CA 2980045A CA 2980045 A1 CA2980045 A1 CA 2980045A1
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- 230000001737 promoting effect Effects 0.000 abstract description 5
- 238000012545 processing Methods 0.000 description 8
- 230000000737 periodic effect Effects 0.000 description 3
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q20/00—Payment architectures, schemes or protocols
- G06Q20/22—Payment schemes or models
- G06Q20/24—Credit schemes, i.e. "pay after"
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q20/00—Payment architectures, schemes or protocols
- G06Q20/38—Payment protocols; Details thereof
- G06Q20/387—Payment using discounts or coupons
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Abstract
A gift card promotion system and method is provided. Gift cards with expiry dates, directed to one or more merchants and one time use may be distributed to consumers as part of a promotional program. At the time of redemention, the gift card is checked that it is active, has not expired and is being redeemed at a permitted merchant. The promoter may only be charged for the amount of the gift card redemption at the time the gift card is redeemed.
Description
Attorney Docket: 19640-4 CREDIT CARD GIFT SYSTEM AND METHOD
FIELD OF THE TECHNOLOGY
[0001] The embodiment relates to gift card systems and methods. In more particularity, the system relates to credit card based gift cards.
BACKGROUND
FIELD OF THE TECHNOLOGY
[0001] The embodiment relates to gift card systems and methods. In more particularity, the system relates to credit card based gift cards.
BACKGROUND
[0002] Gift cards are frequently used in the retail and service industries. A
gift card is typically obtained from the offering retailer with a pre-determined value associated with the card. The card may be redeemed at the offering retailer for goods and/or services. If the gift card has a value of more than the goods and/or services, the value of the gift card may be reduced by the value of the goods and/or services. The gift card may then be redeemed for the remaining value at another time.
gift card is typically obtained from the offering retailer with a pre-determined value associated with the card. The card may be redeemed at the offering retailer for goods and/or services. If the gift card has a value of more than the goods and/or services, the value of the gift card may be reduced by the value of the goods and/or services. The gift card may then be redeemed for the remaining value at another time.
[0003] In order to redeem a gift card, retailers typically have to have a gift card management system for confirming the value of the gift card and processing redemptions with, or alongside, their point-of-sale systems.
[0004] It is desirably to have a gift card system that allows more flexibility to retailers on the use of gift cards and to simplify the redemption processing.
BRIEF DESCRIPTION OF THE DRAWINGS
BRIEF DESCRIPTION OF THE DRAWINGS
[0005] In drawings which illustrate by way of example only a preferred embodiment,
[0006] Figure 1 is a representation of the inactions between a promoter, a card issuer, a consumer and a merchant in an embodiment.
[0007] Figure 2 is a flow chart of event arising from the payment at a merchant with a gift card according to an embodiment.
[0008] Figure 3 is a front side of a gift card.
DETAILED DESCRIPTION
DETAILED DESCRIPTION
[0009] According to an embodiment, a gift card 200 is established that may operate using credit card processing infrastructure that offers benefits to merchants, promoters and consumers. Aspects of using credit card processing infrastructure is already familiar with merchants and consumers.
[0010] One feature of a gift card 200 may be that the card is limited to being used at a single store, retailer or merchant. This may be done using merchant codes used by the credit card processing infrastructure or other identifiers to associate a card with one or more merchants. Merchant codes may identify both the chains, for merchants with multiple locations, and individual stores. By restricting the gift card to a single merchant, the merchant has assurance that the gift card won't be used elsewhere and may therefore be more encouraged to offer the card to consumers or within other gift/incentive programs. In an alternative, the gift card may be limited to a single chain of merchant stores, or to a pre-determined set of merchants. For example, the set of merchants may be based on geography such as a business district.
[0011] Another feature of the gift card 200 may be that it may only be used once for a single transaction. A one-time use card may be used for a single transaction.
After the single transaction is complete, any further attempts to do a transaction with the card may be denied. For gift cards, a one-time use card may be used to improve the ease of processing, and increase the breakage, making the gift card less costly to offer. In embodiments, the gift card may be limited to two transactions or some other pre-determined limit, such as the number of transactions or the amount of the transactions relative to the original value of the card.
After the single transaction is complete, any further attempts to do a transaction with the card may be denied. For gift cards, a one-time use card may be used to improve the ease of processing, and increase the breakage, making the gift card less costly to offer. In embodiments, the gift card may be limited to two transactions or some other pre-determined limit, such as the number of transactions or the amount of the transactions relative to the original value of the card.
[0012] For a gift card 200, with a single use limitation, if the transaction value is less than the value of the gift card, the unused value may therefore never be used.
Also, some gift cards may never been redeemed. As a result, the average redemption value may be less than the face value of the gift card. In other words, on average, a consumer redeeming a gift card, may redeem it for less than the face value. The breakage, or unused left-over value on the card, may never have to be funded by the promoter or may be returned to the promoter.
100131 The gift card 200 may also have an expiry date after which time, it cannot be used in a transaction. If a gift card is used after the expiry date, the transaction may be denied.
Gift cards that expire may lose any remaining value. Some jurisdictions may have rules on the expiry of gift cards but some rules may not apply if the gift card is given for free, or as part of a promotion.
100141 The value of the gift card 200 may be recorded electronically and the associated funds only provided to the merchant at the time of the transaction when the consumer holding the gift card purchases the goods/services. The gift card balance may be stored, and updated at an electronic database maintained by the card processor 20, the promotor 10, or by a service provider 50. The card processor 20 may be one of the large credit card processors, such as Visa or MasterCard. The service provider 50 may include a financial institution such as a bank that offers credit card services. Promoters, who may offer the gift cards as part of an incentive program would therefore not need to maintain or provide capital for each issued or distributed gift card but only provide funds to the merchants at the time the card is redeemed. In some instances, the funds may be provided after the transaction is complete, such as the end of the month, or paid as part of settlement with a group of transactions. This may reduce the capital and cash flow requirements of the promoter 10.
100151 In an embodiment where the gift card 200 is not limited to one-time use, the card may be funded at the time it is used. In other words, at the time the card is used for a transaction, the funds to cover the transaction are provided in order for the transaction to be completed. In an embodiment, the funds for the entire face value of the card is provided to fund the gift card. By doing so, the gift card is effectively activated at the time of the first purchase. If the gift card is not used for a period of time, or never used, the capital to fund the gift card may not be needed at all or for the period of time.
[0016] In an embodiment, the funds may be provided before the transaction but after the card is distributed to a consumer. The consumer may provide notice, such as advising the promoter, of their intention to use the gift card. For example, the consumer may phone the promoter, or a call-centre associated with the promoter, to arrange a reservation with one or more merchants. The promoter, may advise, directly or indirectly, the service provider or card processor, of the date and time of the reservation. Funds may then be provided shortly before the date and time of the reservation, so that when the customer uses the card at the merchant at the time of the reservation, the card is active and has value associated with it that can be processed through the credit card processing system.
If the transaction value is less than the gift card value, and the gift card is a one-time use card, the unused gift card value may be removed from the card and returned. In this way, only the amount of the gift card actually redeemed needs to be paid, not the full value of the gift card.
[0017] The consumer may select and make a reservation through other means, such as accessing a reservation system online, through a mobile app for a smart phone, by mail, or in person. Preferably, at the time of making the reservation, information about the consumer is collected, such as demographics, interests, buying history, buying intentions, and consent for additional promotions. This information may be recorded by the promoter, in association with the gift card, the distribution channel of the gift card and other information the promoter may have about the consumer.
[0018] When a reservation is made for a customer, a computer associated with the promoter 10 is updated with the reservation details, including the merchant, the date and time of the reservation and identifying information of the gift card associated with the customer.
[0019] Prior to the date and time of the reservation, the computer associated with the promoter may communicate with a computer associated with the service provider 50 with transaction authorization information to transfer money associated with the promoter, such as the promoter's bank account, to a credit balance associated with the gift card held by the customer. The computers associated with the promoter and with the service provider may be connected on a private network, connected directly on the same premises, or over a secure connection on a public network, such as the Internet.
[0020] When the customer 30 uses the gift card at the merchant 40, the merchant's point of sale terminal communicates with a computer associated with card processor 20 over a network. The communication may include identifying information of the gift card, transaction amount, date and time. The communication may also include details of the type of transaction and the services or goods being provided as part of the transaction.
[0021] As described below, the card processor 20 may determine whether to approve or deny the transaction. The determination may be made on whether the gift card is active, has sufficient balance, or is being used at a merchant for which the card is authorized. A
computer associated with the card processor may communicate with a computer associated with the service provider and/or the promoter to make this determination. This determination is preferably done quickly, so that the merchant and customer know if the transaction is approved while the customer is still at the point-of-sale terminal.
[0022] A single gift card may be used for multiple gifts. A gift card may be provided that is locked to a first merchant for a first value and a second merchant for a second value.
For redemption, the customer may arrange a reservation, as described above, with the first merchant. Immediately before the date and time of the first reservation, the first value of funds is provided to allow the card to be redeemed at the first merchant. The customer may then make a reservation at the second merchant, and funds may be loaded on the card immediately before the date and time of the second reservation.
Alternatively, the funds may be provided only at the time of the transaction rather than being provided prior to the date and time of the reservation.
100231 Some or all of the information on the consumer may be shared with merchants and other promoters. The merchant may provide discounts, rebates or other benefits to the promoter at the time the consumer uses the gift card with the merchant. In an embodiment, when the consumer pays the merchant for goods or services, the transaction value is deducted from the gift card. At the same time, or at some time after the transaction, the merchant may provide funds to the promoter. The amount of the funds provided by merchant to the promoter may be a fixed amount per transaction, based on the value of the transaction, such as percentage of the transaction value, the date/time of the transaction or other factors. For example, the merchant may offer a larger rebate if the customer attends the merchant during a less-busy time/day. Because the size of the rebate may vary, the promoter may be motivated to encourage the customer to make a reservation at these less busy times at the time the consumer is making the reservation.
(0024] As an example, if the face value of a gift card is $200, and the consumer holding the gift card arranges a reservation with a merchant, then immediately before the reservation, the promoter may load $200 on to the card. If only $150 is used by the consumer for the transaction, then the $50 unused value may be returned to the promoter.
In addition, the merchant rebate a portion of the transaction value to the promoter. If the rebate is 50% of the transaction, then the promoter is rebated $75 by the merchant.
Therefore, the cost to the promoter of providing the $200 gift card to the consumer was $75.
[00251 The promoter may charge the merchant to participate in the program and have the gift card locked to the merchant. The merchant gets customers, who may be directed to the merchant at times preferred for the merchant. The customer may be given benefits, incentives or guided to make a reservation with the merchant at a preferred time for the merchant, such as off-peak, or when the merchant is less busy. The merchant may also obtain customer information from the promoter. The merchant may also gain customers that are new to the neighbourhood, such as after purchasing a house, when the customer may be open to new habits. The merchant may also provide follow up or related promotions to the customers after their visit.
[0026] A customer who has redeemed a gift card may be provided correspondence, such as a survey or thank you note. The survey may gather additional information about the customer and the customer's experiences with the merchant, the promoter and/or gift card. This information may assist with targeting the customer and providing additional promotions.
[0027] The correspondence may be provided by mail, or electronically, such as by email or social media. The customer may be encouraged to share, such as on social media, the correspondence with family, friends and others, to promote the merchant, the promoter or the gift card program. Further incentives may be provided to the customer for sharing the correspondence.
[0028] A gift card 200, as described above, may be used in connection with a promotional program. The program may include providing periodic gifts to potential or past customers in the form of gift cards 200. By providing periodic gifts, the potential or past customer may be reminded of the gift giver and maintain a positive experience of the gift giver. The gift card giver may be a promotor, or other intermediary that provides gift cards to the potential or past customers that may be redeemed at merchants.
[0029] For example, a real estate agent promoter may distribute, in person, by mail, email or otherwise, gift cards 200 to past clients, once or periodically as a promotion. The promoter would not need to pay for, or fund the gift cards 200 until such time as they are actually used by the recipient. If the gift card is never used, because it was discarded, or expired, the promoter does not have to pay for the face value of the card.
[0030] Information about the consumer, collected at the time of making reservations, or from other sources, may be combined with the consumer's transaction history with gift cards. The type of gift cards for future promotions, the nature and frequency of promotions and other sales techniques may be based on the information about the consumer and other consumers. Artificial Intelligence (Al) may be used to analyze the transaction history of consumers using the gift cards, to identify trends and recommend further promotions that may be offered to a consumer.
[0031] By providing gift cards 200 that include features of being restricted to a single merchant, being one time use, having a expiry date, and being funded at the time of use, the cost to the promoter may be reduced as compared to providing existing gift cards.
[0032] By focusing the gift cards 200 to a single merchant may allow discounts to be obtained from the merchant. An expiry date on the gift card may increase the breakage income available to the merchant and gift giver. If the funds for redeeming the gift card is not required until the card is redeemed, either in full or part, the capital required upfront is reduced.
[0033] In addition, the gift cards may each be tracked individually when the cards are provided to potential or past customers. The redemption of the cards may also be tracked.
As a promotional program, the success of the program may be tracked by who is redeeming the cards and how the cards are being redeemed.
[0034] In instances where merchants provide loyalty programs for frequent consumers, the benefits of the loyalty program may be provided to the promoter. For example, a merchant may offer a free item for every five items purchased. If five consumers redeem a gift card at the merchant for an item, the promoter may be provided the opportunity to get the free item. The benefits of the loyalty program may attribute to the promoter associated with the customers that have redeemed the gift card at the merchant.
[0035] With reference to Figure 3, a gift card 200 may have a general appearance similar to a credit card, having a similar shape and size. On a first side of the gift card 200 may be appear a card number 210 and expiry date 215. The card may also include the name of the promoter, the name of the merchant, customer, service provider or bank and/or other identifying information 205. If the gift card 200 is limited to a single merchant, the merchant name may be included as part of the identifying information. The card may also include the service provider, and/or card processor name 220. For example, if the card is compatible with the Visa or MasterCard network, this may be indicated on the card to indicate to the merchant that the card may be processed using their existing point of sale terminals.
100361 The gift card may also include identification and authentication systems such as bar codes, magnetic strip, or embedded chips so that it can be used with electronic card readers at a merchant point-of-sale terminals. Preferably, the identification and authentication systems are compatible with identification and authentication systems used for credit cards.
[0037] With reference to Figure 1, a promoter 10 may obtain a plurality of gift cards 200 from a card processor 20 or service provider 50. The gift cards may be time limited by an expiry date, limited to a single merchant and to one-time use.
100381 The gift cards 200 may be distributed by the promoter 10 to a plurality of consumers 30. In a promotional program, these consumers may be former, current or prospective clients with whom the promoter 10, or a client of the promotor, such as a professional, is trying to promote the relationship. Card information may be recorded along with when and where the cards were distributed so that any redemptions can be tracked back to consumer to whom it was distributed.
[0039] The consumer 30, who receives a gift card 200 may redeem the gift card at the merchant 40. The gift card 20 may be processed by the merchant 40 using their existing point-of-sale terminal. The card information may be sent to the card processor in the same manner as a credit card. The card processor 20 may identify the gift card based on the card information as being associated with the specific service provider for handling.
The card processor may either alone or in conjunction one or both of the service provider 50 and promoter, check the card information against a database of gift cards.
[0040] The card processor 20 or service provider 50 may check that the gift card 200 is active, has not expired, is being redeemed at a merchant for which the card is limited. If the card passes these checks, then transaction may be processed. The gift card 200 has a value associated with the card so only transactions up to the value of the card may proceed. In some instances, the merchant may allow the consumer to pay any additional amounts using other means, such as cash, credit or debit.
[0041] The merchant may be credited with the amount of the purchase by the card processor once the transaction on the gift card is approved. The card processor or service provider may then obtain the funds from the promoter 10. The specific timing and order of the transfer of funds may depend on the specific arrangements between the merchant, card processor, service provider and promoter. For example, the merchant may not be paid until the end of the month or some of periodic time that other credit card transactions are credited. The promoter may maintain a deposit account with the card processor and service provider which is debited at the time of a transaction using the gift card or the promoter may be invoiced or charged at the time of the purchase or periodically, such as monthly.
[0042] If the merchant provides a rebate for transactions using the gift card, this rebate may be incorporated into the amount of money credited to the merchant. In this way, the amount credited to the merchant may be the value of the transaction being applied to the gift card less the rebate. The service provider may provide the card processor with an approval or denial for the transaction, as well as the adjusted transaction value incorporating the rebate.
[0043] With reference to Figure 2, a number of steps may take place at the time a consumer attempts to redeem a gift card with a merchant. The consumer may present the gift card to the merchant 105. The merchant may process the card using a point-of-sale terminal. The card information, such as the card number 210, and expiry date 215, may be transmitted to the card processor. The capture of the information from the gift card and transmission to the card processor may preferably utilize the same processes as for credit cards such as from Visa and MasterCard. The card processor may make queries of the service provider regarding whether the transaction is to be approved or denied.
[0044] The card information is checked against a database of cards. The database of cards may be maintained by the card processor, the service provider or promoter. A check is made 110 if the card is active. The card processor may use some of the card information to determine that the gift card is to be processed by the service provider. Gift cards may be only activated at the time they are given to the promoter or when the promoter as distributed the cards to the consumers. Gift cards may be de-activated if they are a one-time use card and have already be used. Gift cards may also be de-activated if gifts cards are stolen or otherwise compromised. If the card is not active, the transaction is denied.
[0045] A check is also made if the card has expired 115. A gift card may be provided with an expiry date 215. If a consumer attempts to redeem a gift card after the expiry date, the transaction may be denied. By having an expiry date on gift cards, the promoter, and others involved in processing the gift cards can provide a limit as to when the gift cards may be redeemed.
[0046] A check is also made 120 that the card is being redeemed at a permitted merchant.
A gift card 200 may be limited to a single merchant, a chain of merchants or a group of merchants, such as with a geographic area, business category, or other grouping. If the consumer attempts to redeem the card at a merchant that is not permitted, the transaction may be denied.
[0047] The checks listed above may be completed in a different order or done simultaneously. If the transaction is denied, this is communicated to the merchant who may inform the consumer that the transaction with the gift card is denied 150.
100481 If the transaction passes the checks, the transaction may be approved by the card processor. This approval may be communicated to the merchant who may then complete the transaction to the limit of the gift card value. If the transaction value is more than the gift card value, the transaction may be denied or the merchant may permit the consumer to pay the extra using some other payment type. If a rebate is applied, the approved transaction value may be adjusted to take into account the rebate.
[0049] With the completion of the transaction, the merchant may be credited with the value deducted from the gift card, 125. As described above, the funds to pay the merchant may be obtained from the promoter, either at the time of the transaction or after the transaction. As described above, a rebate may be deducted from the amount paid to the merchant, or a rebate may be paid to the promoter.
[00501 The card processor, service provider or promoter may update the database of gift cards to deduct the gift card value by the amount of the transaction. If the gift card is a one-time use card, the card may also be marked as inactive, step 130. As described above, the card may relate to more than one merchant so may remain active until all of the experiences are used.
100511 Details of the transaction may be recorded 135. The card information, merchant, amount, date and time may be recorded to allow the service provider, card processor, merchant and promoter to operate the gift card system and to gather information on its success. If the card identification information is recorded by the promoter when the cards are distributed, the promoter may be informed which of the consumers has redeemed the gift card. The promoter may also determine which consumers discarded or never used the gift card. This information may be helpful to the promoter to understand the success of the relationship building and promotional efforts.
100521 Various embodiments of the present invention having been thus described in detail by way of example, it will be apparent to those skilled in the art that variations and modifications may be made without departing from the invention. The invention includes all such variations and modifications as fall within the scope of the appended claims.
Also, some gift cards may never been redeemed. As a result, the average redemption value may be less than the face value of the gift card. In other words, on average, a consumer redeeming a gift card, may redeem it for less than the face value. The breakage, or unused left-over value on the card, may never have to be funded by the promoter or may be returned to the promoter.
100131 The gift card 200 may also have an expiry date after which time, it cannot be used in a transaction. If a gift card is used after the expiry date, the transaction may be denied.
Gift cards that expire may lose any remaining value. Some jurisdictions may have rules on the expiry of gift cards but some rules may not apply if the gift card is given for free, or as part of a promotion.
100141 The value of the gift card 200 may be recorded electronically and the associated funds only provided to the merchant at the time of the transaction when the consumer holding the gift card purchases the goods/services. The gift card balance may be stored, and updated at an electronic database maintained by the card processor 20, the promotor 10, or by a service provider 50. The card processor 20 may be one of the large credit card processors, such as Visa or MasterCard. The service provider 50 may include a financial institution such as a bank that offers credit card services. Promoters, who may offer the gift cards as part of an incentive program would therefore not need to maintain or provide capital for each issued or distributed gift card but only provide funds to the merchants at the time the card is redeemed. In some instances, the funds may be provided after the transaction is complete, such as the end of the month, or paid as part of settlement with a group of transactions. This may reduce the capital and cash flow requirements of the promoter 10.
100151 In an embodiment where the gift card 200 is not limited to one-time use, the card may be funded at the time it is used. In other words, at the time the card is used for a transaction, the funds to cover the transaction are provided in order for the transaction to be completed. In an embodiment, the funds for the entire face value of the card is provided to fund the gift card. By doing so, the gift card is effectively activated at the time of the first purchase. If the gift card is not used for a period of time, or never used, the capital to fund the gift card may not be needed at all or for the period of time.
[0016] In an embodiment, the funds may be provided before the transaction but after the card is distributed to a consumer. The consumer may provide notice, such as advising the promoter, of their intention to use the gift card. For example, the consumer may phone the promoter, or a call-centre associated with the promoter, to arrange a reservation with one or more merchants. The promoter, may advise, directly or indirectly, the service provider or card processor, of the date and time of the reservation. Funds may then be provided shortly before the date and time of the reservation, so that when the customer uses the card at the merchant at the time of the reservation, the card is active and has value associated with it that can be processed through the credit card processing system.
If the transaction value is less than the gift card value, and the gift card is a one-time use card, the unused gift card value may be removed from the card and returned. In this way, only the amount of the gift card actually redeemed needs to be paid, not the full value of the gift card.
[0017] The consumer may select and make a reservation through other means, such as accessing a reservation system online, through a mobile app for a smart phone, by mail, or in person. Preferably, at the time of making the reservation, information about the consumer is collected, such as demographics, interests, buying history, buying intentions, and consent for additional promotions. This information may be recorded by the promoter, in association with the gift card, the distribution channel of the gift card and other information the promoter may have about the consumer.
[0018] When a reservation is made for a customer, a computer associated with the promoter 10 is updated with the reservation details, including the merchant, the date and time of the reservation and identifying information of the gift card associated with the customer.
[0019] Prior to the date and time of the reservation, the computer associated with the promoter may communicate with a computer associated with the service provider 50 with transaction authorization information to transfer money associated with the promoter, such as the promoter's bank account, to a credit balance associated with the gift card held by the customer. The computers associated with the promoter and with the service provider may be connected on a private network, connected directly on the same premises, or over a secure connection on a public network, such as the Internet.
[0020] When the customer 30 uses the gift card at the merchant 40, the merchant's point of sale terminal communicates with a computer associated with card processor 20 over a network. The communication may include identifying information of the gift card, transaction amount, date and time. The communication may also include details of the type of transaction and the services or goods being provided as part of the transaction.
[0021] As described below, the card processor 20 may determine whether to approve or deny the transaction. The determination may be made on whether the gift card is active, has sufficient balance, or is being used at a merchant for which the card is authorized. A
computer associated with the card processor may communicate with a computer associated with the service provider and/or the promoter to make this determination. This determination is preferably done quickly, so that the merchant and customer know if the transaction is approved while the customer is still at the point-of-sale terminal.
[0022] A single gift card may be used for multiple gifts. A gift card may be provided that is locked to a first merchant for a first value and a second merchant for a second value.
For redemption, the customer may arrange a reservation, as described above, with the first merchant. Immediately before the date and time of the first reservation, the first value of funds is provided to allow the card to be redeemed at the first merchant. The customer may then make a reservation at the second merchant, and funds may be loaded on the card immediately before the date and time of the second reservation.
Alternatively, the funds may be provided only at the time of the transaction rather than being provided prior to the date and time of the reservation.
100231 Some or all of the information on the consumer may be shared with merchants and other promoters. The merchant may provide discounts, rebates or other benefits to the promoter at the time the consumer uses the gift card with the merchant. In an embodiment, when the consumer pays the merchant for goods or services, the transaction value is deducted from the gift card. At the same time, or at some time after the transaction, the merchant may provide funds to the promoter. The amount of the funds provided by merchant to the promoter may be a fixed amount per transaction, based on the value of the transaction, such as percentage of the transaction value, the date/time of the transaction or other factors. For example, the merchant may offer a larger rebate if the customer attends the merchant during a less-busy time/day. Because the size of the rebate may vary, the promoter may be motivated to encourage the customer to make a reservation at these less busy times at the time the consumer is making the reservation.
(0024] As an example, if the face value of a gift card is $200, and the consumer holding the gift card arranges a reservation with a merchant, then immediately before the reservation, the promoter may load $200 on to the card. If only $150 is used by the consumer for the transaction, then the $50 unused value may be returned to the promoter.
In addition, the merchant rebate a portion of the transaction value to the promoter. If the rebate is 50% of the transaction, then the promoter is rebated $75 by the merchant.
Therefore, the cost to the promoter of providing the $200 gift card to the consumer was $75.
[00251 The promoter may charge the merchant to participate in the program and have the gift card locked to the merchant. The merchant gets customers, who may be directed to the merchant at times preferred for the merchant. The customer may be given benefits, incentives or guided to make a reservation with the merchant at a preferred time for the merchant, such as off-peak, or when the merchant is less busy. The merchant may also obtain customer information from the promoter. The merchant may also gain customers that are new to the neighbourhood, such as after purchasing a house, when the customer may be open to new habits. The merchant may also provide follow up or related promotions to the customers after their visit.
[0026] A customer who has redeemed a gift card may be provided correspondence, such as a survey or thank you note. The survey may gather additional information about the customer and the customer's experiences with the merchant, the promoter and/or gift card. This information may assist with targeting the customer and providing additional promotions.
[0027] The correspondence may be provided by mail, or electronically, such as by email or social media. The customer may be encouraged to share, such as on social media, the correspondence with family, friends and others, to promote the merchant, the promoter or the gift card program. Further incentives may be provided to the customer for sharing the correspondence.
[0028] A gift card 200, as described above, may be used in connection with a promotional program. The program may include providing periodic gifts to potential or past customers in the form of gift cards 200. By providing periodic gifts, the potential or past customer may be reminded of the gift giver and maintain a positive experience of the gift giver. The gift card giver may be a promotor, or other intermediary that provides gift cards to the potential or past customers that may be redeemed at merchants.
[0029] For example, a real estate agent promoter may distribute, in person, by mail, email or otherwise, gift cards 200 to past clients, once or periodically as a promotion. The promoter would not need to pay for, or fund the gift cards 200 until such time as they are actually used by the recipient. If the gift card is never used, because it was discarded, or expired, the promoter does not have to pay for the face value of the card.
[0030] Information about the consumer, collected at the time of making reservations, or from other sources, may be combined with the consumer's transaction history with gift cards. The type of gift cards for future promotions, the nature and frequency of promotions and other sales techniques may be based on the information about the consumer and other consumers. Artificial Intelligence (Al) may be used to analyze the transaction history of consumers using the gift cards, to identify trends and recommend further promotions that may be offered to a consumer.
[0031] By providing gift cards 200 that include features of being restricted to a single merchant, being one time use, having a expiry date, and being funded at the time of use, the cost to the promoter may be reduced as compared to providing existing gift cards.
[0032] By focusing the gift cards 200 to a single merchant may allow discounts to be obtained from the merchant. An expiry date on the gift card may increase the breakage income available to the merchant and gift giver. If the funds for redeeming the gift card is not required until the card is redeemed, either in full or part, the capital required upfront is reduced.
[0033] In addition, the gift cards may each be tracked individually when the cards are provided to potential or past customers. The redemption of the cards may also be tracked.
As a promotional program, the success of the program may be tracked by who is redeeming the cards and how the cards are being redeemed.
[0034] In instances where merchants provide loyalty programs for frequent consumers, the benefits of the loyalty program may be provided to the promoter. For example, a merchant may offer a free item for every five items purchased. If five consumers redeem a gift card at the merchant for an item, the promoter may be provided the opportunity to get the free item. The benefits of the loyalty program may attribute to the promoter associated with the customers that have redeemed the gift card at the merchant.
[0035] With reference to Figure 3, a gift card 200 may have a general appearance similar to a credit card, having a similar shape and size. On a first side of the gift card 200 may be appear a card number 210 and expiry date 215. The card may also include the name of the promoter, the name of the merchant, customer, service provider or bank and/or other identifying information 205. If the gift card 200 is limited to a single merchant, the merchant name may be included as part of the identifying information. The card may also include the service provider, and/or card processor name 220. For example, if the card is compatible with the Visa or MasterCard network, this may be indicated on the card to indicate to the merchant that the card may be processed using their existing point of sale terminals.
100361 The gift card may also include identification and authentication systems such as bar codes, magnetic strip, or embedded chips so that it can be used with electronic card readers at a merchant point-of-sale terminals. Preferably, the identification and authentication systems are compatible with identification and authentication systems used for credit cards.
[0037] With reference to Figure 1, a promoter 10 may obtain a plurality of gift cards 200 from a card processor 20 or service provider 50. The gift cards may be time limited by an expiry date, limited to a single merchant and to one-time use.
100381 The gift cards 200 may be distributed by the promoter 10 to a plurality of consumers 30. In a promotional program, these consumers may be former, current or prospective clients with whom the promoter 10, or a client of the promotor, such as a professional, is trying to promote the relationship. Card information may be recorded along with when and where the cards were distributed so that any redemptions can be tracked back to consumer to whom it was distributed.
[0039] The consumer 30, who receives a gift card 200 may redeem the gift card at the merchant 40. The gift card 20 may be processed by the merchant 40 using their existing point-of-sale terminal. The card information may be sent to the card processor in the same manner as a credit card. The card processor 20 may identify the gift card based on the card information as being associated with the specific service provider for handling.
The card processor may either alone or in conjunction one or both of the service provider 50 and promoter, check the card information against a database of gift cards.
[0040] The card processor 20 or service provider 50 may check that the gift card 200 is active, has not expired, is being redeemed at a merchant for which the card is limited. If the card passes these checks, then transaction may be processed. The gift card 200 has a value associated with the card so only transactions up to the value of the card may proceed. In some instances, the merchant may allow the consumer to pay any additional amounts using other means, such as cash, credit or debit.
[0041] The merchant may be credited with the amount of the purchase by the card processor once the transaction on the gift card is approved. The card processor or service provider may then obtain the funds from the promoter 10. The specific timing and order of the transfer of funds may depend on the specific arrangements between the merchant, card processor, service provider and promoter. For example, the merchant may not be paid until the end of the month or some of periodic time that other credit card transactions are credited. The promoter may maintain a deposit account with the card processor and service provider which is debited at the time of a transaction using the gift card or the promoter may be invoiced or charged at the time of the purchase or periodically, such as monthly.
[0042] If the merchant provides a rebate for transactions using the gift card, this rebate may be incorporated into the amount of money credited to the merchant. In this way, the amount credited to the merchant may be the value of the transaction being applied to the gift card less the rebate. The service provider may provide the card processor with an approval or denial for the transaction, as well as the adjusted transaction value incorporating the rebate.
[0043] With reference to Figure 2, a number of steps may take place at the time a consumer attempts to redeem a gift card with a merchant. The consumer may present the gift card to the merchant 105. The merchant may process the card using a point-of-sale terminal. The card information, such as the card number 210, and expiry date 215, may be transmitted to the card processor. The capture of the information from the gift card and transmission to the card processor may preferably utilize the same processes as for credit cards such as from Visa and MasterCard. The card processor may make queries of the service provider regarding whether the transaction is to be approved or denied.
[0044] The card information is checked against a database of cards. The database of cards may be maintained by the card processor, the service provider or promoter. A check is made 110 if the card is active. The card processor may use some of the card information to determine that the gift card is to be processed by the service provider. Gift cards may be only activated at the time they are given to the promoter or when the promoter as distributed the cards to the consumers. Gift cards may be de-activated if they are a one-time use card and have already be used. Gift cards may also be de-activated if gifts cards are stolen or otherwise compromised. If the card is not active, the transaction is denied.
[0045] A check is also made if the card has expired 115. A gift card may be provided with an expiry date 215. If a consumer attempts to redeem a gift card after the expiry date, the transaction may be denied. By having an expiry date on gift cards, the promoter, and others involved in processing the gift cards can provide a limit as to when the gift cards may be redeemed.
[0046] A check is also made 120 that the card is being redeemed at a permitted merchant.
A gift card 200 may be limited to a single merchant, a chain of merchants or a group of merchants, such as with a geographic area, business category, or other grouping. If the consumer attempts to redeem the card at a merchant that is not permitted, the transaction may be denied.
[0047] The checks listed above may be completed in a different order or done simultaneously. If the transaction is denied, this is communicated to the merchant who may inform the consumer that the transaction with the gift card is denied 150.
100481 If the transaction passes the checks, the transaction may be approved by the card processor. This approval may be communicated to the merchant who may then complete the transaction to the limit of the gift card value. If the transaction value is more than the gift card value, the transaction may be denied or the merchant may permit the consumer to pay the extra using some other payment type. If a rebate is applied, the approved transaction value may be adjusted to take into account the rebate.
[0049] With the completion of the transaction, the merchant may be credited with the value deducted from the gift card, 125. As described above, the funds to pay the merchant may be obtained from the promoter, either at the time of the transaction or after the transaction. As described above, a rebate may be deducted from the amount paid to the merchant, or a rebate may be paid to the promoter.
[00501 The card processor, service provider or promoter may update the database of gift cards to deduct the gift card value by the amount of the transaction. If the gift card is a one-time use card, the card may also be marked as inactive, step 130. As described above, the card may relate to more than one merchant so may remain active until all of the experiences are used.
100511 Details of the transaction may be recorded 135. The card information, merchant, amount, date and time may be recorded to allow the service provider, card processor, merchant and promoter to operate the gift card system and to gather information on its success. If the card identification information is recorded by the promoter when the cards are distributed, the promoter may be informed which of the consumers has redeemed the gift card. The promoter may also determine which consumers discarded or never used the gift card. This information may be helpful to the promoter to understand the success of the relationship building and promotional efforts.
100521 Various embodiments of the present invention having been thus described in detail by way of example, it will be apparent to those skilled in the art that variations and modifications may be made without departing from the invention. The invention includes all such variations and modifications as fall within the scope of the appended claims.
Claims (8)
1. A gift card method comprising a) distributing a gift card to one or more consumers and recording the gift card information in a database;
b) receiving gift card details from a point of sale terminal at a merchant;
c) confirming that the gift card is active, has not expired and is being redeemed at a permitted merchant against the database of gift card information;
d) communicating an approval of the transaction to the merchant;
e) crediting the merchant with the amount of the transaction;
0 updating the database of gift card information to mark the gift card associated with the transaction as inactive; and g) debting a gift card promoter for the amount of the transaction.
b) receiving gift card details from a point of sale terminal at a merchant;
c) confirming that the gift card is active, has not expired and is being redeemed at a permitted merchant against the database of gift card information;
d) communicating an approval of the transaction to the merchant;
e) crediting the merchant with the amount of the transaction;
0 updating the database of gift card information to mark the gift card associated with the transaction as inactive; and g) debting a gift card promoter for the amount of the transaction.
2. The method of claim 1 further comprising crediting a rebate to the gift card promoter.
3. The method of claim 2 wherein the rebate is calculated based on the amount of the transaction.
4. A gift card method comprising:
a) receiving a transaction query from a card processer relating to a transaction arising from the redemption of a gift card, the transaction query including a gift card identification information, a transaction value and a merchant identifier associated with the transaction;
b) identifying a gift card value, a gift card expiry date and a gift card merchant lock identification for the gift card associated with the gift card identification information from a database;
c) sending a transaction approval or denial in response to the transaction query by performing one or more comparisons selected from i) comparing the gift card value with the transaction value;
ii) comparing the gift card expiry date with the transaction date;
iii) comparing the gift card merchant lock identification with the merchant identifier;
5. The method of claim 4 further comprising sending an approved transaction value amount in response to the transaction query, where the approved transaction value amount is the transaction value less a rebate amount.
a) receiving a transaction query from a card processer relating to a transaction arising from the redemption of a gift card, the transaction query including a gift card identification information, a transaction value and a merchant identifier associated with the transaction;
b) identifying a gift card value, a gift card expiry date and a gift card merchant lock identification for the gift card associated with the gift card identification information from a database;
c) sending a transaction approval or denial in response to the transaction query by performing one or more comparisons selected from i) comparing the gift card value with the transaction value;
ii) comparing the gift card expiry date with the transaction date;
iii) comparing the gift card merchant lock identification with the merchant identifier;
5. The method of claim 4 further comprising sending an approved transaction value amount in response to the transaction query, where the approved transaction value amount is the transaction value less a rebate amount.
5. The method of claim 4 wherein the transaction query is received over an electronic network.
6. The method of claim 4 wherein the gift card identification information, transaction value and merchant identifier is obtained from a point-of-sale terminal and communicated over one or more electronic networks.
7. The method of claim 1 comprising an initial step of populating a database with the gift card value, the gift card expiry date and the gift card merchant lock identification for a plurality of gift cards, and distributing the plurality of gift cards to one or more consumers.
8 The method of claim 6 wherein one of the plurality of gift cards is processed by the point-of-sale terminal, and the gift card identification information is associated with the gift card processed by the point-of-sale terminal.
Priority Applications (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA2980045A CA2980045A1 (en) | 2017-09-25 | 2017-09-25 | Credit card gift system and method |
Applications Claiming Priority (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA2980045A CA2980045A1 (en) | 2017-09-25 | 2017-09-25 | Credit card gift system and method |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| CA2980045A1 true CA2980045A1 (en) | 2019-03-25 |
Family
ID=65899317
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| CA2980045A Abandoned CA2980045A1 (en) | 2017-09-25 | 2017-09-25 | Credit card gift system and method |
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| Country | Link |
|---|---|
| CA (1) | CA2980045A1 (en) |
Cited By (1)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| US20220358485A1 (en) * | 2019-07-02 | 2022-11-10 | Visa International Service Association | Method, system, and computer program product for processing a gift card |
-
2017
- 2017-09-25 CA CA2980045A patent/CA2980045A1/en not_active Abandoned
Cited By (1)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| US20220358485A1 (en) * | 2019-07-02 | 2022-11-10 | Visa International Service Association | Method, system, and computer program product for processing a gift card |
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