AU2008207360A1

AU2008207360A1 - Method for earning rewards

Info

Publication number: AU2008207360A1
Application number: AU2008207360A
Authority: AU
Inventors: Anthony Fitzgerald
Original assignee: Australia and New Zealand Banking Group Ltd
Current assignee: Australia and New Zealand Banking Group Ltd
Priority date: 2007-08-17
Filing date: 2008-08-15
Publication date: 2009-03-05

Description

15-08-08;16:29 ;Blake D-soo 22 E3 ;0292585835 Regulation 3.2

AUSTRALIA

Patents Act 1990 (Cth) AUSTRALIA AND NEW ZEALAND BANKING GROUP

LIMITED

COMPLETE SPECIFICATION FOR A STANDARD PATENT (ORIGINAL) Invention Title: Method for earning rewards The following statement is a full description of this invention, including the best method of performing it known to us: 20496521 01 COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15 15-08-08;16:29 ;Bfake oC 5 5 1 ;0292585835 #A4/ 14 204965515_1 00 2.

SMethod for earning rewards FIELD OF THE INVENTION This invention broadly relates to a method for earning rewards by consumers for creditrelated activity, for example, activity involving the use of a credit card or other credit facility.

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BACKGROUND OF THE INVENTION 00 A significant proportion of all consumer purchases is funded by a credit arrangement with a bank or other financial institution. Such credit arrangements may take the form of loans ri secured by a mortgage for the purchase of real-estate, or a line-of-credit. However, one of the most popular forms of credit is a loan linked to a credit card. These credit card accounts generally involve the lending to an account holder (often referred to as a cardholder in this context) of funds up to a predetermined limit. At the end of a billing cycle (typically between 30 and 70 days), the cardholder is issued with a statement detailing the purchases or cash advances made during the billing period and any associated fees or charges. The cardholder may then make a payment to the loan provider in order to reduce the funds that are the subject of the loan. As interest is calculated on the outstanding loan amount (often after a predetermined interest free period), and there is a predetermined limit on the maximum amount of the loan, it is in the interest of the cardholder to reduce the outstanding loan amount.

Financial institutions such as banks derive revenue from such credit card accounts through annual or periodic fees, as well as through interest charged on outstanding loan amounts (beyond any interest free period). Accordingly, banks have sought to attract customers to their credit card products in a variety of ways. Recently, financial institutions have offered "loyalty" or "rewards" points to cardholders in order to encourage them to use their credit cards. Generally, such points are accrued by cardholders using their credit card to make retail purchases. The number of points earned by the cardholder for each purchase generally relates to the value of the purchase. Conventionally, "loyalty" or "rewards" points have been added to loyalty points accrued by undertaking flights on a commercial airline, and accordingly have also been called "frequent flyer points". Such frequent flyer points have been conventionally redeemable for flights, the length of the flight being dependent on the number of points allocated by the customer for the "purchase" of that flight.

COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15 15-08-0; 1629 ;Blake D or ;0292585835 14 2049655151 00 3.

SUMMARY OF THE INVENTION In a first aspect, the present invention provides a method for rewarding the use by a customer of a credit facility comprising the step of rewarding the customer upon receiving from the customer at least a portion of funds owed by the customer to the provider of the credit facility.

IND Preferably the step of rewarding the customer includes the step of rewarding the customer by providing the customer with a benefit having a value at least in part determined by the Samount of funds received from the customer.

00 SThe step of receiving from the customer at least a portion of funds includes the step of receiving from the customer a payment of at least a portion of the funds borrowed by the customer using the credit facility. The step of receiving from the customer at least a portion of funds may also include the step of receiving from the customer a payment of at least a portion of fees or other charges associated with the credit facility.

Preferably, the step of rewarding the customer includes the step of allocating to the customer one or more redeemable points. More preferably, the number of redeemable points allocated to the customer is at least in part determined by the value of the funds received from the customer.

Preferably, the present invention comprises a further step of allocating redeemable points to the customer when the customer borrows funds using the credit facility. More preferably the number of redeemable points allocated to the customer is at least in part determined by the value of the funds borrowed by the customer using the credit facility.

The redeemable points are preferably redeemable for cash. Alternatively or additionally, the redeemable points may also be redeemable for products or services, or one or more vouchers for the purchase of products or services.

Preferably wherein the redeemable points are redeemed automatically. More preferably the customer is notified when the redeemable points are redeemed automatically. Even more preferably the customer is notified by short messaging service or electronic mail.

Where the points are redeemed automatically, they are preferably redeemed periodically.

More preferably the length of the period is an integer multiple of a calendar month. Even more preferably the redeemable points are redeemed automatically and periodically, the COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15 15-08--08;16:29 ;Blake Daws1 ;029258583S tt e/ 14 204965515 1 00 S4.

Clength of the period being determinable by the customer. The length of the period is even Smore preferably selectable by the customer from a predetermined set of periods.

It is also preferably that the redeemable points are only redeemed if the number of redeemable points owned by the customer exceeds a predetermined threshold.

The redeemable points are also preferably redeemed automatically when the number of points owned by the customer exceeds a predetermined threshold. More preferably the predetermined threshold is determinable by the customer. Even more preferably the Spredetermined threshold is selectable by the customer from a predetermined set of 00 thresholds.

C 10 Preferably the credit facility is associated with an instrument which may be used to borrow money using the credit facility at points of sale. More preferably the instrument is a plastic card.

In a second aspect, the present invention provides a method for rewarding the use by a customer of a credit facility accessed by means of a plastic card useable at points of sale, comprising the steps of: receiving from the customer at least a portion of funds owed by the customer to the provider of the credit facility; and rewarding the customer by providing the customer with a benefit having a value at least in part determined by the amount of funds received from the customer.

Preferably the step of providing the customer with a benefit includes the step of electronically adding rewards points to a rewards points account held by the customer.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT In its preferred embodiment, the present invention provides a method for rewarding the use by a customer of a credit facility. The preferred embodiment will be described in relation to a credit facility accessed by means of a plastic card useable at points of retail sale, commonly referred to as a "credit card", although the use of such a card is an optional aspect of the preferred embodiment of the present invention.

COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15 15-08-0816:29 ;Blake Dawson ;0292585835 A 7/ 14 2049655151 00 Conventionally, rewards have been provided to the cardholder or customer for use of the credit card in order to encourage use of the credit card (and therefore increase the ;revenue to the credit card provider). Typically such rewards take the form of redeemable t rewards points which may be accumulated by the customer and redeemed for cash, vouchers for the purchase of goods and services, or other realisable benefits (including a combination of cash and vouchers). Rewards points are conventionally earned by a Scustomer each time the customer's credit card is used for a purchase.

The present invention recognises that this method of earning benefits makes the earning of benefits more difficult to manage, as benefits are earned at each transaction and 00 010 therefore at unpredictable and varying times. In addition, rewards points are often only Sawarded to the customer if the purchase value is over a predetermined threshold, or if the purchase is of a predetermined type or types of goods or services.

In the preferred embodiment of the present invention, a customer is rewarded when the provider of the credit facility receives from the customer payment of at least some of the funds owed by the customer to the credit facility provider. The funds owed by the customer to the credit facility provider include not only the funds borrowed by the customer using the credit facility, but also any fees or other charges associated with the credit facility, including any interest owing on the credit facility. In this way, customers are able to earn benefits regularly, that is, on the payment against each credit card statement.

In the preferred embodiment of the present invention, the benefits provided to the customer take the form of redeemable rewards points, and the number of redeemable rewards points earned by the customer are at least in part determined by the amount the customer pays to the credit facility provider (that is, the value of the funds received from the customer by the credit facility provider), including any interest and any other fees or charges. This enables a customer to earn more rewards points as compared with conventional rewards point schemes, as conventional schemes do not reward the payment of any fees and charges associated with a credit facility.

The rewards points are provided to the customer by electronically adding the earned points to a rewards point account held by the customer. Regular reports of rewards point balances may be sent to the customer, and the customer may query the balance of their rewards point account using a World Wide Web browser.

The customer may not only earn redeemable rewards points upon payment to the credit provider, but may also earn rewards points by borrowing money from the credit provider COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15 15-08-08;16:29 ;Blake Dasson ;0292585835 Al 14 204965515_ I 00 6.

by using the plastic credit card to make purchases. In this case, the number of rewards Spoints awarded to the customer are at least in part determined by the value of the purchases (that is, the value of the funds borrowed by the customer at each purchase). In this way customers may earn points both when they borrow using the credit facility (that is, by using the credit card to make purchases) and on repaying any amounts borrowed.

Alternatively, customers may be given a choice to either earn rewards points upon use of 4 the credit card to make purchases, or upon payment of funds to the credit provider.

In the preferred embodiment of the present invention, where the rewards points are redeemable for cash or vouchers for the purchase of goods or services, the points are 00 10 redeemed automatically. In other words, the redemption of the points does not require any Sintervention by the customer. However, to enable the customer to maintain an awareness of their accumulated rewards points, they are notified upon automatic redemption by means of electronic mail (email) or short messaging service (SMS).

Automatic redemption may take place periodically, and in the preferred embodiment may take place monthly or periodically where the period is any integer multiple of a calendar month. In the preferred embodiment, the customer is able to select whether the automatic redemption takes place every 1, 2, 3, 4, 6 or 9 months. If the customer selects that the automatic redemption takes place every 6 months, then at 6 monthly intervals the rewards points owned by the customer and held by the customer in a rewards points account will be reduced or completely eliminated, and the customer will receive either cash (deposited into the bank account of their choice) or vouchers sent to them by post. To avoid the automatic redemption of very low numbers of rewards points, a predetermined threshold may be set such that the automatic redemption will not take place unless the number of reward points owned by the customer exceeds the threshold when the automatic redemption is scheduled to take place.

Alternatively, automatic redemption may take place when the rewards points owed by a customer exceeds a predetermined threshold, for example a value of $30. The predetermined threshold may be determinable by a customer, and to avoid managing a variety of thresholds, the customer may be required to select a threshold from a predetermined set of thresholds (for example $20, $50, $100, $200). When the value of the rewards points (or the number of rewards points) exceeds the predetermined threshold, the points are automatically redeemed for cash or gift vouchers.

The present invention, at least in the preferred embodiment, has advantages including: COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15 15-08-08;'16:29 ;Bfake Des-91 ;0292585835 ql G/ 14 204965515_1 00 87.

S(a) customers can earn rewards from payments made against funds owed; customers can earn rewards on the payment of fees or other charges (including interest) associated with a credit facility; rewards are able to be earned at regular, predictable times; rewards may be redeemed automatically, without intervention by the Ccustomer; and C the triggers for the automatic redemption of rewards is configurable by the Scustomer.

It will be appreciated by persons skilled in the art that numerous variations and/or modifications may be made to the invention as shown in the specific embodiments without departing from the spirit or scope of the invention as broadly described. For example the relationship between the number of rewards points earned for payment to the credit card provider and the value of the payment may be different to the relationship between the number of rewards points earned by use of the credit card and the value of the credit card purchase. The present embodiments are, therefore, to be considered in all respects as illustrative and not restrictive.

COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15

Claims

88. STHE CLAIMS DEFINING THE INVENTION ARE AS FOLLOWS: 1. A method for rewarding the use by a customer of a credit facility comprising the _t step of rewarding the customer upon receiving from the customer at least a portion of funds owed by the customer to the provider of the credit facility. 2. A method as claimed in claim 1 wherein the step of rewarding the customer C(f includes the step of rewarding the customer by providing the customer with a benefit having a value at least in part determined by the amount of funds received Sfrom the customer. 00 3. A method as claimed in claim 1 or 2 wherein the step of receiving from the customer at least a portion of funds includes the step of receiving from the customer a payment of at least a portion of the funds borrowed by the customer using the credit facility. 4. A method as claimed in any one of the preceding claims wherein the step of receiving from the customer at least a portion of funds includes the step of receiving from the customer a payment of at least a portion of fees or other charges associated with the credit facility. A method as claimed in any one of the preceding claims wherein the step of rewarding the customer includes the step of allocating to the customer one or more redeemable points. 6. A method as claimed in claim 5 wherein the number of redeemable points allocated to the customer is at least in part determined by the value of the funds received from the customer. 7. A method as claimed in any one of the preceding claims comprising the further step of allocating redeemable points to the customer when the customer borrows funds using the credit facility. 8. A method as claimed in claim 7 wherein the number of redeemable points allocated to the customer is at least in part determined by the value of the funds borrowed by the customer using the credit facility. COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15 15-08-08:16:29 ;Blake 1 ;0292585835 t' 11/ 14 204965515 1 00 9. c 9. A method as claimed in any one of claims 4 to 8 wherein the redeemable points are redeemable for cash. t 10. A method as claimed in any one of claims 4 to 9 wherein the redeemable points are redeemable for products or services or one or more vouchers for the purchase of products or services. 11. A method as claimed in claim 9 or 10 wherein the redeemable points are redeemed automatically. 00 12. A method as claimed in claim 11 wherein the customer is notified when the redeemable points are redeemed automatically. 13. A method as claimed in claim 12 wherein the customer is notified by short messaging service or electronic mail. 14. A method as claimed in any one of claims 11 to 13 wherein the redeemable points are redeemed periodically. A method as claimed in claim 14 wherein the length of the period is an integer multiple of a calendar month. 16. A method as claimed in claim 14 or 15 wherein the redeemable points are redeemed automatically and periodically, the length of the period being determinable by the customer. 17. A method as claimed in claim 16 wherein the length of the period is selectable by the customer from a predetermined set of periods. 18. A method as claimed in one of claims 14 to 17 wherein the redeemable points are only redeemed if the number of redeemable points owned by the customer exceeds a predetermined threshold. 19. A method as claimed in any one of claims 11 to 13 wherein the redeemable points are redeemed automatically when the number of points owned by the customer exceeds a predetermined threshold. A method as claimed in claim 19 wherein the predetermined threshold is determinable by the customer. COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15 15-08-08;16:29 ;Blake Dawsc1 ;029258SS35 1:2/ 14 204965515_1 00 C 21. A method as claimed in claim 20 wherein the predetermined threshold is selectable by the customer from a predetermined set of thresholds. 22. A method as claimed in any one of the preceding claims wherein the credit facility is associated with an instrument which may be used to borrow money using the credit facility at points of sale. O NC D 23. A method as claimed in claim 22 wherein the instrument is a plastic card. 24. A method for rewarding the use by a customer of a credit facility accessed by 00 means of a plastic card useable at points of sale, comprising the steps of Sreceiving from the customer at least a portion of funds owed by the customer to the provider of the credit facility; and rewarding the customer by providing the customer with a benefit having a value at least in part determined by the amount of funds received from the customer. A method as claimed in claim 24 wherein the step of providing the customer with a benefit includes the step of electronically adding rewards points to a rewards points account held by the customer. COMS ID No: ARCS-202402 Received by IP Australia: Time 16:40 Date 2008-08-15