AU2012100216A4 - Transaction based membership - Google Patents
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- AU2012100216A4 AU2012100216A4 AU2012100216A AU2012100216A AU2012100216A4 AU 2012100216 A4 AU2012100216 A4 AU 2012100216A4 AU 2012100216 A AU2012100216 A AU 2012100216A AU 2012100216 A AU2012100216 A AU 2012100216A AU 2012100216 A4 AU2012100216 A4 AU 2012100216A4
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- 238000004891 communication Methods 0.000 claims abstract description 29
- 238000000034 method Methods 0.000 claims abstract description 12
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- 238000012795 verification Methods 0.000 description 2
- 230000033228 biological regulation Effects 0.000 description 1
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- 238000006243 chemical reaction Methods 0.000 description 1
- 230000001010 compromised effect Effects 0.000 description 1
- 230000007423 decrease Effects 0.000 description 1
- 238000012986 modification Methods 0.000 description 1
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Abstract
TRANSACTION BASED MEMBERSHIP The present invention relates to transaction based membership systems, 5 methods and devices. Embodiments of the transaction based membership system comprise an interface, such as a card reader or website, for receiving a card number of an electronic payment card and a processor in communication with the interface for generating a unique identifier from the card number. A storage device in communication with the processor electronically stores benefits, such as points 10 or vouchers, associated with the unique identifier, the benefits being accrued based on items purchased or payments associated with the electronic payment card and redeemable at merchants where the benefits were accrued or at other merchants. STORE 1 FINANCIAL INSTITUTION 1 STORE 2 1 INSTITUTION 2 STORE INSTITUTION
Description
P/00/012 Regulation 3.2 AUSTRALIA Patents Act 1990 ORIGINAL COMPLETE SPECIFICATION INNOVATION PATENT Invention Title: "TRANSACTION BASED MEMBERSHIP" The following statement is a full description of this invention, including the best method of performing it known to me/us: TITLE TRANSACTION BASED MEMBERSHIP FIELD OF THE INVENTION 5 The present invention relates to transaction based membership. In particular, the present invention relates to retailer loyalty systems, devices and methods utilizing electronic payment cards and electronic payment systems. BACKGROUND OF THE INVENTION 10 Electronic payment cards are used by millions of people worldwide on a daily basis as a convenient alternative to payment by cash or cheque. Many such payment cards, whether they are debit or credit cards, are associated with a loyalty scheme or the like whereby the card holder can accrue points when paying for goods and services with the card. Sometimes not all purchases qualify for 15 points and some purchases qualify for additional or bonus points, for example as part of a promotion. Typically, there is a relationship between the value of the purchase and the number of points accrued for the purchase, such as one point per $1 spent. The accrued points can subsequently be redeemed for products, services, gift cards or the like. 20 Many loyalty schemes are associated with the financial institution that issues the payment card, some of which require an enrolment process to be undertaken by the card holder. Other loyalty schemes are operated by retailers, which also typically require an enrolment process, such as filling out a form with personal details, which are then entered into and stored by a database operated 25 by the retailer. Typically retailers issue a loyalty card comprising a magnetic stripe 2 that can be read to retrieve the customer's details when the customer makes further purchases at their stores. Such loyalty schemes often increase revenue for both the card issuing financial institution and for the retailer. However, it is inconvenient and time 5 consuming for customers to fill out their personal details for each retailer loyalty scheme. The need for customers to carry another card is also a disincentive to enrolling in such loyalty schemes. Furthermore, the transaction process at the point of sale takes longer because both the loyalty card and the payment card need to be read. Another problem is that if the cardholder changes financial 10 institution, they are issued with a new electronic payment card which is associated with a different loyalty or rewards scheme. The cardholder ceases to accrue benefits with the scheme associated with the previous financial institution and typically starts from zero in the new scheme. At least some of the aforementioned problems are also encountered in e 15 commerce environments when making purchases online via websites. For example, customers typically need to enter an identity number or name and a password relating to their loyalty scheme to accrue points for their purchase made via the website. Typically, the customer's identity number or name for the loyalty scheme is present on a loyalty card. However, for online purchases both the 20 identity number or name and password need to be entered by the customer as well as their credit card details.
3 OBJECT OF THE INVENTION It is a preferred object of the present invention to provide an improved system and/or method and/or apparatus that addresses or at least ameliorates one or more of the aforementioned problems. 5 SUMMARY OF THE INVENTION Generally, the present invention relates to a system, method and device in which a unique identifier is generated from an electronic payment card against which benefits are accrued and associated with the payment card, irrespective of 10 whether the purchased items are paid for by the payment card or via some other means, such as cash. The present invention avoids the need for enrolment in a scheme by the card holder or the need for a separate loyalty card or the need for the customer to enter their loyalty scheme details for online purchases. 15 In one form, although not necessarily the broadest form, the present invention resides in a transaction based membership system comprising: an interface, such as a card reader or website for receiving a card number of an electronic payment card; a processor in communication with the interface for generating a unique 20 identifier from the card number; and a storage device in communication with the processor for electronically storing benefits associated with the unique identifier, the benefits accrued based on items purchased or payments associated with the electronic payment card. Preferably, the unique identifier is generated using a one way encryption 25 algorithm operating on the card number, such as, but not limited to a one way 4 hashing algorithm, such that the card number cannot be derived from the unique identifier. Suitably, the accrued benefits are in the form of points or an electronic voucher that are redeemable at a merchant at which the benefits were accrued or 5 at a different merchant. Suitably, benefits associated with multiple unique identifiers, such as those of spouses, are amalgamated into a single account, for example via an electronic point of sale terminal or via a website. Suitably, data related to items purchased or payments associated with the 10 electronic payment card is used for market analysis and/or marketing purposes. In another form, although not necessarily the broadest form, the present invention resides in a device for transaction based membership comprising: a reader for reading a card number of an electronic payment card; a processor in communication with the reader for generating a unique 15 identifier from the card number; and an output device in communication with the processor for transmitting data representative of benefits associated with the unique identifier to a storage device, the benefits accrued based on items purchased or payments associated with the electronic payment card. 20 In a further form, although not necessarily the broadest form, the present invention resides in a method for transaction based membership comprising: receiving a card number of an electronic payment card via an interface; generating a unique identifier from the card number via a processor in communication with the interface; and 5 storing data representative of benefits associated with the unique identifier in a storage device in communication with the processor, the benefits accrued based on items purchased or payments associated with the electronic payment card. 5 Further aspects and/or features of the present invention will become apparent from the following detailed description. BRIEF DESCRIPTION OF THE DRAWINGS 10 In order that the invention may be readily understood and put into practical effect, reference will now be made to preferred embodiments of the present invention with reference to the accompanying drawings, wherein like reference numbers refer to identical elements. The drawings are provided by way of example only, wherein: 15 FIG 1 is a schematic drawing illustrating systems in accordance with embodiments of the present invention; and FIG 2 is a schematic drawing illustrating devices in accordance with embodiments of the present invention. Skilled addressees will appreciate that elements in the drawings are 20 illustrated for simplicity and clarity and have not necessarily been drawn to scale. For example, the relative dimensions of some of the elements in the drawings may be distorted to help improve understanding of embodiments of the present invention.
6 DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS Embodiments of the present invention relate to a transaction based membership system, which operates in the environment 10 shown in FIG 1. FIG 1 illustrates a number of stores 12, which can be any type of real or virtual store 5 selling any type of goods and/or services. The stores 12 are in communication with any number of financial institutions 14 via a communication network 16 to enable goods and services to be paid for in the conventional way using electronic payment cards and electronic payment systems. Where store 12 is a virtual store, it will be appreciated that customers can make purchases via their computing 10 device 17, such as a PC, laptop computer, tablet or mobile phone, via a website for the virtual store 12 over communications network 16. FIG 1 also shows a central storage device 18, such as a database, in communication with the stores 12 via communication network 16. Storage device 18 electronically stores data representing benefits accrued for holders of electronic 15 payment cards, such as a credit and debit cards. The benefits are accrued based on the items purchased or payments associated with the electronic payment cards as will be described in more detail below. It will be appreciated that the term "items purchased" includes within its scope one or more product, one or more service or a combination of goods and services. 20 With reference to FIG 2, in accordance with one aspect of the present invention, there is provided a device 20 for transaction based membership. Device 20 is provided in real stores 12 and is used for the payment of goods and/or services associated with electronic payment cards. Device 20 comprises an interface in the form of a reader 22 for reading a card number of an electronic 25 payment card. Reader 22 can be in the form of, for example, a magnetic stripe 7 reader, an integrated circuit (chip) reader, or a contactless reader such as a radio frequency identification (RFID) reader or a near field communications (NFC) reader. It is envisaged that payments made via mobile computing devices, such as 5 mobile phones, will become commonplace. Therefore, it should be appreciated that the present invention includes within its scope payments made via mobile computing devices, such as mobile phones, which do not involve presenting the physical electronic payment card. Rather, details of the card are obtained via near field communications between a contactless reader and the mobile computing 10 device storing details of the card. Device 20 also comprises a processor 24 in communication with the reader 22. Processor 24 can be, for example, a 32 bit microprocessor and is also in communication with memory 26. Memory 26 can be in the form of, for example, a random access memory (e.g. static random access memory (SRAM), or 15 synchronous dynamic random access memory (SDRAM)), or hybrid memory (e.g., FLASH), or comprise a combination thereof or other types of memory as are well known in the art. Memory 26 comprises computer readable program code components, at least some of which are selectively executed by the processor 24 and which are configured to cause the execution of the embodiments of the 20 present invention described herein. In accordance with the present invention, when the electronic payment card is read by reader 22, processor 24 generates a unique identifier from the card number. The unique identifier is generated using an encryption algorithm stored in memory 26, which operates on the card number such that the card number cannot 25 be derived from the unique identifier. A one way hashing algorithm is an example 8 of a suitable encryption algorithm for generating the unique identifier, but other algorithms can be used. In preferred embodiments, the unique identifier is kept secret and is not disclosed or published anywhere or in any manner. This prevents attempts to derive details of the electronic payment card, such as the card 5 number, from the unique identifier. In some embodiments, the unique identifier is generated from the card number within device 20 and the present invention does not require the card number to be transmitted outside the device 20. In other embodiments, the unique identifier is generated using the one way encryption algorithm at a remote location 10 where security and data integrity can be maximised. Hence, the card number is protected and card security is not compromised. Device 20 comprises an input/output device 28 in communication with the processor 24 for transmitting data representative of benefits associated with the unique identifier to storage device 18. The benefits are accrued based on items 15 purchased or payments associated with the electronic payment card irrespective of whether the purchased items are paid for with the electronic payment card or via some other means. For example, the electronic payment card can be read to obtain the unique identifier, but the purchased items can subsequently be paid for via some other means, such as with cash, or via a split tender option whereby a 20 portion is paid for via the card and a portion is paid for in cash. In another alternative, after the electronic payment card is read to obtain the unique identifier, a different electronic payment card can be used to pay for the purchased items. Hence, the unique identifier is associated with purchased items by reading the electronic payment card from which the unique identifier is generated for a 25 transaction based membership system in accordance with the present invention.
9 Details of the purchased items are associated with the electronic payment card via the unique identifier such that the benefits are accrued against the electronic payment card. Benefits can be accrued according to any formula adopted by the transaction based membership system. For example, benefits can 5 be accrued depending on the total amount of money spent on the purchased items or on a total amount spent above a prescribed threshold. Alternatively, benefits can be based on the number of items purchased in a single transaction or items purchased within a prescribed time period. It will be appreciated that a wide variety of formulae can be devised for determining how benefits are accrued. 10 The transaction based membership system is independent of the financial institutions issuing the electronic payment cards and enables benefits to be accrued based on items purchased at a wide range of stores 12. Where a virtual store 12 is involved and items are purchased via a website, the website comprises an interface for receiving the card number and other details 15 of the electronic payment card. The interface can be similar to conventional interfaces seen on websites where details of electronic payment cards are entered by customers. However, in accordance with embodiments of the present invention, a processor in communication with the interface generates a unique identifier from the card number and purchased items are associated with the unique identifier to 20 accrue benefits irrespective of whether the purchased items are paid for by the same electronic payment card or via some other means. The unique identifier can be generated locally or at a remote location where security and data integrity can be maximised. Hence, customers do not need to enter an identifier and password associated with a loyalty scheme as with conventional systems.
10 The accrued benefits can be in the form of points or electronic vouchers that are redeemable at a store 12 or merchant at which the benefits were accrued or at different merchants that are part of the membership system. When a cardholder makes a subsequent transaction with a store that is part of the 5 membership system, communication is made with storage device 18 to accumulate benefits accrued for the purchased items which are associated with the unique identifier. Communication is made with storage device 18 also to enable a check to be made whether the cardholder qualifies for a reward, benefit, upgrade, discount or the like from the store at which the transaction is being made. 10 If so, the cardholder's eligibility for the reward, benefit, upgrade, discount or the like can be displayed via the point of sale and/or payment terminals providing the cardholder with the opportunity to accept or decline the offer. In some embodiments, the reward, benefit, upgrade, discount or the like can be automatically applied without consulting the cardholder, for example at the point of 15 sale. Electronic vouchers are in an electronic format, such as a barcode displayed on-screen, such as on the screen of a mobile phone, which can be scanned at the point of sale to redeem the reward, benefit, upgrade, discount or the like. Alternatively, electronic vouchers can be stored in a near field 20 communications (NFC) facility of computing device 17 and the voucher redeemed by an NFC reader at the point of sale. For the online redemption of rewards, benefits, upgrades, discounts or the like with subsequent purchases, the electronic vouchers can comprise a code that the cardholder enters via a website.
11 In some embodiments, benefits associated with multiple unique identifiers, i.e. multiple electronic payment cards, such as those of spouses etc., can be amalgamated into a single account. This enables the benefits accrued across multiple electronic payment cards to be pooled into a single account. The higher 5 total accrued benefits in the single account may enable the cardholders to redeem the benefits for a product or service of higher value for which they may not have been eligible with separate accounts. Multiple unique identifiers can be amalgamated into a single account, for example, via an electronic point of sale terminal or via a website using a suitable method of verifying the identification of 10 the card holders. For example, one or more second unique identifiers can be generated and disclosed to the card holders to enable the card holders to amalgamate accounts. For example, the second unique identifier can be a randomly generated number. Alternatively, the second unique identifier can be derived from one or more characteristics of the card, such as from the three or four 15 digit security code of the card, variously referred to as a computer system validation (CSV) number, card verification code (CVC) or card verification value (CVV). According to some embodiments, receipts provided for purchased items comprise details of the membership system, such as the current accrued benefits 20 associated with the electronic payment card from which the unique identifier is derived and rewards, benefits, upgrades, discounts or the like for which the cardholder qualifies. Such information is derived from the unique identifier based on interrogation of the storage device 18. Receipts can also comprise details of stores at which the benefits can be accrued and redeemed.
12 According to some embodiments, details of the accrued benefits, such as points or electronic vouchers, can be uploaded to the cardholder's computing device 17, such as a mobile phone, for example via SMS. It is envisaged that the voucher could then be redeemed via the computing device 17 as described above. 5 According to some embodiments, data related to items purchased or payments associated with the electronic payment card from which the unique identifier is generated is used for market analysis and/or marketing purposes. Data associated with each of the items purchased, for example a code and/or description of a purchased product or service, can be transmitted to central 10 storage device 18 for analysis. For example, data associated with the unique identifier and obtained from purchased items can be analysed to determine spending patterns, demographics and the like. Such analysis enables particular products and/or services that are more likely to be of interest to the card holder to be more prominently promoted to the cardholder, for example, at the point of sale 15 terminal or on websites for virtual stores or via other communication channels, such as SMS, email and/or social networking sites depending on the contact information available for the cardholder. Hence, embodiments of the present invention address or at least ameliorate one or more of the aforementioned problems of the prior art and provide a useful 20 commercial alternative. The transaction based membership system is based on a unique identifier derived from the card number of the electronic payment card. Benefits are accrued based on items purchased or payments associated with the electronic payment card and the unique identifier. Therefore, the cardholder does not need to fill out an application form for membership, as with many conventional 25 loyalty schemes.
13 Another benefit is that stores do not need to issue a loyalty card, which reduces costs for the stores and avoids another potential deterrent for customers, who generally wish to avoid carrying a large number of cards. Furthermore, in some instances, only the electronic payment card needs to 5 be read to both effect payment and accrue benefits for the cardholder, which reduces processing times at the point of sale terminal. In other instances, once the electronic payment card has been read to obtain the unique identifier against which benefits are accrued, the cardholder can pay for the items purchased via cash, with a split tender or with a different card. For virtual stores and items 10 purchased online, the customer only needs to enter the card details via the website and does not need to enter details relating to a loyalty scheme, such as an identifier and password. Another advantage is that the system is independent of the financial institutions issuing the electronic payment cards. Therefore, cardholders can 15 continue to accrue benefits with the same system even if they change financial institutions. Additionally, cardholders can accrue benefits at a wide range of stores rather than only affiliates of a loyalty scheme associated with a specific financial institution. Since the unique identifier is derived from the card number using an 20 encryption algorithm such as a one way hashing algorithm, the card number cannot be derived from the unique identifier and card security is preserved. In some embodiments of the present invention comprising the device 20, the card number is not communicated outside the device 20, thus maintaining security. In other embodiments, such as those involving items purchased from virtual stores 25 12 via a website, the website is encrypted and the conversion of the card number 14 to a unique identifier using a one way encryption algorithm is performed at a remote location where security and data integrity can be maximised. The present invention can be retrofitted to conventional electronic payment terminals thus avoiding the expense associated with installing new electronic 5 payment terminals in stores. In this specification, the terms "comprise", "comprises", "comprising" or similar terms are intended to mean a non-exclusive inclusion, such that a system, method or apparatus that comprises a list of elements does not include those elements solely, but may well include other elements not listed. 10 The reference to any prior art in this specification is not, and should not be taken as, an acknowledgement or any form of suggestion that the prior art forms part of the common general knowledge. Throughout the specification the aim has been to describe the preferred embodiments of the invention without limiting the invention to any one embodiment 15 or specific collection of features. It is to be appreciated by those of skill in the art that various modifications and changes can be made in the particular embodiments exemplified without departing from the scope of the present invention.
Claims (5)
1. A transaction based membership system comprising: an interface, such as a card reader or website, for receiving a 5 card number of an electronic payment card; a processor in communication with the receiver for generating a unique identifier from the card number; and a storage device in communication with the processor for electronically storing benefits associated with the unique identifier, the 10 benefits accrued based on items purchased or payments associated with the electronic payment card.
2. The system of claim 1, wherein the unique identifier is generated using a one way encryption algorithm operating on the card number such that 15 the card number cannot be derived from the unique identifier.
3. The system of claim 1 or 2, wherein: the accrued benefits are in the form of points or an electronic voucher redeemable at a merchant at which the benefits were accrued 20 or at a different merchant; and/or benefits associated with multiple unique identifiers are amalgamated into a single account; and/or data related to items purchased or payments associated with the electronic payment card is used for market analysis. 25 16
4. A device for transaction based membership comprising: a reader for reading a card number of an electronic payment card; a processor in communication with the reader for generating a 5 unique identifier from the card number; and an output device in communication with the processor for transmitting data representative of benefits associated with the unique identifier to a storage device, the benefits accrued based on items purchased or payments associated with the electronic payment card. 10
5. A method for transaction based membership comprising: receiving a card number of an electronic payment card via an interface; generating a unique identifier from the card number via a 15 processor in communication with the interface; and storing data representative of benefits associated with the unique identifier in a storage device in communication with the processor, the benefits accrued based on items purchased or payments associated with the electronic payment card. 20
Priority Applications (1)
Application Number | Priority Date | Filing Date | Title |
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AU2012100216A AU2012100216B4 (en) | 2012-02-29 | 2012-02-29 | Transaction based membership |
Applications Claiming Priority (1)
Application Number | Priority Date | Filing Date | Title |
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AU2012100216A AU2012100216B4 (en) | 2012-02-29 | 2012-02-29 | Transaction based membership |
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AU2012100216A4 true AU2012100216A4 (en) | 2012-04-12 |
AU2012100216B4 AU2012100216B4 (en) | 2013-09-05 |
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AU2012100216A Expired AU2012100216B4 (en) | 2012-02-29 | 2012-02-29 | Transaction based membership |
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Cited By (1)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
WO2017176133A1 (en) * | 2016-04-04 | 2017-10-12 | Zencard Sp. Z O.O. | Method, system and device for handling cashless payments with a payment instrument |
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2012
- 2012-02-29 AU AU2012100216A patent/AU2012100216B4/en not_active Expired
Cited By (1)
Publication number | Priority date | Publication date | Assignee | Title |
---|---|---|---|---|
WO2017176133A1 (en) * | 2016-04-04 | 2017-10-12 | Zencard Sp. Z O.O. | Method, system and device for handling cashless payments with a payment instrument |
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AU2012100216B4 (en) | 2013-09-05 |
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