CA2339693A1 - Electronic commerce transaction and rewards system - Google Patents
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- CA2339693A1 CA2339693A1 CA 2339693 CA2339693A CA2339693A1 CA 2339693 A1 CA2339693 A1 CA 2339693A1 CA 2339693 CA2339693 CA 2339693 CA 2339693 A CA2339693 A CA 2339693A CA 2339693 A1 CA2339693 A1 CA 2339693A1
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Abstract
An e-commerce transaction and rewards system includes at least one data terminal for inputting commerce transaction data associated with a commercial transaction, at least one financial institution server, and a transaction server in communication with the data terminals over a transaction network and in communication with the financial institution servers over a financial institution network. Each financial institution server provides controlled access to at least one cash account. The transaction server is configured to receive the transaction data over the transaction network and to provide the cash accounts with cash credit data in accordance with the received transaction data.
Description
ELECTRONIC COMMERCE TRANSACTION AND REWARDS SYSTEM
FIELD OF THE INVENTION
The present invention relates to a method and a system for facilitating e-commerce transactions. In particular, the present invention relates to an e-commerce system which provides an incentive for encouraging consumers to engage in e-commerce transactions.
BACKGROUND OF THE INVENTION
The conventional e-commerce "loyalty" program provides a consumer with a points account, and credits the consumer's points account with virtual points for each purchase made at participating merchants. Typically the consumer is provided with a magnetic stripe card uniquely associated with the points account, and is required to present the magnetic stripe card to the merchant at the time of the purchase in order to collect the virtual points. The merchant scans the magnetic stripe card with a suitable card reader to 1 S identify the consumer's points account number, and then electronically transmits the consumer's points account number to the loyalty program administration server, together with a figure representing the value of the goods or services purchased.
The loyalty program administration server maintains a database which includes records identifying the purchases made by each consumer, and the number of points awarded to the consumer for each transaction. The loyalty program administration server also periodically issues statements to each consumer summarizing the consumer's purchasing activity, and the number of virtual points accumulated to date. After a predetermined number of virtual points have been accumulated, the loyalty program allows the consumer to redeem all or a portion of the points for goods or services, thereby promoting consumer loyalty with the participating merchants. Although such loyalty programs have become popular, the suffer from at least two disadvantages.
First, typically the loyalty program requires the consumer to spend several dollars in a single transaction or in a predetermined time period in order to be awarded a single virtual point. Alternately, the loyalty program might award the consumer a single point for each dollar spent, but also requires the consumer to redeem a significant number of points in order to obtain one of the predetermined goods or services.
Consequently, the consumer must spend a significant amount of money in order to obtain any benefit from the loyalty program.
Second, the loyalty program only provides the consumer with a limited selection of goods or services against which the virtual points may be redeemed. As a result, the consumer might accumulate a substantial number of points but have limited options for their redemption.
Attempts have been made to overcome the deficiencies of the conventional e-commerce "loyalty" program. For instance, the DiscoverC~ Platinum Card program, the American Express~ Platinum Cash Rebate Card program, the CashBuilder VISA~ card program, and the Citibank Click Citis"' Platinum~ Select Cash Back program all provide consumers with a credit account and a credit card for accessing the credit account, and credit the consumer's credit account in accordance with the amount spent using the credit card. These programs are advantageous since they allow the consumer to apply the amount credited to their account towards the purchase of any good or service, not just goods or services selected by the program manager. However, typically these programs only credit the consumer's credit account annually, or limit the amount which can be annually credited to the credit account. Consequently, the incentive for consumers to become loyal patrons of the program's participating merchants is limited.
Therefore, there remains a need for an e-commerce system which promotes consumer loyalty with select group of merchants.
FIELD OF THE INVENTION
The present invention relates to a method and a system for facilitating e-commerce transactions. In particular, the present invention relates to an e-commerce system which provides an incentive for encouraging consumers to engage in e-commerce transactions.
BACKGROUND OF THE INVENTION
The conventional e-commerce "loyalty" program provides a consumer with a points account, and credits the consumer's points account with virtual points for each purchase made at participating merchants. Typically the consumer is provided with a magnetic stripe card uniquely associated with the points account, and is required to present the magnetic stripe card to the merchant at the time of the purchase in order to collect the virtual points. The merchant scans the magnetic stripe card with a suitable card reader to 1 S identify the consumer's points account number, and then electronically transmits the consumer's points account number to the loyalty program administration server, together with a figure representing the value of the goods or services purchased.
The loyalty program administration server maintains a database which includes records identifying the purchases made by each consumer, and the number of points awarded to the consumer for each transaction. The loyalty program administration server also periodically issues statements to each consumer summarizing the consumer's purchasing activity, and the number of virtual points accumulated to date. After a predetermined number of virtual points have been accumulated, the loyalty program allows the consumer to redeem all or a portion of the points for goods or services, thereby promoting consumer loyalty with the participating merchants. Although such loyalty programs have become popular, the suffer from at least two disadvantages.
First, typically the loyalty program requires the consumer to spend several dollars in a single transaction or in a predetermined time period in order to be awarded a single virtual point. Alternately, the loyalty program might award the consumer a single point for each dollar spent, but also requires the consumer to redeem a significant number of points in order to obtain one of the predetermined goods or services.
Consequently, the consumer must spend a significant amount of money in order to obtain any benefit from the loyalty program.
Second, the loyalty program only provides the consumer with a limited selection of goods or services against which the virtual points may be redeemed. As a result, the consumer might accumulate a substantial number of points but have limited options for their redemption.
Attempts have been made to overcome the deficiencies of the conventional e-commerce "loyalty" program. For instance, the DiscoverC~ Platinum Card program, the American Express~ Platinum Cash Rebate Card program, the CashBuilder VISA~ card program, and the Citibank Click Citis"' Platinum~ Select Cash Back program all provide consumers with a credit account and a credit card for accessing the credit account, and credit the consumer's credit account in accordance with the amount spent using the credit card. These programs are advantageous since they allow the consumer to apply the amount credited to their account towards the purchase of any good or service, not just goods or services selected by the program manager. However, typically these programs only credit the consumer's credit account annually, or limit the amount which can be annually credited to the credit account. Consequently, the incentive for consumers to become loyal patrons of the program's participating merchants is limited.
Therefore, there remains a need for an e-commerce system which promotes consumer loyalty with select group of merchants.
SUMMARY OF THE INVENTION
According to the invention there is provided a method for encouraging e-commerce transactions with a selected group of merchants, an e-commerce transaction and rewards system, and an e-commerce transaction server which addresses at least one deficiency of the prior art.
The method for encouraging e-commerce transactions, according to the present invention, includes the steps of (1) over a transaction network receiving commerce transaction data associated with a commercial transaction, the commerce transaction data including an identifier uniquely associated with a transaction account; and (2) via a financial institution network providing a financial institution with cash credit data for crediting a cash account associated with the transaction account, the cash credit data being determined in accordance with the received transaction data.
1 S The e-commerce transaction and rewards system, according to the present invention, includes at least one data terminal for inputting commerce transaction data associated with a commercial transaction, at least one financial institution server, and a transaction server in communication with the data terminals over a transaction network and in communication with the financial institution servers over a financial institution network.
Each financial institution server provides controlled access to at least one cash account.
The transaction server is configured to receive the transaction data over the transaction network and to provide the cash accounts with cash credit data in accordance with the received transaction data.
The e-commerce transaction server according to the present invention, includes a transaction database, a transaction receiver, a cash credit processor in communication with the transaction database and the transaction receiver, and a credit transmitter coupled to the cash credit processor. The transaction database includes records each associated with a respective transaction account. The transaction receiver is configured to receive commerce transaction data over a transaction network. The transaction data is associated with a commercial transaction and includes an identifier uniquely associated with a respective one of the transaction accounts. The cash credit processor is configured to calculate cash credit data from the received transaction data. The credit transmitter is S configured to transmit the cash credit data to a financial institution over a financial institution network for crediting a cash account associated with the transaction account.
BRIEF DESCRIPTION OF THE DRAWINGS
The present invention will now be described by way of example only, with reference to the accompanying drawings, in which:
Fig. 1 is schematic view of the e-commerce transaction and rewards system, depicting one of the data terminals, one of the financial institution servers, and the transaction server; and Fig. 2 is a schematic view of the transaction server shown in Fig. 1, depicting the transaction database, the transaction receiver, the cash credit processor and the credit transmitter.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
Turning to Fig. 1, an e-commerce transaction and rewards system, denoted generally as 100, is shown comprising a plurality of data terminals 102, a plurality of financial institution servers 104, a transaction server 106, a transaction network 108 for facilitating communication between the data terminals 102 and the transaction server 106, and a financial institution network 110 for facilitating communication between the transaction server 106 and the financial institution servers 104. Although the e-commerce transaction system 100 is shown comprising a plurality of the data terminals 102 and a plurality of the financial institution servers 104, the e-commerce transaction system 100 can function with only a single data terminal 102 and a single financial institution server 104.
Preferably, each consumer registered to use the e-commerce transaction system 100 is provided with a transaction account having a unique transaction account identifier, and a magnetic stripe card encoded with the transaction account identifier. Also, preferably the transaction network 108 comprises a secure communications network, and the data terminal 102 comprises a conventional Point of Sale ("POS") terminal having a magnetic card reader for reading the transaction account identifier from the magnetic strip card, and a data communications interface for additional receiving transaction data (eg.
date, merchant identifier code, amount spent on current transaction) from a transaction register (eg. a cash register) and for transmitting the transaction data, including the transaction account identifier, to the transaction server 106 over the secure transaction network 108.
Before proceeding further, however, it should be understood that the present invention is not limited to POS terminals and magnetic stripe cards. For instance, in one variation, each consumer registered to use the e-commerce transaction system 100 is provided with a "SmartCard" (or similar electronically-coded card) encoded with the appropriate transaction account identifier. In another variation, the transaction network comprises the Internet, and the data terminal 102 comprises a computer terminal having software configured to receive the transaction data via a keyboard and to transmit the transaction data to the transaction server 106 over the Internet. In yet another variation, the transaction network 108 comprises a wireless network, and the data terminal 102 comprises a wireless-enable communications device (eg. a personal data assistant, a cellular telephone). Other embodiments of the data terminal 102 and the transaction network 108 will become apparent to those skilled in the art, and are intended to be encompassed by the scope of the present invention.
According to the invention there is provided a method for encouraging e-commerce transactions with a selected group of merchants, an e-commerce transaction and rewards system, and an e-commerce transaction server which addresses at least one deficiency of the prior art.
The method for encouraging e-commerce transactions, according to the present invention, includes the steps of (1) over a transaction network receiving commerce transaction data associated with a commercial transaction, the commerce transaction data including an identifier uniquely associated with a transaction account; and (2) via a financial institution network providing a financial institution with cash credit data for crediting a cash account associated with the transaction account, the cash credit data being determined in accordance with the received transaction data.
1 S The e-commerce transaction and rewards system, according to the present invention, includes at least one data terminal for inputting commerce transaction data associated with a commercial transaction, at least one financial institution server, and a transaction server in communication with the data terminals over a transaction network and in communication with the financial institution servers over a financial institution network.
Each financial institution server provides controlled access to at least one cash account.
The transaction server is configured to receive the transaction data over the transaction network and to provide the cash accounts with cash credit data in accordance with the received transaction data.
The e-commerce transaction server according to the present invention, includes a transaction database, a transaction receiver, a cash credit processor in communication with the transaction database and the transaction receiver, and a credit transmitter coupled to the cash credit processor. The transaction database includes records each associated with a respective transaction account. The transaction receiver is configured to receive commerce transaction data over a transaction network. The transaction data is associated with a commercial transaction and includes an identifier uniquely associated with a respective one of the transaction accounts. The cash credit processor is configured to calculate cash credit data from the received transaction data. The credit transmitter is S configured to transmit the cash credit data to a financial institution over a financial institution network for crediting a cash account associated with the transaction account.
BRIEF DESCRIPTION OF THE DRAWINGS
The present invention will now be described by way of example only, with reference to the accompanying drawings, in which:
Fig. 1 is schematic view of the e-commerce transaction and rewards system, depicting one of the data terminals, one of the financial institution servers, and the transaction server; and Fig. 2 is a schematic view of the transaction server shown in Fig. 1, depicting the transaction database, the transaction receiver, the cash credit processor and the credit transmitter.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
Turning to Fig. 1, an e-commerce transaction and rewards system, denoted generally as 100, is shown comprising a plurality of data terminals 102, a plurality of financial institution servers 104, a transaction server 106, a transaction network 108 for facilitating communication between the data terminals 102 and the transaction server 106, and a financial institution network 110 for facilitating communication between the transaction server 106 and the financial institution servers 104. Although the e-commerce transaction system 100 is shown comprising a plurality of the data terminals 102 and a plurality of the financial institution servers 104, the e-commerce transaction system 100 can function with only a single data terminal 102 and a single financial institution server 104.
Preferably, each consumer registered to use the e-commerce transaction system 100 is provided with a transaction account having a unique transaction account identifier, and a magnetic stripe card encoded with the transaction account identifier. Also, preferably the transaction network 108 comprises a secure communications network, and the data terminal 102 comprises a conventional Point of Sale ("POS") terminal having a magnetic card reader for reading the transaction account identifier from the magnetic strip card, and a data communications interface for additional receiving transaction data (eg.
date, merchant identifier code, amount spent on current transaction) from a transaction register (eg. a cash register) and for transmitting the transaction data, including the transaction account identifier, to the transaction server 106 over the secure transaction network 108.
Before proceeding further, however, it should be understood that the present invention is not limited to POS terminals and magnetic stripe cards. For instance, in one variation, each consumer registered to use the e-commerce transaction system 100 is provided with a "SmartCard" (or similar electronically-coded card) encoded with the appropriate transaction account identifier. In another variation, the transaction network comprises the Internet, and the data terminal 102 comprises a computer terminal having software configured to receive the transaction data via a keyboard and to transmit the transaction data to the transaction server 106 over the Internet. In yet another variation, the transaction network 108 comprises a wireless network, and the data terminal 102 comprises a wireless-enable communications device (eg. a personal data assistant, a cellular telephone). Other embodiments of the data terminal 102 and the transaction network 108 will become apparent to those skilled in the art, and are intended to be encompassed by the scope of the present invention.
The financial institution servers 104 are each associated with a respective financial institution, and manage the deposits and withdrawals for the cash accounts (eg. bank accounts) established with the respective financial institution. Typically, each financial institution server 104 is disposed behind a respective financial institution firewall.
The financial institution network 110 comprises a secure banking network, such as the Interac banking network or Cirrus banking network. Each financial institution server 104 interfaces with the financial institution network 110, and provides controlled access to each of the institution's cash accounts over the financial institution network 110, preferably requiring at least a user identification code before granting access to any of the institution's cash accounts.
The transaction server 106 is configured for communication with the financial institution servers 104 over the financial institution network 110. As shown in Fig. 2, the transaction server 106 comprises a transaction receiver 200 for receiving commerce transaction data over the transaction network 108, a credit transmitter 202 for transmitting cash credit data to one of the financial institution servers 104 over the financial institution network 110, and a data processing system 204 in communication with the transaction receiver 200 and the credit transmitter 202.
The data processing system 204 includes a central processing unit (CPU) 206, and a non-volatile memory storage device (DISC) 208 (such as a magnetic disc memory or electronic memory) and a read/write memory (RAM) 210 both in communication with the CPU 206. The DISC 208 comprises a user profile database 212 which includes user profile records associated with respective registered users, and a transaction database 214 which includes transaction records identifying each commerce transaction initiated by the users of the e-commerce transaction system 100.
The financial institution network 110 comprises a secure banking network, such as the Interac banking network or Cirrus banking network. Each financial institution server 104 interfaces with the financial institution network 110, and provides controlled access to each of the institution's cash accounts over the financial institution network 110, preferably requiring at least a user identification code before granting access to any of the institution's cash accounts.
The transaction server 106 is configured for communication with the financial institution servers 104 over the financial institution network 110. As shown in Fig. 2, the transaction server 106 comprises a transaction receiver 200 for receiving commerce transaction data over the transaction network 108, a credit transmitter 202 for transmitting cash credit data to one of the financial institution servers 104 over the financial institution network 110, and a data processing system 204 in communication with the transaction receiver 200 and the credit transmitter 202.
The data processing system 204 includes a central processing unit (CPU) 206, and a non-volatile memory storage device (DISC) 208 (such as a magnetic disc memory or electronic memory) and a read/write memory (RAM) 210 both in communication with the CPU 206. The DISC 208 comprises a user profile database 212 which includes user profile records associated with respective registered users, and a transaction database 214 which includes transaction records identifying each commerce transaction initiated by the users of the e-commerce transaction system 100.
Each user profile record includes a user's name, post office or e-mail address, a transaction account identifier uniquely associated with a respective registered user, and a cash account identifier. Typically, the cash account identifier comprises a financial institution transit number and a financial institution account number which identify a cash account to which the registered user has authorized the transaction server 106 post cash credits. Each transaction record includes transaction data (eg. date, merchant identifier code, amount spent on transaction, and transaction account identifier) for each transaction reported to the transaction server 106 over the transaction network 108.
The DISC 208 also includes instructions which, when loaded into the RAM 210, comprise processor instructions for the CPU 206. The processor instructions define in the RAM 210 a memory object defining a cash credit processor 216 in communication with the transaction receiver 200 and the transaction database 214. The cash credit processor 216 is configured to calculate cash credit data from the transaction data received from the data terminals 102. Although the cash credit processor 216 is preferably implemented as a memory object or a memory module in the RAM 210, it will be apparent that the cash credit processor 216 may instead be implemented in electronic hardware, if desired.
The transaction server 106 is shown in Fig. 1 as being distinct from all the financial institution servers 104, however preferably the transaction server 106 is integrated with one of the financial institution servers 104 so that the financial institution associated with the financial institution server 104 can manage both credit processing and the transfer of funds between cash accounts established with the financial institution.
Alternately, the transaction server 106 and one of the financial institution serves 104 may be provided as separate servers disposed behind a common financial institution firewall, if desired.
However, it should be understood that the transaction server 106 need not be associated with a financial institution, but instead may managed separately from all the financial institution servers 104 and disposed outside all financial institution firewalls.
The method for encouraging e-commerce transactions with the e-commerce transaction and rewards system 100 will now be described. Initially, the administrator of the e-commerce transaction system 100 establishes a bank account with a preferred one of the financial institutions 104. Also, merchants register with the e-commerce transaction system 100 by providing the system administrator with user profile data (eg.
the merchant's name, post office or e-mail address, financial institution transit number and account number of a bank account used by the merchant).
Each merchant may also negotiate a rewards rate for the calculation of cash credits. For instance, the merchant and the e-commerce transaction system administrator may agree that users of the e0commerce transaction system 100 will be rewarded with a cash credit equal to 1 % of the pre-tax cost of each transaction with the merchant.
Alternately, the merchant may accept a default rewards rate applicable to all merchants.
Preferably, the rewards rate is a fixed percentage of the amount spent on the current transaction.
However, the rewards rate may also be a variable percentage of the amount spent, varying in accordance with the number of transactions completed in predetermined period of time.
Upon receipt of the merchant's financial information, the system administrator assigns the merchant a merchant identifier code, and stores the merchant identifier code and the associated user profile data in the user profile database 212.
After the administration bank account is established and at least one merchant has registered, consumers register with the e-commerce transaction system100. Two possible variations on the registration processes are envisaged. In the first registration process, the transaction server 106 is associated with a financial institution, and the administrator of the e-commerce transaction system 100 and the consumer have established respective bank accounts with the same financial institution. Accordingly, since the financial institution already has the consumer's user profile data (eg. the user's name, post office or _g_ e-mail address, and the financial institution transit number and account number of the consumer's bank account), the consumer merely completes an application form with the financial institution requesting membership with the e-commerce transaction system 100.
Upon receipt of the application form, the system administrator updates the user profile records of the user profile database 212 to include the consumer's profile data.
Alternately, if the transaction server 106 and the financial institution server 104 of the financial institution are integrated on a common server, the user profile records of the user profile database 212 will already include the consumer's profile data.
Accordingly, the system administrator need only update the user profile records to indicate that the consumer has registered with the e-commerce transaction system 100.
In the second registration process, the transaction server 106 is associated with a financial institution, the administrator of the e-commerce transaction system 100 has established a 1 S bank account with that financial institution, but the consumer has established a bank account with a different financial institution. Alternately, the transaction server 106 may be associated with no particular financial institution. The consumer registers with the e-commerce transaction system 100 by providing the system administrator with a subset of the complete user profile data (eg. the consumer's name, post office or e-mail address, but not the financial institution transit number and account number of the consumer's bank account). Upon receipt of the user profile data, the system administrator updates the user profile records of the user profile database 212 to include the consumer profile data subset.
In either of the preceding cases, typically the consumer provides the e-commerce transaction system 100 with the foregoing information by post office mail or electronic mail, however the user may also transmit the information to the transaction server 106 over the Internet, if the transaction server 106 is so configured. If the user transmits the foregoing information via electronic mail or over the Internet, preferably the electronic transmission is encrypted to preserve the confidentiality of the information.
Once the consumer has registered with the e-commerce transaction system 100, as described above, the transaction server 106 provides the consumer with a transaction account, and assigns the consumer a transaction account identifier for the transaction account. The transaction server 106 then stores the transaction account identifier in the user profile database 212, together with the associated user profile data.
Typically, the system administrator provides the registered consumer with a magnetic stripe or electronically-encoded card encoded with the consumer's transaction account identifier. The system administrator may also provide the registered consumer with a paper record identifying the consumer's transaction account identifier to allow the consumer to input the transaction account identifier on data terminals 102, such as personal computers, which are not equipped with magnetic or electronic card readers.
Alternately, if the transaction network 108 only comprises the Internet, the system administrator may provide the consumer with the transaction account identifier electronically, with the transaction account identifier being stored on the consumer's computer for use during subsequent transactions. As above, if the system administrator provides the transaction account identifier electronically, preferably the electronic transmission is encrypted to preserve the confidentiality of the account identifier.
When the registered consumer wishes to enter into a commercial transaction with a merchant registered with the e-commerce transaction system 100, the consumer physically attends at the premises of the merchant. The merchant transmits transaction data identifying the transaction (eg. date, merchant identifier code, transaction amount) from the merchant's transaction register (eg. a cash register) to the appropriate POS
terminal.
The consumer scans the card transaction account card with the merchant's POS
terminal to provide the transaction register with the consumer's transaction account identifier.
Preferably, the transaction data is secure from review by the merchant, however the consumer may also attend at the merchant via telephone, and provide the merchant with the consumer's transaction account identifier verbally.
Upon receipt of the transaction account identifier, preferably the transaction register encrypts the transaction data (including the transaction account identifier), and then securely transmits the transaction data to the transaction server 106 over the transaction network 108.
Alternately, if the transaction network 108 comprises the Internet, the consumer will electronically attend at the merchant's web site using a computer terminal, and then provide the merchant's web server with the consumer's transaction account identifier via the computer terminal's keyboard. Preferably, the merchant's web server transmits the transaction data and the transaction account identifier to the transaction server 106 over a secure communications channel (such as a channel established over a Secure Sockets Layer) via the Internet.
If the transaction server 106 is associated with a financial institution managing one of the financial institutions servers 104, upon receipt of the transmitted data the cash credit processor 216 decrypts the transmitted data, and then queries the user profile database 212 with the extracted merchant identifier code to locate the financial institution transit number and account number of the merchant's bank account. The cash credit processor 216 also queries the user profile database 212 with the consumer's transaction account identifier to determine whether the consumer has established a cash account with that financial institution.
If the consumer has established a cash account with that financial institution, the transaction server 106 transmits the transaction amount, the financial institution transit number and account number of the consumer's bank account, and the financial institution transit number and account number of the merchant's bank account to the consumer's financial institution server 104 for clearance. As will be apparent, if the transaction server 106 and the financial institution server 104 of the financial institution are integrated on a common server, no such transmission will be necessary.
On the other hand, if the transaction server 106 is associated with a financial institution managing one of the financial institutions servers 104 and the consumer has not established a cash account with that financial institution, or if the transaction server 106 is not associated with any particular financial institution, the transaction server 106 transmits a message to the POS terminal instructing the consumer to scan the consumer's bank card. Typically, the consumer's bank card is encoded with a bank card number associated with the consumer's bank account, and the financial institution associated with the consumer stores the bank card number and a Personal Identification Number ("PIN") associated with the bank card number in a secure database on the associated financial institution server 104, or on a related server. Further, typically the initial series of digits of the bank card number identifies the consumer's financial institution.
To complete the transaction, the consumer scans the bank card using the POS
terminal, and enters the associated PIN via a keypad on the POS terminal to provide the transaction register with the bank card number and PIN. Alternately, if the transaction network 108 comprises the Internet, the consumer can provide this information via the consumer's computer terminal. As above, preferably the information transmitted to the merchant is secure from review by the merchant.
Upon receipt, preferably the transaction register encrypts the bank card number and PIN, and then transmits the encrypted data to the transaction server 106 over the transaction network 108. The transaction server 106 decrypts the transmitted data, and then transmits the transaction amount, the received bank card number and PIN, and the financial institution transit number and account number of the merchant's bank account to the consumer's financial institution server 104 for clearance.
In either case, upon receipt of this information from the transaction server 106, the financial institution server 104 verifies that the consumer has sufficient funds in the bank account for the transaction. If sufficient funds are present, the financial institution server 104 associated with the consumer replies to the transaction server 106 with a confirmation message indicating that the transaction can proceed. The financial institution server 104 associated with the consumer also initiates a transfer of funds over the financial institution network 110 with the financial institution server 104 associated with the merchant between the consumer's bank account and the merchant's bank account.
Upon receipt of the confirmation message, the transaction server 106, the cash credit processor 216 stores the transaction data received from the merchant's transaction register in the transaction database 214. If the transaction server 106 received a consumer's bank card number and PIN, the transaction server temporarily stores the bank card number and PIN in the user profile database 212, together with the consumer's associated user profile data.
The cash credit processor 216 then calculates cash credit data from the transaction data and the rewards rate associated with the merchant in the user profile database 212. After the cash credit processor 216 calculates the cash credit data for the transaction, the cash credit processor 216 stores the cash credit data in the transaction database 214, together with the consumer's transaction account identifier.
Periodically (preferably once each month), the cash credit processor 216 queries the transaction database 214 for a list of transactions registered with the e-commerce transaction system 100 in the preceding transaction period. The cash credit processor 216 then extracts the transaction account identifiers from the transaction list, and queries the user profile database 212 with the transaction account identifiers to retrieve the cash account identifiers (and/or bank card numbers and associated PINS) of each cash account to which the transaction server 106 should post cash credits. The cash credit processor 216 then extracts the merchant identifier codes from the transaction list, and queries the user profile database 212 with the merchant identifier codes to retrieve the financial institution transit number and account number of the bank accounts used by the respective merchants.
The credit transmitter 202 then transmits the cash credit data, the cash account identifiers and the merchant bank account identifier codes to the appropriate financial institution servers 104 over the financial institution network 110. The recipient financial institution servers 104 then credit the appropriate cash accounts with the posted cash credits, and register a corresponding debit with the administration bank account. Users having access to the cash accounts can then use the funds deposited there (as directed by the transaction server 106) in any manner desired, without limitation by the administrator of the e-commerce transaction system 100. For instance, the user can direct the funds, or any portion thereof, towards the purchase of goods or services, for bill payment or for investment.
Preferably, the recipient financial institution servers 104 also debit the associated merchant bank accounts with the cash credit data, and register a corresponding credit with the administration bank account, thereby financing the cash credits posted to the user cash accounts. However, in one variation, the credit transmitter 202 instead transmits a cash debit amount and the merchant financial institution transit numbers and associated account numbers, in addition to the cash credit data and the cash account identifiers (and/or bank card numbers and associated PINS) to the appropriate financial institution servers 104, thereby financing the cash credits posted to the user cash accounts through monthly service charges paid by the participating merchants. The monthly service charges may be fixed by the cash credit processor 216, or may be calculated by the cash credit processor 216 based on the number of transactions completed by each merchant in the preceding transaction period.
After the cash credits are posted to the consumers' respective bank accounts, and the corresponding debits are posted to the merchants' respective bank accounts, preferably the cash credit processor 216 erases any received bank card numbers and PINS from the user profile database 212 to preserve the security of this data. Alternately, the cash credit processor 216 may initiate posting of the cash credits and debits when initiating the transfer of funds between the consumer's bank account and the merchant's bank account, thereby eliminating the need for the cash credit processor 216 to store the bank card numbers and PINS in the user profile database 212.
The present invention is defined by the claims appended hereto, with the foregoing description being illustrative of a preferred embodiment of the invention.
Those of ordinary skill may envisage certain additions, deletions and/or modifications to the described embodiment which, although not explicitly described herein, do not depart from the spirit or scope of the invention, as defined by the appended claims.
The DISC 208 also includes instructions which, when loaded into the RAM 210, comprise processor instructions for the CPU 206. The processor instructions define in the RAM 210 a memory object defining a cash credit processor 216 in communication with the transaction receiver 200 and the transaction database 214. The cash credit processor 216 is configured to calculate cash credit data from the transaction data received from the data terminals 102. Although the cash credit processor 216 is preferably implemented as a memory object or a memory module in the RAM 210, it will be apparent that the cash credit processor 216 may instead be implemented in electronic hardware, if desired.
The transaction server 106 is shown in Fig. 1 as being distinct from all the financial institution servers 104, however preferably the transaction server 106 is integrated with one of the financial institution servers 104 so that the financial institution associated with the financial institution server 104 can manage both credit processing and the transfer of funds between cash accounts established with the financial institution.
Alternately, the transaction server 106 and one of the financial institution serves 104 may be provided as separate servers disposed behind a common financial institution firewall, if desired.
However, it should be understood that the transaction server 106 need not be associated with a financial institution, but instead may managed separately from all the financial institution servers 104 and disposed outside all financial institution firewalls.
The method for encouraging e-commerce transactions with the e-commerce transaction and rewards system 100 will now be described. Initially, the administrator of the e-commerce transaction system 100 establishes a bank account with a preferred one of the financial institutions 104. Also, merchants register with the e-commerce transaction system 100 by providing the system administrator with user profile data (eg.
the merchant's name, post office or e-mail address, financial institution transit number and account number of a bank account used by the merchant).
Each merchant may also negotiate a rewards rate for the calculation of cash credits. For instance, the merchant and the e-commerce transaction system administrator may agree that users of the e0commerce transaction system 100 will be rewarded with a cash credit equal to 1 % of the pre-tax cost of each transaction with the merchant.
Alternately, the merchant may accept a default rewards rate applicable to all merchants.
Preferably, the rewards rate is a fixed percentage of the amount spent on the current transaction.
However, the rewards rate may also be a variable percentage of the amount spent, varying in accordance with the number of transactions completed in predetermined period of time.
Upon receipt of the merchant's financial information, the system administrator assigns the merchant a merchant identifier code, and stores the merchant identifier code and the associated user profile data in the user profile database 212.
After the administration bank account is established and at least one merchant has registered, consumers register with the e-commerce transaction system100. Two possible variations on the registration processes are envisaged. In the first registration process, the transaction server 106 is associated with a financial institution, and the administrator of the e-commerce transaction system 100 and the consumer have established respective bank accounts with the same financial institution. Accordingly, since the financial institution already has the consumer's user profile data (eg. the user's name, post office or _g_ e-mail address, and the financial institution transit number and account number of the consumer's bank account), the consumer merely completes an application form with the financial institution requesting membership with the e-commerce transaction system 100.
Upon receipt of the application form, the system administrator updates the user profile records of the user profile database 212 to include the consumer's profile data.
Alternately, if the transaction server 106 and the financial institution server 104 of the financial institution are integrated on a common server, the user profile records of the user profile database 212 will already include the consumer's profile data.
Accordingly, the system administrator need only update the user profile records to indicate that the consumer has registered with the e-commerce transaction system 100.
In the second registration process, the transaction server 106 is associated with a financial institution, the administrator of the e-commerce transaction system 100 has established a 1 S bank account with that financial institution, but the consumer has established a bank account with a different financial institution. Alternately, the transaction server 106 may be associated with no particular financial institution. The consumer registers with the e-commerce transaction system 100 by providing the system administrator with a subset of the complete user profile data (eg. the consumer's name, post office or e-mail address, but not the financial institution transit number and account number of the consumer's bank account). Upon receipt of the user profile data, the system administrator updates the user profile records of the user profile database 212 to include the consumer profile data subset.
In either of the preceding cases, typically the consumer provides the e-commerce transaction system 100 with the foregoing information by post office mail or electronic mail, however the user may also transmit the information to the transaction server 106 over the Internet, if the transaction server 106 is so configured. If the user transmits the foregoing information via electronic mail or over the Internet, preferably the electronic transmission is encrypted to preserve the confidentiality of the information.
Once the consumer has registered with the e-commerce transaction system 100, as described above, the transaction server 106 provides the consumer with a transaction account, and assigns the consumer a transaction account identifier for the transaction account. The transaction server 106 then stores the transaction account identifier in the user profile database 212, together with the associated user profile data.
Typically, the system administrator provides the registered consumer with a magnetic stripe or electronically-encoded card encoded with the consumer's transaction account identifier. The system administrator may also provide the registered consumer with a paper record identifying the consumer's transaction account identifier to allow the consumer to input the transaction account identifier on data terminals 102, such as personal computers, which are not equipped with magnetic or electronic card readers.
Alternately, if the transaction network 108 only comprises the Internet, the system administrator may provide the consumer with the transaction account identifier electronically, with the transaction account identifier being stored on the consumer's computer for use during subsequent transactions. As above, if the system administrator provides the transaction account identifier electronically, preferably the electronic transmission is encrypted to preserve the confidentiality of the account identifier.
When the registered consumer wishes to enter into a commercial transaction with a merchant registered with the e-commerce transaction system 100, the consumer physically attends at the premises of the merchant. The merchant transmits transaction data identifying the transaction (eg. date, merchant identifier code, transaction amount) from the merchant's transaction register (eg. a cash register) to the appropriate POS
terminal.
The consumer scans the card transaction account card with the merchant's POS
terminal to provide the transaction register with the consumer's transaction account identifier.
Preferably, the transaction data is secure from review by the merchant, however the consumer may also attend at the merchant via telephone, and provide the merchant with the consumer's transaction account identifier verbally.
Upon receipt of the transaction account identifier, preferably the transaction register encrypts the transaction data (including the transaction account identifier), and then securely transmits the transaction data to the transaction server 106 over the transaction network 108.
Alternately, if the transaction network 108 comprises the Internet, the consumer will electronically attend at the merchant's web site using a computer terminal, and then provide the merchant's web server with the consumer's transaction account identifier via the computer terminal's keyboard. Preferably, the merchant's web server transmits the transaction data and the transaction account identifier to the transaction server 106 over a secure communications channel (such as a channel established over a Secure Sockets Layer) via the Internet.
If the transaction server 106 is associated with a financial institution managing one of the financial institutions servers 104, upon receipt of the transmitted data the cash credit processor 216 decrypts the transmitted data, and then queries the user profile database 212 with the extracted merchant identifier code to locate the financial institution transit number and account number of the merchant's bank account. The cash credit processor 216 also queries the user profile database 212 with the consumer's transaction account identifier to determine whether the consumer has established a cash account with that financial institution.
If the consumer has established a cash account with that financial institution, the transaction server 106 transmits the transaction amount, the financial institution transit number and account number of the consumer's bank account, and the financial institution transit number and account number of the merchant's bank account to the consumer's financial institution server 104 for clearance. As will be apparent, if the transaction server 106 and the financial institution server 104 of the financial institution are integrated on a common server, no such transmission will be necessary.
On the other hand, if the transaction server 106 is associated with a financial institution managing one of the financial institutions servers 104 and the consumer has not established a cash account with that financial institution, or if the transaction server 106 is not associated with any particular financial institution, the transaction server 106 transmits a message to the POS terminal instructing the consumer to scan the consumer's bank card. Typically, the consumer's bank card is encoded with a bank card number associated with the consumer's bank account, and the financial institution associated with the consumer stores the bank card number and a Personal Identification Number ("PIN") associated with the bank card number in a secure database on the associated financial institution server 104, or on a related server. Further, typically the initial series of digits of the bank card number identifies the consumer's financial institution.
To complete the transaction, the consumer scans the bank card using the POS
terminal, and enters the associated PIN via a keypad on the POS terminal to provide the transaction register with the bank card number and PIN. Alternately, if the transaction network 108 comprises the Internet, the consumer can provide this information via the consumer's computer terminal. As above, preferably the information transmitted to the merchant is secure from review by the merchant.
Upon receipt, preferably the transaction register encrypts the bank card number and PIN, and then transmits the encrypted data to the transaction server 106 over the transaction network 108. The transaction server 106 decrypts the transmitted data, and then transmits the transaction amount, the received bank card number and PIN, and the financial institution transit number and account number of the merchant's bank account to the consumer's financial institution server 104 for clearance.
In either case, upon receipt of this information from the transaction server 106, the financial institution server 104 verifies that the consumer has sufficient funds in the bank account for the transaction. If sufficient funds are present, the financial institution server 104 associated with the consumer replies to the transaction server 106 with a confirmation message indicating that the transaction can proceed. The financial institution server 104 associated with the consumer also initiates a transfer of funds over the financial institution network 110 with the financial institution server 104 associated with the merchant between the consumer's bank account and the merchant's bank account.
Upon receipt of the confirmation message, the transaction server 106, the cash credit processor 216 stores the transaction data received from the merchant's transaction register in the transaction database 214. If the transaction server 106 received a consumer's bank card number and PIN, the transaction server temporarily stores the bank card number and PIN in the user profile database 212, together with the consumer's associated user profile data.
The cash credit processor 216 then calculates cash credit data from the transaction data and the rewards rate associated with the merchant in the user profile database 212. After the cash credit processor 216 calculates the cash credit data for the transaction, the cash credit processor 216 stores the cash credit data in the transaction database 214, together with the consumer's transaction account identifier.
Periodically (preferably once each month), the cash credit processor 216 queries the transaction database 214 for a list of transactions registered with the e-commerce transaction system 100 in the preceding transaction period. The cash credit processor 216 then extracts the transaction account identifiers from the transaction list, and queries the user profile database 212 with the transaction account identifiers to retrieve the cash account identifiers (and/or bank card numbers and associated PINS) of each cash account to which the transaction server 106 should post cash credits. The cash credit processor 216 then extracts the merchant identifier codes from the transaction list, and queries the user profile database 212 with the merchant identifier codes to retrieve the financial institution transit number and account number of the bank accounts used by the respective merchants.
The credit transmitter 202 then transmits the cash credit data, the cash account identifiers and the merchant bank account identifier codes to the appropriate financial institution servers 104 over the financial institution network 110. The recipient financial institution servers 104 then credit the appropriate cash accounts with the posted cash credits, and register a corresponding debit with the administration bank account. Users having access to the cash accounts can then use the funds deposited there (as directed by the transaction server 106) in any manner desired, without limitation by the administrator of the e-commerce transaction system 100. For instance, the user can direct the funds, or any portion thereof, towards the purchase of goods or services, for bill payment or for investment.
Preferably, the recipient financial institution servers 104 also debit the associated merchant bank accounts with the cash credit data, and register a corresponding credit with the administration bank account, thereby financing the cash credits posted to the user cash accounts. However, in one variation, the credit transmitter 202 instead transmits a cash debit amount and the merchant financial institution transit numbers and associated account numbers, in addition to the cash credit data and the cash account identifiers (and/or bank card numbers and associated PINS) to the appropriate financial institution servers 104, thereby financing the cash credits posted to the user cash accounts through monthly service charges paid by the participating merchants. The monthly service charges may be fixed by the cash credit processor 216, or may be calculated by the cash credit processor 216 based on the number of transactions completed by each merchant in the preceding transaction period.
After the cash credits are posted to the consumers' respective bank accounts, and the corresponding debits are posted to the merchants' respective bank accounts, preferably the cash credit processor 216 erases any received bank card numbers and PINS from the user profile database 212 to preserve the security of this data. Alternately, the cash credit processor 216 may initiate posting of the cash credits and debits when initiating the transfer of funds between the consumer's bank account and the merchant's bank account, thereby eliminating the need for the cash credit processor 216 to store the bank card numbers and PINS in the user profile database 212.
The present invention is defined by the claims appended hereto, with the foregoing description being illustrative of a preferred embodiment of the invention.
Those of ordinary skill may envisage certain additions, deletions and/or modifications to the described embodiment which, although not explicitly described herein, do not depart from the spirit or scope of the invention, as defined by the appended claims.
Claims (3)
1. A method for encouraging e-commerce transactions with a selected group of merchants, comprising the steps of:
over a transaction network receiving commerce transaction data associated with a commercial transaction, the commerce transaction data including an identifier uniquely associated with a transaction account; and via a financial institution network providing a financial institution with cash credit data for crediting a cash account associated with the transaction account, the cash credit data being determined in accordance with the received transaction data.
over a transaction network receiving commerce transaction data associated with a commercial transaction, the commerce transaction data including an identifier uniquely associated with a transaction account; and via a financial institution network providing a financial institution with cash credit data for crediting a cash account associated with the transaction account, the cash credit data being determined in accordance with the received transaction data.
2. An e-commerce transaction and rewards system comprising:
at least one data terminal for inputting commerce transaction data associated with a commercial transaction;
at least one financial institution server for providing controlled access to at least one cash account; and a transaction server in communication with the at least one data terminals over a transaction network and being in communication with the at least one financial institution server over a financial institution network, the transaction server being configured to receive the transaction data over the transaction network and to provide the cash accounts with cash credit data in accordance with the received transaction data.
at least one data terminal for inputting commerce transaction data associated with a commercial transaction;
at least one financial institution server for providing controlled access to at least one cash account; and a transaction server in communication with the at least one data terminals over a transaction network and being in communication with the at least one financial institution server over a financial institution network, the transaction server being configured to receive the transaction data over the transaction network and to provide the cash accounts with cash credit data in accordance with the received transaction data.
3. An e-commerce transaction server comprising:
a transaction database including records each associated with a respective transaction account;
a transaction receiver for receiving commerce transaction data over a transaction network, the transaction data being associated with a commercial transaction and including an identifier uniquely associated with a respective one of the transaction accounts;
a cash credit processor in communication with the transaction database and the transaction receiver for calculating cash credit data from the received transaction data; and a credit transmitter coupled to the cash credit processor for transmitting the cash credit data to a financial institution over a financial institution network for crediting a cash account associated with the one transaction account.
a transaction database including records each associated with a respective transaction account;
a transaction receiver for receiving commerce transaction data over a transaction network, the transaction data being associated with a commercial transaction and including an identifier uniquely associated with a respective one of the transaction accounts;
a cash credit processor in communication with the transaction database and the transaction receiver for calculating cash credit data from the received transaction data; and a credit transmitter coupled to the cash credit processor for transmitting the cash credit data to a financial institution over a financial institution network for crediting a cash account associated with the one transaction account.
Priority Applications (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA 2339693 CA2339693A1 (en) | 2001-03-08 | 2001-03-08 | Electronic commerce transaction and rewards system |
Applications Claiming Priority (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA 2339693 CA2339693A1 (en) | 2001-03-08 | 2001-03-08 | Electronic commerce transaction and rewards system |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| CA2339693A1 true CA2339693A1 (en) | 2002-09-08 |
Family
ID=4168520
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| CA 2339693 Abandoned CA2339693A1 (en) | 2001-03-08 | 2001-03-08 | Electronic commerce transaction and rewards system |
Country Status (1)
| Country | Link |
|---|---|
| CA (1) | CA2339693A1 (en) |
-
2001
- 2001-03-08 CA CA 2339693 patent/CA2339693A1/en not_active Abandoned
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