Online reward point exchange method and system with automatic reward redemption solutions

Abstract

An online reward exchange system and method of operation, which includes an exchange computer that interoperates via a computer network with user computers, reward point issuer computers, and merchant computers. The merchants' products may be purchased by a user by requesting an issuer(s) to redeem reward points in exchange for payment to the merchant for the product. The exchange computer is the gateway to the system and manages various transactions such as providing online product catalogs to users that list the merchants products, as well as displaying to the user the reward points he has available in his reward programs with the issuers. Once a user selects a desired product the exchange computer can mediate or manage the purchase transaction in which reward points are redeemed by the selected issuer and consideration is conveyed to the merchant in exchange for the merchant providing the product to the user.

1 . A method of an exchange computer executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, comprising:
 an exchange computer receiving from a user computer a selection of a product for purchase from a merchant computer;   the exchange computer generating a proposed reward redemption solution that designates
 at least one reward account previously registered with the exchange computer and stored on an issuer computer, and 
 a quantity of reward points from the at least one reward account to be redeemed for at least partial payment for the product selected by the user; 
   the exchange computer providing to the user computer the proposed reward redemption solution for display to the user, and
 a first option to accept the proposed reward redemption solution and a second option to modify the proposed reward redemption solution; 
   the exchange computer receiving from the user computer a purchase request for purchase of the product from the merchant computer, the purchase request comprising an election of the first option to accept the proposed reward redemption solution or a election of the second option to modify the proposed reward redemption solution; and   the exchange computer causing a purchase transaction to be executed for purchase of the product from the merchant computer in accordance with the purchase request by requesting the merchant computer to execute the purchase transaction directly with an issuer computer associated with the purchase request by transmitting the merchant computer:
 an identification of the product selected by the user computer, and 
 an identification of the reward issuer associated with the purchase request and a quantity of reward points for execution of the purchase request, 
   
       to enable the merchant computer to request the issuer computer to
 reduce the user reward account stored on the issuer computer by the quantity of reward points for execution of the purchase request, and 
 convey consideration to the merchant computer corresponding to the quantity of reward points reduced in the user reward account. 
 
     
     
         2 . The method of  claim 1  wherein the purchase request comprises an election of the first option to accept the proposed reward redemption solution: and
 the exchange computer causes the purchase transaction to be executed for purchase of the product selected by the user computer using the accepted proposed reward redemption solution. 
 
     
     
         3 . The method of  claim 1  wherein the purchase request comprises an election of the second option to modify the proposed reward redemption solution, and
 the exchange computer causes the purchase transaction to be executed for purchase of the product selected by the user using a modified reward redemption solution. 
 
     
     
         4 . The method of  claim 1  wherein the exchange computer generates the proposed reward redemption solution by referencing a user profile stored in an associated user profile database that indicates user preferences as to which of a plurality of reward accounts is desired to be used for reward redemption. 
     
     
         5 . The method of  claim 1  wherein the exchange computer generates the proposed reward redemption solution by analyzing prior reward redemptions by the user stored in an associated reward redemption database to ascertain a preferred reward account. 
     
     
         6 . The method of  claim 1  wherein the exchange computer generates the proposed reward redemption solution by ascertaining, by reference to a merchant profile database, a preferred redemption partner of the merchant from which the user is making the product purchase. 
     
     
         7 . The method of  claim 1  wherein the exchange computer generates the proposed reward redemption solution by referencing an exchange rules profile stored in an exchange rules profile database that indicates exchange preferences as to which of a plurality of reward accounts is desired to be used for reward redemption. 
     
     
         8 . The method of  claim 1  wherein the exchange computer generates the proposed reward redemption solution by referencing an issuer rules profile stored in an issuer rules profile database that indicates issuer preferences as to which of a plurality of reward accounts is desired to be used for reward redemption. 
     
     
         9 . The method of  claim 8  wherein the issuer preferences comprise a preference to redeem the reward points of a primary issuer before redeeming reward points of issuers other than the primary issuer. 
     
     
         10 . The method of  claim 8  wherein the issuer preferences comprise a preference to redeem the reward points of a primary issuer after redeeming reward points of issuers other than the primary issuer. 
     
     
         11 . The method of  claim 8  wherein the issuer preferences comprise a preference to redeem the reward points of a primary issuer up to a specified amount, after which the points of issuers other than the primary issuer will be redeemed. 
     
     
         12 . The method of  claim 8  wherein the issuer preferences comprise a preference to redeem the reward points of a issuers other than a primary issuer up to a specified amount, after which the points of the primary issuer will be redeemed. 
     
     
         13 . An exchange computer for executing a purchase transaction with a user computer, a merchant computer, and an issuer computer, the exchange computer programmed to:
 receive from a user computer a selection of a product for purchase from a merchant;   generate a proposed reward redemption solution that designates
 at least one reward account previously registered with the exchange computer and stored on an issuer computer, and 
 a quantity of reward points from the at least one reward account to be redeemed for at least partial payment for the product by the user; 
   provide to the user computer via a computer network
 the proposed reward redemption solution for display to the user, and 
 a first option to accept the proposed reward redemption solution and a second option to modify the proposed reward redemption solution; 
   receive from the user computer a purchase request for purchase of the product from the merchant computer, the purchase request comprising an election of the first option to accept the proposed regard redemption solution or an election of the second option to modify the proposed reward redemption solution; and   cause a purchase transaction to be executed for purchase of the product from the merchant computer in accordance with the purchase request by requesting the merchant computer to execute the purchase transaction directly with an issuer computer associated with the purchase request by transmitting to the merchant computer:
 an identification of the product selected by the user computer, and 
 an identification of the reward issuer associated with the purchase request and a quantity of reward points for execution of the purchase request, 
   
       to enable the merchant computer to request the issuer computer to
 reduce the user reward account stored on the issuer computer by the quantity of reward points for execution of the purchase request, and 
 convey consideration to the merchant computer corresponding to the quantity of reward points reduced in the user reward account. 
 
     
     
         14 . The exchange computer of  claim 13  wherein the purchase request comprises an election of the first option to accept the proposed reward redemption solution and the exchange computer is further programmed to
 cause a purchase transaction to be executed for purchase of the product selected by the user computer using the accepted proposed reward redemption solution. 
 
     
     
         15 . The exchange computer of  claim 13  wherein the purchase request comprises an election of the second option to modify the proposed reward redemption solution and the exchange computer is further programmed to
 cause a purchase transaction to be executed for the product selected by the user using the modified reward redemption solution. 
 
     
     
         16 . The exchange computer of  claim 13  further comprising a user profile database, and wherein the exchange computer is programmed to generate the proposed reward redemption solution by referencing a user profile stored in the user profile database that indicates user preferences as to which of a plurality of reward accounts is desired to be used for reward redemption. 
     
     
         17 . The exchange computer of  claim 13  further comprising a reward redemption database, and wherein the exchange computer is programmed to generate the proposed reward redemption solution by analyzing prior reward redemptions by the user stored in the reward redemption database to ascertain a preferred reward account. 
     
     
         18 . The exchange computer of  claim 13  further comprising a merchant profile database, and wherein the exchange computer is programmed to generate the proposed reward redemption solution by ascertaining, by reference to the merchant profile database, a preferred redemption partner of the merchant from which the user is making the product purchase. 
     
     
         19 . The exchange computer of  claim 13  further comprising an exchange rules profile database, and wherein the exchange computer is programmed to generate the proposed reward redemption solution by referencing an exchange rules profile stored in the exchange rules profile database that indicates exchange preferences as to which of a plurality of reward accounts is desired to be used for reward redemption. 
     
     
         20 . The exchange computer of  claim 13  further comprising an issuer rules profile database, and wherein the exchange computer is programmed to generate the proposed reward redemption solution by referencing an issuer rules profile stored in the issuer rules profile database that indicates issuer preferences as to which of a plurality of reward accounts is desired to be used for reward redemption. 
     
     
         21 . The exchange computer of  claim 20  wherein the issuer preferences comprise a preference to redeem the reward points of a primary issuer before redeeming reward points of issuers other than the primary issuer. 
     
     
         22 . The exchange computer of  claim 20  wherein the issuer preferences comprise a preference to redeem the reward points of a primary issuer after redeeming reward points of issuers other than the primary issuer. 
     
     
         23 . The exchange computer of  claim 20  wherein the issuer preferences comprise a preference to redeem the reward points of a primary issuer up to a specified amount, after which the points of issuers other than the primary issuer will be redeemed. 
     
     
         24 . The exchange computer of  claim 20  wherein the issuer preferences comprise a preference to redeem the reward points of a issuers other than a primary issuer up to a specified amount, after which the points of the primary issuer will be redeemed. 
     
     
         25 . The method of  claim 1  wherein the second option to modify the proposed reward redemption solution comprises a plurality of slider controls operative to modify the proposed redemption solution by sliding the slider controls in a first direction to increase a number of reward points to be redeemed and in a second direction to decrease the number of reward points to be redeemed. 
     
     
         26 . The exchange computer of  claim 13  wherein the second option to modify the proposed reward redemption solution comprises a plurality of slider controls operative to modify the proposed redemption solution by sliding the slider controls in a first direction to increase a number of reward points to be redeemed and in a second direction to decrease the number of reward points to be redeemed.