System and method for card linked reward account

Abstract

A system and method for a user to have a credit card, debit card, or stored value card that is linked to their reward points account in such a way as to permit them to pay for purchases with a merchant by using the card, wherein the merchant uses the existing credit card payment infrastructure as if payment were being made/authorized by a bank linked to the credit card or debit card account, but in fact the card is linked to the user's reward points account. In this manner, the user and merchant can use the reward points account to pay for purchases in a seamless manner whereby reward points are used for consideration rather than or as a supplement to cash and traditional credit.

1 . A method of executing a purchase transaction using reward points as at least partial payment for an item, comprising:
 a user making a payment request to purchase an item at a purchase price from a merchant via a merchant computer in a purchase transaction;   the user electing to pay at least part of the purchase price for the item using reward points previously earned from a reward issuing entity different than the merchant and stored in a reward account on a server computer interconnected to the merchant computer via a network;   the server computer confirming that the user has reward points in the reward account for payment of at least part of the purchase price;   the server computer redeeming reward points for the purchase transaction by decreasing the reward account by a quantity of reward points corresponding to at least part of the purchase price for the item being purchased;   the merchant computer reducing the purchase price by an amount equivalent to the reward points redeemed by the server computer; and   the server computer conveying consideration to the merchant computer equivalent to the reward points redeemed in order to compensate the merchant for the reduction in the purchase price.   
     
     
         2 . The method of  claim 1 , wherein the payment request comprises information for a portable token linked to the reward account and presented by the user to the merchant computer for payment in the purchase transaction. 
     
     
         3 . The method of  claim 2  wherein the portable token is a credit card. 
     
     
         4 . The method of  claim 2  wherein the portable token is a debit card. 
     
     
         5 . The method of  claim 2  wherein the reward points are redeemed in full payment for the purchase transaction. 
     
     
         6 . The method of  claim 2  wherein the reward points are redeemed in partial payment for the purchase transaction. 
     
     
         7 . The method of  claim 2  further comprising the step of using a credit card infrastructure with the portable token to link to the reward account. 
     
     
         8 . The method of  claim 7  wherein the credit card infrastructure comprises the server computer with the reward account. 
     
     
         9 . A system for executing a purchase transaction using reward points as at least partial payment for an item, comprising a merchant computer interconnected via a network with a server computer, wherein
 the merchant computer is programmed to
 receive from a user a payment request to purchase from a merchant an item at a purchase price in a purchase transaction; and 
 receive from the user an election to pay at least part of the purchase price for the item using reward points previously earned from a reward issuing entity different than the merchant and stored in a reward account on the server computer; and 
   the server computer is programmed to
 confirm that the user has reward points in the reward account for payment of at least part of the purchase price; 
 redeem reward points for the purchase transaction by decreasing the reward account by a quantity of reward points corresponding to at least part of the purchase price for the item being purchased; 
 cause the merchant computer to reduce the purchase price by an amount equivalent to the reward points redeemed by the server computer; and 
 convey consideration to the merchant computer equivalent to the reward points redeemed in order to compensate the merchant for the reduction in the purchase price. 
   
     
     
         10 . The system of  claim 9 , wherein the payment request comprises information for a portable token linked to the reward account and presented by the user to the merchant computer for payment in the purchase transaction. 
     
     
         11 . The system of  claim 10  wherein the portable token is a credit card. 
     
     
         12 . The system of  claim 10  wherein the portable token is a debit card. 
     
     
         13 . The system of  claim 10  wherein the reward points are redeemed in full payment for the purchase transaction. 
     
     
         14 . The system of  claim 10  wherein the reward points are redeemed in partial payment for the purchase transaction. 
     
     
         15 . The system of  claim 10  further comprising a credit card infrastructure for the portable token to link to the reward account. 
     
     
         16 . The system of  claim 15  wherein the credit card infrastructure comprises the server computer with the reward account. 
     
     
         17 . A method of a merchant computer executing a purchase transaction for a user using reward points as at least partial payment for an item, comprising the merchant computer performing the steps of:
 receiving from a user
 a payment request to purchase an item at a purchase price from a merchant via the merchant computer in a purchase transaction, and 
 an election to pay at least part of the purchase price for the item using reward points previously earned from a reward issuing entity different than the merchant and stored in a reward account on a server computer interconnected to the merchant computer via a network; 
   requesting the server computer to
 confirm that the user has reward points in the reward account for payment of at least part of the purchase price, and 
 redeem reward points for the purchase transaction by decreasing the reward account by a quantity of reward points corresponding to at least part of the purchase price for the item being purchased, 
   reducing the purchase price by an amount equivalent to the reward points redeemed by the server computer; and   receiving consideration conveyed by the server computer the merchant computer.   
     
     
         18 . The method of  claim 17 , wherein the payment request comprises information for a portable token linked to the reward account and presented by the user to the merchant computer for payment in the purchase transaction. 
     
     
         19 . The method of  claim 18  wherein the portable token is a credit card. 
     
     
         20 . The method of  claim 18  wherein the portable token is a debit card. 
     
     
         21 . The method of  claim 18  wherein the reward points are redeemed in full payment for the purchase transaction. 
     
     
         22 . The method of  claim 18  wherein the reward points are redeemed in partial payment for the purchase transaction. 
     
     
         23 . The method of  claim 18  further comprising the step of using a credit card infrastructure with the portable token to link to the reward account. 
     
     
         24 . The method of  claim 23  wherein the credit card infrastructure comprises the server computer with the reward account. 
     
     
         25 . A merchant computer for executing a purchase transaction using reward points as at least partial payment for an item, the merchant computer interconnected via a network with a server computer, wherein
 the merchant computer is programmed to
 receive from a user a payment request to purchase an item at a purchase price from a merchant via the merchant computer in a purchase transaction; 
 receive from the user an election to pay at least part of the purchase price for the item using reward points previously earned from a reward issuing entity different than the merchant and stored in a reward account on the server computer; and 
   request the server computer to
 confirm that the user has reward points in the reward account for payment of at least part of the purchase price; and 
 redeem reward points for the purchase transaction by decreasing the reward account by a quantity of reward points corresponding to at least part of the purchase price for the item being purchased; 
   reduce the purchase price by an amount equivalent to the reward points redeemed by the server computer; and   receive consideration conveyed by the server computer to the merchant computer.   
     
     
         26 . The merchant computer of  claim 25 , wherein the payment request comprises information for a portable token linked to the reward account and presented by the user to the merchant computer for payment in the purchase transaction. 
     
     
         27 . The merchant computer of  claim 26 , wherein the portable token is a credit card. 
     
     
         28 . The merchant computer of  claim 26 , wherein the portable token is a debit card. 
     
     
         29 . The merchant computer of  claim 26 , wherein the reward points are redeemed in full payment for the purchase transaction. 
     
     
         30 . The merchant computer of  claim 26 , wherein the reward points are redeemed in partial payment for the purchase transaction.