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 .- 30 . (canceled) 
     
     
         31 . A method of executing a purchase transaction using reward points as payment for an item, comprising:
 A) a user earning reward points by the steps of:
 the user executing a plurality of first purchase transactions using a credit card linked to a credit card reward program of a first reward issuing entity, each of the first purchase transactions earning a first set of reward points of a first type from the first reward issuing entity; 
 a reward server computer, associated with the first reward issuing entity and comprising a plurality of reward accounts, each of said reward accounts associated with a different user, storing each of the first sets of reward points of the first type in one of the plurality of reward accounts on the reward server computer associated with the user; 
 a reward exchange computer storing in a reward exchange account a second set of reward points of a second type earned by the user as a result of a second transaction executed between the user and a second reward issuing entity which is different from the first reward issuing entity; 
   B) implementing a reward point exchange by the steps of:
 the reward exchange computer providing a web page to a selected one of a plurality of user computers, the selected user computer associated with the user, the web page comprising a control for initiating communication over a computer network between the reward exchange computer and the reward server computer; 
 the reward exchange computer receiving from the user operating the user computer a selection of the control from the web page and, in response, initiating communication over the computer network with the reward server computer to exchange a quantity of reward points of the first type, designated by the user operating the user computer, from the reward account on the reward server computer into reward points of the second type for adding to the reward exchange account on the reward exchange computer wherein:
 the reward server computer decreases the quantity of reward points of the first type designated by the user from the reward account on the reward server computer, 
 the reward exchange computer
 converts the quantity of reward points of the first type decreased from the reward account on the reward server computer into a corresponding amount of reward points of the second type at a predetermined reward server conversion rate, 
 adds the corresponding amount of reward points of the second type to the reward exchange account, and 
 combines the corresponding amount of reward points of the second type added to the reward exchange account with the second set of reward points of the second type previously stored in the reward exchange account, and 
 
 the reward server computer conveys consideration to the reward exchange computer, the consideration having a value equivalent to the quantity of reward points of the first type decreased from the reward account on the reward server computer; and 
 
   C) the user executing a purchase transaction using reward points as a payment means comprising the steps of:
 the user making a payment request to purchase an item at a purchase price from a merchant via a merchant computer in a purchase transaction, wherein the merchant is a different entity than the first reward issuing entity and the second reward issuing entity; 
 the user electing to pay the purchase price for the item using some of the combined reward points of the second type stored in the reward exchange account on the reward exchange computer that is interconnected to the merchant computer via the computer network; 
 the reward exchange computer confirming that the user has enough combined reward points of the second type in the reward exchange account for payment of the purchase price; 
 the reward exchange computer redeeming combined reward points of the second type for the purchase transaction by decreasing the reward exchange account by a quantity of combined reward points of the second type corresponding to the purchase price for the item being purchased; and 
 the reward exchange computer conveying monetary payment to the merchant computer in an amount equal to the purchase price. 
   
     
     
         32 . The method of  claim 31 , 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. 
     
     
         33 . The method of  claim 32  wherein the portable token is a credit card. 
     
     
         34 . The method of  claim 32  wherein the portable token is a debit card. 
     
     
         35 . The method of  claim 32  further comprising the step of using a credit card infrastructure with the portable token to link to the reward account. 
     
     
         36 . The method of  claim 35  wherein the credit card infrastructure comprises the server computer with the reward account.