(19) United States
`(12) Patent Application Publication (10) Pub. No.: US 2002/0143614 A1
`MacLcan ct al.
`(43) Pub. Date:
`Oct. 3, 2002
`
`US 20020143614A1
`
`(54) APPARATUS AND METHOD OF
`FACILITATING THE EXCHANGE OF
`POINTS BETWEEN SELECTED ENTITLES
`
`(76)
`
`Inventors: Trevor Robert MacLean, Toronto
`(CA); Jerry Philip, Oakville (CA);
`Stephen Paul Ogden, Toronto (CA);
`Darlene Higbee Clarkilla TOTOUPO (CA)
`
`Correspondence Address:
`R_ Lewis Gable
`Cowan, Liebowitz & Layman, p_C_
`1133 Avenue of the Americas
`New York, NY 10036-6799 (US)
`
`(21) APPL N05
`.
`.
`(22) Ffled
`
`09/818300
`
`Mar’ 27’ 2001
`Publication Classification
`
`(51)
`
`Int. Cl.7 ................................................... .. G06F 17/60
`
`2%.
`
`Home Page displayed
`
`(“Q My
`
`304
`303
`Customer Information
`
`
`
`Customer clicks an
`form displayed
`'Open an Account'
`(PIC. 48)
`
`
`
`
`
`306
`
`
`
`
`
`"
`Custamernlerms and
`Conditions
`displayed
`(FlC. 4C)
`
`
`
`
`307
`
`..
`.,
`Customer clicks on
`t accept
`
`Customer account
`
`
`
`(52) U.S. Cl.
`
`.............................................................. .. 705/14
`
`(57)
`
`ABSTRACT
`
`This invention relates to a system and method of exchanging
`first points held by a customer for second points, wherein the
`first points that are issued by a first point issuer differ from
`th
`d
`.
`t
`th t
`.
`d b
`d
`.
`t .
`esecon poin s
`‘a are issue
`y a secon poin issuer.
`This method comprises the steps of permitting the customer
`to set a first number of first points ‘to be exchanged and
`permitting the first and second point issuers to set the point
`Withdrawal and deposit rates of their first and second points
`respectively. Next, an equivalent number of the second
`points is determined based upon the point Withdrawal and
`deposit rates of the first and second point issuers respec-
`tively, and the first number of the first points. Then, the first
`number of points is exchanged for a second equivalent
`number of second points.
`
`
`
`318
`Cuysmmer LPd°°f°"l}
`'n ormation
`isp aye
`'
`(HQ 4')
`319
`
`
`Generate an account
`
`validation request
`lor
`added LP
`
`320
`
`Transmit
`validation
`request
`
`317
`
`Customer accepts
`
`
`
`322
`
`vuu LP
`
`Y
`
`324
`
`ES
`Activate LP
`account
`in Master
`Database
`
`325
`
`Flog LP account as
`
`erroneous and
`notify customer
`
`308
`
`
`
`
`inlormution displayed
`
`309
`Customer clicks on
`”palntstolio'
`
`312
`
`
`
`Customer clicks an
`issuers displayed
`
`
`(no. 4r)
`"add loyalty program’
`
`
`
`314
`Customer LP lnlormation
`lorm displayed
`(FIC. 4C)
`
`
`
`3
`Customer selects a
`
`loyalty program
`
`
`
`ASKELADDEN 1504
`
`316
`
`315
`'paintsfolionlerms and
`Customer fill out
`onditions
`displayed
`inlormution lorm
`(HG. H)
`
`
`
`
`
`
`
`
`ASKELADDEN 1504
`
`

`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 1 of 30
`
`US 2002/0143614 A1
`
`1
`
`Transaction Center(s)
`1 20
`
`FIG.
`
`
` Points Issuer
`Points Issuer
`130C
`130b
`
`
`
`
`
`
`Points Issuer
`1300
`
`

`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 2 of 30
`
`US 2002/0143614 A1
`
`Customer Terminal
`1100
`
`C“3t°me" T9"mI”°'
`13%;
`
`Customer Terminal
`llOc
`
`
`
`
`
`Customer
`Computer 20$
`
`2020
`
`
`
`Customer gmb
`Computer ——
`Web Bmwser
`202b
`
`Customer
`
`Web Browser
`202c
`
`Computer E5 Web Browser
`
`
`FIG. 2
`
`’‘ jortj FirewaW—220— T
`
`Transaction
`Center
`120
`
`I I I |
`
`I I I
`
`
`
`
`Web Server
`
`230
`
`Master Database
`240
`
`Transaction Server
`
`
`
`
`
`205g
`
`1300
`I_ __——__
`
`I I I I L
`
`_ __
`
`
`L Transaction Firewall ZSOJ
`Issuer Terminal
`Issuer Terminal
`Issuer Terminal
`
`‘l30b
`
`__
`I_____
`
`206C
`
`l30c
`
`_‘ —_ —l
`
`

`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 3 of 30
`
`US 2002/0143614 A1
`
`31 7
`
`Customer accepts
`
`31 8
`
`Customer LP account
`
`inform??? gstpluyed
`
`319
`
`Generate an account
`validation request for
`added LP
`
`320
`
`Transmit
`validation
`
`request
`
`
`
`
`
`
`confirmation
`record from
`issuer
`
`322
`
`
`
`
`325
`
`Flag LP account as
`erroneous and
`
` Activate LP
`account
`in Master
`Database
`
`notify customer
`
`FIG. 3
`
`300
`
`START
`
`301
`Customer nsurfsn
`to Web site
`
`_
`303
`Customer CllCl(S on
`Open an Account
`
`.
`305
`Customer fI|lS out
`information form
`
`_
`307
`Customer clicks on
`"I accept"
`
`309
`Customer clicks on
`”pointstolio'
`
`302
`
`_
`Home Page displayed
`(H9 4Al
`
`304
`Customer lnformation
`form displayed
`(Ht; 413)
`
`306
`"Customer Terms and
`Conditions" displayed
`(FIG. 4C)
`
`308
`
`Customer account
`information displayed
`(HG. 4D)
`
`310
`LP account
`Customer
`displayed
`(HG. 4E)
`
`31 1
`Customer clicks on
`"add loyalty program"
`
`List of LP
`issuers displayed
`(FIG. 4F)
`
`312
`
`314
`
`313
`
`Customer selects a
`loyalty program
`
`315
`
`Customer fill out
`information form
`
`Customer LP Information
`form displayed
`(FIG, 46)
`
`316
`
`'Eointsfo|io”lerms and
`onditions
`displayed
`(HG. 4H)
`
`

`
`n0..uaC.hbuPn0.uaC.hPPAtnetaP
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`Oct. 3, 2002 Sheet 4 of 30
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`US 2002/0143614 A1
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`n0..uaC.hbuPn0.uaC.hPPAtnetaP
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`Oct. 3, 2002 Sheet 5 of 30
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`US 2002/0143614 A1
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`n0.._uaC.hbuPn0.._uaC.hPPAtnetaP
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`Oct. 3, 2002 Sheet 6 of 30
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`US 2002/0143614 A1
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`Patent Application Publication
`
`Oct. 3, 2002 Sheet 7 of 30
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`1A4163410/2002SU
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`n0..uaC.hbuPn0.uaC.hPPAtnetaP
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`Oct. 3, 2002 Sheet 8 of 30
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`Patent Application Publication
`
`Oct. 3, 2002 Sheet 9 of 30
`
`US 2002/0143614 A1
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`Patent Application Publication
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`Oct. 3, 2002 Sheet 10 of 30
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`US 2002/0143614 A1
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`Oct. 3, 2002 Sheet 11 of 30
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`Patent Application Publication
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`Oct. 3, 2002 Sheet 12 of 30
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`US 2002/0143614 A1
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`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 13 of 30
`
`US 2002/0143614 A1
`
`FIG. 5A
`
`507
`
`
`-
`-
`-
`
`Sl1bT|:fi$Sp?$?tS
`
`withdrawals?
`
`‘
`
`
`
`YES
`
`NO
`
`508
`
`
`
`terminate exchange
`and notily customer
`ot
`insullicient points
`
`balances
`
`502
`
`Display pointsxchange
`(FIG. 6A)
`
`504
`
`
`
`
`Prompt customer for list
`of LPs from which points
`
`will be drawn
`
`506
`
`
`
`
`Prompt customer for
`points amounts to be
`
`withdrawn
`
`START
`
`500
`
`501
`
`Customer clicks on
`"xchange now’
`
`503
`
`
`Customer clicks on
`"advanced pgints
`
`exchange
`
`505
`
`Customer selects
`withdrawal LPs
`
`509
`
`
`
`Prompt customer to designate
`the target IP into which points
`
`
`will be deposited
`meow
`
`511
`
`
`Calculate number of points to
`be withdrawn and deposited.
`
`
`Display summary ol pending
`
`transaction.
`
`
`513
`
`Display exchange terms and
`conditions and tees.
`FIG. 6F
`
`515
`
`Request billing and credit
`card information
`hb.so
`
`517
`
`Confirm billing and credit
`card information
`(no. 6H)
`
`519
`
`Display transaction summary
`and confirmation number
`(FIG. 6|)
`
`510
`
`Customer selects
`
`depositing LPs
`
`U1
`
`l\J
`
`ll
`
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`.
`
`I
`
`continue xchange
`
`514
`
`Customer selects
`"go to next step”
`
`516
`
`Customer provides
`billing into
`
`518
`
`Customer selects
`"submit"
`
`

`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 14 of 30
`
`US 2002/0143614 A1
`
`
`
`Receive transaction
`
`confirmation messages from
`all
`target withdrawing issuers
`
`
`
`528
`exchange
`and notify Custome,
`the
`exchange request failed
`
`
`
`527
`
`
`.
`-
`transactions
`withdrawal
`We SUCCGSSW
`
`
`
`
`
`
`
`
`Construct a points deposit
`transaction message for each
`designated issuer
`
`
`
`
`
`
`
`Transmit points deposit
`transaction messages to all
`target depositing issuers
`
`
`
`Receive transaction
`
`
`confirmation messages from
`
`all
`target depositing issuers
`
`
`
`
`536
`
`Roll back_ points exchange
`and notify customer the
`exchange request failed
`
`535
`
`No
`Deposit points
`
`transactions were
`successful
`
`
`
`
`Notify customer at
`Mark exchange as
`”COMPLElE"
`_
`successful exchange
`
`
`
`500 (cont'd)
`
`Post points exchange request
`to transaction queue. Mark
`exchange as ”PEND|NC"
`
`C0flSllUCl
`transaction message for
`each designated issuer
`
`transmit each points
`withdrawal
`transaction
`
`message to its target
`
`issuer
`
`L____J
`
`FIG. 5B
`
`

`
`n0..uaC.hbuPn0.uaC.hPPAtnetaP
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`Oct. 3, 2002 Sheet 15 of 30
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`US 2002/0143614 A1
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`Patent Application Publication
`
`Oct. 3, 2002 Sheet 16 of 30
`
`US 2002/0143614 A1
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`Patent Application Publication
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`Oct. 3, 2002 Sheet 17 of 30
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`US 2002/0143614 A1
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`Patent Application Publication
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`Oct. 3, 2002 Sheet 18 of 30
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`US 2002/0143614 A1
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`n0..uaC.hbuPn0.uaC.hPPAtnetaP
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`Oct. 3, 2002 Sheet 20 of 30
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`US 2002/0143614 A1
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`Patent Application Publication
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`Oct. 3, 2002 Sheet 21 of 30
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`US 2002/0143614 A1
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`n0..uaC.hbuPn0.uaC.hPPAtnetaP
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`Oct. 3, 2002 Sheet 22 of 30
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`US 2002/0143614 A1
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`Patent Application Publication
`
`Oct. 3, 2002 Sheet 23 of 30
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`US 2002/0143614 A1
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`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 24 of 30
`
`US 2002/0143614 A1
`
`70
`
`
`
`701
`
`
`
`
`
`Define data format,
`validation rules for
`account confirmation
`
`
`
`FIG. 7A
`
`
`
`714
`
`
`
`
`transmit account
`confirmation record
`containing an error
`response code
`
`
`
`Format of customer
`account vafrdatron
`request correct?
`
`712
`
`716
`
`Transmit account
`
`confirmation record
`containing an error
`response code
`
`
`
`715
`
`Customer is a valid
`member of
`
`
`
`this LP?
`
`
`
`
`
`
`717
`
`
`Transmit account confirmation
`record containing confirmation
`
`code and current point account
`
`balance for this member
`
`
`
`
`
`
`Flag member account as a
`customer of
`transaction
`center
`
`

`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 25 of 30
`
`US 2002/0143614 A1
`
`720
`
`
`START
`
`
`
`
`
`721
`
`Define data format &
`communications protocol
`
`for providing account
`bolonce updates
`
`FIG.
`
`'7C
`
`33
`
`FIG.
`
`'71)
`
`
`
`Transmit update account
`balance record
`
`732
`
`
`
`FIG. 7E
`
`740
`
`
`745
`745
`Format of balance
`f. T'°{t5"‘”
`d
`
`request message
`con rr_m_a ion recor
`
`correct?
`containing an error
`
`response code
`
`
`
`
`
`744
`
`
`
`747
`
`748
`
`
`
`Transmit
`conlirmaton record
`t.. '
`con ornrng an error
`response code
`
`
`
`
`Customer is U
`registered member
`of
`this LP?
`
`
`
`
`
`
`lronsmit update account
`balance record
`
`

`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 26 of 30
`
`US 2002/0143614 A1
`
`E
`
`FIG. 7F
`
`751
`
`
`
`
`
`
`Define data format,
`validation rules and
`communications protocol
`for points transactions
`
`
`
`760
`
`764
`
`
`
`
`763
`point
`
`withdrawal
`Transmit
`Format of
`transaction
`confirmation record
`
`transaction message
`message
`containing an error
`correct?
`
`received
`response code
`
`
`
`
`
`
`766
`
`
`
`765
`
`
`
`'7 G
`
`
`
`»
`
`Wtsmtt
`Does transaction
`°°”tT’"°t'°” T690“
`message satist
`validation
`containing an error
`miesf
`
`response code
`
`
`YES
`
`
`
` Post a credit
`
`768
`
`
`
`
`
`response code
`
`Transmit confirmation record
`containing transaction
`to customers
`confirmation code and
`LP account
`
`updated point account
`
`balance for this member
`
` 774
`
`773
`point
`
`Srmiiifitjon
`trunsggiigtriltmoefsso E
`conlirrttiilfigtinltecord
`message
`med?
`
`9 containing an error
`
`received
`
`
`
`
`
`
`
`762
`
`772
`
`
`
`
`
`
`
`
`Does transaction _
`message SOUSTZ validation
`'71-I
`rules
`
`Transmit
`confirmation record
`containing an error
`
`response code
`
`
`
`
`
`
`Transmit confirmation record
`containing transaction
`
`confirmation code and
`
`updated point account
`balance for this member
`
`to customers
`Post a debit
`LP account
`
`777
`
`778
`
`FIG.
`
`

`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 27 of 30
`
`US 2002/0143614 A1
`
`FIG. 8
`
`800
`
`801
`
`
`
`the point withdrawal
`Set
`rate and the point
`
`
`deposit rate
`for this LP.
`
`
`
` Transmit
`
`
`the point
`withdrawal and point
`deposit rates to the
`transaction center
`
`
`
`

`
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`
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`

`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 29 of 30
`
`US 2002/0143614 A1
`
`FIG. 10
`
`1000
`
`— — — — — — — — '-
`Points withdrawal value=
`
`V
`I
`
`I
`
`“I
`I
`
`I
`
`(number of points withdrawn from
`withdrawing LP account)
`
`I
`I
`I
`I
`I
`I
`l
`I
`l
`l
`I
`(point withdrawal rate for
`I
`L__fWW%Q__u
`
`X
`
`_ _ _ _ _ _ _ __ _
`.
`_
`Points deposit value—
`
`I_
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`(point exchange transaction fee)
`I
`L_ _ _ _ _ _ _ _ __ _ _I
`
`(points withdrawal value)
`
`minus
`
`(points deposit value)
`
`I_ _ _ — " _ — _ _ _ —I
`I
`Number of points to deposit:
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`_
`l
`I
`(point deposit rate for
`I
`l
`depositing LP)
`I
`I
`I— — — — — — — — — — —I
`
`X
`
`IOOI
`
`Deterfmine the value
`o
`the points
`withdrawal
`I’°"5”°I‘°"
`
`
`mm
`
`
`Post
`the points withdrawal
`value to the points
`
`reconciliation account for
`the withdrawal
`issuer
`
`
`
`1003
`
`_
`Determine the value of
`the points deposit
`
`transaction
`
`
`
`I004
`
`
`
`Determine number at
`points to be deposited
`
`1005
`
`
`
`the points deposit
`Post
`value to the points
`reconciliation account for
`the depositing issuer
`
`
`
`
`
`

`
`
`
`Patent Application Publication
`
`Oct. 3, 2002 Sheet 30 of 30
`
`US 2002/0143614 A1
`
`FIG. 11
`
`1102
`
` 1101
`
`
`
`
`
`
`Tally all points withdrawal
`values in each
`reconciliation account
`for each issuer
`
`Generate and transmit
`an invoice to each
`issuer based on
`these tallies
`
`
`
`FIG. 12
`
`1200
`
`1201
`
`‘I202
`
`
`
`
`Tally all points deposit
`transactions originated
`from transaction
`center
`
`Generate and transmit
`an invoice transaction
`center based on
`these tallies
`
`

`
`US 2002/0143614 A1
`
`Oct. 3, 2002
`
`APPARATUS AND METHOD OF FACILITATING
`THE EXCHANGE OF POINTS BETWEEN
`SELECTED ENTITLES
`
`FIELD OF THE INVENTION
`
`[0001] This invention relates to apparatus and methods for
`keeping track of points and, in particular, for managing and
`exchanging those points that are issued and redeemed in the
`context of a loyalty program (LP).
`
`BACKGROUND OF THE INVENTION
`
`[0002] This invention has in at least one embodiment an
`application to loyalty programs (LPs). LPs are designed as
`the name suggests is to create and maintain the loyalty of a
`customer to a particular product or service. The source of
`such services and/or products is also the issuer or distributor
`of the points to its customers and the redeemer of those
`points for rewards. LPs are based on the concept of influ-
`encing the customer to continue to purchase products and/or
`services from one source, whereby the customer is repeti-
`tively issued points and, over a period of time, will accu-
`mulate sufficient points that may be redeemed for a valuable
`reward.
`
`[0003] There are now over 5 trillion LP points outstanding
`around the world. Annually 500 billion new points are
`issued. Each of these points represents real economic value
`to both the customer and the issuer. LP’s which issue points
`must carry them on their balance sheets as a contingent
`liability (for example, Business Week has reported that in
`American Airlines’ case this number is greater than $800
`million). In some cases, LPs are also using points as a
`revenue-generating product that LP proprieters sell to mar-
`keting partners. There are four main types of loyalty pro-
`grams: travel (airlines and hotels), financial (credit cards),
`retail and network (AirMiles, ClickRewards and WebMiles).
`
`[0004] The number of LPs has exploded in recent years,
`thus making it difficult for customers to be knowledgeable
`about the plans, much less interested in participating in a LP.
`Presently there are over 90 LPs sponsored by the airlines,
`i.e., frequent flyer programs. There are hundreds of credit
`card programs sponsored by financial institutions. There are
`over 8500 LPs sponsored by retail companies. The number
`of customers who have participated in LPs is greater than
`350 million. Globally,
`there are more than 200 million
`customers participating in frequent flyer LPs, of which 160
`million customers participate in LPs sponsored by US
`airlines. 75% of the UK population carry a loyalty card,
`while 66% of Canadian households belong to LPs of
`AirMiles or Sears Club.
`
`[0005] The issued points that have not been redeemed has
`now grown to staggering numbers. There are presently 3.5
`trillion points in the market today in the North American LPs
`alone. 500 Billion new points are generated annually in
`frequent flyer LPs alone. Each point has an economic value,
`which can be expressed in monetary units per point. Accu-
`mulated in the numbers mentioned above, unredeemed
`points represent huge assets. In addition, unredeemed points
`represent a liability to the issuing entity in terms of the future
`cost to redeem these points. While presenting a liability to
`the point issuers,
`they also represent a huge asset base,
`which is growing annually, as most LPs are accruing more
`points each year than their customers are redeeming. This
`
`positive issue/redeem ratio is expected to continue in the
`future. Thus while the liability of many LP point issuers has
`increased, also has been the opportunity of generating rev-
`enue streams for many of the larger LPs. Presently, such
`large issuers have income from the sale of points to their
`existing customers, but also to other business entities.
`
`[0006] LP points typically have a limited life from their
`date of issuance. Thus, many points will expire as a result of
`a lack of interest in participating in a LP plan. In 1998, 68
`billion points expired. The lack of interest and participation
`results in part from the number of available plans,
`the
`complexity of a particular plan,
`the inability to readily
`ascertain the balances in the LPs to which a customer may
`belong and the relatively small value of the points. There are
`billions of points that sit in accounts with very limited
`redemption options and low utility to a customer, i.e., the
`points are kept in accounts with balance that are below
`redemption levels, or a levels with limited redemption
`options. The growing number of LPs have led customer to
`join a number of LPs, thus spreading the points issued to this
`customer among the many programs and preventing any one
`of these plans from accumulating a significant number of
`points. For the above reason, few customers are achieving
`significant value from the LPs thereby preventing a LP from
`meeting its goal of achieving customer loyalty to a particular
`source of products and/or services.
`
`[0007] There are presently available a number web sites
`that offer services related to LP programs. MaxMiles Mile-
`ageMiner is a website offering management services to
`frequent fiyers. MaxMiles automatically gathers frequent
`flyer balances and account information from airlines, hotels,
`and credit cards, analyzes the most current mileage offers,
`searches for missing mileage credits, and sends a personal-
`ized report of all miles via email to the frequent flyer. The
`personalized reports are updated daily.
`
`[0008] Miles Direct.com is a website that automatically
`gathers and reports all of your frequency and rewards
`balances from airlines, hotels, credit cards into one consoli-
`dated statement. Miles direct also tracks expiring miles or
`points, activity, and elite levels.
`
`[0009] Points Universe is a website that keeps track of
`points, miles and other currencies in one statement. A
`customer can also earn points, award points, and join a
`points universe loyalty program. By shopping/visiting sites,
`these points can be used to redeem products on the Awards
`Store Catalogue. The AwardMaximizer tool tells you what
`products can be purchased with your Award Points.
`
`[0010] Milesandpoints.com is a web service that keeps
`track of your miles and points in one location. The site alerts
`you about new promotions and offers based on your pref-
`erences. The site also reminds its customers when promo-
`tions/miles/points are about to expire.
`
`[0011] MilePoint.com is a website service that converts
`any or all of its customers’ miles and points from partici-
`pating frequent traveler programs into money to spend at an
`assortment of online merchants. Every mile point is valued
`at a set rate. For example, if you have 500 miles and the set
`rate is 0.02/mile, a customer’s points may be converted in a
`currency, e.g. $10. MilePoint Money is used for partial
`payment of purchases with merchants within the MilePoint
`network. In addition, Mile Point permits its customers to set
`
`

`
`US 2002/0143614 A1
`
`Oct. 3, 2002
`
`up accounts and to add selected LPs to its portfolio. The
`MilePoint website is issuered with its LPs.
`
`relationship
`[0012] The Netcentives website provides
`marketing technologies and services creating loyalty pro-
`grams for brick-and-mortar, click-and-mortar, and pure-play
`online companies to maximize the value of their relation-
`ships with its customers, employees and business issuers.
`Netcentives creates private label rewards for its clients or
`can have it’s clients participate in ClickRewards.
`
`[0013] None of the above described services or web sites
`recognize much less address the primary problem with LPs,
`namely that most customers do not accumulate sufficient
`numbers of points at which the customers can effect redemp-
`tion’s for the rewards. In particular, these services do not
`teach how points may be accumulated into one account. In
`addition, the above described websites do not disclose how
`to efficiently communicate with selected LPs, as well as to
`manage the liability created by the unredeemed points and,
`additionally, to generate new and enhance steams of rev-
`enue.
`
`SUMMARY
`
`It is an object of this invention to enhance the
`[0014]
`effectiveness of LPs.
`
`It is a further object of this invention to render LPs
`[0015]
`more attractive to point customers by giving those point
`customers greater access to the rewards of their LP.
`
`It is a more particular object of this invention to
`[0016]
`enhance the customer’s use of a LP to accumulate more
`
`points.
`
`It is a still further object of this invention to enable
`[0017]
`a customer to convert points of one LP into points issued by
`a different LP.
`
`It is another object of this invention to enroll in a
`[0018]
`number of LPs and to keep track of the points accumulated
`in each LP in which the customer has enrolled.
`
`It is a still further object of this invention to permit
`[0019]
`point issuers to participate in a system wherein customers
`can enroll with the permission of the issuers of their pro-
`grams.
`
`It is another object of this invention to establish a
`[0020]
`system for permitting the exchange of points between LPs
`sponsored by corresponding point issuers and to give control
`over of the operation of each of the LPs to its points issuer.
`
`is a still further object of this invention to
`It
`[0021]
`establish a system for facilitating users to exchange points
`between LPs and to permit each participating point issuer to
`set the point exchange rates of its LP.
`
`It is another object of this invention to keep track
`[0022]
`of the points deposited and withdrawn from LPs as a result
`of the transfer of points between the LPs and to reconcile the
`LPs as to the points deposited in or withdrawn from that LP.
`
`In accordance with these and other objects of the
`[0023]
`invention,
`there is disclosed a system and method of
`exchanging first points held by a customer for second points,
`wherein the first points that are issued by a first point issuer
`differ from the second points that are issued by a second
`point issuer. This method comprises the steps of permitting
`
`the customer to set a first number of first points to be
`exchanged and permitting the first and second point issuers
`to set the point withdrawal and deposit rates of their first and
`second points respectively. Next, an equivalent number of
`the second points is determined based upon the point with-
`drawal and deposit rates of the first and second point issuers
`respectively, and the first number of the first points. Then,
`the first number of points is exchanged for a second equiva-
`lent number of second points.
`
`there is
`In a further aspect of the invention,
`[0024]
`described a method of permissioning a customer to enroll in
`a selected one or more of a plurality of point programs, each
`point program being controlled by its point
`issuer. The
`permissioning method comprises the steps of facilitating the
`customer to select at least one point program of the plurality
`in which to be enrolled, to enter predetermined information
`about the customer, and to permit at least one point issuer to
`set its own criteria for customer enrollment. Finally, the
`customer’s information is compared with the enrollment
`criteria and, if there is a match, permissioning the custome