(19) United States
`(12) Patent Application Publication (10) Pub. No.: US 2002/0143614 A1
`MacLean et al.
`Oct. 3, 2002
`(43) Pub. Date:
`
`US 20020143614A1
`
`(54)
`
`(76)
`
`APPARATUS AND METHOD OF
`FACILITATING THE EXCHANGE OF
`POINTS BETWEEN SELECTED ENTITLES
`
`Inventors: Trevor Robert MacLean, Toronto
`(CA); Jerry Philip, Oakville (CA);
`Stephen Paul Ogden, Toronto (CA);
`Darlene Higbee Clarkin, Toronto (CA)
`
`Correspondence Address:
`R. Lewis Gable
`Cowan, Liebowitz & Latman, RC.
`1133 Avenue of the Americas
`
`New York, NY 10036-6799 (US)
`
`(21)
`
`Appl. N0.:
`
`09/818,400
`
`(22)
`
`Filed:
`
`Mar. 27, 2001
`
`Publication Classification
`
`(51)
`
`Int. Cl.7 ..................................................... G06F 17/60
`
`300
`
`(52) US. 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
`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 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.
`
`
`
`
`
`Home Page displayed
`
` Customer "surfs"
`to Web site
`(no. 4A)
`
`
`304
`303
`Customer Information
`
`
`
`Customer clicks on
`form displayed
`
`'Open on Account'
`(no. 48)
`
`
`306
`
`305
`
`
`"Customernlerms and
`Customer fills out
`Conditions
`displayed
`information form
`
`(no. 4c)
`
`308
`
`307
`Customer account
`
`Customer clicks on
`inlormotion displayed
`
`
`
`“I accept”
`(no. 40)
`
`
`310
`
`Customer
`tP account
`
`displayed
`(FIG. 4E)
`
`
`
`
`
`
`
`
`
`316
`
`318
`317
`Customer LP account
`
`information displayed
` Customer accepts
`
`(FlG. 4|)
`
`
`
`31 9
`
`Generate on account
`
`validation request for
`added LP
`
`320
`
`Transmit
`validation
`request
`
`
`321
`Receive
`
`
`account
`_
`confirmation
`
`record from
`ISSUE!
`
`
`
`Valid 11’
`account?
`
`YES
`
`322
`
`
`
`324
`
`
`
`
`
`Activate LP
`account
`in Master
`Database
`
`325
`
`Flag LP account as
`erroneous and
`notify customer
`
`ASKELADDEN 1504
`
`309
`Customer clicks on
`”pointsfolio'
`
`
`311
` List of LP
`
`
`Customer clicks an
`issuers displayed
`
`
`(no. 4r)
`"odd loyalty program'
`
`
`
`314
`
`3
`Customer LP Information
`
`Customer selects a
`form displayed
`
`
`
`loyalty program
`(no.
`to)
`
`
`
`
`
`312
`
`
`
`
`
`
`
`315
`
`Customer fill out
`
`
`information form
`
`
`
`t
`
`ointsfolionlerms and
`
`onditions
`displayed
`(HG.
`l1H)
`
`
`ASKELADDEN 1504
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 1 0f 30
`
`US 2002/0143614 A1
`
`1
`
`Transaction Center(s)
`1 20
`
`FIG.
`
`
`
` Points Issuer
`
`Points Issuer
`Points Issuer
`1300
`130C
`130b
`
`
`
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 2 0f 30
`
`US 2002/0143614 A1
`
`Customer Terminal
`fl
`
`0
`
`Customer Terminal
`
`1100
`
`Customer
`
`Computer 20$
`
`
`Web 2%rzogvser
`
`
`
`Cust0m1e1rOTerminal
`
`
`
`0
`2
`Customer
`Computer —
`
`Web Browser
`
`
`
`2020
`
`201 b
`
`Customer
`Computer
`Web Browse
`202b
`
`r
`
`FIG. 2
`
`Transact on
`I'
`Center
`29
`
`
`r —Port; FirewaW—220_ —|
`
`230
`
`
`
`
`
`| I
`
`Web Server
`
`I
`I
`
`
`I I I
`
`2060
`
`2060
`
`
`
`
`Issuer Terminal
`
`Issuer Terminal
`
`1300
`
` L Transaction Firewall ZBOJ
`
`Issuer Terminal
`
`I30c
`
`—I
`
`I— — ~ — _I
`
`I |
`
`I— __ _Issuer Firewall 27501
`I
`I
`Issuer Server
`I
`
`2800
`
`l_—
`I
`II
`
`I
`I
`I
`
`II
`0||
`II“
`II
`
`I
`
`
`
`I__
`
`_ll_
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 3 0f 30
`
`US 2002/0143614 A1
`
`300
`
`START
`
`301
`Customer "fs"sar
`totWeb site
`
`3Cu53tamer clicks on
`
`Open an Account
`
`.
`505
`Customer fills out
`information form
`
`.
`307
`Customer chairs on
`"I accept"
`
`309
`Customer clicks on
`"paintsfalia'
`
`Home Page displayed
`(HG- 4A)
`
`Customer lnfarmationo4
`farm displayed
`
`(FIG. 4B)
`
`306
`"Custamerfllerms and
`Conditions
`displayed
`(FIG. 4C)
`
`308
`
`Customer account
`information displayed
`(FIG. ID)
`
`310
`LP account
`Customer
`displayed
`(FIG. 4E)
`
`3”
`Customer clicks on
`add loyalty program
`
`Listtof LP
`issuers displayed
`F(IC. 4F)
`
`312
`
`314
`
`313
`
`Customer selects a
`loyalty program
`
`315
`Customer fill out
`InarmatIonarm
`
`Customer LP Information
`form displayed
`(F.IC 4C)
`
`31 6
`
`"paintsfoliaTerms and
`Conditions displayed
`(F|.C 4H)
`
`31 8
`
`Casttamer LP account
`III
`
`319
`
`Generate an account
`validation request for
`added LP
`
`320
`
`transmit
`validation
`
`request
`
`
`
`
`322
`Receive
`
`
`_
`account
`Valid LP
`NO
`
`
`coanrmatIon
`
`account?
`
`record from
`
`
`Issuer
`
`
` Activate LP
`account
`in Master
`
`
`Database
`
`
`325
`
`
`
`Flag LP account as
`erroneous and
`
`notify customer
`
`FIG. 8
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 4 0f 30
`
`US 2002/0143614 A1
`
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`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 5 0f 30
`
`US 2002/0143614 A1
`
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`Patent Application Publication
`
`Oct. 3, 2002 Sheet 6 0f 30
`
`US 2002/0143614 A1
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`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 7 0f 30
`
`US 2002/0143614 A1
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`Patent Application Publication
`
`Oct. 3, 2002 Sheet 8 0f 30
`
`US 2002/0143614 A1
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`Patent Application Publication
`
`Oct. 3, 2002 Sheet 9 0f 30
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`US 2002/0143614 A1
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`Patent Application Publication
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`Oct. 3, 2002 Sheet 10 0f 30
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`US 2002/0143614 A1
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`Patent Application Publication
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`Oct. 3, 2002 Sheet 11 0f 30
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`US 2002/0143614 A1
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`Patent Application Publication
`
`Oct. 3, 2002 Sheet 12 0f 30
`
`US 2002/0143614 A1
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`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 13 0f 30
`
`US 2002/0143614 A1
`
`START
`
`500
`
`501
`
`-
`Customer clicks on
`
`502
`
`Display pointsxchange
`use
`
`503
`
`
`Customer clicks on
`"advanced pgints
`
`exchange
`
`504
`
`
`
`Prompt customer for list
`of LPS from which points
`
`will be drawn
`
`FIG. 5A
`
`505
`
`Customer selects
`withdrawal LPs
`
`506
`
`
`
`Prompt customer for
`points amounts to be
`
`
`withdrawn
`
`
`
`
`
`510
`
`Customer selects
`
`depositing LPs
`
`LN
`
`l\)
`"Customer selects”
`continue xchange
`
`514
`Customer selects
`"go to next step”
`
`_
`516
`Customer pravrdes
`billing info
`
`518
`Customer selects
`
`"submit"
`
` 507
`
`'
`'
`'
`Slggtzlfigésptflts
`
`withdrawals?
`'
`
`NO
`
`YES
`
`509
`
`
`
`Prompt customer to designate
`the target IP into which points
`
`
`will be deposited
`(he. an)
`
`5H
`
`
`Calculate number of points to
`be withdrawn and deposited.
`
`
`Display summary of pending
`
`transaction.
`
`
`513
`
`Displa
`exchan e terms and
`ctfndilions 9and tees.
`|-‘|(;_ SF
`
`515
`Request billing and credit
`card information
`(FIG. 66)
`
`517
`Confirm billing and credit
`card inlormation
`(FIG. SH)
`
`519
`Display transaction summary
`and confirmation number
`
`(no. a)
`
`508
`
`
`terminate exchange
`and notify customer
`
`
`of
`insuflicient points
`
`balances
`
`v
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 14 of 30
`
`US 2002/0143614 Al
`
`500 (cont'd)
`
`F__—_
`
`Receive transaction
`
`confirmation messages from
`all
`target withdrawing issuers
`
`
`
`
`
`
`Past points exchange request
`to transaction queue. Mark
`exchange as ”PENDING"
`
`Construct a points withdrawal
`transaction message for
`each designated issuer
`
`
`
`
`
`527
`
`All points
`
`NO Roll hack points exchange
`
`
`withdrawal
`transactions
`and notify customer the
`were successful?
`
`
`exchange request failed
`
`528
`
`
`
`
`
`
`transmit each points
`withdrawal
`transaction
`
`message to its target
`
`issuer
`
`
`
`Construct a points deposit
`
`
`transaction message for each
`
`
`designated issuer
`
`
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`L____J
`
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`
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`transaction messages to all
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`
`
`
`
`Receive transaction
`
`
`confirmation messages from
`
`
`all
`target depositing issuers
`
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`FIG. 5B
`
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`535
`
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`NO Roll back points exchange
`
`Deposit points
`
`transactions were
`and notify customer the
`successful
`
`exchange request failed
`
`
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`536
`
`
`
`Mark exchange as
`
`
`”COMPLETE"
`Notify customer of
`_
`successful exchange
`
`
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 15 0f 30
`
`US 2002/0143614 A1
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`Oct. 3, 2002 Sheet 16 0f 30
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`US 2002/0143614 A1
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`Oct. 3, 2002 Sheet 17 0f 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 0f 30
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`US 2002/0143614 A1
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`Oct. 3, 2002 Sheet 20 0f 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 0f 30
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`US 2002/0143614 A1
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`Patent Application Publication
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`Oct. 3, 2002 Sheet 22 0f 30
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`US 2002/0143614 A1
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`Patent Application Publication
`
`Oct. 3, 2002 Sheet 23 0f 30
`
`US 2002/0143614 A1
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`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 24 0f 30
`
`US 2002/0143614 A1
`
`70
`
` 701
`
`
`
`
`
`
`
`
`Define data format,
`validation rules for
`account confirmation
`
`FIG.
`
`"7A
`
`710
`
`
`
`
`
`714
`
`transmit account
`
`
`Format of customer
`
`confirmation record
`
`
`account valrdatron
`
`containing an error
`request correct?
`
`
`
`response code
`
`
`Customer
`account
`validation
`request
`received
`
`712
`
`
`
`715
`
`
`Transmit account
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`Customer is a valid
`confirmation record
`
`
`member of
`this LP?
`containing an error
`response code
`
`
`
`
`transmit account confirmation
`record containing confirmation
`code and current point account
`
`balance for this member
`
`
`
`
`
`
`717
`
`Flag member account as a
`customer of
`transactron
`center
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 25 0f 30
`
`US 2002/0143614 A1
`
`720
`
`
`START
`
`
`
`
`
`721
`
`Define data format &
`communications protocol
`
`for providing account
`balance updates
`
`FIG.
`
`"/0
`
`fl
`
`FIG. 7D
`
`732
`
`
`733
`
`
`Account
`
`
`balance
`Transmit update account
`
`
`balance record
`change
`
`
`detected
`
`
`FIG. 7E
`
`740
`
`744
`
`
`
`746
`745
`
`
`Account
`
`
`
`Format of balance
`. Transmit
`
`balance
`
`
`
`request message
`confirmation record
`
`request
`
`containing an error
`
`correc?t
`
`received
`response code
`
`
`
`
`747
`748
`
`
`Transmit
`
`Customer is a
`
`confirmation record
`
`
`registered member
`containing an error
`
`this LP?
`at
`
`response code
`
`
`
`Transmit update account
`balance record
`
`
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 26 0f 30
`
`US 2002/0143614 A1
`
`@
`
`751
`
`
`
`
`Define data format,
`
`validation rules and
`communications protocol
`
`for points transactions
`
`
`
`
`
`FIG]. 7F
`
`760
`
`
`76.3
`764
`
`point
`withdrawal
` Transmit
`
`
`
`Format of
`
`transaction
`confirmation record
`
`
`correct?
`transaction message
`message
`
`containing an error
`
`
`
`
`received
`response code
`
`
`
`
`766
`765
`
`
`Transmit
`
`Does transaction .
`
`confirmation record
`FIG. 7G
`message satrst validation
`
`
`
`rules.
`containing an error
`
`
`response code
`
`YES
`
`
` Post a credit
`
`to customer's
`LP account
`
`
`
`768
`
`
`
`762
`
`77 2
`
`Transmit confirmation record
`containing transaction
`confirmation code and
`
`updated point account
`
`balance for this member
`
`
`
`
`773
`774
`point
`
` Transmit
`
`deposd
`
`Format of
`.
`.
`
`
`.
`firmation record
`transaction
`
`
`transaction message
`3°” .
`.
`
`
`message
`correct? containing an error
`
`
`
`received
`response code
`
`
`
`
`Transmit
`
`Does transaction _
`
`confirmation record
`
`message satrsfz validation
`
`
`rules
`containing an error
`
`
`response code
`
`777
`
`
`Transmit confirmation record
`containing transaction
`
`
`Post a debit
`to customers
`confirmation code and
`LP account
`
`updated point account
`
`balance for this member
`
`FIG. 7H
`
`778
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 27 0f 30
`
`US 2002/0143614 A1
`
`FIG. 8
`
`800
`
`
`
`801
`
`
`
`the point withdrawal
`Set
`rate and the point
`
`
`deposit rate
`for this LP.
`
`
`
`
`
`the point
`Transmit
`withdrawal and point
`
`deposit rates to the
`transaction center
`
`
`
`
`
`

`

`AmmP
`
`00
`
`US 2002/0143614 A1
`
`_om\
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`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 29 0f 30
`
`US 2002/0143614 A1
`
`FIG. 10
`
`1000
`
`_________
`Points withdrawal value:
`
`[—
`
`"I
`
`(number at points withdrawn from
`withdrawing LP account)
`
`X
`
`(paint withdrawal rate for
`withdrawing LP)
`
`l_
`
`[—— —————————
`
`Points deposit value:
`
`I
`|
`I
`l
`1
`I
`l
`l
`I
`1
`I
`I
`1
`(point exchange transaction fee)
`1
`t_ _________ _l
`
`(points withdrawal value)
`
`minus
`
`l— _________ ‘1
`Number of points to deposit:
`
`I I I |
`
`(points deposit value)
`
`X
`
`I I I I
`
`.
`(point deposd rate for
`depositing LP)
`|_ _________ _1
`
`
`
`
`
`Determine the value
`of
`the points
`
`withdrawal
`
`transaction
`
`
`
`
`
`
`1002
`the points withdrawal
`Post
`value to the points
`reconciliation account for
`.
`.
`
`the wdhdrawal Issuer
`1003
`
`.
`Determine the value at
`the points deposit
`transaction
`
`1004
`
`
`
`Determine number at
`points to be deposited
`
`
`
`
`
`
`
`
`1005
`
`the points deposit
`Post
`value to the points
`reconciliation account for
`the depaSItIng Issuer
`
`

`

`Patent Application Publication
`
`Oct. 3, 2002 Sheet 30 0f 30
`
`US 2002/0143614 A1
`
`FIG. 11
`
` 1101
`
`
`Generate and transmit
`tally all points withdrawal
`an invoice to each
`values in each
`
`
`issuer based on
`reconciliation account
`
`these tallies
`for each issuer
`
`
`1102
`
`
`
`FIG. 12
`
`1200
`
`1201
`
`1202
`
`
`
`
`Generate and transmit
`tally all points deposit
`an invoice transaction
`transactions originated
`
`
`center based on
`from transaction
`
`these tallies
`center
`
`
`

`

`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 fiyer 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 fiyer 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 fiyer 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
`fiyer 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 fiyer. 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 customer
`to enroll in the selected one point program.
`
`In a still further aspect of this invention, a method
`[0025]
`is described for facilitating a customer to enroll in selected
`ones of a plurality of point program