Note: Descriptions are shown in the official language in which they were submitted.
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- Title: SYSTEM AND METHOD FOR PROCESSING CERTIFICATES
FIELD OF THE INVENTION
This invention relates to a system and method for processing
certificates. More specifically, this invention relates to a computer-based
system and method for issuing and validating certificates, including gift
certificates for example, allowing certificates issued in real-time using one
of a variety of methods to be validated in real-time by a merchant
honoring the certificate.
BACKGROUND OF THE INVENTION
Typically, many merchants allow consumers to purchase gift
certificates or gift vouchers to be redeemed by a third party towards a
purchase of goods or services from the merchant. Not surprisingly, many
merchants doing business over the Internet also allow the purchase and
redemption of gift certificates or gift vouchers.
As a gift certificate may be applied to a purchase made at a
merchant establishment, thereby reducing the balance that must be paid
for the goods or services being purchased, the gift certificate may, in this
aspect, be considered similar to what is conventionally known as a
coupon. Systems and methods for distributing, generating, redeeming,
and tracking coupons, and in particular electronic coupons, are well
known in the prior art.
For example, the prior art method and apparatus disclosed in
U.S. Patent No. 5,710,886 issued to Christensen et al. discloses a method
where electronic discount coupons having a consumer identification
number printed on the coupon may be validated by telephone prior to the
coupons being printed on a computer, and where the coupons may be
subsequently redeemed at a store in the same manner as conventional
coupons. When a coupon is redeemed, consumer identification
information and other coupon information may be retrieved from the
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coupons, which is then forwarded to a coupon clearing house, and used to
compile statistical data relating to coupon usage. Since each coupon has a
unique consumer identification number which may be associated with the
consumer's personal information obtained at the validation stage,
fraudulent copying and redemption of coupons is discouraged, and
fraudulent activity can be tracked at the coupon clearing house allowing
warnings to be sent to the offending consumer. However, validation does
not occur in real-time, and is effected as a separate step after a coupon has
been redeemed by the consumer.
As a further example, the prior art system disclosed in U.S.
Patent No. 5,855,007 issued to Jovicic et al. discloses a system which
generates discount coupons over the Internet. A consumer-selected
coupon can be transmitted to a printer for printing and subsequent
redemption at a physical store location, or sent by electronic mail to the
consumer, or alternatively, directly to an online merchant web site. Each
coupon contains a unique serial number. Subsequently, a notification
center records the transaction in a database, and information pertaining to
the coupon may later be used for verification purposes. Merchants may
validate coupons using a telephone, or through a computer interface to
the notification center database.
However, typical couponing systems generate coupons or
vouchers which can only be redeemed towards a specific good or service at
one of a limited number of pre-specified merchant establishments.
Therefore, coupons are typically inflexible as compared to gift certificates
which, for example, may instead, be generally applied to the purchase of
any good or service at selected merchant establishments, and are treated
like cash. Furthermore, as coupons are typically, for accounting purposes,
not treated as cash by a merchant but instead as a discount to be applied to
a consumer's purchase, particularly since the value of a coupon is
generally small, a sophisticated accounting system is generally not required
to deal with the processing of conventional coupons.
Systems and methods for generating paper gift certificates
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specifically, are also well known in the prior art. For example, the prior art
method and apparatus disclosed in U.S. Patent No. 5,652,421 issued to
Veeneman et al. describes an electronic device for printing and dispensing
paper gift certificates purchased by credit card. Consumers may purchase a
gift certificate for a number of participating merchant establishments for a
preset denomination, and the corresponding value is charged to the
consumer's credit card account. The merchant establishment that will
honor the certificate may be notified of the issuance of the gift certificate
by
the Veeneman apparatus, but no means for real-time validation of the
certificate is provided by the apparatus.
As a further example, the prior art system disclosed in U.S.
Patent No. 5,870,718 issued to Spector describes a computer-printer Internet
terminal which allows a user to print out a paper gift certificate and
greeting card, where the gift certificate can be subsequently redeemed at a
merchant establishment linked to the Internet. The cost of the gift
certificate can be billed to a credit card, or alternatively can be charged to
a
telephone account, or debited from a bank account.
While paper gift certificate systems are well known in the
prior art, and whereas paper gift certificates are commonly sold and used at
many merchant establishments, potential growth in the use of gift
certificates by consumers is hindered by several factors. While gift
certificates may be considered to be a good marketing incentive to draw
consumers into merchant establishments, merchants may be reluctant to
promote the sale and use of gift certificates due to the fact that paper gift
certificates are relatively easy to fraudulently reproduce. Reproduction of
certificates has been made even easier with advances in printing and
reproduction technology. Many merchants are unable to confirm easily
and quickly the validity of redeemed paper gift certificates, and will not
typically know that an invalid gift certificate has been redeemed until a
later date when the gift certificates are reconciled with a list of issued
gift
certificates. Furthermore, while adding security features to paper gift
certificates in order to deter fraudulent reproduction of the certificates
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may enhance security, it is generally not a cost-effective solution. The cost
of adding these security features may be difficult for a merchant to justify
since a profit is not typically made on the sale or redemption of gift
certificates.
There are a number of other disadvantages with
conventional paper gift certificates. There are difficulties associated with
the monitoring of stocks of paper gift certificates, and preventing fraud or
theft by a merchant's own staff. Additionally, at any one time, a merchant
generally has no way of tracking the total value of uncashed or unused gift
certificates. This is a particular issue for merchants having many store
locations, and can cause considerable accounting problems when a gift
certificate is purchased in one store location and redeemed at another store
location.
For all these reasons, merchants and businesses are
ambivalent about the promotion of gift certificates. While consumers may
like gift certificates, and while merchants may find gift certificates useful
as
promotional tools, gift certificates have numerous problems associated
with them, including the fact that they offer many possibilities for fraud or
misuse.
The sale of gift certificates may also be effected over a
network, such as the Internet. For example, an online merchant may
allow consumers to purchase electronic gift certificates that may be
subsequently redeemed towards a purchase online. Alternatively, online
merchants which also have affiliated physical store locations may issue
paper gift certificates that may subsequently be redeemed at the store
location.
However, these merchants typically are unable to issue gift
certificates which may be redeemed at either the online merchant site or at
the physical store location at the option of the person redeeming the gift
certificate. Furthermore, these gift certificates typically may only be
redeemed at one particular online store location or at one of a number of
affiliated physical store locations.
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Certain online companies, giftcertificates.com for example,
allow consumers to purchase paper gift certificates for a merchant
establishment chosen from a list of different merchant establishments.
These companies keep an inventory of paper gift certificates that have
been issued by various merchants which can be subsequently redeemed at
the respective physical store locations. While this provides a buyer of gift
certificates with greater flexibility in purchasing gift certificates, it is
necessary for these companies to maintain an inventory of paper gift
certificates and to provide warehousing or storage space for these gift
certificates. It is also necessary to send the paper gift certificates to the
recipients by mail. Furthermore, since the role of these companies is
mainly to fulfill orders for gift certificates, fraudulent reproduction and
use of gift certificates is still a potential problem.
Certain online sites, flooz.com for example, allow electronic
gift certificates to be purchased and sent by electronic mail to a recipient,
for subsequent redemption at one of numerous online retailers. Typically,
the gift certificates are purchased for one of a small number of pre-specified
denominations. Similarly, other online companies managing sites such as
beenz.com, allow gift certificates for pre-specified denominations at
specified merchant establishments to be purchased by a participating
consumer with units of the company's proprietary online electronic
currency.
The prior art systems disclosed on the web sites of
giftcertificates.com and flooz.com typically only allow for gift certificates
to
be issued and redeemed online, and cannot be used at physical store
locations at the option of the person redeeming the gift certificate.
Furthermore, purchases may only be made in pre-specified
denominations.
Generally, electronic currency systems address some of the
disadvantages of the prior art systems described above, in that electronic
vouchers of value may be made in a manner that makes it more difficult
to be fraudulently reproduced compared to paper gift certificates.
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Furthermore, amounts transferred need not be for a pre-specified
denomination. Prior art systems for distributing electronic money, or the
creation and transferring of digital vouchers having value, are disclosed in
the prior art, such as the systems disclosed in U.S. Patent No. 5,745,886
issued to Rosen and U.S. Patent No. 6,047,269 issued to Biffar, for example.
However, the process of transferring an amount designated
by one party to be sent to a second merchant party for redemption by a
third party recipient is typically not cost-effective when using these
electronic cash systems, since these systems typically require the use of
specialized hardware (for example, smart cards and a smart card reader) to
handle electronic funds. Furthermore, in digital voucher systems like that
disclosed in Biffar, while the digital voucher may be transported in a
variety of ways (for example, using the Internet, cellular networks, or
telecommunication networks), all information pertaining to the history of
the voucher, the quantity of which may be substantial, is transmitted from
one party to another. It is not possible to transfer only a few identifying
numbers from one party to another, to be subsequently used towards
purchases at a merchant establishment, and where it is still possible to
verify that the corresponding voucher of value is valid and has not been
previously redeemed.
Accordingly, there is a need for a system and method for
processing gift certificates or other vouchers of value, where the
redemption of the gift certificates or vouchers are not limited to a
particular product or store location, where the system is capable of
effectively handling the transfers of cash associated with the purchase or
redemption of a gift certificate or voucher in real-time, where the gift
certificate or voucher can be validated in real-time to prevent duplicate
use, fraudulent or otherwise, and where the gift certificate or voucher can
be purchased in real-time either online, at a physical store location, or any
other feasible method to be subsequently redeemed at an online web site or
physical store location at the option of the party redeeming the gift
certificate or voucher.
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SUMMARY OF THE INVENTION
The invention provides for a system for processing
certificates with a number of components including a user interface for
receiving input validation data, a database for storing certificate data, a
module responsive to a validation request to determine if the certificate is
valid, and a module to initiate a transfer of funds to a party honoring the
certificate.
The invention also provides for a method for processing
certificates comprising the steps of processing an order for the purchase of
a certificate, processing payment for the order, generating a certificate,
storing information pertaining to the generated certificate in a database,
validating the certificate, and processing payment to the party honoring
the certificate.
BRIEF DESCRIPTION OF THE DRAWINGS
For a better understanding of the present invention, and to
show more clearly how it may be carried into effect, reference will now be
made, by way of example, to the accompanying drawings which show a
preferred embodiment of the present invention, and in which:
Figure 1 is a schematic diagram illustrating the present
invention;
Figure 2 is a schematic diagram further detailing the
components of the present invention;
Figure 3 is a flow chart illustrating the steps performed by the
present invention;
Figure 4 is a flow chart illustrating the steps performed in a
certificate purchase by the present invention;
Figure 5 is a flow chart illustrating the steps performed in a
certificate validation by the present invention;
Figure 6 is a screen displayed during a certificate purchase
where certificate information is entered by a certificate buyer;
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Figure 7 is a screen displayed during a certificate purchase
where payment information is entered by a certificate buyer; and
Figure 8 is an example of a certificate generated by the present
invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
Referring to Figure 1, a system for processing certificates is
shown generally as 10. System 10 comprises a certificate management unit
20, which provides interfaces to a certificate buyer 30, a bank 32, a
recipient
34, and a merchant 36.
In this specification and in the claims, a certificate refers
primarily to a gift certificate or cash certificate, redeemable at a specific
merchant establishment, or at a merchant establishment chosen by the
recipient 34 of the gift certificate or cash certificate from a group of
merchant establishments. A merchant establishment may be, for example,
an Internet web site, a physical store location, or a store where goods or
services may be ordered electronically or by telephone. Therefore, for
example, a certificate may be designed to be a gift certificate or cash
certificate, in paper or electronic form, that may be redeemable by the
recipient 34 at a specific store, at any store location in a chain of stores,
or at
any store in a group of stores at a common location, as in a mall, for
example.
The certificate management unit 20 of system 10 comprises
several components: a database interface module 42 which reads
information from and stores information to a certificate database 44 in
order to perform certain tasks including the processing of a certificate
purchase initiated by a certificate buyer 30, generating a certificate,
processing a certificate validation initiated by a merchant 36 at a merchant
establishment, and directing a bank 32 to process any necessary funds
transfers; a telephony server 46 and a web interface 47 for managing the
input of certificate-related data; and a certificate delivery module 48 which
sends a generated certificate to a recipient 34.
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When a certificate buyer 30 purchases a certificate, the
certificate buyer 30 accesses a web interface 47. The database interface
module 42 takes the information entered by the certificate buyer 30
through the web interface 47, and processes the certificate purchase, in part,
by entering certificate information into the certificate database 44. The
database interface module 42 further processes the purchase of a certificate
by a certificate buyer 30 by obtaining payment information from the
certificate buyer 30, which is then transmitted to a bank 32 for payment
processing. The steps involved in a certificate purchase will be explained
in greater detail later in this specification.
Storing certificate information in the certificate database 44
allows the database interface module 42 to generate reports allowing for
certificate processing activity to be tracked, including for example, how
many certificates are outstanding, sales of certificates in any specified
period or for any specified merchant or groups of merchants, or any other
desired statistical or accounting information that can be generated from
the information in the certificate database 44.
When a certificate is generated by the database interface
module 42 using the information stored in the certificate database 44, the
certificate is subsequently delivered to a recipient 34 using the certificate
delivery module 48. More specifically, the certificate delivery module 48
takes information corresponding to a generated certificate, formats the
information for delivery, and initiates delivery of the certificate to the
recipient 34.
When a certificate is submitted to a merchant 36 at a
merchant establishment for redemption by a recipient 34, the merchant 36
provides certificate information to the database interface module 42 by
telephone through a telephony server 46 in order to initiate a certificate
validation. In processing a certificate validation, the database interface
module 42 provides output to the merchant 36 indicating whether or not
the certificate information provided by the merchant 36 is valid. If the
information is valid, the database interface module 42 sends output to the
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bank 32 to initiate a transfer of funds from the bank 32 to the merchant 36.
The above-referenced telephony server 46 is a component
that is able to take data as input from a variety of sources connected to a
telephone line. The data includes, for example, input entered by voice
and/or touch-tones over a telephone, or input obtained through a point-
of-sale device at a physical store location. The telephony server 46
processes input data from the different sources, and translates the input
data into a format that is recognized by the database interface module 42.
In the preferred embodiment of the invention, a certificate is
purchased by a certificate buyer 30 through a central Internet web site,
referred to in this specification as a central certificate distribution web
site,
where certificates for various merchants may be purchased. The
components associated with the generation of the contents of the web
pages at the central certificate distribution web site and the web pages
themselves collectively comprise the web interface 47 of the certificate
management unit 20 of the system 10 for processing certificates.
Information relating to the certificate purchase is entered on web pages at
the central certificate distribution web site by the certificate buyer 30. A
more detailed schematic diagram illustrating the components of system 10
in the preferred embodiment is shown in Figure 2.
Referring to Figure 2, a certificate buyer 30 accesses the central
certificate distribution web site through the web interface 47 of system 10
using a web browser 50. More specifically, the web browser 50 is used to
access web pages 52 over the Internet, where the web pages 52 reside on a
central certificate distribution web server 54. A web server engine 56
primarily generates the contents of the web pages 52 as seen by the
certificate buyer 30 in the web browser 50 during a certificate purchase
transaction. In generating the contents of the web pages 52, the web server
engine 56 may also access information from a customer profile database 57
that stores information pertaining to the certificate buyer 30, such as
information relating to buying preferences, for example. The web server
engine 56 may also access a local certificate database 58 which maintains
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information on the certificates which are being made available for
purchase to the certificate buyer 30 through the central certificate
distribution web site.
The web server 54 is connected via a network connection, for
example an Ethernet connection, to a secure web server 60. A secure web
engine 62 residing on the secure web server 60 generates the contents of
the secure web pages 64. The secure web pages 64 provides means for a
certificate buyer 30, using a web browser 50, to input information relating
to the certificate purchase, which may include, for example, certificate
payment information such as a credit card number and expiry date,
personal information, or any other information that is to be transmitted
securely within the system 10. Access to the secure web pages 64 using a
web browser 50 is made through a secure connection, for example, using
the Secure Socket Layer (SSL) protocol, or other secure protocol, as is
known. Information relating to the certificate purchase received through
the secure web pages 64 may be subsequently stored in the certificate
database 44 by the database interface module 42.
The database interface module 42 generates confirmations
relating to the certificate purchase to be delivered to a certificate buyer 30
through web pages 52, secure web pages 64, and by electronic mail.
The database interface module 42 generates certificates based
on information stored in the certificate database 44, and initiates
certificate
delivery to a recipient 34 by electronic mail through the certificate delivery
module 48. Certificates may be encrypted using known methods to
enhance security of certificate delivery.
The database interface module 42 also transmits the credit
card information of the certificate buyer 30 obtained through the secure
web pages 64 to a payment processor 70 such as National Cash Register
(NCR) using a secure DATAPAC line 72. Payment processor 70 validates
the credit card information and initiates a funds transfer from the credit
card account of the certificate buyer 30 to be deposited into one or more
accounts at a bank 32.
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When a recipient 34 presents the certificate to a merchant 36
at a merchant establishment for redemption, the merchant 36 validates the
certificate. Certificate validation is performed by telephone through a
telephony server 46 and phone daemon 74 which entails accessing the
information in the certificate database 44 through the database interface
module 42 in real-time. The telephony server 46 routes calls to the phone
daemon 74, which prompts callers to enter certificate information using a
telephone keypad and transmits the information to the database interface
module 42. The database interface module 42 compares information on
the certificate being redeemed as provided by the merchant 36 validating
the certificate to the information stored in the certificate database 44, and
determines whether any changes to the denomination of the certificate has
been made, or whether the certificate has been previously redeemed.
Upon validation of the certificate, the database interface
module 42 sends an electronic request to the bank 32 to transfer funds to
an account of the specific merchant 36. The bank 32 confirms receipt of the
funds transfer instructions, and later sends a confirmation indicating that
the funds transfer has been executed.
Referring to Figure 3, a method for processing certificates is
shown as a series of steps commencing at step 100. At step 102, a certificate
purchase is initiated by a certificate buyer 30 through the web interface 47
of a central certificate distribution web site where certificates for a
variety
of merchants 36 may be purchased. At step 104, a certificate generated by
the database interface module 42 is delivered to a recipient 34 by electronic
mail by a certificate delivery module 48. At step 106, the recipient 34
redeems the certificate at a merchant establishment.
At step 108, the certificate is validated by a merchant 36
honoring the certificate. The merchant 36 accesses information in the
certificate database 44 through the database interface module 42, in real-
time, to ensure that the certificate is valid.
A certificate is considered valid if the information on the
certificate accepted as input for certificate validation is consistent with
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information in the certificate database 44. Certificates of the present
invention comprise three identifying numbers or codes, namely a
certificate number, a validation number, and a certificate value. It will be
appreciated that the certificate number and validation number need not be
pure numbers, and they could be any combination of alpha-numeric
characters. Preferably though, the certificate number is a pure number and
these numbers are assigned sequentially. Validation numbers are
preferably randomly assigned, although other variant methods of
assigning validation numbers to certificates may be applied to the present
invention. Also, for simplicity, the certificate number and validation
number could be treated as a single identifying string of characters. Thus,
in a certificate validation, the validation number and certificate value as
shown on the certificate being redeemed identified by a certificate number,
should match the validation number and certificate value for the
certificate having the same certificate number as recorded in the certificate
database 44, if the certificate is to be considered valid.
Also, a merchant identifier entered by the merchant 36
honoring the certificate is compared to the information recorded in the
certificate database 44 by the database interface module 42 to determine
whether the certificate being redeemed can be honored by that particular
merchant 36. Merchant identifiers are assigned to each participating
merchant 36 by the operator of the system 10 for processing certificates.
This is done prior to the offering of certificates for purchase to a
certificate
buyer 30. This allows the operator of the system 10 for processing
certificates to associate a bank account with each participating merchant 36
for the purposes of funds transfers as described in this specification.
Information on each participant merchant 36 which may be incorporated
in a certificate may also be stored in the local certificate database 58,
which
may be used in the marketing of the certificates on the central certificate
distribution web site.
Furthermore, an identifier stored in the certificate database 44
indicating whether or not the certificate has already been redeemed is
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checked to ensure that the current certificate being validated has not
already been redeemed. Certificate validation ensures that fraudulent
changes to the denomination of the certificate have not been made, and
that a duplicate redemption of the certificate has not occurred. After
redemption and validation of a certificate, the certificate is marked as
redeemed in certificate database 44.
Certificate validation is performed using a touch-tone
telephone interface of the system 10 for processing certificates, namely a
telephony server 46 and phone daemon 74. It will be understood,
however, that any suitable means of real-time communication could be
used.
The flow of method steps then proceeds to step 110, which
marks the end of the method for processing certificates.
In the preferred embodiment of the invention, all steps as
shown in Figure 3 are performed in real-time.
Referring to Figure 4, the details of a certificate purchase (step
102 of Figure 3) are shown, and which commence at step 122. As noted
above, the certificate purchase is performed in real-time. At step 124, a
certificate buyer 30 accesses a central certificate distribution web site on
the
Internet using a web browser 50. On the web pages 52, the certificate buyer
selects an option to purchase a gift certificate. On the secure web pages
64, the certificate buyer 30 then inputs information relating to the
certificate purchase. This information comprises, for example: a country
and city in which the certificate is to be redeemed; a merchant category and
25 merchant subcategory for which the certificate is to be purchased, where
merchants 36 may be categorized, for example, by the goods or services
offered, the prices of the goods and services offered, the brands of goods
offered and/or by a geographical location of the merchant; an identifier of
a specific merchant 36 identifier or an identifier representing a group of
30 merchants 36 where a recipient 34 may redeem the certificate at any
merchant 36 of that group; the name of the recipient 34 and the electronic
mail and/or postal mail addresses of the recipient 34; the amount of the
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certificate, which may be any full dollar denomination or other
permissible value; certificate delivery information, which may indicate
immediate delivery or delivery at some time in the future; and an
optional certificate style, or personalized message to accompany the
certificate. The certificate buyer 30 also enters payment information,
which may comprise a credit card type, a credit card number, a credit card
expiry date, the cardholder's name, and an address and/or electronic mail
address to which a receipt will be sent. The input information obtained in
this step is stored in the certificate database 44.
At step 126, payment for the certificate is processed by the
database interface module 42. Credit card information of the certificate
buyer 30 is transmitted to a payment processor 70 such as NCR over a
secure DATAPAC line 72. Payment processor 70 then validates the credit
card information, and subsequently, at step 128, payment processor 70
initiates a funds transfer from the credit card account of the certificate
buyer 30 to a certificate account held at a bank 32, where the funds are held
in trust until the certificate is redeemed. Electronic mail confirmation of
the credit card charge is sent to the certificate buyer 30. The actual amount
of funds deposited into the certificate account of the bank 32 relating to
this
transaction may be equal to the amount of the certificate purchased by the
certificate buyer 30, or may be for an amount less than the value of the
certificate purchased by the certificate buyer 30 depending on the
arrangements made between the merchant 36 and the operator of the
system 10 for processing certificates concerning applicable charges,
commissions or fees applicable to transactions associated with the
purchase or redemption of certificates. Any applicable charges,
commissions or fees are deposited into a separate commission account at
the bank 32.
An example of a commission structure that may apply to the
present invention is as follows: if a certificate purchase is made at a
central
certificate distribution web site, a merchant is charged a commission of 5%
of the value of the certificate which is withheld by the operator of the
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system 10 from funds collected associated with the certificate purchase, and
the certificate buyer 30 is charged an additional service fee of 4% of the
value of the certificate which is added to the purchase price; if a
certificate
purchase is made at a merchant-specific web site, a merchant is charged a
commission of 5% of the value of the certificate which is withheld by the
operator of the system 10 from funds collected associated with the
certificate purchase; if a certificate purchase is made at a physical store
location where a certificate is generated using a point-of-sale device
integrated with the system 10, a merchant is charged a $0.35 fee per
certificate purchase transaction; or if a certificate purchase is made at a
physical store location where a merchant uses existing gift or cash
certificates upon which a sticker with certificate information associated
with the system 10 of the present invention is to be affixed, a merchant is
charged a $0.15 fee per certificate purchase transaction.
It will be understood by those skilled in the art, that the
particular commission structure that may be applied in the present
invention may be varied and is not limited to the commission structure
described above.
At step 130, a certificate is generated by database interface
module 42. A new certificate number is generated and assigned to the
certificate. In the preferred embodiment of the invention, new certificate
numbers are generated sequentially. The newly generated certificate is
also assigned a randomly-generated validation number by the database
interface module 42. The certificate also comprises a value, and a
merchant location or list of merchant locations, or one or more identifiers
therefor, where the certificate may be redeemed. The certificate may also
comprise other items such as an expiry date, or a personalized message.
At step 130, an electronic mail confirmation may also be
delivered to the purchaser confirming that the certificate has, in fact, been
sent to the recipient.
Further, at step 130, the certificate is also marked in the
certificate database 44 as not yet having been redeemed or validated.
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After the steps of Figure 4 are completed, the gift certificate is
deemed to be active by the system 10 for processing certificates, and is
immediately ready for redemption by a recipient 34. The flow of method
steps then proceeds to step 132, which marks the end of a certificate
purchase.
It will be understood that while step 102 of Figure 3 has been
described as effected by an Internet connection, it is also possible for a
certificate purchase to be made at a participating store location, and then a
certificate can then be electronically transmitted to the recipient 34, and/or
a printed certificate can be produced for the recipient 34.
Referring to Figure 5, the details of a certificate validation
(step 108 of Figure 3) are shown, and which commence at step 140. As
noted above, the steps in a certificate validation are performed in real-
time. At step 142, an item of input information (for example, the
certificate number, the validation number, the merchant identifier, the
certificate value) required to validate a certificate is entered as input by a
merchant 36 honoring the certificate. Input is entered using a touch-tone
telephone through an interface of the system 10 for processing certificates,
namely the telephony server 46 and phone daemon 74. Voice prompts
indicate to the merchant 36 what items of data pertaining to the certificate
being validated need to be entered. Input is entered by the merchant 36 by
generating touch-tone responses to the prompts using the touch-tone
telephone. A merchant 36 can validate a certificate by dialing a designated
toll-free number, and connecting to the telephony server 46 and phone
daemon 74 to interact with the database interface module 42, thus allowing
access to the information in the certificate database 44 in real-time.
At step 144, the input information obtained at step 142 is
processed by the database interface module 42. Input information received
at step 142 is compared to the information pertaining to the certificate in
the certificate database 44.
At step 146, the database interface module 42 determines
whether the input information is consistent with the information
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recorded in the certificate database 44. If the input information is not
consistent with the information recorded in the certificate database 44, an
error message is outputted indicating that the certificate is invalid at step
148. As indicated at step 149, if the system 10 for processing certificates
permits the merchant 36 to re-enter data, the flow of method steps
proceeds back to step 142 where another item of input information
required to validate the certificate is received again, otherwise the flow of
method steps proceeds to step 156 which marks the end of a certificate
validation. The database interface module 42 may be programmed to
permit data to be re-entered for a limited or unlimited number of times.
Alternatively, if at step 146 the database interface module 42
determines that the inputted data is not consistent with the information as
recorded in the certificate database 44, the flow of method steps proceeds to
step 150. At step 150, the database interface module 42 checks if any other
input information is required to complete the certificate validation. If so,
the flow of method steps proceeds back to step 142 where the next item of
input information is entered. Otherwise, the flow of method steps
proceeds to step 151, where the certificate database is updated to indicate
that certificate has been redeemed and validated.
Subsequently, at step 152, the database interface module 42
initiates, through a bank 32, an electronic transfer of funds from the
certificate account where funds were stored at step 130 of Figure 4, to an
account of the merchant 36 honoring the certificate. The bank 32 sends a
confirmation of the funds transfer to the merchant 36.
At step 154, information pertaining to the certificate
validation is outputted to the merchant 36. The merchant 36 is informed
that the certificate is valid, and an authorization code is issued to the
merchant 36 as a record of the transaction. The flow of method steps then
proceeds to step 156 which marks the end of a certificate validation.
Examples of screens seen in a browser 50 during a certificate
purchase are shown in Figures 6 and 7, where the certificate purchase is
being made at a central certificate distribution web site.
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Referring to Figure 6, a certificate information screen 200 is
shown where information pertaining to the certificate being purchased for
a selected merchant 36 is to be entered by a certificate buyer 30. The
certificate information screen 200 comprises several input fields: a
recipient name field 210, a certificate value field 212, a certificate
delivery
date field 214, a personalized message field 216, an electronic mail address
field 218, and postal address fields 220.
Referring to Figure 7, a payment information screen 230 is
shown where information pertaining to payment information of the
certificate buyer 30 is entered. The payment information screen 230
comprises several input fields: a credit card type field 240, a credit card
number field 242, an expiry date field 244, a credit cardholder name field
246, a certificate sender name field 248, and a receipt electronic mail
address field 250.
Referring to Figure 8, the certificate received by the recipient
34 by electronic mail is shown. The information shown on the certificate
comprises, for example, a gift certificate number, a validation number, a
gift certificate value, an expiry date, merchant information indicating
where the certificate may be redeemed, and the personalized message
submitted by the certificate buyer 30 at the time the certificate was
purchased.
Although a certificate, in this specification and in the claims,
primarily refers to a gift certificate or cash certificate redeemable at a
merchant establishment, a certificate generally refers to any voucher of
value including a gift certificate, a cash certificate, a credit note, a
coupon,
any item of value, or any item having no cash value but which may be
redeemed by one party, for goods, services, or cash, and honored by
another party. Furthermore, a party honoring a certificate need not be
limited to a merchant or an employee of a merchant establishment.
In variant embodiments of the invention, a certificate can be
purchased using one of several different methods, for example through a
web site operated by a specific merchant, through a point-of-sale device,
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through the telephone, or by any other device capable of communicating,
transmitting, or receiving data, including cellular phones, telephones with
or without displays, pagers, hand-held electronic devices primarily used
for storing and managing data (for example, a Palm PilotTM as is presently
popular), wireless communication devices, any communication means
over a network, or any communication means over the Internet.
A point-of-sale device may connect to the components of the
certificate management unit 20 through a telephone line, in which case
access to the database interface module 42 may be made through a
telephony server 46. Alternatively, the point-of-sale device may be
connected by a network connection or other means to the components of
the certificate management unit 20. Access to the database interface
module 42 by telephone may also be made through a telephony server 46.
In variant embodiments of the invention, information may
be transmitted to the components of the certificate management unit 20
using secure data transmission methods, non-secure data transmission
methods, or a combination of the two methods.
In variant embodiments of the invention, information
pertaining to a certificate may be represented differently than described in
the preferred embodiment. For example, a certificate number and a
validation number can be combined to form a single certificate number, or
several certificate and validation numbers could be used to uniquely
define a certificate.
In variant embodiments of the invention, payment for a
certificate may be made through a debit of an account at a bank 32, through
any electronic transfer of funds, by cash, or any payment means as is
known.
In variant embodiments of the invention, a certificate may be
purchased at a physical store location by a certificate buyer 30, using any
known means of payment. The certificate purchased may be generated by
a point-of-sale device, or other device integrated with the system 10 for
processing certificates. Alternatively, existing paper certificates used by a
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merchant 36 may be issued, in which case certificate information as
generated by the system 10 for processing certificates may be printed or
written on the paper certificate, or printed or written on a sticker or decal
to be affixed to the paper certificate, or printed or written on any paper,
form, or other document to be attached to the paper certificate or which
accompanies the paper certificate.
In variant embodiments of the invention, a generated
certificate can be delivered to a recipient by means other than by electronic
mail, including: by postal mail; by personal delivery, if for example, the
certificate was purchased at a physical store location; or by any other device
capable of communicating, transmitting, or receiving data, including
cellular phones, telephones with or without displays, pagers, hand-held
electronic devices primarily used for storing and managing data (for
example, a Palm PilotTM as is presently popular), wireless communication
devices, any communication means over a network, or any
communication means over the Internet.
In variant embodiments of the invention, information
associated with a generated certificate may be copied onto paper, a form,
document, or any other instrument, digital or otherwise, capable of
recording information, for subsequent certificate redemption and
certificate validation. This is possible since only the information
contained in a certificate is required for redemption and validation, and
not the form in which the information is stored, transmitted or received.
In variant embodiments of the invention, certificate
validation may be made through a web-based interface. A simple form
containing fields for entering required information for a certificate
validation is provided to a merchant 36. Upon submission of
information to the database interface module 42 which accesses
information in the certificate database 44, an authorization code may be
returned to the merchant 36 in real-time if the certificate is determined to
be valid. Alternatively, certificate validation may be performed by an
merchant 36 operating a web site either initiated manually, or performed
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automatically by a module programmed to perform certificate validations.
In variant embodiments of the invention, certificate
validation may be made through a point-of-sale device. A merchant 36
would enter the required information for a certificate validation
information through their point-of-sale device. That information may
then transmitted by a network connection to the database interface module
42 in a data packet using a protocol compatible with the specific point-of-
sale device used by the merchant 36. The information is then processed by
the database interface module 42 and the certificate is subsequently either
considered valid or declined. A return data packet transmits this
information back to the merchant 36.
In variant embodiments of the invention, certificate
validation may be made through a point-of-sale device connected to the
components of the certificate management unit through a telephone line.
A telephony server 46 may provide the point-of-sale device with an
interface to the database interface module 42.
In variant embodiments of the invention, certificate
validation may be made by telephone where an interface to the database
interface module 42 is provided capable of accepting voice inputs, or a
combination of touch-tone inputs and voice inputs.
In variant embodiments of the invention, certificate
validation may be made using any device capable of communicating,
transmitting, or receiving data, including cellular phones, telephones with
or without displays, pagers, hand-held electronic devices primarily used
for storing and managing data (for example, a Palm PilotT~'' as is presently
popular), wireless communication devices, any communication means
over a network, or any communication means over the Internet.
In variant embodiments of the invention, a transfer of funds
directly to an account of the merchant 36 honoring the certificate may
occur at the time of certificate purchase, and not during a certificate
validation.
In variant embodiments of the invention, a transfer of funds
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may be made directly to an account of the merchant 36 honoring the
certificate from the certificate buyer 30, or from an account of the
certificate
buyer 30, without the need for funds to be directed through a certificate
account.
With respect to certificate validation, in variant
embodiments of the invention, a database interface module 42 may
require all data items pertaining to a certificate being validated to be
entered before determining whether or not a certificate is valid.
With respect to the elements of the system 10 for processing
certificates described in this specification, it will be apparent to those
skilled in the art that the execution of various tasks associated with the
processing of a certificate need not be performed by the particular
component specified in the description of the preferred embodiment of the
invention. For example, it will be obvious to those skilled in the art that
the performance of steps (or parts thereof) by the database interface module
42 in the preferred embodiment of the invention may be performed by
several modules, and/or distributed across several modules. As a further
example, the steps performed by certificate delivery module 48 may be
performed by the database interface module 42, or other module. It will
also be obvious to those skilled in the art that information stored in
certificate database 44, may instead be distributed across several storage
means.
As will be apparent to those skilled in the art, other various
modifications and adaptations of the system and methods described herein
are possible without departing from the present invention, the scope of
which is defined in the claims.
