Smart card with product substantiation system and method

RELATED APPLICATIONS

0001The present application claims the benefit of U.S. Provisional Application No. 61/475,993, filed Apr. 15, 2011.

FIELD OF THE INVENTION

0002The present application relates to the field of smart cards. More particularly, the described embodiments relate to a system and method in which smart cards designed for use in implementation of WIC (Women, Infants & Children) programs are further used in the implementation of promotional offers.

BRIEF DESCRIPTION OF THE DRAWINGS

0003<figref idref="DRAWINGS">FIG. 1</figref> is a system diagram showing the primary components of one embodiment of the present invention.

0004<figref idref="DRAWINGS">FIG. 2</figref> is a table showing pricing types and their descriptions.

0005<figref idref="DRAWINGS">FIG. 3</figref> is a block diagram showing the relationship between smart card data and a first set of APL data.

0006<figref idref="DRAWINGS">FIG. 4</figref> is a block diagram showing the relationship between smart card data and a second set of APL data.

0007<figref idref="DRAWINGS">FIG. 6</figref> is a flow chart showing the relationships between data in a second embodiment.

0008<figref idref="DRAWINGS">FIG. 7</figref> is a block diagram showing the major components of one embodiment of the present invention.

DETAILED DESCRIPTION

Overview

0009The present invention involves a new processing technique for smart cards. The preferred embodiment is enabled by a platform created by the assignee of the present invention, which is called the Solutran Super Smart Card Platform (or “S3”). The technique for processing transactions on this system involves a number of components including a smart card, data and programming loaded into the smart card, a retailer Point-of-Sale system (POS), a smart card reader, a retailer Electronic Cash Register (ECR), a software program in the retailer's centralized store server, a file exchange between the retailer and the processor and a funds settlement protocol.

0010The foundation for this process is the current Women, Infants and Children's Electronic Benefit Transfer process (WIC EBT). This process was developed by the USDA's Food Nutrition Service in conjunction with the State of Texas, the State of New Mexico and the State of Wyoming. Details of this process can be found in the “Texas Department of Health Specification for Integrated WIC EBT Grocer Systems,” Version 1.5, Apr. 9, 2004 (which is hereby incorporated in its entirety).

0011The S3 platform will be used to drive a number of consumer incentive and benefit distribution programs. S3 smart cards will be distributed to cardholders, which can be used at participating retail locations. After inserting their S3 card into the retailer's smart card reader, users will be prompted to enter a Personal Identification Number (PIN). Once validated, incentives such as product discounts and free product samples will be made available to cardholders. Discount types, quantities, expiration dates and maximum spending limits will all be controlled by the S3 platform.

System Configuration

0012<figref idref="DRAWINGS">FIG. 1</figref> shows a system <b>100</b> implementing one embodiment of the present invention. A point of sale or electronic cash register (POS/ECR) computer system <b>110</b> is provided to process items provided for purchase by a consumer. The POS/ECR system <b>110</b> preferably includes a set of software instructions or interfaces <b>122</b> stored on a non-volatile, non-transitory, computer readable medium <b>120</b> such as a hard drive or flash memory device. The software instructions <b>122</b> inform the POS/ECR system <b>110</b> how to perform the methods of the present invention, including the identification of S3 cards, the identification of promotion types, the identification of promotion quantities, the calculation of transaction discounts, the updating of S3 smart cards for correct promotion quantities and the generation of claims for funds settlement.

0013A digital processor <b>112</b> in the POS/ECR system <b>110</b>, such as a general purpose CPU manufactured by Intel Corporation (Mountain View, Calif.) or Advanced Micro Devices, Inc. (Sunnyvale, Calif.) accesses and performs the software <b>122</b>. To improve efficiency, the processor <b>112</b> may load software <b>122</b> stored in non-transitory memory <b>120</b> into faster but volatile RAM <b>114</b>. Data operated upon by the software <b>122</b> can also be stored in non-volatile memory <b>120</b> and retrieved into RAM <b>114</b> for analysis, recording, and reporting. Data relevant to the disclosed embodiments of the present invention are an approved product list (or APL) <b>124</b> and a hot card list (or HCL) <b>126</b>. The POS/ECR system <b>110</b> preferably further includes a network interface <b>116</b> to communicate with other computerized devices across a digital data network <b>130</b>. In one embodiment, the network <b>130</b> is the Internet, and the network interface <b>116</b> includes TCP/IP protocol stacks for communicating over the network <b>132</b>. The network interface <b>116</b> may connect to the network <b>132</b> wirelessly or through a physical wired connection. Instead of being a single device with a single processor, the POS/ECR system <b>110</b> could also implemented using a network of devices all operating according to the instructions of the software, or a network of independent devices communicating with a server. In one embodiment, a retailer implements the ECR system <b>110</b> as a plurality of electronic cash registers at each checkout lane, with each electronic cash register in communication with a central server physically located in the back office of the retailer's store location.

0014The POS/ECR system <b>110</b> is in electrical connection with a scanner or terminal <b>130</b>. This scanner <b>130</b> is designed to read data off of a smart card <b>140</b>. The smart card <b>140</b> itself contains a processor <b>142</b> and smart card software <b>144</b> that operates on the processor <b>142</b>. In addition, the smart card <b>140</b> contains a physical, non-volatile memory <b>146</b> that contains data <b>148</b>-<b>162</b> that is stored on and manipulated by the smart card <b>140</b>. The software <b>144</b> can be stored on the same memory device <b>146</b> as the data, or can be stored in some other physical, computer readable storage medium. The data <b>148</b>-<b>162</b> contains promotional values specific to each consumer and tells the POS/ECR system <b>110</b> how to reduce the purchase price for specific products in the checkout basket. The scanner <b>510</b> can read this card data off of the card <b>140</b>, and provides the data to the POS/ECR system <b>110</b>. This information is compared to hot card list or HCL <b>126</b> for authentication of the smart card <b>140</b> and compared to the approved product list or APL <b>124</b> to allow and compute product promotions.

0015The POS/ECR system <b>110</b> communicates over the network <b>132</b> with a central server computer <b>170</b>. The primary purpose of the communication is to upload claim files from the ECR system <b>110</b> to the server <b>170</b>, and to download APL <b>124</b> and HCL <b>126</b> information from the server <b>170</b> to the ECR system <b>110</b>. In one embodiment, the APL <b>124</b> is downloaded to retailers each night and contains information on the currently running promotions and the qualifying products via specific product identifiers (UPC's and PLU's). The APL information <b>124</b> is correlated with the smart card data <b>148</b>-<b>162</b> to inform the ECR system <b>110</b> which individual products are allowed a promotion and the rules for that promotion. The POS/ECR system <b>110</b> can then determine the extent to which the consumer has utilized those promotions by examining the data on the smart card <b>140</b>. By changing the APL <b>124</b> stored on the ECR system <b>110</b> frequently, the promotions can be frequently changed without having to reprogram the data on the smart card <b>140</b>. By using a smart card <b>140</b> instead of a “dumb” identification card, prior usage of promotions can be tracked inside the card <b>140</b> to ensure that users to not exceed limits placed on the promotion.

0016Like the ECR system <b>110</b>, the server computer <b>170</b> has a processor <b>172</b> to perform programming instructions, RAM <b>174</b> to speed up the handling of instructions and data, a network interface to allow communication with other computerized devices (such as ECR system <b>110</b>) over the network), and tangible, non-volatile, computer-readable memory <b>178</b> such as a hard drive or flash memory. The memory <b>178</b> contains the server software <b>180</b> that operates on the processor <b>172</b> and performs the computer-implemented methods described below. The server <b>170</b> also maintains on memory <b>178</b> a hot card list or HCL <b>182</b> that identifies smart cards (such as card <b>140</b>) that are no longer valid. By maintaining a central list of card identifiers that have been lost, stolen, or otherwise inactivated in the HCL <b>182</b>, this information can be shared frequently with a variety of retailers in order to prevent fraudulent or otherwise inappropriate use of smart cards <b>140</b>. The server <b>170</b> also maintains an approved product list or APL <b>190</b>. In the preferred embodiment, the APL itself contains four types of information, namely a product identifier <b>192</b>, a promotion identifier <b>194</b>, a price type <b>196</b>, and a product list <b>198</b>. This information is regularly shared with ECR systems <b>110</b> of various retailers in order for the ECR software <b>122</b> to properly allow promotions under the system <b>100</b>. By regularly updating the APL <b>124</b> stored at a retail location through downloads from the APL <b>190</b> stored at a central server <b>170</b>, changes to the promotions can be centrally made and downloaded frequently to individual retail locations. In the preferred embodiment, separate APLs <b>190</b> can be created at maintained at the server <b>170</b> for different retailers. The particular APL <b>190</b> downloaded to an ECR <b>110</b> will then be determined based upon the retailer and location of the ECR <b>110</b> receiving the data.

S3 Platform Structure—Data Used

0017The S3 platform design is flexible to accommodate many program designs. In order to understand how programs can be structured, it is important to understand three elements: i) the information stored on the card; ii) the information stored in the Approved Product List (APL); and iii) the information stored in the retailer Electronic Cash Register system (ECR).

Information Stored on the Card

0018Each S3 smart card <b>140</b> contains a smart chip including a processor <b>142</b>. The card includes application software <b>144</b> that manages card information and interoperability with the ECR <b>110</b>. Information regarding each promotion is also preloaded onto cards <b>140</b>. Certain key data elements drive card functionality and are listed below: <ul id="ul0001" list-style="none"><li id="ul0001-0001" num="0000"><ul id="ul0002" list-style="none"><li id="ul0002-0001" num="0019">Program ID <b>148</b>—Each card program gets a program ID.</li><li id="ul0002-0002" num="0020">Promotion ID <b>150</b>—Inside each program is multiple promotions. These promotions could be currently in use or reserved for future use. Each program can hold 99 promotions.</li><li id="ul0002-0003" num="0021">Quantity <b>152</b>—Quantity of benefits cardholder can receive for each promotion. Value is stored as a number and can refer to either dollar ($) amounts or number of product units. Each promotion can hold up to 999 units.</li><li id="ul0002-0004" num="0022">Benefit Start <b>154</b>—First date that promotion benefits are available to cardholder</li><li id="ul0002-0005" num="0023">Benefit End <b>154</b>—Last date that promotion benefits are available to cardholder (the benefit start and end information is shown combined as use dates <b>154</b> in <figref idref="DRAWINGS">FIG. 1</figref>)</li><li id="ul0002-0006" num="0024">Promotion Type <b>156</b>—A description of each promotion. Available Types include: <ul id="ul0003" list-style="none"><li id="ul0003-0001" num="0025">Discount Percentage (%)</li><li id="ul0003-0002" num="0026">Discount Dollar Amount ($)</li><li id="ul0003-0003" num="0027">Free item</li><li id="ul0003-0004" num="0028">Buy-One-Get-One-Free</li></ul></li><li id="ul0002-0007" num="0029">Promotion Value <b>158</b>—A value associated with each Promotion Type. This value could describe the number of percent or dollar amount discounted.</li></ul></li></ul>

0030Each S3 smart card <b>140</b> also includes reload type information <b>160</b> that controls when promotions defined by data items <b>148</b>-<b>158</b> can be reloaded on the card <b>140</b>. In addition, the card <b>140</b> uses a primary account number or PAN <b>162</b> to identify the card account number.

Information Stored in the Approved Product List (APL)

0031The server <b>170</b> will transmit an Approved Product List (APL) <b>190</b> to participating retailers. The APL <b>190</b> (item <b>124</b> when stored on the ECR <b>110</b>) contains detailed information regarding specific product promotions. A few data elements are the same as the items listed above in “Information stored in the card,” and are used to map card elements to APL data. The APL <b>190</b> contains specific UPC or other product codes that determine specific program functionality. Key data elements in the APL <b>190</b> include: <ul id="ul0004" list-style="none"><li id="ul0004-0001" num="0000"><ul id="ul0005" list-style="none"><li id="ul0005-0001" num="0032">Program ID <b>192</b>—Each card program gets a program ID.</li><li id="ul0005-0002" num="0033">Promotion ID <b>194</b>—Inside each program is multiple promotions. These promotions could be currently in use or reserved for future use. Each program can hold 40 promotions</li><li id="ul0005-0003" num="0034">Product List <b>198</b>—Each promotion is mapped to a single or multiple UPC's. The system <b>100</b> can also identify products using PLU's or other category classifications. This list of products represents an all-inclusive list of items included in each unique Promotion ID <b>194</b>.</li><li id="ul0005-0004" num="0035">Price Type <b>196</b>—This numeric field is used to describe the discounting logic that the ECR will use for each promotion and its related products. The APL will contain a numeric value between 1 and 99. Example price types <b>196</b> are shown in the table of <figref idref="DRAWINGS">FIG. 2</figref>, along with an explanation of these values. The retailer ECR will have stored logic to identify each value with a corresponding price discounting protocol. Examples include: <ul id="ul0006" list-style="none"><li id="ul0006-0001" num="0036">Discount percentages (%) with a dollar ($) cap on each promotion</li><li id="ul0006-0002" num="0037">Discount dollar amounts ($) with a dollar cap on each promotion</li><li id="ul0006-0003" num="0038">Free items with a quantity cap on each promotion</li></ul></li></ul></li></ul>

S3 Platform Structure—Program Design

How the S3 Platform Components

110

,

130

,

140

,

170

Interact

0039Below is a sample program where all S3 cards <b>140</b> are loaded with a sample program. No configuration exists in this example for customized benefits by consumer. Rather, all changes to program design are handled through changes to the APL <b>124</b>, <b>190</b>. This example will be used to describe how the S3 card <b>140</b>, APL <b>124</b>, <b>190</b> and ECR logic <b>122</b> interact to create a fully functional S3 platform <b>100</b>. The information stored on the card <b>140</b> and in the APL <b>124</b> in the ECT <b>110</b> at program launch is shown in <figref idref="DRAWINGS">FIG. 3</figref>.

0040Given this program configuration, consumers could use this card to get the following: <ul id="ul0007" list-style="none"><li id="ul0007-0001" num="0000"><ul id="ul0008" list-style="none"><li id="ul0008-0001" num="0041">25% off various Pampers product offerings up to a $50 maximum discount amount</li><li id="ul0008-0002" num="0042">One free Pampers (Baby-Dry Diapers Size 2 Both Jumbo Pack—12-18 lbs.)</li></ul></li></ul>

0043This is seen by comparing the program and promotion IDs <b>192</b>, <b>194</b> on the APL <b>190</b> with the program and promotion IDs <b>148</b>, <b>150</b> on the card <b>140</b>. Those products listed in the first row of the APL <b>190</b> (assuming the IDs in the product list to be Pampers products) are associated with a program and promotion ID both being equal to 1, and a price type of 6. <figref idref="DRAWINGS">FIG. 1</figref> shows that a price type of 6 is a percent discount with a dollar cap. The first row of the information on the card <b>140</b> shows that when the program and promotion ID are equal to 1, the promotion value is 25 and the quantity is 50. In light of the price type, that indicates a 25% discount, with a maximum discount in a benefit period being limited to 50 currency units (i.e., dollars).

0000How to Modify Cardholder Benefits after Program Launch

0044After the program is launched, the APL can be modified to change program benefits. The diagrams in <figref idref="DRAWINGS">FIG. 4</figref> show the effect of adding UPC's to Promotion ID #3. In this example, the UPC added is a 50 oz. Tide product. No information is changed on the S3 Card.

0045Given this program configuration, consumers could use this card to get the following: <ul id="ul0009" list-style="none"><li id="ul0009-0001" num="0000"><ul id="ul0010" list-style="none"><li id="ul0010-0001" num="0046">New promotion—$1.00 (or “100” cents as specified in the promotional value <b>158</b>) off 50 oz. Tide</li><li id="ul0010-0002" num="0047">25% off various Pampers product offerings up to a $50 maximum discount amount</li><li id="ul0010-0003" num="0048">One free Pampers (Baby-Dry Diapers Size 2 Both Jumbo Pack—12-18 lbs.)</li></ul></li></ul>

Using the APL to Modify Program Structure

0049In one embodiment, the S3 system <b>100</b> can manage up to 99 different promotions. Obviously, variations of this invention could be structured to hold more than 99 programs. Each promotion can be structured to hold different discount types, quantities, start dates and end dates. This flexibility allows program managers to pre-configure a variety of programs that could be used in the future. These may never be used, but they are created to allow future program flexibility. Changes to the APL can immediately “turn on” these benefits for cardholders.

0050Below are a few promotional examples. For each example the corresponding card configuration APL structure is outlined. These examples show how the S3 Card can be modified over time to create interesting and flexible promotions. <ul id="ul0011" list-style="none"><li id="ul0011-0001" num="0000"><ul id="ul0012" list-style="none"><li id="ul0012-0001" num="0051">1) Allowing one (1) free product every quarter. <ul id="ul0013" list-style="none"><li id="ul0013-0001" num="0052">a. Card configuration—separate promotion for each quarter, value=100% discount, quantity—1.</li><li id="ul0013-0002" num="0053">b. APL configuration—Appropriate UPC's loaded under current quarter's promotion ID. Multiple UPC's can be added, allowing consumers to “pick” their free product from an approved list.</li></ul></li><li id="ul0012-0002" num="0054">2) Changing discount percentage from 10% to 25% on various products. <ul id="ul0014" list-style="none"><li id="ul0014-0001" num="0055">a. Card configuration—separate promotion ID's for each discount rate, values=10% and 25% discount, quantities=999 for both.</li><li id="ul0014-0002" num="0056">b. APL configuration—Appropriate UPC's loaded under each promotion ID. In this example, all UPC's would initially be loaded into the 10% discount promotion. At a future date, UPC's would be transferred to the 25% discount promotion ID.</li></ul></li><li id="ul0012-0003" num="0057">3) Allowing “free gifts” to be selected by the consumer from a pre-determined list of products. In this example, allow three (3) free gifts for each new consumer. <ul id="ul0015" list-style="none"><li id="ul0015-0001" num="0058">a. Card configuration—a separate promotion ID's is created, value=100% discount, quantity—3.</li><li id="ul0015-0002" num="0059">b. APL configuration—Appropriate UPC's loaded under corresponding promotion ID. Multiple UPC's can be added, allowing consumers to “pick” their three free products from an approved list.</li></ul></li></ul></li></ul>

0060These examples are meant to describe the flexibility of the S3 platform. Many additional programs possibilities exist given the platform's flexible configuration.

Promotional Distinctions

0061The above structure creates numerous benefits, including: <ul id="ul0016" list-style="none"><li id="ul0016-0001" num="0000"><ul id="ul0017" list-style="none"><li id="ul0017-0001" num="0062">Generate revenue with brand loyalty and build long-term relationships between merchandisers/retailers and consumers.</li><li id="ul0017-0002" num="0063">Highly secure to reduce or eliminate fraud.</li><li id="ul0017-0003" num="0064">Next generation marketing intelligence captures trends, purchases, and needs.</li><li id="ul0017-0004" num="0065">Green solution reduces environmental footprints.</li><li id="ul0017-0005" num="0066">Smart card applications are controlled at the UPC specific level.</li><li id="ul0017-0006" num="0067">Turnkey market data drives sales.</li><li id="ul0017-0007" num="0068">Solutran offers full-range of services from collecting website information to retail payment delivery.</li><li id="ul0017-0008" num="0069">Detailed utilization trend reports.</li><li id="ul0017-0009" num="0070">Eliminate unnecessary costs with paper coupons and excessive packaging.</li><li id="ul0017-0010" num="0071">Solutran creates customized smart cards branded with your name and logo.</li><li id="ul0017-0011" num="0072">Streamlines the settlement process between the merchandiser and retailer.</li></ul></li></ul>

0073Using the described embodiments, it is possible to create a fully branded, customized portal. We create a data-gathering portal that customizes query information with your name, company colors, and distinct personality. Each card application has its own screen, making it easy for merchandisers and retailers to access. Editing capabilities make it simple to change promotions and product offerings, with privacy secured at all times.

0074Another benefit is that consumers enter their data online. Consumers fill out a short form with brief, required information on the appropriate application screen. PIN numbers are given for identification purposes. Information is processed through Solutran channels and delivered to merchandisers and retailers for use in enhancing marketing efforts, communication, and building customer relationships.

0075In addition, accumulated benefits are viewable as long as the card is active. Consumers can log onto their accounts around the clock to check benefits and retrieve discount, prebate, and product information.

Potential Uses

0076The S3 Card can be used to drive employee engagement in healthy living though incentives to eat better by developing a wellness card. By offering price discounts on healthy foods, employers can create a healthier, happier and more productive workforce. The S3 card will keep track of monthly benefit allowances and product discounts used. For example, a typical program may offer “25% off fruits and vegetables, up to a maximum benefit of $50/month.” Similarly, S3 allows product promotions for wellness-related products such as vitamins and diabetes test strips. The applications for a S3 wellness program are broad and unique.

0077Discount card can be developed whose benefits include i) generating revenue with brand loyalty—know who uses your discounts and what products they purchase; ii) eliminating paper coupon management, which saves labor for retailers, merchandisers, and consumers; iii) reducing fraud, risk of taking expired coupons, and loss from misplaced coupons and mailings; and iv) easy-to-read reports indicate redemption trends, retailer payments, and promotion performance.

0078Prebate card can be developed whose benefits include i) investing consumers in the purchase process; ii) creating buying incentives by providing a branded card with rebate money in hand; iii) reducing paper rebate fulfillment costs; tracking data redemption within days of usage; iv) increasing consumer satisfaction with up-front discounts; and v) creating future marketing to known buyers via market intelligence (after TV sales, you can promote monster cables, blue-ray, etc.).

0079Product sample card can be developed whose benefits include i) targeting your market with meticulous precision through consumer online registration website information; ii) more cost-effective compared to traditional product fulfillment packaging/shipping costs; iii) streamlining the product sample process by simplifying delivery through smart card use; iv) identifying future marketing opportunities based on buying trends; and v) leaving a lighter footprint on the environment by reducing waste.

0080Target market card can be developed whose benefits include i) the ability to build customized programs designed for each target market to drive sales; ii) uniquely branded cards for each promotion; iii) flexible card can structure promotions by product category or at the UPC level; iv) detailed reporting of consumer usage—by product, by store, and by day to help drive future promotions and sales; and v) supports channel partner programs on the same card.

Method

0081The method for utilizing the S3 platform is shown in <figref idref="DRAWINGS">FIGS. 5</figref><i>a </i>and <b>5</b><i>b</i>. Each step in this method is explained in the following chart.

0000<tables id="TABLE-US-00001" num="00001"><table frame="none" colsep="0" rowsep="0"><tgroup align="left" colsep="0" rowsep="0" cols="2"><colspec colname="1" colwidth="42pt" align="center" /><colspec colname="2" colwidth="175pt" align="left" /><thead><row><entry namest="1" nameend="2" align="center" rowsep="1" /></row></thead><tbody valign="top"><row><entry> Step 1</entry><entry>Products scanned and payment prompted to cardholder.</entry></row><row><entry> Step 2</entry><entry>Card chip contains benefit period (use dates 154),</entry></row><row><entry /><entry>program ID 148, promotion ID 150, quantity 152, and</entry></row><row><entry /><entry>primary account number (PAN) 162, which includes the</entry></row><row><entry /><entry>Solutran identification number for the approved product</entry></row><row><entry /><entry>list (APL) 124.</entry></row><row><entry /><entry>Additional unique Solutran S3 card features include:</entry></row><row><entry /><entry>Price Type 156: Defines discount variables</entry></row><row><entry /><entry>Promotion Value 158: Defines discount amounts</entry></row><row><entry /><entry>Dynamic Reload Capacity 160: Allows for automatic</entry></row><row><entry /><entry>benefit reload per calendar date</entry></row><row><entry> Step 3</entry><entry>Authentication includes the following:</entry></row><row><entry /><entry>Verify card as eligible S3</entry></row><row><entry /><entry>Read and verify PAN 162 to hot card list (HCL) 126</entry></row><row><entry /><entry>Authenticate participant to PIN</entry></row><row><entry /><entry>Identify S3 specific APL 124 for further processing</entry></row><row><entry> Step 4 </entry><entry>Yes: Proceed to reference POS date</entry></row><row><entry /><entry>No: the following must take place:</entry></row><row><entry /><entry>System allows PIN to be entered up to three times before</entry></row><row><entry /><entry>deactivation</entry></row><row><entry /><entry>Retailer notifies cardholder if card is invalid</entry></row><row><entry /><entry>Disable card if on HCL and direct cardholder to S3 portal</entry></row><row><entry /><entry>Retailer reports activity in claim file</entry></row><row><entry> Step 5 </entry><entry>POS date is used to identify the current benefit period on</entry></row><row><entry /><entry>the card to support S3 dynamic reload feature.</entry></row><row><entry> Step 6</entry><entry>Yes: Proceed to card benefit auto-reload.</entry></row><row><entry /><entry>No: No discounts available. Retailer reports activity to</entry></row><row><entry /><entry>Solutran via claim file.</entry></row><row><entry> Step 7</entry><entry>Current benefit period promotion discounts load to S3</entry></row><row><entry /><entry>card. This only occurs when dynamic reload is enabled on</entry></row><row><entry /><entry>the S3 card and benefits are available for the given benefit</entry></row><row><entry /><entry>period as identified by the POS date.</entry></row><row><entry> Step 8</entry><entry>Yes: Extract benefit details including promotion specific</entry></row><row><entry /><entry>codes and feed to the Retailer ECR system for APL</entry></row><row><entry /><entry>processing.</entry></row><row><entry /><entry>No: No discounts available. Retailer reports activity to</entry></row><row><entry /><entry>Solutran via claim file.</entry></row><row><entry> Step 9</entry><entry>ECR system takes benefit specific product codes and</entry></row><row><entry /><entry>maps to Retailer APL to retrieve UPC, PLU, or any other</entry></row><row><entry /><entry>product identifying detail.</entry></row><row><entry>Step 10</entry><entry>Promotion validation criteria requires S3 card program</entry></row><row><entry /><entry>ID, promotion ID, and price type to all match to the S3 APL.</entry></row><row><entry /><entry>Yes: Proceed to discount UPC matching.</entry></row><row><entry /><entry>No: No discounts available. Retailer reports activity to</entry></row><row><entry /><entry>Solutran via claim file.</entry></row><row><entry>Step 11</entry><entry>ECR system compares, at a UPC level, scanned items to</entry></row><row><entry /><entry>find associated matches.</entry></row><row><entry>Step 12</entry><entry>Yes: UPC match indicates benefits are available for</entry></row><row><entry /><entry>scanned product UPCs.</entry></row><row><entry /><entry>No: No discounts available. Retailer reports activity to</entry></row><row><entry /><entry>Solutran via claim file.</entry></row><row><entry>Step 13</entry><entry>ECR applies discount logic per the following:</entry></row><row><entry /><entry>Reference Price Type to identify discount variables</entry></row><row><entry /><entry>(values and limits).</entry></row><row><entry /><entry>Reference Card Promo-Value to identify discount</entry></row><row><entry /><entry>variable value.</entry></row><row><entry /><entry>Reference Card Quantity to identify discount limit.</entry></row><row><entry>Step 14</entry><entry>S3 card quantity decremented to reflect cardholder</entry></row><row><entry /><entry>discounts received.</entry></row><row><entry /><entry>A negative balance cannot be written to any card;</entry></row><row><entry /><entry>therefore split tender is required to allow cardholder to</entry></row><row><entry /><entry>settle balance.</entry></row><row><entry>Step 15</entry><entry>Yes: Proceed to end transaction.</entry></row><row><entry /><entry>No: Retailer records transaction activity, reports activity</entry></row><row><entry /><entry>via claim file, nullifies discounts, and returns card to</entry></row><row><entry /><entry>cardholder ensuring the current balance reflects balance</entry></row><row><entry /><entry>as of the start of the transaction.</entry></row><row><entry>Step 16</entry><entry>Receipt detail displays current transaction promotion</entry></row><row><entry /><entry>discounts and available benefit balance for current benefit</entry></row><row><entry /><entry>period. Cardholders can also access their personal benefit</entry></row><row><entry /><entry>summary via S3 consumer portal and/or kiosks.</entry></row><row><entry>Step 17</entry><entry>Retailer transmits claim file to Solutran for settlement.</entry></row><row><entry namest="1" nameend="2" align="center" rowsep="1" /></row></tbody></tgroup></table></tables>

Alternate Embodiment

0082<figref idref="DRAWINGS">FIG. 6</figref> shows another embodiment of the present invention with additional information data information. A point of sale/electronic cash register (POS/ECR) system <b>600</b> is provided to process items provided for purchase by a consumer. The POS/ECR system <b>600</b> is in electrical connection with a scanner/terminal <b>610</b>. This scanner <b>610</b> is designed to read data off of a smart card <b>620</b>. <figref idref="DRAWINGS">FIG. 6</figref> shows the smart card <b>620</b> containing the following types of data <b>522</b>: promo number, quantity <b>152</b>, start time <b>154</b>, end time <b>154</b>, P-Type 156, and P-Value <b>158</b>. The promo number includes the program ID <b>148</b> and the promotion ID <b>150</b> described above. The scanner <b>610</b> can read this card data off of the card <b>620</b>, and provides the data to the POS/ECR system <b>600</b>. The POS/ECR system <b>600</b> has access to an APL (or approved product list) <b>630</b>. The access can be local or remote over a network. The APL <b>630</b> is updated regularly, and provides the POS/ECR system <b>600</b> with information on the currently running promotions and the qualifying products. The APL <b>530</b> includes the following types of data: promo number <b>192</b>, <b>194</b>, UOM, PkgSize, BenQty, BenUnit, ItemPrice, PriceType <b>196</b>, EffDate, EndDate, and UPCs <b>198</b>.

0083The various parties to the entities that will participate in the system and method of the present invention are shown in <figref idref="DRAWINGS">FIG. 7</figref>. As shown in that figure, cardholders or users receive the benefits of using the card. The card itself plays a role in storing benefit information and receiving updates from the POS/ECR system. The card terminal must communicate between the card and the POS/ECR system, and is responsible for authentication of the card. Authentication can be through PAN and PIN, and also can be made against a hot card list (HCL) of invalid cards that is provided from the central server. The card terminal deactivates invalid cards. The POS/ECR system holds the transaction logic, and utilizes the information obtained from the APL and the card to verify, complete, and record successful promotion redemptions. Finally, the Solutran central server is responsible for providing the HCL and APL to the POS/ECR system, validating the claim file received from the retailer, and for settling payment obligations between the various parties.

0000Comparison with WIC EBT

Transaction Differences

0084Similar to the WIC EBT system, S3 uses a smart card payment platform to deliver food (and other) benefits to a target audience. The basic purpose of the WIC EBT platform is to deliver government benefits to a target population, WIC participants. As explained by the USDA, “the Special Supplemental Nutrition Program for Women, Infants, and Children—better known as the WIC Program—serves to safeguard the health of low-income women, infants, &amp; children up to age 5 who are at nutritional risk by providing nutritious foods to supplement diets, information on healthy eating, and referrals to health care” (http://www.fns.usda.gov/wic/aboutwic/). The purpose of the S3 platform is to process transactions that are fundamentally different in nature. In particular, the S3 platform is designed to deliver a variety of consumer marketing and other initiatives. These initiatives may include the following: <ul id="ul0018" list-style="none"><li id="ul0018-0001" num="0000"><ul id="ul0019" list-style="none"><li id="ul0019-0001" num="0085">Programs to deliver consumer product discounts to consumers</li><li id="ul0019-0002" num="0086">Programs to deliver free product samples to consumers</li><li id="ul0019-0003" num="0087">Programs to deliver buy-one-get-one-free product promotions to consumers</li><li id="ul0019-0004" num="0088">Programs to deliver medical plan benefits to insurance plan participants</li><li id="ul0019-0005" num="0089">Incentive programs designed to drive increased consumer engagement in wellness programs</li><li id="ul0019-0006" num="0090">Incentive programs designed to drive increased consumer use of specific products</li><li id="ul0019-0007" num="0091">Incentive programs designed to drive increased consumer engagement in healthy eating and healthy living programs</li><li id="ul0019-0008" num="0092">Incentive programs designed to deliver specific product discounts to consumers at the point-of-sale and replace product rebates with a product “prebate”</li><li id="ul0019-0009" num="0093">Loyalty programs to drive increased use of consumer products</li><li id="ul0019-0010" num="0094">Consumer marketing programs designed to replace paper coupons with smart-card digital coupons</li><li id="ul0019-0011" num="0095">Disaster relief benefit programs designed to deliver specific food or other product benefits to victims</li></ul></li></ul>

0096Due to the many target applications of S3, the functionality of this platform is significantly enhanced as compared to WIC EBT. The largest difference relates to the type of discount transactions that can be applied through the smart card platform. The WIC EBT provides for free benefits, thus the only transaction type available is the ability to make free food items available to the cardholder. In contrast, S3 offers additional discounting options beyond free food items. In particular, the S3 platform allows for i) percentage (%) discounts made available on food items for cardholders; ii) dollar ($) discounts made available on food items for cardholders; and iii) buy-one-get-one-free discounts made available on food items for cardholders.

0097An additional S3 enhancement includes enhanced functionality relating to funding of benefits to the card. S3 allow multiple entities to support the funding of its programs whereas WIC EBT does not include this capability. An S3 program will include multiple promotions inside each program. S3 allows for multiple funders for each individual promotion. This compares to WIC EBT that only allows one funder per program.

Structural Differences

0098S3 has modified the structure of various platform components to enable the enhanced functionality as compared to WIC EBT. A more detailed description of S3's platform design can be found below. The key differences of S3 as compared to WIC EBT relate to the functionality changes/additions to each of the following components:

0099S3 smart card compared to the WIC EBT smart card: <ul id="ul0020" list-style="none"><li id="ul0020-0001" num="0000"><ul id="ul0021" list-style="none"><li id="ul0021-0001" num="0100">Additional data elements added to the S3 card—price type <b>156</b>, promotion quantity <b>152</b>, reload type <b>160</b></li><li id="ul0021-0002" num="0101">Automatic reloading capabilities added to the S3 card—S3 has the capability to auto-reload cardholder benefits once the benefit time period expires. A trigger received from POS will activate software on the S3 card to reload a new benefit period, according to pre-established business rules, and replenish benefits to the cardholder. This compares to WIC EBT that does not have this capability.</li></ul></li></ul>

0102S3 Approved Product List (APL) <b>124</b>, <b>190</b> compared to the WIC EBT APL: <ul id="ul0022" list-style="none"><li id="ul0022-0001" num="0000"><ul id="ul0023" list-style="none"><li id="ul0023-0001" num="0103">Additional codes used in the APL to identify new price types <b>196</b></li><li id="ul0023-0002" num="0104">An additional record type to signify groupings of products. This record type will include new fields for department, class and subclass. Use of this record type will allow simplifications of product identification. Rather than identifying individual products by individual UPC's and PLU's (e.g. representing apples and bananas), product can be identified by department (e.g. produce).</li></ul></li></ul>

0105S3 software installed at retailer POS/ECR System <b>110</b><ul id="ul0024" list-style="none"><li id="ul0024-0001" num="0000"><ul id="ul0025" list-style="none"><li id="ul0025-0001" num="0106">Functionality added to trigger card's auto-reload—current date passed to card at transaction start</li><li id="ul0025-0002" num="0107">Functionality added to identify information off S3 card at transaction start <ul id="ul0026" list-style="none"><li id="ul0026-0001" num="0108">Price type</li><li id="ul0026-0002" num="0109">Promotion value</li></ul></li><li id="ul0025-0003" num="0110">Functionality added to interpret price type field in the S3 APL</li><li id="ul0025-0004" num="0111">Functionality to compare and validate price type field in the APL vs. price type field on the S3 card. These values must match to allow processing of an S3 transaction.</li><li id="ul0025-0005" num="0112">Functionality added to interpret quantity field on S3 card based on the corresponding promotion price type field in the S3 APL</li><li id="ul0025-0006" num="0113">Functionality added to apply discounts to each purchase that corresponds to the following information—specific promotions available on S3 card, specific products available in the S3 APL, price (discount) types in the S3 APL, quantities on the S3 card for each promotion</li><li id="ul0025-0007" num="0114">Functionality added to disallow discounted transactions that exceed the Item Price field in the S3 APL</li></ul></li></ul>

0115Of course, the system and methods described above are exemplary and are not the exclusive techniques for using the disclosed embodiments. Numerous modifications and variations will readily occur to those skilled in the art. Since such modifications are possible, the invention is not to be limited to the exact construction and operation illustrated and described. Rather, the present invention should be limited only by the following claims.