Method and system for processing supplementary product sales at a point-of-sale terminal

METHOD AND SYSTEM FOR PROCESSING

SUPPLEMENTARY PRODUCT SALES

AT A POINT OF SALE TERMINAL

FIELD OF THE INVENTION

0005The present invention relates to point-of-sale terminals, and, more specifically, to

0006methods and systems for processing product sales at point-of-sale terminals.

BACKGROUND OF THE INVENTION

0008This invention relates to a lottery ticket transaction system. More particularly, the

0009present invention relates to a system and a method for selling lottery tickets using point-of-

0010sale ("POS") terminals that generate sales receipts containing both merchandise sales

0011information and lottery ticket information.

0012Many states in the United States, as well as some foreign countries, have

0013government-conducted lottery systems. Government-conducted lotteries offer the public a

0014desirable product (usually the chance to win a large cash prize), and have the benefit of

0015increasing governmental revenues without burdening the public with additional or increased

0016taxes. In many instances, the revenue generated from a governmental lottery is dedicated to

0017a particular purpose or goal, such as improving the education system or reducing property

0018taxes.

0019In a typical government-conducted lottery system, a central lottery computer is used

0020to communicate with dedicated lottery terminals. A player selects numbers on a lottery

0021playslip, and the lottery terminal operator inserts the lottery playslip into a reader at the lottery terminal, which optically reads the lottery playslip using a known mark-sense

0022process. The dedicated lottery terminal then communicates the player's selected numbers to

0023a central lottery computer which in turn stores them. After the lottery numbers have been

0024stored, the dedicated lottery terminal, under the control of the central lottery computer,

0025prints and issues the lottery ticket.

0026One popular lottery game, known as "lotto," typically requires the player to choose

0027six numbers from one to forty-two. The selected group of numbers are then compared to the

0028winning lottery numbers, which have been randomly selected from the larger pool of

0029numbers, from one to forty-two, at some specified time and date after purchase of the lotto

0030ticket, usually once or twice each week. To win a prize, the lotto ticket numbers must be

0031equal to all or some of the winning lottery numbers.

0032While players may select their own lottery numbers, most lotto games provide the

0033option of having the central lottery computer system select random "quick-pick" lottery

0034numbers instead. This saves the purchaser the time and inconvenience of picking his or her

0035own numbers. These automatic lottery number generation systems are usually known as

0036"quick-pick" systems.

0037A variety of games may be played in a typical lottery. In conventional lottery games,

0038a player purchases a lottery ticket. Inscribed on that lottery ticket are one or more lottery

0039numbers and a serial number. The serial number functions as a simple method of fraud

0040prevention, because it uniquely identifies each lottery ticket sold. The lottery number also

0041allows both the player and the lottery system to identify a winner; specifically, the lottery

0042numbers are compared by the player to a "winning number list", to determine if the player

0043has won a prize. There are also instant lottery games in which the outcome is determined prior to the

0044sale of the lottery ticket. By uncovering concealed indicia inscribed on the lottery ticket,

0045the player can determine if the lottery ticket is a winner - immediately after purchase.

0046Some foreign countries (e.g. Germany) allow a lottery player to purchase fractional

0047lottery tickets. However, these lottery systems only allow the player to purchase fixed

0048fractions of certain high-priced lottery tickets (e.g., a half, or quarter share of a lottery

0049ticket). In these instances, if the lottery ticket is a winner, the purchaser will only receive

0050one -half or one-quarter of the full prize amount.

0051The majority of lottery tickets are sold by grocery, liquor and convenience stores.

0052These retail stores typically place the dedicated lottery terminal away from one or more POS

0053terminals used for merchandise transactions. This physical separation is to ensure that the

0054merchandise transaction line is not slowed-down or blocked by customers wishing to make

0055lottery ticket purchases. In addition, since the lottery terminals have a separate and distinct

0056accounting system, there is no need to co-locate the POS terminals and dedicated lottery

0057terminals.

0058However, some customers may consider it annoying to make two separate

0059transactions, i.e., merchandise and lottery tickets, on two different terminals within the same

0060store. Separate terminals may also force the customers to wait in two separate lines, or may

0061slow down the overall merchandise check-out procedure while a single store clerk performs

0062two separate transactions on two terminals. Besides annoying the merchandise-only

0063customers, these inconveniences also reduce the impulse purchasing of lottery tickets, which

0064in turn leads to loss of revenue for the government and the store.

0065There are other disadvantages with using two separate and distinct terminals for

0066merchandise transactions and lottery ticket transactions. The government usually bears the costs of purchasing, leasing, installing and maintaining the dedicated lottery terminals.

0067There are also the considerable costs of resupplying the lottery ticket paper and ink for each

0068dedicated lottery terminal. Moreover, many retail stores with multiple checkout lines and

0069registers, such as supermarkets, do not have the resources to support dedicated lottery

0070terminals at every check-out register. In addition, a dedicated lottery terminal uses counter

0071space that could otherwise be devoted to revenue-producing merchandise displays. It is also

0072costly to train store personnel in the operation of two distinct types of transaction terminals.

0073These factors reduce the availability of lottery tickets to consumers, and thus reduce

0074governmental revenue, by limiting the number of locations that sell lottery tickets.

0075After many years of steadily increasing profits, many state-run lotteries have seen a

0076downturn in profits. Improving the ease of purchasing lottery tickets and increasing their

0077availability has become a primary concern as many states are modernizing their lottery

0078systems. The current lottery system does not allow for the sale of fractional value lottery

0079tickets at retail point of sale terminals. There is a significant loss of revenue from this lost

0080opportunity to buy fractional value lottery tickets. Accordingly, there is a need for a system

0081that solves the above described problems.

0082Most stores that are visited by customers have one or more point-of-sale ("POS")

0083terminals, such as cash registers. Store cashiers use POS terminals for calculating the total

0084price of a purchase (one or more products) and the amount of change due to a customer.

0085Some POS terminals furthermore track purchases made and adjust a database of store

0086inventory accordingly.

0087The amount of change due is the difference between the purchase price and the

0088amount tendered by the customer. Customers typically tender whole number cash amounts

0089in the form of bills of paper money, while purchase prices are most often non- whole number amounts. Accordingly, the amount of change due to a customer at a POS terminal typically

0090includes one or more coins, which the POS terminal or cashier dispenses to the customer.

0091Receiving and carrying change, especially coins, is an annoyance to many

0092customers. Consequently, customers often are forced to tender non-whole number cash

0093amounts in order to dispose of their unwanted coins and/or reduce the coins that would

0094otherwise be given to them as change for their purchase. Coins and bills that are tendered

0095by the customer are collected by the cashier at the POS terminal.

0096Both dispensing coins to and collecting coins from a customer increases the amount

0097of time a cashier spends processing a purchase, and therefore increases the amount of time

0098that customers wait in line at a POS terminal. Accordingly, businesses must pay wages for

0099time spent handling coins, and customers must experience delays as coins are exchanged

0100between cashiers and customers.

0101In addition, it is possible that the cashier will make a mathematical error and

0102dispense the wrong amount of change. Customers often anticipate such an error and count

0103their change to assure that they received the correct amount. Such customers typically count

0104their change before leaving the POS terminal, further delaying other customers.

0105Businesses incur costs associated with counting, rolling, banking and otherwise

0106handling coins. By some estimates, businesses expend hundreds of thousands of hours and

0107hundreds of millions of dollars each year just to handle coins.

0108In summary, the exchange of change, especially coins, between customers and POS

0109terminals is costly, time-consuming and undesirable. Unfortunately, conventional POS

0110terminals merely calculate purchase prices and amounts of change due, and cannot reduce

0111the amount of change due nor the exchange of coins. Accordingly, it would be advantageous to provide a system and method that reduced

0112the amount of change due, and therefore reduced the coins exchanged between customers

0113and cashiers at a POS terminal.

0114Lotteries are extremely popular games that generate significant revenues for

0115sponsoring states that offer such games. In a typical lottery, a player (ticket holder)

0116purchases a lottery ticket having ticket numbers and a serial number inscribed thereon. The

0117ticket numbers allow both the ticket holder and a lottery agent to identify whether the ticket

0118holder has won a prize. The serial number uniquely identifies the lottery ticket, and is

0119typically recorded by a lottery agency so that the lottery ticket may be validated. For

0120example, the serial number may be used to verify whether the ticket numbers inscribed on a

0121ticket match those ticket numbers that the lottery agency has recorded as associated with

0122that lottery ticket.

0123A typical lottery ticket has six ticket numbers, each selected from a range, such as

0124the range of from one to forty-nine. The six ticket numbers may have been selected by the

0125ticket holder or, at the request of the ticket holder, randomly selected by the lottery terminal

0126printing the ticket. On a drawing date, the lottery agency randomly selects six ticket

0127numbers, which are deemed "winning" ticket numbers. A lottery ticket having ticket

0128numbers that match some or all of the winning ticket numbers is a winning ticket, and the

0129corresponding holder of the lottery ticket wins a prize.

0130The grandparent application of the present application, Patent Application No.

013108/822,709, entitled SYSTEM AND METHOD FOR PERFORMING LOTTERY TICKET

0132TRANSACTIONS UTILIZING POINT-OF-SALE TERMINALS, filed on March 21, 1997,

0133discloses a system and method by which fractional lottery tickets may be sold to a customer

0134at a point-of-sale ("POS") terminal in exchange for change due. For example, a customer may bring a purchase to a POS terminal, and the POS terminal may calculate the purchase

0135price to be $4.74. If the purchase price is rounded to the nearest $1, the change due is $5.00

0136- $4.74 = $0.26. Accordingly, the customer may be sold a 26% share of a $1 lottery ticket in

0137lieu of the change due. If the lottery ticket wins, 26% of the corresponding prize is awarded

0138to the customer.

0139There are numerous advantages to providing a fractional lottery ticket in exchange

0140for change due. As described in the parent application of the present application. Patent

0141Application No. 08/920,116, entitled METHOD AND SYSTEM FOR PROCESSING

0142SUPPLEMENTARY PRODUCT SALES AT A POINT-OF-SALE TERMINAL, filed on

0143August 26, 1997, dispensing and collecting coins is costly and burdensome. Furthermore,

0144many customers consider coins to be dirty, and would prefer not to handle them. Thus,

0145many customers will find the exchange of change due for a fractional lottery ticket to be

0146very desirable.

0147Unfortunately, some state lottery agencies may be reluctant to change their practices

0148by issuing lottery tickets for fractional amounts. Such state lottery agencies may instead

0149prefer to offer tickets in only a few predetermined, rounded amounts, such as tickets for $1,

0150$2 and $5 only. In some circumstances, the ability to offer fractional lottery tickets may

0151require substantial modifications to the hardware and software of lottery terminals used

0152throughout one or more states. Although such changes may ultimately be profitable, the

0153initial cost may be perceived to be unduly burdensome, and the eventual profit to be made

0154may appear too speculative. In summary, the issuance of fractional lottery tickets by state

0155lottery agencies may not be practical in all circumstances.

0156Accordingly, it would be advantageous to facilitate the purchase of fractional lottery

0157tickets without requiring significant changes in existing lottery systems. Point-of-sale ("POS") terminals, such as cash registers, are used in a wide variety of

0158businesses for performing such processes as calculating the total price of a purchase (good

0159or service) and calculating the amount of change due to a customer. Depending on their

0160level of sophistication, such POS terminals may be further useful in performing related

0161functions such as inventory management by tracking purchases made and adjusting a

0162database of store inventory accordingly. In addition, POS terminals may be used with

0163and/or function as an offering system.

0164The parent application of the present application, Patent Application No. 08/920,1 16,

0165entitled METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY PRODUCT

0166SALES AT A POINT-OF-SALE TERMINAL, filed on August 26, 1997, discloses a system

0167in which a customer at a POS terminal is offered an "upsell" in exchange for an amount of

0168change he is due. An upsell, as defined therein and used herein, means a product (good or

0169service) which is offered along with a purchase. Types of upsells include (i) an upgrade

0170from a first product to a second product different from the first product, (ii) an additional

0171product, (iii) a voucher which is redeemable for a product or a discount thereon, and (iv) an

0172entry in a sweepstakes, contest, lottery or other game. For example, a customer purchasing

0173a first product for $1.74 may be offered a second product in exchange for $0.26 (the change

0174due if the customer tenders $2.00). Various other types of upsells may be used without

0175departing from the scope and spirit of the present invention.

0176As also disclosed in the aforementioned parent application, many different criteria

0177may be used in determining an upsell. For example, a POS terminal may calculate the

0178purchase price, and round the purchase price to the nearest dollar to generate a round-up

0179(change) amount. The POS terminal in turn determines which of a plurality of upsells may

0180be profitably exchanged for the round-up amount. It would be advantageous to provide other methods of determining upsells. It would

0181be particularly advantageous to provide a method and apparatus for determining an upsell

0182which personnel, such as a store manager or POS terminal operator, may easily understand

0183and adjust.

0184Point-of-sale ("POS") terminals, such as cash registers, are used in a wide variety of

0185businesses for performing such processes as calculating the total price of a purchase (goods

0186or services) and calculating the amount of change due to a customer. Some POS terminals

0187furthermore track items sold and adjust a database of store inventory accordingly.

0188A POS terminal may perform a supplementary process in addition to performing the

0189processes listed above. A supplementary process can increase sales, and thereby increase

0190the average profit gained per transaction. One such supplementary process is described in a

0191parent application of the present application, Patent Application No. 08/920,116, entitled

METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY PRODUCT SALES

0193AT A POINT-OF-SALE TERMINAL, filed on August 26, 1997. Described therein is a

0194supplementary process in which a customer at a POS terminal is offered an "upsell" in

0195exchange for an amount of change due. The POS terminal determines an upsell in

0196dependence on a purchase of the customer, and also determines an upsell price (the amount

0197of change due) based on the purchase. For example, a customer purchasing a first product

0198for $1.74 and tendering $2.00 may be offered a second product in lieu of the $0.26 change

0199due. The upsell price, $0.26, thus depends on the purchase price $1.74.

0200Another supplementary process is a computer-determined "suggestive sell". U.S.

0201Patent No. 5,353,219 describes a system for suggesting items for a customer to purchase

0202from a primary category at conventional item prices. Still another supplementary process is

0203described in a parent application of the present application, Patent Application No. 08/841,791 , entitled METHOD AND APPARATUS FOR SELLING SUBSCRIPTIONS

0204TO PERIODICALS IN A RETAIL ENVIRONMENT, filed on May 5, 1997. Described

0205therein is a supplementary process in which a customer purchasing an issue of a periodical

0206at a POS terminal is offered the opportunity at that time to purchase a subscription to that

0207periodical.

0208Such supplementary processes may be performed solely within the POS terminal

0209itself. For example, a cash register may be programmed to calculate an amount of change

0210due, and determine an upsell to offer in exchange for the change due. Alternatively, the

0211supplementary process may be performed with the assistance of a device in communication

0212with the cash register. For example, a remote server computer connected to the cash register

0213via a communications network may determine an upsell to offer in exchange for the change

0214due.

0215A supplementary process performed at a POS terminal may undesirably slow the rate

0216at which customer transactions are completed. For example, it may take several seconds for

0217a cashier operating a POS terminal to offer a customer an upsell in exchange for an amount

0218of change due, and for the customer to decide whether to accept such an offer. Offering a

0219customer a choice of several upsells in exchange for an amount of change due could impose

0220yet further delays on completing customer transactions.

0221Such delays may be acceptable under some conditions, yet unduly burdensome under

0222other conditions. For example, during lunch or other times of day, there may be a long line

0223at a POS terminal. It would be inadvisable to add to the wait of each customer in line by

0224performing a supplementary process as well. However, eliminating the supplementary

0225processes may speed the completion of customer transactions, but at the cost of the extra profit derived from such supplementary processes. Accordingly, a need exists for

0226controlling the performance of supplementary processes at POS terminals.

0227Point-of-sale ("POS") terminals, such as cash registers, are used in a wide variety of

0228businesses for performing such processes as calculating the total price of a purchase (goods

0229or services) and calculating the amount of change due to a customer. Some POS terminals

0230furthermore track purchases made and adjust a database of store inventory accordingly. As

0231described in the parent application of the present application, Patent Application No.

023208/920,1 16, entitled METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY

0233PRODUCT SALES AT A POINT-OF-SALE TERMINAL, filed on August 26, 1997, a

0234customer at a POS terminal is offered an "upsell" in exchange for an amount of change due.

0235The POS terminal determines an upsell in dependence on a purchase of the customer, and

0236also determines an "upsell price" (the amount of change due) based on the purchase. For

0237example, a customer purchasing a first product for $1.74 and tendering $2.00 may be

0238offered a second product , perhaps at an attractively discounted price, in lieu of the $0.26

0239change due. The upsell price, $0.26, thus depends on the purchase price $1.74; the upsell

0240price is not fixed like most conventional prices for items.

0241As described in the aforementioned parent application, offering upsells in exchange

0242for change due has significant advantages. For example, customers are typically adverse to

0243handling change, and would welcome the opportunity to dispense with it. In addition, the

0244customer derives satisfaction from a sale at an attractively-low price.

0245Typically, a business may have several different upsells that may be offered. In fact,

0246for any particular purchase, it may be possible to offer several different upsells. The

0247particular upsell that is actually offered to a particular customer may depend on a number of

0248criteria associated with the purchase, such as the change amount, the time of day and the items purchased. Since there may be so many possible upsells to offer any particular

0249customer, it may be difficult or impossible to determine which upsell that customer is likely

0250to accept.

0251In addition to the difficulty of selecting an upsell to offer, offering an upsell may in

0252some circumstances require time. However, there is no guarantee that the time spent

0253offering an upsell will prompt the customer to accept the upsell and, consequently, provide

0254revenue to the offeror. Thus, many offered upsells will be unaccepted, thus resulting in a

0255waste of time and effort. Accordingly, it would be advantageous to eliminate the

0256uncertainty that is inherent in offering upsells.

0257Point-of-sale ("POS") terminals, such as cash registers, are used in a wide variety of

0258businesses for performing such processes as calculating the total price of a purchase (goods

0259or services) and calculating the amount of change due to a customer. In addition, POS

0260terminals may also be used with an offering system in order to provide offers to customers.

0261Such offering systems may be intended to increase sales, and thereby increase the average

0262profit gained per transaction.

0263One type of offering system is described in the parent application of the present

0264application, Patent Application No. 08/920,116, entitled METHOD AND SYSTEM FOR

PROCESSING SUPPLEMENTARY PRODUCT SALES AT A POINT-OF-SALE

0266TERMINAL, filed on August 26, 1997. As described therein, a customer at a POS terminal

0267is offered an "upsell" in exchange for an amount of change he is due. The POS terminal

0268determines an upsell in dependence on a purchase of the customer, and also determines an

0269upsell price (the amount of change due) based on the purchase. For example, a customer

0270purchasing a first product for $1.74 and tendering $2.00 may be offered a second product in

0271lieu of the $0.26 change due. The upsell price, $0.26, thus depends on the purchase price $1.74. Another type of offering system is a computer-determined "suggestive sell". U.S.

0272Patent No. 5,353,219 describes a system for suggesting items for a customer to purchase at

0273conventional item prices.

0274In an offering system, there are many possible offers which may be provided to

0275customers. For example, in the above-described upsell offer, many different upsells may be

0276offered to a customer in exchange for the particular amount of change due. An offer to a

0277customer at a fast-food restaurant may include a soda, large French fries, or a dessert.

0278Precisely which upsell to offer may be chosen according to a predetermined program at

0279random, or manually by a manager or other operator.

0280Unfortunately, random or manual selection of an offer does not necessarily assure

0281that the "best" (highest performing) offers will be provided to customers. What constitutes

0282the "best" offer may be evaluated with respect to one or more criteria, yielding

0283corresponding "performance rates" for the various offers. For example, the acceptance rate

0284of an offer is a performance rate that may be used to evaluate the offer, since some offers

0285may be less likely to be accepted by customers than other offers. In addition, the profit

0286derived from an accepted offer is another performance rate that may be used to evaluate the

0287offer.

0288It may be difficult or impossible for a manager or other operator to identify the

0289"best" offers (the offers with the highest performance rates). A manager is unlikely to have

0290knowledge of the true performance rates of a group of offers. A manager is also unlikely to

0291have the time to analyze historical trends to identify the best offers. In addition, at different

0292times of the day or days of the week, certain offers may be more attractive to customers than

0293others. Unanticipated events, such as a high state lottery jackpot or a good article in a

0294magazine, may also make certain offers more attractive. Such circumstances impede attempts by a manager to identify the best offers. Accordingly, a need exists for controlling

0295offers that are provided at a point-of-sale terminal.

SUMMARY OF THE INVENTION

0297It is an object of the present invention to provide methods and systems for offering

0298selected products in exchange for the amount of change due at POS terminals.

0299Generally, according to one aspect of the present invention, a POS terminal

0300determines an upsell to exchange for the change due to a customer in connection with his

0301purchase. The point-of-sale terminal preferably maintains a database of at least one upsell

0302price and a corresponding upsell to offer a customer in exchange for the change due to him.

0303The upsells and upsell prices are established so that upsells are profitably exchanged for the

0304change due, thus providing the business with profit and the customer with value if the upsell

0305is accepted.

0306When a customer brings a purchase to a POS terminal, the POS terminal generates

0307the purchase price and sets a "required payment amount" to be equal to the purchase price.

0308The required payment amount indicates the amount the customer is expected to pay. The

0309POS terminal then generates a rounded price, preferably by rounding up the purchase price

0310to a whole number, and calculates therefrom a round-up amount equal to the difference

0311between the purchase price and the rounded price. Accordingly, the round-up amount

0312indicates the coins due as change.

0313By comparing the calculated round-up amount with at least one of the upsell prices

0314in the database, the POS terminal may determine whether the round-up amount corresponds

0315to any of the upsell prices. If so, the POS terminal identifies the upsell corresponding to this

0316upsell price, and outputs signals indicative of the identified upsell. The output signals are preferably displayed text or graphics that explain to the customer and/or the cashier that the

0317upsell may be purchased for the specified amount of change due.

0318If the customer accepts the upsell, the cashier so indicates by pressing a selection

0319button on the POS terminal. The required payment amount for the customer to pay is then

0320set equal to the rounded price, rather than the purchase price. Thus, the customer receives

0321the upsell in exchange for the coins due to him, and the coins need not be exchanged

0322between the customer and the POS terminal.

BRIEF DESCRIPTION OF THE DRAWINGS

0324FIG. 1 is a block diagram of a system in accordance with the present invention.

0325FIG. 2 is a block diagram of the POS controller of FIG. 1.

0326FIG. 3 is a block diagram of the POS terminal of FIG 1.

0327FIG. 4 is a block diagram of the lottery data processing system.

0328FIG. 5 is a table depicting the local lottery ticket database within the POS controller

0329of FIG 3.

0330FIG. 6 is a table depicting the lottery ticket database within the lottery data

0331processing system of FIG 4.

0332FIG. 7 is a table depicting the POS controller database within the lottery data

0333processing system of FIG 4.

0334FIG. 8 is a flow chart depicting the lottery transaction at the POS terminal.

0335FIG. 9 is an example of a store sales receipt in accordance with the preferred

0336embodiment of the present invention.

0337FIG. 10 is a flow chart of the operation of the POS controller. FIG. 1 1 is a flow chart of the operation of the lottery data processing system.

0338FIG. 12 is a flow chart depicting the telephone authentication process.

0339FIG. 13A is a schematic illustration of a POS terminal provided in

0340accordance with the present invention.

0341FIG. 13B is a schematic illustration of another embodiment of the POS

0342terminal of FIG. 13 A.

0343FIG. 14 is a flow chart illustrating a method of the present invention for

0344determining an upsell at a POS terminal.

0345FIG. 15 is an exemplary illustration of a storage area of the POS terminal of FIG.

034613A.

0347FIG. 16 is a schematic illustration of an upsell database of the POS terminal of FIG.

034813 A.

0349FIG. 17 is a schematic illustration of a customer database of the POS terminal

0350of FIG. 13 A.

0351FIG. 18 is a schematic illustration of an inventory price database of the POS terminal

0352of FIG. 13 A.

0353FIG. 19 is a schematic illustration of an offered price database of the POS terminal

0354of FIG. 13A.

0355FIG. 20 is a flow chart illustrating a method of the present invention for evaluating a

0356counter-offer for an upsell at a POS terminal.

0357FIG. 21 is a schematic illustration of an identifier database of the POS terminal of

0358FIG. 13A.

0359FIG. 22 is a schematic illustration of POS terminal connected to a lottery data

0360processing system. FIG. 23 is a schematic illustration of another embodiment of the customer database

0361of the POS terminal of FIG. 13 A.

0362FIG. 24 A is a flow chart illustrating a method of the present invention for storing

0363customer preferences.

0364FIG. 24B is a flow chart illustrating a method of the present invention for storing

0365customer preferences.

0366FIG. 25 is a flow chart illustrating a method of the present invention for applying

0367previously-selected customer preferences.

0368FIG. 26 is a flow chart illustrating a method of the present invention for receiving a

0369donated upsell.

0370FIG. 27 is a flow chart illustrating another method of the present invention for

0371determining an upsell at a POS terminal.

0372FIG. 28 is a schematic illustration of a network of POS terminals provided in

0373accordance with the present invention.

0374FIG. 29 is a schematic illustration of a store controller of the network of FIG. 28.

0375FIG. 30 is a schematic illustration of a POS terminal of the network of FIG. 28.

0376FIG. 31 is a schematic illustration of an alternate embodiment of a POS terminal of

0377the network of FIG. 28.

0378FIG. 32 is a schematic illustration of a ticket supply database of the store controller

0379of FIG. 29.

0380FIG. 33 is a schematic illustration including exemplary data for the ticket supply

0381database of FIG. 32.

0382FIG. 34 is a schematic illustration of a transaction database of the store controller of

0383FIG. 29. FIG. 35 is a schematic illustration of records of a fractional ticket database of the

0384store controller of FIG. 29.

0385FIG. 36 is a schematic illustration including further exemplary data for the ticket

0386supply database of FIG. 32.

0387FIG. 37 is a flow chart illustrating a method for allocating portions of lottery tickets.

0388FIG. 38 is a schematic illustration of a winning lottery ticket database of the store

0389controller of FIG. 29.

0390FIG. 39 is a schematic illustration of a frequent shopper database of the store

0391controller of FIG. 29.

0392FIG. 40 is a flow chart illustrating a method for redeeming a fractional lottery ticket.

0393FIG. 41 is a schematic illustration of a POS terminal provided in accordance with the

0394present invention.

0395FIG. 42 is a schematic illustration of another embodiment of the POS terminal of

0396FIG. 41.

0397FIG. 43 is a schematic illustration of an inventory database of the POS terminal of

0398FIG. 41.

0399FIG. 44 is a schematic illustration of a possible upsells database of the POS terminal

0400of FIG. 41.

0401FIG. 45 is a schematic illustration of an embodiment of an upsell offer database of

0402the POS terminal of FIG. 41.

0403FIG. 46 is a schematic illustration of another embodiment of the upsell offer

0404database of the POS terminal of FIG. 41.

0405FIG. 47 is a schematic illustration of another embodiment of the upsell offer

0406database of the POS terminal of FIG. 41. FIG. 48 is a schematic illustration of another embodiment of the upsell offer

0407database of the POS terminal of FIG. 41.

0408FIG. 49 is a flow chart illustrating a method for providing a supplementary product

0409sale at a POS terminal.

0410FIG. 50 is a schematic illustration of a POS terminal provided in accordance with the present invention.

0411FIG. 51 is a schematic illustration of another embodiment of the POS terminal of FIG. 50.

0412FIG. 52 is a flow chart illustrating a method provided in accordance with the present invention for controlling the performance of a supplementary process at a POS terminal. FIG. 53 is a table illustrating an offer schedule that depends on an activity rate of a POS terminal.

0413FIG. 54 is a schematic illustration of an override decision manager of the POS terminal of FIG. 51. FIG. 55 is a schematic illustration of a network of POS terminals.

0414FIG. 56 is a table illustrating an offer schedule that depends on an activity rate of a

0415plurality of POS terminals.

0416FIG. 57 is a schematic illustration of a POS terminal provided in accordance with the

0417present invention.

0418FIG. 58 is a schematic illustration of another embodiment of the POS terminal of

0419FIG. 57.

0420FIG. 59 is a schematic illustration of a network of POS terminals.

0421FIG. 60 is a schematic illustration of an inventory database of a POS terminal.

0422FIG. 61 is a schematic illustration of a rounding code database of a POS terminal.

0423FIG. 62 is a schematic illustration of data used in determining an amount of money

0424due as payment for items of a purchase and an upsell. FIG. 63 is a schematic illustration that represents information relating to

0425transactions.

0426FIG. 64 is a flow chart describing a method for determining a rounded price for a

0427purchase that includes an upsell and one or more items.

0428FIG. 65 is a flow chart describing a method for determining a rounded price for a

0429purchase that includes a plurality of upsells and one or more items.

0430FIG. 66 is a schematic illustration of data used in determining an amount of money

0431due as payment for items of a purchase and a plurality of upsells.

0432FIG. 67 is a schematic illustration of a POS terminal provided in accordance with the

0433present invention.

0434FIG. 68 is a schematic illustration of another embodiment of the POS terminal of

0435FIG. 67.

0436FIG. 69 is a schematic illustration of a network of POS terminals.

0437FIG. 70 is a table illustrating an embodiment of a database of offers.

0438FIG. 71 is a schematic illustration of a record of a transaction database.

0439FIG. 72 is a flow chart illustrating a method for controlling offers that are provided

0440at one or more POS terminals.

0441FIG. 73 is a table illustrating an embodiment of a performance rate database.

0442FIG. 74 is a table illustrating another embodiment of a performance rate database.

0443FIG. 75 is a schematic illustration of databases employed in determining offers

0444which continue to be provided.

0445FIG. 76 is a schematic illustration of another embodiment of databases employed in

0446determining offers which continue to be provided.

0447FIG. 77 is a table illustrating another embodiment of a database of offers. DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

0448The present invention is directed to a system for performing lottery ticket transactions at

0449retail POS terminals without the customer having to wait for two transaction receipts, or go

0450to another check-out terminal to make other non-lottery ticket purchases. In about the same

0451amount of time it takes to ring up bread or milk at a POS terminal, the customer can also

0452purchase a "quick-pick" lottery ticket. This one-stop shopping facilitates the sale of lottery

0453tickets, and speeds the customer on his way. In addition, the present invention enables the

0454customer to purchase fractional lottery tickets which even further facilitates the sale of

0455lottery tickets. In particular, in cases where a customer makes other merchandise purchases,

0456instead of receiving change, he can request a fractional lottery ticket (equal to the change

0457amount). Accordingly, the present invention provides a consumer with a convenient and

0458efficient system to purchase lottery tickets.

0459The term "quick-pick" refers to a lottery ticket in which the lottery numbers are randomly

0460generated for the customer by the lottery system.

0461A fractional lottery ticket is a lottery ticket in which the customer will receive only a portion

0462of the winning prize in accordance with the fractional portion paid for the ticket as

0463compared to the full price of a lottery ticket. For example, if a customer pays 58 cents for a

0464fractional lottery ticket where the full price of a lottery ticket is a dollar, the customer would

0465receive fifty-eight percent of the prize amount if the ticket is a winner. As used herein, the

0466term "lottery tickets", or equivalents thereof includes fractional lottery tickets. FIG. 1 shows an overall system block diagram of a preferred embodiment of the present

0467invention. In this embodiment, a POS controller 20 is linked to at least one POS terminal 30

0468via a POS network 40. Four POS terminals 30 are depicted in FIG. 1, but any number of

0469POS terminals 30 can be used. The POS network 40 does not have to be a hard wired

0470network, it can include any of a wide variety of means suitable to transmit and receive data

0471communications, as described below. A lottery ticket transaction can be initiated from any

0472one of the POS terminals 30. The information required to initiate a lottery ticket transaction

0473is passed between the POS terminal 30 and the POS controller 20 via the POS network 40.

0474It is understood that other types of information can also be passed between the POS terminal

047530 and the POS controller 20. For example, merchandise prices, coupon discounts, and

0476sales event information can also be passed between the POS terminal 30 and the POS

0477controller 20.

0478As illustrated in FIG 1., the POS controller 20 is also linked to a lottery data processing

0479system 60, discussed in detail below, via a data network 50. The data network 50 can be

0480any one or more of a variety of networks capable of data communications. For example, the

0481data network 50 can be a public switched telephone network 76 (PSTN), an integrated

0482service digital network (ISDN), a packet switched network, a private data communication

0483network, a wireless network or any other suitable network.

0484The POS terminals 30 and the POS controller 20 depicted in FIG. 1 may be embodied in

0485hardware specifically provided to implement the present invention. Alternatively, they may

0486be implemented using existing cash registers and central in-store servers. In particular, many retail stores have computerized cash registers which are coupled to an in-store

0487transaction processor to receive and transmit merchandise price and other merchandise

0488information. The hardware of these systems may be used for the present invention. To

0489incorporate the present invention changes to the existing in-store transaction processor or

0490store network server may be accomplished in various ways, such as reprogramming the

0491existing in-store transaction processor or by adding an additional file server.

0492FIG. 2 is a block diagram of the POS controller 20. The POS controller 20 includes a CPU

049321 which performs the processing functions. POS controller 20 also includes a read only

0494memory 22 (ROM) and a random access memory 23 (RAM). The ROM 22 is used to store

0495at least some of the program instructions that are to be executed by the CPU 21. such as

0496portions of the operating system or basic input-output system (BIOS), and the RAM 23 is

0497used for temporary storage of data. A clock circuit 24 provides a clock signal which is

0498required by the CPU 21.

0499The POS controller 20 also includes a communication port 25 connected to a data network

0500interface 71 and a POS network interface 72. The communication port 25 enables the CPU

050121 to communicate with devices external to the POS controller 20. In particular, the

0502communication port 25 permits communication with the POS terminals 30 and also with the

0503lottery data processing system 60. While a modem (not shown) and a dedicated telephone

0504line for establishing communication with the lottery data processing system 60 is preferred,

0505other data network interfaces, including an ISDN terminal to interface with an ISDN

0506network, a radio communications interface, and an Internet interface, may be used as well. The CPU 21 can also store information to, and read information from, a data storage device

050726. The data storage device 26 includes a local lottery ticket database 26a and other

0508databases including a local sales database 26b that a store may conventionally maintain.

0509The local lottery ticket database 26a is described below. In addition, the data storage device

051026 includes instructions which can be read by and executed by the CPU 21 , thereby enabling

0511the CPU 21 to process transactions. While FIG. 2 depicts separate databases, a single

0512database that incorporates both functions can also be used. Additional databases may be

0513added as needed to store a variety of other information that may be required for other

0514purposes.

0515FIG. 5 is a pictorial representation depicting the preferred layout and the information stored

0516in the local lottery ticket database 26a. The local lottery ticket database 26a includes a date

0517field Fl, a sales receipt number field F2, a number of tickets purchased field F3, a sale

0518amount field F4, and a lottery ticket number field F5. In the case of a fractional lottery

0519ticket, the sale amount field F4 would contain the fractional amount of the lottery ticket

0520purchased by the customer (e.g., sixty-eight cents).

0521While only three records Rl for three lottery ticket transactions are depicted in FIG. 5. any

0522number of records may be stored. To conserve storage space on the data storage device 26,

0523records may be transferred to a different storage device or deleted after some predetermined

0524time interval or after a predetermined event (e.g. after the winning lottery number drawing).

0525FIG. 3 is a block diagram of the preferred POS terminal 30, which can be located at a

0526supermarket, grocery store, liquor store or any other location where consumer transactions are performed. As previously discussed above, there can be any number of POS terminals

052730 linked to one POS controller 20. The POS terminal 30 includes a CPU 31, ROM 32,

0528RAM 33, clock circuit 34, communication port 35 and a data storage device 36. The

0529communication port 35 interfaces with the POS network 40 which facilitates

0530communication between the POS terminal 30 and the POS controller 20.

0531The POS terminal 30 includes an input device 37 to receive input from an operator. Any

0532one of a variety of input devices would be suitable for this purpose, including, for example,

0533depression-actuated buttons, keys, membranes, a mouse, touchscreens, bar code scanners,

0534and the like. The input device 37 may interface directly with the CPU 31 , as shown in FIG.

05353. Alternatively, an appropriate interface circuit may be placed between the CPU 31 and the

0536input device 37.

0537The POS terminal 30 also includes a display device 38 for conveying information to the

0538operator, customer or both. Any one or a variety of display devices would be suitable for

0539this purpose, including, for example a CRT, LCD, LED or thin film transistor panel.

0540The POS terminal 30 also includes a data storage device 36, in which transaction processor

0541instructions are stored. These instructions can be read by and executed by the CPU 31,

0542enabling the POS terminal 30 to process a variety of transaction types. By way of example,

0543these transaction types may include "quick-pick" lottery tickets, lottery tickets other than

0544"quick-pick" tickets and merchandise transactions.

0545The POS terminal 30 further includes a printer 39 for recording the transaction performed by

0546the POS terminal 30. The printer 39 may interface directly with the CPU 31, as shown in FIG. 3. Alternatively, an appropriate interface circuit may be placed between the CPU 31

0547and the printer 39.

0548It will also be understood that other combinations of POS controllers 20 and POS terminals

054930 could be employed, depending upon the requirements of a particular establishment. In

0550particular, the POS terminal 30 may incorporate some of features of the POS controller 20

0551so that the integrated POS terminal/controller can function as a stand-alone unit. This type

0552of terminal would be advantageous for establishments that only require a single POS

0553terminal.

0554Shown in FIG. 4 is a block diagram of the lottery data processing system 60. Like the POS

0555controller 20 described above, the lottery data processing system 60 includes a CPU 61,

0556ROM 62, RAM 63, a clock circuit 64, and a communication port 65. The communication

0557port 65 is connected to the data network interface 71. The data network interface 71

0558depicted is equivalent to the data network interface in FIG. 2. One POS controller 20 is

0559depicted in FIG. 1, but any number of POS controllers 20 can be linked to the lottery data

0560processing system 60 via the data network 50 and the data network interface 71.

0561As shown in FIG. 4, the communication port 65 is also connected to an IVRU interface 74.

0562A customer assistance IVRU 75, as shown in FIG. 1, is linked to the lottery data processing

0563system 60 via the IVRU interface 74. The customer assistance IVRU 75 is also connected

0564to the PSTN 76, the public switched telephone network. The customer assistance IVRU 75

0565allows a caller (not shown) to communicate with the lottery data processing system 60 using

0566a telephone (not shown). Voice command prompts guide the caller through various menu options allowing the caller to input and extract data related to a particular lottery ticket

0567transaction. This process is described in greater detail below.

0568The CPU 61 can also store information to, and read information from the data storage

0569device 68. The data storage device 68 includes a lottery ticket database 68a, a POS

0570controller database 68b, and a winning lottery ticket number database 68c which are

0571described below. In addition, the data storage device 68 includes instructions which can be

0572read by and executed by the CPU 61, thereby enabling the CPU 61 to process lottery

0573transactions. While FIG. 4 depicts separate databases, a single database that incorporates all

0574the functions of databases 68a, 68b and 68c can also be used. Additional databases may be

0575added as needed to store a variety of other information that may be useful in maintaining

0576and administrating a lottery system.

0577The lottery data processing system 60 also includes a random number generator 66 and a

0578cryptographic processor 67. When requested by the CPU 61 , the random number generator

057966 generates the random "quick-pick" numbers used for "quick-pick" lottery ticket

0580transactions. The cryptographic processor 67 is used to encrypt an authentication code

0581generated by the CPU 61, described in greater detail below. This encrypted authentication

0582code is passed to the CPU 61 which associates it with a particular lottery transaction. The

0583cryptographic processor 67 is also used to decrypt encrypted authentication codes which are

0584passed to it by the CPU 61.

0585While the illustrated embodiment depicts the random number generator 66 and the

0586cryptographic processor 67 as separate elements within the lottery data processing system 60, it should be understood that other methods of performing their functions may be used.

0587For example, these functions may be implemented in a computer program stored in the data

0588storage device 68 and executed by the CPU 61.

0589FIG. 6 is a pictorial representation of the information stored in the lottery ticket database

059068a. The lottery ticket database 68a includes a POS controller ID number field F6. a date

0591field F7, a number of tickets purchased field F8, a sales receipt number field F9, a sale

0592amount field F10, a lottery ticket numbers field Fl 1, and a cryptographic code field F12. In

0593the case of a fractional lottery ticket, the sale amount field F10 would contain the fractional

0594amount of the lottery ticket purchased by the customer (e.g., sixty-eight cents). The POS

0595controller ID number field F6 is a unique code corresponding to each POS controller 20 that

0596communicates with the lottery data processing system 60. The sales receipt number field F9

0597stores a serial number related to each receipt generated by the POS terminals 30. The

0598cryptographic code field F12 stores the encrypted authentication code, as discussed in detail

0599below.

0600While record R2 for one POS controller with ID number 23456 is depicted in FIG. 6, any

0601number of records may be stored. As is also the case with the data storage device 26, from

0602time to time records may be transferred to a different storage device or deleted to conserve

0603storage space within the data storage device 68. The winning lottery ticket number database

060468c is of the other databases that the lottery data processing system conventionally

0605maintains. FIG. 7 is a pictorial representation depicting the information stored in the POS controller

0606database 68b. The POS controller database 68b includes a POS controller ID number field

0607F13, a POS controller name field F14, a POS controller location field Fl 5, and a telephone

0608number field F16. The POS controller name field F14 stores the name of the store or

0609establishment where the POS controller 20 is located. The POS controller location field F15

0610stores the address of where the POS controller 20 is located. The telephone number field

0611F16 stores the telephone number associated with each POS controller 20. A record R3 for

0612one POS controller location is depicted in FIG. 7, but any number of records may be stored.

0613It should be understood that some fields within the databases discussed above would contain

0614the same corresponding information (e.g. POS controller ID number field F6 in the lottery

0615ticket database 68 A corresponds to field F13 in the POS controller database 68B).

0616FIG. 8 is a flow chart depicting an exemplary lottery ticket transaction process performed at

0617the POS terminal 30 from the customer's point of view. The process starts when a customer

0618indicates to the POS terminal operator that he or she wishes to purchase one or more "quick-

0619pick" lottery tickets in step SI . Of course, the "quick-pick" lottery tickets can be either full

0620or fractional lottery tickets. The customer may make this decision to buy lottery tickets as a

0621stand-alone transaction or while purchasing other merchandise, such as milk or bread. In

0622step S2, the POS terminal operator initiates a lottery transaction by actuating a pre¬

0623programmed designation on the input device 37 associated with the POS terminal 30. The

0624customer is then prompted by the POS operator for the number of "quick-pick" lottery

0625tickets desired in step S3. The number of "quick-pick" lottery tickets may also include fractional lottery tickets. This

0626is convenient for customers who do not want to receive a handful of coins as change from a

0627transaction. For example, a customer due sixty-eight cents in change, from a merchandise

0628purchase could elect to buy a lottery ticket for sixty-eight cents which is worth 68% of a $1

0629ticket and which pays-out sixty-eight percent of the $1 payout. Alternatively, the customer

0630could buy a 34% value of a $2 ticket with 68 cents. Along with the fractional value lottery

0631tickets, the customer may or course purchase full value lottery tickets.

0632In an alternative embodiment, the customer may also be prompted for additional lottery

0633ticket information, such as the type of lottery game to be played and the particular lottery

0634numbers selected by the customer. For example, a particular lottery system may offer

0635lottery games based on three, four and six number combinations. The customer may also

0636personally select the lottery numbers to be played.

0637In step S4, the POS terminal operator enters the number of lottery tickets requested by the

0638customer into the POS terminal 30 via the input device 37. The customer pays for the

0639lottery tickets and any other purchases made at this time in step S5. In step S6, the POS

0640terminal prints a single receipt containing the lottery ticket information and any other

0641merchandise sales information.

0642Shown in FIG. 9 is an example of a store sales receipt 80 according to the one embodiment

0643of the present invention. The store sales receipt 80 includes non-lottery ticket related

0644merchandise information 81. The bottom portion contains lottery ticket information

0645including a plurality of lottery numbers 82. a store ID number 83, a receipt number 84, a date 85, a time 86, a price 89, a lottery telephone number 87, and an encrypted

0646authentication code 88. In the case of a fractional lottery ticket, the store sales receipt 80

0647would also include an indication of the fraction of the full price lottery ticket purchased

0648(e.g., as shown in FIG. 9, $0.68 was paid for ticket 4).

0649FIG. 10 is a flow chart of an exemplary operation of the POS controller 20. The steps of the

0650process shown in FIG. 10 may be implemented in a computer program that may be installed

0651at the POS controller 20 from a computer readable medium and then stored therein in one or

0652more of the ROM 22, the RAM 23 and the data storage device 26 (shown in FIG. 2). The

0653POS controller 20 receives in step S7 a lottery ticket transaction request which includes, in

0654this example, the number of "quick-pick" lottery tickets requested by the customer from the

0655POS terminal 30. The POS controller 20 temporarily stores this information in RAM 23,

0656while it establishes a real-time communication link with the lottery data processing system

065760 via the data network 50.

0658While one lottery data processing system 60 is depicted in FIG. 1 , additional lottery data

0659processing systems may be available as secondary or back-up lottery data processing

0660systems. Accordingly, if the POS controller 20 fails to establish communication with the

0661primary lottery data processing system, communication attempts would be made to a

0662secondary lottery data processing system.

0663Once the real-time communication link is established, the POS controller 20 in step S8

0664transmits the number of "quick-pick" lottery tickets requested to the lottery data processing

0665system 60. The POS controller 20 also transmits its POS controller identification number (e.g. Fl in FIG. 7). In step S9, the POS controller 20 receives one or more groups of lottery

0666numbers ( corresponding to the number of lottery tickets requested) and an associated

0667encrypted authentication code from the lottery data processing system 60. A new record

0668(e.g. Rl in FIG. 5) is created in the local lottery ticket database (26a in FIG. 2) in step S10.

0669In step SI 1, the POS controller 20 stores in the newly created record the date, receipt

0670number, time, and lottery numbers received from the lottery data processing system (as

0671shown in FIG. 5, F1-F5). The POS controller 20 then transmits the lottery ticket

0672information (i.e. the lottery numbers and the encrypted authentication code) to the POS

0673terminal 30 that initiated the lottery transaction request in step SI 2.

0674Each of the steps S7-S12 described above is executed by the CPU 21 which is executing

0675computer program instructions stored in the data storage device 26. The communication

0676with the POS terminal 30 takes place via the communication port 25 and the POS network

0677interface 72. The communication with the lottery data processing system 60 takes place via

0678the communication port 25 and the data network interface 71.

0679In an alternative embodiment, the POS controller 20 may also handle non-" quick-pick"

0680lottery ticket transactions. Customer-selected lottery numbers would be received from the

0681customer via mark-sense slips or coded chits at the POS terminal 30 and sent to the lottery

0682data processing system 60 for processing, as described below.

0683FIG. 1 1 is a flow chart of the operation of the lottery data processing system 60. The steps

0684of this process may be stored on a computer readable medium which in this case would be

0685the data storage device 68 (shown in FIG. 4). Upon receiving the lottery ticket transaction request and the POS controller identification number from the POS controller 20, the lottery

0686data processing system 60 in step S13 accesses the POS controller database 68b (shown in

0687FIGS. 4 and 7). The lottery data processing system 60 searches the POS controller database

068868b and authenticates the POS controller identification number, as shown in step SI 4. In

0689step SI 5. the lottery ticket database 68a (shown in FIGS. 4 and 6) is accessed and a new

0690lottery transaction entry is added in the appropriate POS controller record (e.g. R2 in FIG.

06916).

0692In step SI 6, the lottery data processing system 60 generates one or more groups of random

0693"quick-pick" lottery numbers using the random number generator 66 (shown in FIG. 4).

0694These random "quick-pick" lottery numbers are used for the quick-pick lottery tickets. The

0695lottery transaction entry added in step S 15 is then updated in step S 16 by storing these

0696random "quick-pick" lottery numbers in the designated field of the record.

0697The lottery data processing system 60 also generates an authentication code based on the

0698variables of the particular lottery transaction in step SI 7. This authentication code is a

0699numeric string including all the data of one record in the lottery ticket database 68a. An

0700example of such a code corresponding to the first entry shown in FIG. 6, R2, is as follows:

070123456/011597004/3343004/011020112131

0702In this example, 23456 represents the POS controller ID number; 011597 represents the

0703date; 004 represents the number of tickets purchased; 3343 represents the sales receipt number; 004 represents the sales amount; and 0110201 12131 represents the lottery ticket

0704numbers.

0705While the use of an encrypted authentication code is the preferred embodiment, it should

0706also be understood that the store sales receipt number along with the date for each

0707transaction may be used instead. In this situation, the sales receipt number and the date

0708would be used as a pointer to the lottery ticket database 68a. This pointer would be used to

0709extract and verify lottery ticket information as required.

0710In step SI 8, using the cryptographic processor 67 (shown in FIG. 4), the authentication code

0711is encrypted to produce a unique numeric code. The lottery transaction entry added in step

0712S 15 is then updated again by storing the encrypted authentication code in the appropriate

0713field of the record (see FIG. 6). The use of cryptographic processors and encryption

0714algorithms are well known to those skilled in the art of cryptography. For reference, one of

0715ordinary skill in the art may refer to Bruce Schneier, Applied Cryptography, Protocols,

0716Algorithms and Source Code Inc., (2nd Edition, John Wiley & Sons, Inc., 1996).

0717The lottery data processing system 60 then transmits the lottery ticket numbers and the

0718encrypted authentication code to the POS controller 20 initiating the lottery ticket

0719transaction in step S 19.

0720This authentication code provides an added level of security and protection for the purchase

0721of the lottery ticket. Should the database within the lottery data processing system 60 be corrupted, all the information printed on the store receipt lottery ticket can still be verified

0722by any other device capable of decrypting the authentication code.

0723Each of the steps S13-S19 described above is executed by the CPU 61, which carries out

0724these steps by executing computer program instructions stored in the data storage device 68.

0725The communication with the POS controller 20 takes place via the communication port 65

0726and the data network interface 71.

0727In an alternative embodiment, additional information may be transmitted from the POS

0728controller 20 to the lottery data processing system 60. This could include, as described

0729above, customer-selected lottery numbers instead of the random "quick-pick" lottery

0730numbers generated by the lottery data processing system 60. In this situation, the lottery

0731data processing system 60 would store the customer-selected lottery numbers in the lottery

0732ticket database 68a. An encrypted authentication code would be generated accordingly

0733based on the customer-selected lottery numbers. The lottery data processing system 60

0734would then send the encrypted authentication code and authorization to complete the lottery

0735transaction to the POS controller 20.

0736FIG. 12 is a flow chart depicting the telephone authentication process. The process starts

0737when a customer dials the telephone number 87 printed on the sales receipt 80, as shown in

0738FIG. 9, in step S20. By dialing the telephone number 87, the customer is connected to the

0739customer assistance IVRU 75, as shown in FIG. 1. This unit, via pre-recorded voice

0740messages, prompts the customer to enter the encrypted authentication code 88 printed on the

0741sales receipt 80 using the keys on the telephone in step S21. In step S22, the customer assistance IVRU 75 communicates this information to the lottery data processing system 60

0742via the IVRU interface 74, shown in FIG. 4.

0743In step S23, the lottery data processing system 60 searches the cryptographic code field F12

0744in the lottery ticket database 68a to find an entry that matches the information provided from

0745the IVRU 75. If no match is found, the lottery data processing system 60 communicates to

0746the IVRU 75 that the encrypted authentication code provided by the customer is not valid.

0747The IVRU 75 then prompts the customer to re-enter the encrypted authentication code.

0748After a predetermined number of failed attempts to correctly enter a valid code, the call is

0749terminated, as shown in step S24.

0750If a matching entry is found, the lottery data processing system 60 decrypts the encrypted

0751authentication code. The decrypted information is then communicated to the customer

0752assistance IVRU 75 in step S25. Based on this information, the customer assistance IVRU

075375 transmits a voice message to the customer providing all the decrypted information (i.e.

0754lottery ticket number, time and date of purchase, etc.). The customer assistance IVRU 75

0755creates the voice message by combining pre-recorded voice messages stored therein.

0756A winning lottery ticket may be redeemed at one of the POS terminals 30 or at any

0757conventional lottery terminal. To redeem the winning lottery ticket at one of the POS

0758terminals 30, the POS terminal operator initiates a lottery ticket verification process by

0759actuating a pre-programmed input designator via input device 37 associated with the POS

0760terminal 30. The POS operator then enters the encrypted authentication code printed on the

0761lottery ticket into the POS terminal 30 via the input device 37. This information is transmitted to the lottery data processing system 60 via the POS controller 20. The lottery

0762data processing system 60 decrypts this information and accesses the lottery ticket database

076368a and the winning lottery ticket number database 68b. The lottery data processing system

076460 then determines whether the lottery ticket is a winning lottery ticket based on the

0765information contained in the respective databases.

0766This determination (along with other information as needed) is then communicated back to

0767the POS terminal 30 via the POS controller 20. Other types of information that may be

0768included in this communication are, for example, the winning prize amount, the fractional

0769prize amount, and whether or not there was a jackpot winning ticket.

0770In an alternative embodiment, the random "quick-pick" lottery numbers used for a lottery

0771ticket transaction may be generated by the POS controller 20. These lottery numbers would

0772then be transmitted to the lottery data processing system 60 as described above.

0773There are thus provided new and improved systems and methods for selling lottery tickets at

0774point-of-sale locations in stores. The invention uses the same equipment provided for

0775processing conventional store sales of merchandise and/or services to process lottery ticket

0776sales.

0777The dual utility of the sales equipment makes the invention cost-effective for merchants.

0778The systems and methods provided permit speedy and efficient purchasing of lottery tickets

0779while making routine purchases of other goods, thus encouraging impulse purchasing of

0780lottery tickets without delaying the regular flow of the point-of-sale checkout line. Further, the invention enables the quick and efficient sale of fractional lottery tickets with what

0781would otherwise be customer change, again encouraging impulse purchases, thereby

0782increasing the market for lottery tickets.

0783The present invention further provides systems and methods whereby an easy to print, easy

0784to read, sales receipt is printed containing both the sales of goods/services and lottery ticket

0785information. The ticket includes authenticating information, including at least one

0786authenticating code and a customer service telephone number, which the customer can use

0787to verify his lottery numbers with the lottery authority.

0788While the present invention has been described above in terms of specific embodiments, it is

0789to be understood that the invention is not intended to be confined or limited to the

0790embodiments disclosed herein. On the contrary, the present invention is intended to cover

0791all methods, structures and modifications thereof included within the spirit and scope of the

0792appended claims.

0793As used herein, an "upsell" is a product (good or service) which is offered along with a

0794purchase and has a value approximately equal to a predetermined upsell price. Types of

0795upsells which are described in detail herein include (i) an upgrade from a first product to a

0796second product different from the first product, (ii) an additional product, (iii) a voucher

0797which is redeemable for a product or a discount thereon, and (iv) an entry in a sweepstakes,

0798contest, lottery or other game. Various other types of upsells may be used without departing

0799from the scope and spirit of the present invention. By offering an upsell in exchange for the customer's change, an average of

0800approximately fifty cents additional revenue is collected per upsell, and the number of coins

0801exchanged is reduced or eliminated. The reduction or elimination of change dispensing and

0802collecting greatly reduces the time a customer spends at a POS terminal. In some cases, it

0803may even be possible to reduce the number of cashiers, if any, who operate POS terminals.

0804In addition, customers may recognize a greater value from the transaction while reducing or

0805eliminating the need to carry additional change after a purchase.

0806Further, the present invention allows businesses to more effectively sell aged

0807or perishable products by offering such products in exchange for change due. Such

0808products, such as aging magazines, audio tapes, compact discs, flowers and various

0809perishables can be sold, thereby generating additional revenue and reducing the costs of

0810otherwise disposing of the products. Providing the customer with aged products effectively

0811allows businesses to "pre-qualify" customers to receive discounts on products.

0812Referring to FIG. 13 A, a POS terminal 1010 includes a POS processor 1012

0813connected to each of an input device 1014, a printer 1016 and a display device 1018. The

0814POS processor 1012 comprises at least one microprocessor 1020, such as an Intel 80386

0815microprocessor, which is connected to a storage device 1022, such as a RAM, floppy disk,

0816hard disk or combination thereof.

0817The microprocessor 1020 and the storage device 1022 may each be (i)

0818located entirely within a cash register, vending machine or similar enclosure; (ii) connected

0819thereto by a remote communication link, such as a serial port cable, telephone line or radio

0820frequency transceiver; or (iii) a combination thereof. For example, the POS processor 1012

0821may comprise one or more cash registers connected to a remote server computer for

0822maintaining databases, or a vending machine connected to a local computer. Many types of conventional cash registers and other types of POS terminals may be used to implement the

0823present invention in light of the present disclosure. Such terminals may only require

0824software upgrades, which are typically performed without undue effort.

0825FIG. 13B illustrates another embodiment of the POS terminal 1010 in which

0826a first device 1032 communicates with a second device 1034 via a remote communication

0827link 1036. The first device 1032, which may be a cash register, comprises the input device

08281014, the display device 1018 and a microprocessor 1037 which performs some of the

0829functions of the microprocessor 1020 of FIG. 13 A. The second device 1034 may be, for

0830example, a processing system operated by an electronic marketing service or credit card

0831clearinghouse. The second device 1034 comprises the storage device 1022, the printer 1016

0832and a microprocessor 1038 which performs some of the functions of the microprocessor

08331020 of FIG. 13 A.

0834Referring again to FIG. 13 A, the input device 1014 is preferably a keypad for

0835transmitting input signals, such as signals indicative of a purchase, to the microprocessor

08361020. The printer 1016 is for registering indicia on a portion of a roll of paper or other

0837material, thereby printing receipts, coupons and vouchers as commanded by the

0838microprocessor 1020. The display device 1018 is preferably a video monitor for displaying

0839at least alphanumeric characters to the customer and/or cashier. Many types of input

0840devices, printers and display devices are known to those skilled in the art, and thus need not

0841be described in detail herein.

0842The storage device 1022 stores a POS program 1024 for controlling the

0843microprocessor 1020 in accordance with the present invention, and particularly in

0844accordance with the processes described in detail hereinafter. The POS program 1024 also

0845includes necessary program elements, such as "device drivers" for interfacing with each of the input device 1014, printer 1016 and display device 1018. Appropriate device drivers

0846and other necessary program elements are known to those skilled in the art, and need not be

0847described in detail herein.

0848The storage device 1022 also stores a required payment amount 1026, which

0849is an amount of money expected to be paid in return for products provided to the customer.

0850From the required payment amount 1026, the microprocessor 1020 may determine, for

0851example, the change due and the total amount of money that should have been collected by

0852the POS terminal 1010 at the end of a day. Those skilled in the art will note that the

0853required payment amount may comprise a single stored value or a plurality of values which

0854each correspond to an amount of money expected to be paid for one or more products.

0855The storage device 1022 furthermore stores an inventory price database 1028,

0856which includes products and corresponding product prices. The inventory price database

08571028 enables the microprocessor 1020 to calculate a total purchase price of one or more

0858products, and in turn store the total purchase price in the required payment amount 1026.

0859An upsell database 1030 stored in the storage device 1022 includes upsells

0860and corresponding upsell prices. An upsell price as used herein is a price, set of prices or

0861range of prices at which it is desirable to sell the corresponding upsell. The upsell price is

0862typically related to the cost of the upsell to the business. For example, if the cost to a

0863restaurant is 20 for a small soda, then the upsell price of one additional small soda is a

0864range greater than 20ø, such as the range from 200 to 30 . As another example, if the cost

0865to the restaurant is 22c" for a large soda, then the cost of an upsell from a small soda to a

0866large soda for the restaurant is the incremental cost 22 - 200 = 2ø. Accordingly, the upsell

0867price may possibly be a range having a lower bound of 20. In addition, it is desirable that the upsell price has an upper bound that is less

0868than a predetermined amount. For example, an upsell price should not exceed the price of a

0869product offered as an upsell. Using the example given above, the upsell price for an upgrade

0870from a small soda to a large soda is a range with a lower bound of 2ø. An upper bound for

0871this upsell price should not exceed the cost of a large soda, for example, 900. Otherwise, the

0872customer would pay more than the price he would have paid if he had included a large soda

0873in his purchase. Proposing such a transaction to the customer, for example, 95ø in exchange

0874for a 900 large soda, is likely to be ineffective, as well as insulting to the customer.

0875In general, the price of a product to a customer is different from the cost of

0876the product to the business that offers the product. Therefore, the upsell prices in the upsell

0877database 1030 cannot be ascertained from only the product prices in the inventory price

0878database 1028, but must be calculated so as to yield a profit. For example, the inventory

0879price database 1028 may indicate that the price of a small soda is 550 and the price of a

0880large soda is 900. From these two prices alone, it is impossible to determine that the cost to

0881a restaurant is 200 for a small soda and 220 for a large soda, and thus that the cost of such an

0882upsell from small to large soda is 20. Accordingly, it is impossible to determine, from the

0883inventory price database 1028 alone, that it would be profitable for the restaurant to

0884profitably provide the upsell for relatively small upsell prices, such as 50 or 100. Such a

0885profit point can only be determined as a function of the costs.

0886The above-described difference between the prices of products to customers

0887and the costs of the products to the business permits the POS terminal to determine upsells

0888which (i) are profitably sold for the change due to a customer, and also (ii) provide the

0889customer with a product at a reduced price, in exchange for his change. Providing the

0890product at a reduced price tends to increase customer satisfaction, generate additional revenue for the business and increase inventory turnover. At the same time, the prices of

0891products need not be reduced, and thus the profits from sales of these products (besides

0892upsells) remain substantially or completely unaffected by offering upsells.

0893One type of upsell, which several kinds of businesses may offer, is an

0894upgrade from a first product to a second product. Accordingly, a combination of (i) a

0895purchase including a first product, and (ii) an upsell including an upgrade from a first

0896product to a second product would effectively result in the upgrade from the first product to

0897the second product. A restaurant, for example, may offer an upsell comprising an upgrade

0898from a small soda to a large soda, or an upgrade from a plain taco to a deluxe taco. An

0899electronics store may offer an upsell that extends the effective term of a warranty.

0900Another type of upsell is an additional product to supplement the customer's

0901purchase. For example, a restaurant may offer an upsell comprising a promotional cup or a

0902dessert; a video store may offer an upsell comprising a movie rental ticket, additional

0903videotape or promotional hat; a vending machine may offer an upsell that provides an extra

0904candy bar; an appliance store may offer an upsell comprising a warranty; and a supermarket

0905may offer an upsell comprising any one item from a bin of perishable goods. Such a

0906supermarket upsell is particularly advantageous in generating revenue and liquidating

0907perishable products.

0908FIG. 14 illustrates a method 1040 for determining an upsell of a purchase at a

0909POS terminal. The POS terminal of this embodiment, for example the POS terminal 1010,

0910maintains a database of upsell prices and corresponding upsells (step 1042). The POS

0911terminal furthermore generates a purchase price of a purchase (step 1044), and sets the

0912required payment amount 1026 (FIG. 13 A) to be equal to the purchase price (step 1046).

0913The step of generating a purchase price may comprise, for example, (i) pressing keys on the input device 1014 (FIG. 13 A) which each correspond to a product, (ii) pressing numeric

0914keys on the input device 1014 which correspond to the digits of the purchase price, or (iii)

0915receiving digital signals indicative of a currency value from a remote computing device.

0916The POS terminal then generates a "rounded" price (step 1048), and

0917calculates a round-up amount (step 1050) equal to the difference between the purchase price

0918and the rounded price. The rounded price may be calculated as, for example, the smallest

0919whole number dollar amount that is greater than the purchase price, the smallest multiple of

0920five dollar amount that is greater than the purchase price, or the amount of money tendered

0921by the customer, which may or may not be a whole number amount. When the rounded

0922price is a whole number, the customer can easily tender bills and in turn receive, at his

0923discretion, either (i) no change, or (ii) change which consists solely of bills, not coins.

0924When the rounded price is a multiple of large coins, such as nickels, dimes, quarters or half

0925dollars, the customer can receive change that consists solely of coins the customer desires,

0926such as quarters. Many other forms of rounded prices may be calculated in accordance with

0927the present invention.

0928The POS terminal then determines at least one upsell to be exchanged for the

0929round-up amount (change due). Preferably, to identify the upsell, the POS terminal

0930compares the round-up amount with at least one of the upsell prices in the upsell database

0931(step 1052) to identify at least one upsell having an upsell price including the round-up

0932amount. If the round-up amount corresponds to an upsell price (step 1054), the POS

0933terminal identifies an upsell (step 1056) which corresponds to that upsell price, thereby

0934identifying the upsell to exchange. The POS terminal then outputs signals indicative of the

0935identified upsell (step 1058), such as displaying text and/or graphics that explain to the customer and/or the cashier that the identified upsell may be purchased for the round-up

0936amount.

0937The customer indicates to the cashier whether he accepts or rejects the offered

0938upsell. The cashier then presses a button on the POS terminal or otherwise generates a

0939selection signal for indicating selection between the identified upsell and change (step

09401060). If the selection signal indicates selection of the upsell, the required payment amount

0941is set to be equal to the rounded price (step 1062). Thus, the customer tenders cash, a check

0942or a credit card to satisfy the amount of money expected to be paid, and receives the upsell

0943in exchange for the round-up amount.

0944As discussed above, those skilled in the art will realize that the required

0945payment amount may comprise a single stored value or a plurality of values which each

0946correspond to an amount of money expected to be paid for one or more products. For

0947example, the step 1062 of setting the required payment amount to be equal to the rounded

0948price may comprise (i) setting a stored unitary value to be equal to the rounded price; or (ii)

0949setting a first stored value to be equal to the purchase price and setting a second stored value

0950to be equal to the round-up amount, similar to the case where two purchases are recorded.

0951In the example illustrated in FIG. 15, a customer at a fast-food restaurant

0952orders a purchase that includes a hamburger and a small soda. A cashier records the

0953purchase at a POS terminal, and the POS terminal in turn determines the product prices of

0954each of the hamburger and the small soda from entries 1070 and 1072 in the inventory price

0955database 1028. The POS terminal generates therefrom the purchase price $1.62, and sets the

0956required payment amount 1026 to be $1.62.

0957The POS terminal then generates a "rounded" price of $2.00 (using, in this

0958example, "2" as the smallest whole number which is greater than the purchase price), and calculates a round-up amount 1074 of $2.00 - $1.62 = 380. Since the rounded price is a

0959whole number, the customer may easily tender bills and receive either no change or change

0960which consists solely of bills, not coins.

0961The POS terminal compares the round-up amount 1074 with at least one of

0962the upsell prices in the upsell database 1030. The round-up amount 74 corresponds to a

0963compared upsell price 1076 (the range from 2ø to 450), and the product sold (small soda)

0964corresponds to the upsell condition 1078, so the POS terminal identifies an upsell 80 in the

0965upsell database 1030 which corresponds to the upsell price 1076. The POS terminal then

0966displays text or graphics that explain to the customer and/or the cashier that the upsell 1080

0967may be purchased for the specified amount of change due (the round-up amount 1074).

0968The customer indicates to the cashier whether he accepts or rejects the offered

0969upsell. The cashier then presses a button on the POS terminal or otherwise generates a

0970selection signal for indicating selection between the identified upsell 1080 and change. If

0971the selection signal does not indicate selection of change, but instead selection of the upsell

09721080, the required payment amount 1026 is set to be equal to the rounded price. Thus, the

0973customer receives the upsell (an upgrade from a small soda to a large soda), and there are no

0974coins due.

0975In some embodiments of the present invention, the POS terminal determines

0976the upsell(s) by identifying at least one upsell in the database that corresponds to the

0977compared upsell price. For example, an upsell comprising a small soda may correspond to

0978an upsell price range of between 20 and 20ø. In other embodiments, the POS terminal

0979determines the upsell(s) by identifying at least one upsell in the database which corresponds

0980to both (i) the compared upsell price, and (ii) at least one "purchase condition". A purchase condition is a condition in effect when the purchase is processed

0981at the POS terminal. Some types of purchase conditions are the purchase price, time of day,

0982day of the week, season, the identity of a product included in the purchase, the cost of a

0983product included in the purchase, and/or past purchases made by the customer. Other types

0984of purchase conditions may be employed without departing from the spirit and scope of the

0985present invention.

0986The use of purchase conditions in the present invention allows upsells to be

0987more accurately determined, and in turn increases the likelihood that an upsell will appeal to

0988a customer and be exchanged for change due. For example, at certain times during a day, a

0989customer may have a stronger desire for certain upsells. A meal is a more appealing upsell

0990during dinnertime than during the mid-afternoon, and a video rental is more appealing in the

0991evening than in the morning. Accordingly, consideration of the time of a purchase may

0992allow more appealing upsells to be offered.

0993In embodiments that employ purchase conditions, upsell prices in the upsell

0994database have a corresponding upsell and at least one corresponding upsell condition to

0995compare with the purchase condition. Furthermore, the POS terminal generates the

0996purchase condition(s) in any of a number of ways. For example, a clock signal can provide

0997the time and/or date, the purchase recorded by the POS terminal can provide the identity of

0998products, and a "frequent shopper card" can provide signals indicative of the customer's

0999identity and past purchases made by the customer.

1000Referring to FIG. 16, an upsell database 1090, which is one embodiment of

1001the upsell database 1030 of FIG. 13 A, includes upsell prices 1092, upsell descriptors 1094

1002and a plurality of upsell conditions, including the items purchased 1096, whether a customer

1003identifier is required 1098, customer product preferences 1100, the time of day 1102 and cost 1103 to the business. The entries in the upsell database 1090 may be uniquely

1004identified by upsell codes 1 104.

1005Several types of purchase conditions, which are compared with upsell

1006conditions, may be stored in one or more databases in the storage device 1022 (FIG. 13 A).

1007For example, FIG. 17 illustrates a customer database 1110, which includes unique customer

1008identifiers 1112, as well as customer-specific information, such as name 1114, address 1116,

1009telephone number 1118 and historical product preferences 1120. The POS terminal 1010

1010(FIG. 13 A) may employ the customer database 1110 to determine various purchase

1011conditions, and offer upsells accordingly as described above. A customer at a POS terminal

1012may provide a corresponding customer identifier, and thereby provide his customer- specific

1013information, in any of a number of ways. For example, the customer may type his customer

1014identifier into the POS terminal, or may "swipe" (pass) a frequent- shopper card containing a

1015unique identification code through a card reader at the POS terminal.

1016Other types of purchase conditions may be derived from an inventory price

1017database. Referring to FIG. 18, an inventory price database 1130, which is one embodiment

1018of the inventory price database 1028 of FIG. 13 A, includes products 1132 and

1019corresponding product prices 1134. The inventory price database 130 may also include

1020unique product identifiers 1136, as well as the numbers of such products in stock 1138. It

1021may also be desirable to store the "age" (expiration date or time) 1140 of certain types of

1022products, thus allowing older products to be identified and offered as upsells.

1023For each purchase, the above-described purchase conditions, the round-up

1024amount and whether the upsell was selected may be stored in a database of offered upsells.

1025Such a database of offered upsells could provide information on which upsells were

1026accepted by customers, and under what circumstances the upsells were accepted. Thus, from this database, the value of upsells to consumers may be determined, and the upsell

1027database can be adjusted accordingly. For example, if consumers rarely accept a certain

1028upsell, the upsell may be eliminated from the database or may be offered in exchange for

1029much smaller amounts of change.

1030FIG. 19 illustrates an embodiment of an offered upsell database 1150 stored

1031in the storage device 1022 (FIG. 13 A). The offered upsell database 1150 includes upsells

1032which were offered 152, the corresponding round-up amount 1154 and which upsell, if any,

1033was accepted 1156. Other purchase conditions may be desirable to store in the offered

1034upsell database 1150, such as the date 1158 of the offered upsell, a unique customer

1035identifier 1 160, an expiration period 1162 for redeeming the upsell, if any, and the date 1164

1036the upsell was accepted (redeemed), if any.

1037In the embodiments discussed above, the POS terminal identified a single

1038upsell to offer in exchange for a round-up amount. However, the POS terminal 1010 (FIG.

103913 A) may identify more than one upsell that corresponds to an upsell price. In such an

1040embodiment, the POS terminal 1010 can provide the customer with a selection of possible

1041upsells. The POS terminal 1010 may display all of these upsells simultaneously, or may

1042display the upsells sequentially.

1043In embodiments where the upsells are displayed simultaneously, the

1044customer selects from among the displayed upsells. In embodiments where the upsells are

1045displayed sequentially, the customer may reject (fail to select) the first displayed upsell, and

1046the POS terminal 1010 then displays a second upsell. Sequentially-displayed upsells can be

1047sorted according to a sorting criteria, allowing the sequence of displayed upsells to proceed

1048in a desired manner. Thus, a first upsell that is sorted before a second upsell is displayed

1049first. If the first upsell is not selected, the second upsell is then displayed. The upsells may be sorted according to the profit earned on each upsell. In

1050such an embodiment, the upsell yielding the highest profit to the business is offered first. If

1051the customer rejects the highest profit upsell, other upsells having lower profits may be

1052subsequently-displayed. Thus, even if a customer rejects a first upsell, he may select a

1053subsequent upsell that still provides profit to the seller.

1054In certain other embodiments of the present invention, the POS terminal

1055provides a second upsell having a higher- value to the customer if a first upsell has been

1056rejected. Such a higher-value upsell may be more likely to be accepted than the first upsell.

1057Such a sequence of increasingly-valuable offers may result in the customer's consistent

1058rejection of the first upsell offer. Accordingly, in another embodiment, the POS terminal

1059generates a random number using any of a number of known methods. The random number

1060may be used to determine (i) whether subsequent upsells are offered at all, or (ii) the relative

1061order in which the upsells of different value will be offered. Thus, customers are unsure of

1062whether a second upsell will be offered and/or what the value of a second upsell may be, so

1063they will not automatically reject the first upsell.

1064FIG. 20 illustrates a method 1180 in which the customer provides a counter¬

1065offer to exchange his change for a second upsell. The POS terminal then determines

1066whether to accept this counter-offer.

1067As described above, the POS terminal outputs signals indicative of a first

1068(identified) upsell (step 1182). The POS terminal generates a selection signal for indicating

1069selection between the first upsell, change and a second upsell (counter-offer by customer).

1070If the selection signal indicates selection of the first upsell (step 1184), then, as described

1071above, the required payment amount is set equal to the purchase price (step 1186).

1072However, if the selection signal indicates selection of the second upsell (step 1188) (i.e., the customer counter-offers for the second upsell), a second upsell price corresponding to the

1073second upsell is determined (step 1190) from the upsell database. If the calculated round-up

1074amount corresponds to the second upsell price (step 1 192) (i.e., the customer's change is

1075sufficient for the second upsell), the required payment amount is set to be equal to the

1076rounded price (step 1186), and the second upsell is thereby accepted.

1077Besides product upgrades and additional products, another type of upsell is a

1078voucher that is redeemable for a product or a discount thereon. Vouchers can be especially

1079valuable to a seller because they attract customers back to a business and possibly provide

1080repeat sales. A customer is typically more likely to return to a business to use a purchased

1081voucher (i.e. purchased with his change) than to use a free voucher. Vouchers provide

1082further value to the seller through the possibility of breakage (i.e. loss and thus non-

1083redemption of a purchased voucher).

1084A voucher may either be related to the round-up amount or independent

1085thereof. For example, one type of voucher is a coupon redeemable for a discount on a future

1086purchase, in which the discount amount is equal to the round-up amount of the present

1087purchase. In contrast, another type of voucher is a coupon redeemable for a certain product,

1088regardless of the round-up amount of the present purchase.

1089Upon accepting the upsell, either the cashier presents a pre-printed coupon to

1090the customer, or the POS terminal prints one for the customer. Printed vouchers may be

1091registered with many different types of indicia, such as redemption information, a unique

1092identifier, the date of the purchase or an expiration date.

1093In embodiments that include printing a unique identifier on the voucher, the

1094POS terminal maintains a database for storing a plurality of identifiers. When a new

1095voucher must be printed, the POS terminal generates a unique identifier that does not already exist in the identifier database. This identifier is then stored in the identifier

1096database. By searching the identifier database for a voucher identifier, redemption of the

1097voucher may be tracked and the same voucher cannot be redeemed more times than

1098permissible.

1099Referring to FIG. 21, the storage device 1022 stores an identifier database

1100200, which includes unique identifiers 1202 for identifying each voucher. The identifier

1101database 1200 may further include voucher face values 1204, which may (or may not) equal

1102the round-up amount exchanged for the voucher. Stored voucher face values allow each

1103voucher to be redeemed for a different value, while minimizing fraud. For example, the

1104voucher face values 1204 stored in the database 1200 may be retrieved upon redemption and

1105compared with values printed on the vouchers. Discrepancies between stored and printed

1106voucher values would indicate forgery of the printed voucher.

1107Yet another type of upsell is an entry in a game, such as a lottery, contest,

1108sweepstakes or other game. In some embodiments, the prize for winning the game depends

1109on the round-up amount used to purchase the game entry. For example, the prize for

1110winning the game may be proportional to the round-up amount paid for the game entry. In

1111such embodiments, the prize collected upon winning the game is greater for greater round¬

1112up amounts. In other embodiments, the probability of winning may be greater for greater

1113round-up amounts. For example, a game entry for which a customer paid $1.50 may have

1114twice as much of a chance of winning as a game entry for which another customer paid 75 ø.

1115Upon receiving an input indicating selection of the game upsell in exchange

1116for the round-up amount, the POS terminal generates a unique identifier to identify the game

1117entry. The unique identifier and the round-up amount are stored in a game database of

1118identifiers and round-up amounts. When a winning entry is determined, the game database provides the round-up amount corresponding to the entry, and thereby determines the prize

1119value.

1120The game database may be, for example, a database maintained by the POS

1121terminal and stored in the storage device 1022 (FIG. 13 A). In another embodiment

1122illustrated by FIG. 2210, the game database resides in a lottery data processing system 1220

1123that is connected to POS terminals 1222 and 1223 through a communication link 1224.

1124Although two POS terminals are shown in FIG. 22 for purposes of clarity, more POS

1125terminals may be connected to the lottery data processing system 1220.

1126The lottery data processing system 1220 is typically a controller located in a

1127store for controlling lottery ticket transactions performed at POS terminals in the store. The

1128system 1220 thereby serves to collect and store lottery transactions (such as lottery ticket

1129upsells) performed at the store's POS terminals. Such centralized control of lottery

1130transactions allows customers at a number of POS terminals to each receive upsells that

1131permit participation in a single lottery, contest or other game.

1132The lottery data processing system 1220 comprises a microprocessor 1226

1133for controlling other components described below. The microprocessor 1226 communicates

1134with each of a cryptographic processor 1228 for authenticating lottery transactions and a

1135random number generator 1230 for generating "quick-pick" lottery numbers for each game

1136entry. A storage device 1232 also communicates with the microprocessor 1226, and stores

1137(i) the above-described game database 1234 of identifiers and round-up amounts; (ii) a POS

1138terminal controller database 1236 for maintaining information on POS terminals connected

1139to the lottery data processing system 1220, such as a unique identifier for each terminal and

1140the specific lottery transactions of each terminal; and (iii) a winning lottery ticket number

1141database 1238 for storing winning numbers, and thereby indicating winning entries. In each of the embodiments of the present invention described above, the

1142customer selects and receives an upsell. However, as described below, the customer may

1143prefer to transfer ("donate") his upsell to a second customer, with the upsell being received

1144by the second customer at his next visit to a POS terminal. The second customer may visit

1145the POS terminal, for example, to pay for products, as described above, or specifically to

1146collect the donated upsell.

1147FIG. 23 depicts a customer database 1260 which is another embodiment of

1148the customer database 1110 (FIG. 17) stored in the storage device 1022. The customer

1149database 260 includes unique customer identifiers 1262, as well as customer-specific

1150information described above, such as name 1264, address 1266, telephone number 1268 and

1151historical product preferences 1270. In addition, the customer database 1260 includes

1152linked customer identifiers 1272 that identify others (if any) to which the customer's upsells

1153are donated.

1154For example, using the functionality of the customer database 1260, a

1155customer may specify that an acquaintance receives the customer-earned upsell. The

1156customer database 1260 also includes upsells due 1274 to the customer, such as upsells

1157previously earned or transferred to him by another, as well as upsell expiration dates 1275

1158indicating the last dates for receiving the upsells due.

1159Using the exemplary data shown in the database 1260 of FIG. 23, a first

1160customer identifier 1276 of the record 1277 identifies a customer name "Bill Smith" and

1161further identifies a corresponding linked customer through identifier 1278 in field 1272.

1162This linked customer identifier 1278 corresponds to the customer identifier 1280 identifying

1163the customer "Jill Smith". Accordingly, Jill Smith has been identified and receives upsells

1164donated by Bill Smith. An upsell due 1282 is associated with customer identifier 1280 of record

11651281 (Jill Smith). The upsell due 1282 is provided based on a purchase by Bill Smith, and

1166is collected by Jill Smith during a visit to a POS terminal. The upsell identifier "A" in field

11671274 may comprise, for example, a small soda. Thus, the use of "linked customers" thus

1168allows customers to transfer earned upsells, or even purchased products, thereby increasing

1169both customer satisfaction and customer retention.

1170A customer may prefer to randomly donate his upsell to one (or more) of a

1171number of customers, such as a number of family members or a predetermined list of needy

1172families, rather than to any one customer in particular. In such an embodiment, the donating

1173customer may first designate an associated group of linked customer identifiers 1272.

1174Alternatively, the customer may let the store select a group of customers. A random one (or

1175more) of this group is selected by the POS terminal as the recipient of the upsell.

1176Referring now to Figs. 12a and 12b, a process 1300 is shown whereby

1177automated upsell processing is performed for a customer having a frequent shopper card. A

1178customer who wishes to register for a frequent shopper card which stores his preferences

1179provides personal information (step 1302), such as his name, address and/or telephone

1180number, to a POS operator or other person who responsible for data entry. This personal

1181information is then stored (step 1304) in a record of the customer database. Such records

1182are exemplified in FIG. 23 by the records 1276 and 1281 of the customer database 1260.

1183The customer selects (step 1306) if he would like to normally receive an

1184upsell, rather than change. If he so selects, possible choices of upsells are displayed (step

11851308) to the customer. The customer chooses which of the displayed upsells he prefers to

1186normally receive (step 1310), and the chosen upsell is stored (step 1312) in the historical

1187preferences field 1270 of his customer record. The customer may also choose (step 1314) if he would like to donate his

1188upsells to a "linked" customer having a frequent shopper card. If so, the customer provides

1189information (step 1316) identifying the linked customer, such as the name, address and/or

1190account number of the linked customer. The customer may select multiple other linked

1191customers to receive donated upsells. The information is verified (step 1318) to assure that

1192the second customer may be properly identified from the information provided, and the

1193information is stored in the customer database record. As necessary, additional customer

1194records are created for second and subsequent customer(s).

1195Possible upsells to donate to the second customer are displayed (step 1320) to

1196the customer. The customer chooses which of the displayed upsells he prefers to normally

1197transfer (step 1322), and the chosen upsell is stored (step 1324) in the customer record.

1198Finally, the customer is issued his frequent shopper card (step 1326) through which the POS

1199terminal may identify his customer record.

1200Referring to FIG. 25, a method 1340 for applying previously-selected

1201customer preferences to a current visit to a POS terminal begins with a determination (step

12021342) of whether a frequent shopper card is being used. Such a determination may be made,

1203for example, by receiving a signal from a card reader, thereby indicating that a card has been

1204"swiped" through the card reader. If a frequent shopper card is not being used, an upsell is

1205determined (step 1344) as previously described, and an upsell (if selected) is provided to the

1206customer (step 1346) in exchange for his change.

1207If a frequent shopper card is being used, the customer database is searched to

1208determine (step 1348) if the customer has a preferred upsell. If he does, the preferred upsell

1209is selected (step 1350). The customer database is also searched to determine (step 1352) if

1210the customer has established a second customer to receive donated upsells. If so, an identifier for the selected upsell is stored (step 1354) in an account of the second customer,

1211thereby indicating that the second customer may receive the selected upsell. In other

1212embodiments, the second customer may receive donated products that are not upsells, such

1213as products bought for "list" price.

1214Referring now to FIG. 26, a method 1370 illustrates how the second

1215customer may receive the donated upsell. While at the POS terminal, the second customer

1216swipes his frequent shopper card through a card reader (step 1372), thereby identifying a

1217customer record of the customer database providing information on his preferences and any

1218upsells donated to him. The customer record is searched to determine (step 1374) if an

1219upsell has been donated to the second customer. If not, the second customer completes his

1220transaction (step 1376) at the POS terminal as described above. If an upsell has been

1221donated, the second customer is informed and the upsell is provided (step 1378), thereby

1222clearing the donated upsell from the record of the second customer. A transaction-specific

1223upsell, dependent on the change of the second customer, can be offered in addition to the

1224donated upsell.

1225As described above, an upsell may have a corresponding expiration date after

1226which the upsell may not be redeemed. For example, a donated upsell may be transferred

1227only if the second customer collects the upsell through the above-described method 1370

1228(FIG. 26) before a predetermined date. An expiration date for donated upsells is especially

1229advantageous to a store in that it can increase customer retention by providing an incentive

1230to visit the store having the POS terminals before the upsell expires. Breakage also provides

1231the store with profit.

1232In many of the embodiments presented herein, the methods and apparatus of

1233the present invention have been described in detail with respect to a single device functioning as a POS terminal, such as a cash register. However, as also described above,

1234the functionality of the present invention may be implemented by a plurality of devices

1235sharing the described functionality, such as the multi-unit system illustrated in FIG. 13B.

1236Accordingly, FIG. 27 illustrates a method 1390 for determining an upsell at a

1237POS terminal in accordance with the embodiment of FIG. 13B. The method 1390 may be

1238performed, for example, by a combination of a cash register and a processing system

1239operated by an electronic marketing service or credit card clearing house. The cash register

1240generates a purchase price and transmits the purchase price to the processing system (step

12411392).

1242The processing system generates a rounded price (step 1394), and generates a

1243round-up amount in dependence thereupon (step 1396). As described above, the processing

1244system identifies an upsell to offer to the customer (step 1398). If the customer selects the

1245upsell (step 1400), then the required payment amount of the cash register is set, manually or

1246automatically through a connection with the processing system to the rounded price (step

12471402).

1248It will be understood by those skilled in the art that many different systems

1249may be provided wherein the functionality of the present invention is shared amongst

1250multiple hardware and/or software devices.

1251Although the present invention has been described with respect to a preferred

1252embodiment thereof, those skilled in the art will understand that various substitutions may

1253be made to those embodiments described herein without departing from the spirit and scope

1254of the present invention. For example, many other types of upsells that are not discussed in

1255detail herein are contemplated by the present invention. One such upsell may comprise

1256"points", such as those redeemable for store credit, telephone calls, Internet access or pay television events. Furthermore, many types of POS terminals, besides those requiring

1257cashiers, are contemplated by the present invention.

1258In accordance with the present invention, a business may acquire a lottery ticket, and

1259allocate a portion of the lottery ticket to a customer. A share of any prize that is won with

1260the lottery ticket is provided to the customer, the share of the prize corresponding to the

1261allocated portion of the lottery ticket. For example, if a customer receives a $0.34 portion of

1262a $2.00 lottery ticket, then the customer receives 17% ($0.34 / $2.00 = 17%) of the prize

1263derived from the lottery ticket. A portion of a lottery ticket may be expressed as a monetary

1264value, such $0.34, and may be expressed as a percentage, such as 17%.

1265Typically, the business will acquire a group of lottery tickets and allocate portions of

1266those lottery tickets to customers as needed. The prizes derived from the group of lottery

1267tickets are received by the business, which in turn pays shares of the prizes to customers

1268based on the allocated portions. Since the business need only purchase conventional lottery

1269tickets, the business may facilitate the play of fractional lottery tickets without requiring

1270significant changes in existing lottery agency practices.

1271The portion of the lottery ticket allocated to the customer may be based on a change

1272amount that is due in connection with a transaction at a POS terminal. Such an embodiment

1273is advantageous since many customers will welcome an alternative to receiving change.

1274Moreover, receiving something having a high perceived value, such as a fractional lottery

1275ticket, instead of change can be even more attractive to customers.

1276Referring to FIG. 28, a network 2008 comprises a store controller 2010. which is in

1277communication with a lottery server 2012 and with POS terminals 2014, 2016. 2018 and

12782020. The POS terminals 2014, 2016, 2018 and 2020, which are typically cash registers or other terminals, may initiate and/or complete fractional lottery ticket transactions. Although

1279four POS terminals are shown in FIG. 28, any number of POS terminals may be in

1280communication with the store controller 2010. The POS terminals 2014, 2016, 2018 and

12812020 may be located in the same store, in different stores of a chain of stores, or in other

1282locations.

1283The store controller 2010 directs the operation of, stores data from and transmits data

1284to the POS terminals 2014, 2016, 2018 and 2020. The store controller 2010 may itself be a

1285POS terminal or may be another computing device that can communicate with one or more

1286POS terminals. The lottery server 2012 is typically controlled by a state lottery agency, and

1287responds to requests from the store controller 2010. For example, the lottery server 2012

1288may issue lottery tickets as requested by the store controller 2010, and may provide the

1289winning numbers for a drawing date.

1290Referring to FIG. 29, the store controller 2010 of FIG. 28 comprises a processor

12912022, such as one or more conventional microprocessors. The processor 2022 is in

1292communication with a data storage device 2024, such as an appropriate combination of

1293magnetic, optical and/or semiconductor memory. The processor 2022 and the storage

1294device 2024 may each be (i) located entirely within a single computer or other computing

1295device; (ii) connected to each other by a remote communication link, such as a serial port

1296cable, telephone line or radio frequency transceiver; or (iii) a combination thereof. For

1297example, the store controller 2010 may comprise one or more computers that are connected

1298to a remote server computer for maintaining databases.

1299The storage device 2024 stores a program 2026 for controlling the processor 2022.

1300The processor 2022 performs instructions of the program 2026, and thereby operates in

1301accordance with the present invention, and particularly in accordance with the methods described in detail herein. The program 2026 furthermore includes program elements that

1302may be necessary, such as an operating system and "device drivers" for allowing the

1303processor 2022 to interface with computer peripheral devices. Appropriate device drivers

1304and other necessary program elements are known to those skilled in the art, and need not be

1305described in detail herein.

1306The storage device 2024 also stores (i) a ticket supply database 2030;

1307(ii) a transaction database 2032; (iii) a fractional ticket database 2034; (iv) a winning lottery

1308ticket database 2036; and (v) a frequent shopper database 2038. The databases 2030, 2032,

13092034, 2036 and 2038 are described in detail below and depicted with exemplary entries in

1310the accompanying figures. As will be understood by those skilled in the art, the schematic

1311illustrations of and accompanying descriptions of the databases presented herein are

1312exemplary arrangements for stored representations of information. A number of other

1313arrangements may be employed besides the tables shown. Similarly, the illustrated entries

1314represent exemplary information, but those skilled in the art will understand that the number

1315and content of the entries can be different from those illustrated herein.

1316Referring to FIG. 30,a schematic illustration of a POS terminal 2040 is descriptive of

1317the POS terminals 2014, 2016, 2018 and 2020 of FIG. 28. The POS terminal 2040

1318comprises a processor 2042, such as one or more conventional microprocessors. The

1319processor 2042 is in communication with a data storage device 2044, such as an appropriate

1320combination of magnetic, optical and/or semiconductor memory. The processor 2042 and

1321the storage device 2044 may each be (i) located entirely within a single computer or other

1322computing device; (ii) connected to each other by a remote communication link, such as a

1323serial port cable, telephone line or radio frequency transceiver; or (iii) a combination thereof. For example, the POS terminal 2040 may comprise one or more computers which

1324are connected to a remote server computer for maintaining databases.

1325An input device 2046, a printer 2048 and a display device 2050 are each in

1326communication with the processor 2042. The input device 2046 preferably comprises a

1327keypad for transmitting input signals, such as signals indicative of a purchase, to the

1328processor 2042. The input device 2046 may also comprise an optical bar code scanner for

1329reading bar codes and transmitting signals indicative of those bar codes to the processor

13302042. The printer 2048 is for registering indicia on paper or other material, thereby printing

1331fractional lottery tickets as commanded by the processor 2042. The display device 2050 is

1332preferably a video monitor for displaying at least alphanumeric characters to the customer

1333and/or a cashier operating the POS terminal 2040. Many types of input devices, printers and

1334display devices are known to those skilled in the art, and need not be described in detail

1335herein.

1336The storage device 2044 stores a POS terminal program 2052 for controlling the

1337processor 2042. The processor 2042 performs instructions of the POS terminal program

13382052, and thereby operates in accordance with the present invention, and particularly in

1339accordance with the methods described in detail herein. The POS terminal program 2052

1340furthermore includes program elements that may be necessary, such as an operating system

1341and "device drivers" for allowing the processor 2042 to interface with computer peripheral

1342devices, such as the input device 2046, the printer 2048 and the display device 2050.

1343Appropriate device drivers and other necessary program elements are known to those skilled

1344in the art, and need not be described in detail herein.

1345FIG. 31 illustrates an alternate embodiment of a POS terminal 2058, which is

1346descriptive of the POS terminals 2014, 2016. 2018 and 2020 of FIG. 28. A control device 2060 is in communication via a communication medium 2062 with a system 2064 for

1347printing fractional lottery tickets, receipts and/or coupons. The control device 2060

1348comprises a processor 2066 that is in communication with the input device 2046 (FIG. 30)

1349and the display device 2050 (FIG. 30). The system 2064 for printing comprises a processor

13502068 in communication with the storage device 2044 (FIG. 30) and the printer 2048 (FIG.

135130). In this embodiment, the control device 2060 may be a cash register, and the system

13522064 may be an electronic device for printing tickets in accordance with data received from

1353the cash register. Other configurations of the POS terminal 2040 will be understood by

1354those skilled in the art.

1355The description that follows is arranged into the following sections: Allocating

1356Portions of Lottery Tickets, Acquiring Additional Lottery Tickets, and Redeeming Portions

1357of Lottery Tickets.

1358Allocating Portions of Lottery Tickets

1359Referring to FIG. 32, the ticket supply database 2030 of FIG. 29 includes rows 2080,

13602082, 2084, 2086 and 2088, each of which represents an entry of the ticket supply database

13612030. Each entry defines a lottery ticket that is to be allocated, in which the allocated

1362portions of the lottery ticket are included in fractional lottery tickets. In particular, each

1363entry includes (i) a ticket identifier 2090 that uniquely identifies the entry, such as a serial

1364number of the lottery ticket or a portion of the serial number; (ii) a drawing date 2092 that

1365indicates when winning ticket numbers will be announced; (iii) ticket numbers 2094; (iv) an

1366unallocated portion 2096 of the lottery ticket; and (v) a ticket price 2098, which indicates

1367the total of the unallocated portion 2096 and any allocated portions. For any entry, the unallocated portion 2096 and the ticket price 2098 may be used to determine how much of

1368the corresponding lottery ticket has been allocated. For example, referring to the entry

13692084, of the $1.00 ticket price, $0.23 remains unallocated. Accordingly, $0.77 ($1.00 -

1370$0.23) has been allocated. A total remaining unallocated amount 2100 indicates the sum of

1371the unallocated portions of all lottery tickets. Given the exemplary data shown in FIG. 31 ,

1372the total remaining unallocated amount 2100 is $1.54 ($0.12 + $0.31 + $0.23 + $0.78 +

1373$0.10 = $1.54).

1374Referring to FIG. 33, exemplary data for the ticket supply database 2030 (FIGS. 29

1375and 32) are shown before and after a portion of a lottery ticket has been allocated. The table

137621 10 represents the ticket supply database 2030 before a transaction represented by a round¬

1377up amount 2130. The table 2120 represents the ticket supply database 2030 after the

1378transaction represented by the round-up amount 2130. The round-up amount 2130 has a

1379value of $0.35, and corresponds to a transaction where a customer exchanges his change due

1380($0.35) for a fractional lottery ticket. The customer thus obtains a portion of a lottery ticket,

1381and the portion is based on the monetary amount $0.35.

1382As described above, each of the entries shown in the table 2110 corresponds to a

1383ticket. Except for the entry 2135, the monetary amount $0.35 is greater than the unallocated

1384portions of every entry. By contrast, the entry 2135 has an unallocated portion of $0.78, and

1385thus a $0.35 portion of the corresponding lottery ticket may be allocated therefrom.

1386Accordingly, the lottery ticket corresponding to the entry 2135 is selected, and a portion

1387corresponding to $0.35 is allocated to make a new fractional lottery ticket.

1388The entry 2135 represents the ticket "1234563" before the $0.35 portion is allocated

1389therefrom. An entry 2140 of the table 2120 represents the ticket "1234563" after the $0.35

1390portion is allocated therefrom. The unallocated portion of the entry 2140 is $0.43, which is the original $0.78 unallocated portion reduced by $0.35. Similarly, before the transaction

1391represented by the round-up amount 2130, the total remaining unallocated amount (of all

1392lottery tickets) is $1.54. After the transaction, the total remaining unallocated amount is

1393$1.19, which is $1.54 reduced by $0.35.

1394Referring to FIG. 34, the transaction database 2032 of FIG. 29includes rows 2150,

13952152, 2154, 2156 and 2158, each of which represents an entry of the transaction database

13962032. Each entry defines a transaction initiated by a POS terminal. In particular, each entry

1397includes (i) a transaction number 2160 that uniquely identifies the transaction; (ii) a POS

1398terminal identifier 2162 that uniquely identifies the POS terminal initiating the transaction;

1399(iii) a purchase price 2164; (iv) a rounding multiple 2165 that is used to indicate an amount

1400to which the purchase price is to be rounded; (v) a round-up amount 2166 that is the

1401monetary amount used to purchase the fractional lottery ticket; (vi) an indication of whether

1402the offer for a fractional lottery ticket was accepted 2168; (vii) a frequent shopper number

14032170 identifying a customer who has used a frequent shopper card for the transaction; (viii)

1404a date 2172 of the transaction; and (ix) a fractional ticket identifier 2174 that identifies a

1405fractional lottery ticket provided in exchange for the round-up amount.

1406The round-up amount 2166 is the monetary amount used to purchase the fractional

1407lottery ticket. In some embodiments, round-up amount 2166 is equal to the allocated

1408portion of a lottery ticket. For example, a customer may have $0.62 in change (the round-up

1409amount) from a purchase, and use that change to acquire a $0.62 portion of a lottery ticket.

1410However, the monetary amount used to purchase the fractional lottery ticket need not be

1411equal to the allocated portion of the corresponding lottery ticket. In certain embodiments,

1412the allocated portion of a lottery ticket is based on a rounded-down (or rounded-up)

1413monetary amount. For example, a customer may have $0.62 in change from a purchase, and use that change to acquire a fractional lottery ticket. The fractional lottery ticket may be

1414based on an allocated $0.60 ($0.62 rounded down to the nearest nickel) portion of a lottery

1415ticket. Of course, the monetary amount may be rounded down to other multiples, such as to

1416the nearest dime, quarter or dollar, and that rounded amount would define the allocated

1417portion of a lottery ticket. The difference between the change due and the rounded-down

1418amount upon which the fractional lottery ticket is based may, for example, be kept as a

1419service fee by the seller of the fractional lottery ticket.

1420The allocated portion of a lottery ticket may be based on the monetary amount in still

1421further ways. For example, the allocated portion may be double the monetary amount. It

1422may be advantageous to provide such a double-value allocated portion if a customer buys a

1423predetermined good or type of good, or if the customer uses a frequent shopper card. For

1424example, if a customer has $0.62 in change and purchases a product of a particular

1425manufacturer, the customer receives a fractional lottery ticket that is based on an allocated

1426$1.24 (double $0.62) portion of one or more lottery tickets in exchange for his change.

1427Referring to FIG. 35, tables 2180 and 2190 represent records of the fractional ticket

1428database 2034 (FIG. 29). Typically, the fractional ticket database 2034 includes a plurality

1429of records such as those represented by the table 2180 and 2190. Each record of the

1430fractional ticket database 2034 defines a fractional lottery ticket, and each fractional lottery

1431ticket includes allocated portions of one or more lottery tickets.

1432The record represented by the table 180 defines a fractional lottery ticket that is

1433identified by an identifier 2185 (the identifier "1001"). The table 2180 includes an entry

14342187, which defines a portion of a lottery ticket that is included in the fractional lottery

1435ticket " 1001 ". The entry 2187 includes (i) a ticket identifier 2182 that uniquely identifies the lottery ticket; and (ii) a portion 2184 indicating a portion of the lottery ticket that is

1436included in the fractional lottery ticket "1001 ".

1437Similarly, the record represented by the table 2190 defines a fractional lottery ticket

1438that is identified by an identifier 2195 (the identifier "1003"). The table 2190 includes

1439entries 2197 and 2198, which each include (i) a ticket identifier 2192; and (ii) a portion

14402194. Since the fractional lottery ticket "1003" includes portions from more than one lottery

1441ticket, the fractional lottery ticket "1003" may include allocated amounts which collectively

1442exceed the maximum price of one lottery ticket.

1443As described above, a fractional lottery ticket includes portions of one or more

1444lottery tickets. In certain embodiments, the lottery tickets are not chosen by the customer,

1445but are instead chosen automatically by the POS terminal or store controller 2010 (FIG. 28).

1446In such embodiments, a lottery ticket is selected from the plurality of lottery tickets in the

1447ticket supply database 2030 (FIG. 29). The lottery ticket may be selected in several ways.

1448For example, a lottery ticket having an unallocated portion at least as great as the monetary

1449value may be selected. Similarly, a set of lottery tickets that each have an unallocated

1450portion at least as great as the monetary value may be determined. From this set, the lottery

1451ticket which has a minimal unallocated portion is selected. The description below further

1452clarifies this method of selecting a lottery ticket.

1453Referring to FIG. 36, a table 2200 illustrates exemplary data for the ticket supply

1454database 2030 (FIGS. 29 and 32). The table 2200 includes entries 2202, 2204, 2206 and

14552208. A round-up amount 2220 has a value of $0.60, and corresponds to a transaction

1456where a customer exchanges his change due ($0.60) for a fractional lottery ticket. The

1457customer thus obtains a portion of a lottery ticket, and the portion is based on the monetary

1458amount $0.60. To select the lottery ticket from which to allocate a portion, the store controller 2010 determines a set of tickets that each have an unallocated portion of at least

1459$0.60. This set includes the entries 2204, 2206 and 2208. From this set, the lottery ticket

1460which has a minimal unallocated portion is selected. Of the entries 2204, 2206 and 2208,

1461the entry 2208 has the minimal unallocated portion ($0.61). Accordingly, the lottery ticket

1462corresponding to the entry 2208 is selected, and a $0.60 portion is allocated therefrom.

1463In other embodiments, the customer may select the ticket numbers himself at the

1464time of the transaction, either manually or through numbers stored on a frequent shopper

1465card. One or more lottery tickets that include those ticket numbers would be acquired (e.g.,

1466by electronic request to the lottery server 2012), added to the ticket supply database 2030

1467(FIG. 29), and one or more portions thereof would be included in the fractional lottery ticket

1468purchased by the customer. Such an embodiment allows a customer to obtain a fractional

1469lottery ticket having his favorite or "lucky" numbers.

1470Once a fractional lottery ticket has been determined, the POS terminal prints for the

1471customer a ticket indicative of the fractional lottery ticket, for example, on a receipt. The

1472printed ticket serves as proof that the customer is entitled to the indicated portions of any

1473prizes won by the indicated lottery tickets. Such a printed ticket may include the

1474corresponding (i) fractional lottery ticket identifier, (ii) ticket numbers, (iii) allocated

1475portion(s) of the lottery ticket(s), (iv) transaction identifier, and (v) an encrypted code based

1476on a combination thereof. Such an encrypted code may be used to verify that the printed

1477ticket is unaltered. Encryption techniques are described in "Applied Cryptography:

1478Protocols, Algorithms and Source Code in C, Second Edition", by Bruce Schneier,

1479published 1996. Those skilled in the art will understand that the encrypted code will be

1480determined by a cryptographic algorithm such that it would be almost impossible for a

1481forger to generate a valid code, much less a code that indicates a winning lottery ticket. The printed ticket may also include contractual language, such as provisions

1482assigning to the customer the right and title in and to the indicated portions of any prizes

1483won by the indicated lottery tickets. Still further matter such as the drawing date and an

1484expiration date of the fractional lottery ticket may be included on the printed ticket, as will

1485be understood by those skilled in the art. It may be further desirable to print a bar code that

1486indicates any or all of the above information, thereby facilitating entry of the information

1487using a bar code scanner.

1488Referring to FIG. 37, a method 2240 for allocating portions of lottery tickets initiates

1489by determining a monetary value (step 2242). For example, a POS terminal may calculate

1490an amount of change due and round this amount down to the nearest dime. The POS

1491terminal transmits the rounded amount to the store controller, and the store controller

1492thereby determines the monetary value to be this rounded amount. The store controller in

1493turn allocates a portion of a lottery ticket, the portion being based on the monetary value

1494(step 2244). The store controller then outputs (i) a ticket identifier that identifies the lottery

1495ticket, and (ii) a portion identifier that identifies the allocated portion of the lottery ticket

1496(step 2246). For example, the store controller typically transmits the ticket identifier and the

1497portion identifier to the POS terminal, and the POS terminal in turn prints a fractional lottery

1498ticket based on the transmitted identifiers, as described above. The store controller also

1499stores the ticket identifier and the portion identifier (step 2248), for example, in the

1500fractional ticket database 2034 (FIG. 29), for authentication purposes.

1501Acquiring Additional Lottery Tickets As described above, portions of lottery tickets from the supply of lottery tickets are

1502allocated. After an allocation, it is possible that a lottery ticket will have an unallocated

1503portion of $0.00. In other words, the entire lottery ticket will have been allocated, and no

1504further portions of the lottery ticket remain to be allocated.

1505In addition, after an allocation, it is possible that no single lottery ticket has an

1506unallocated portion which is sufficient to satisfy a particular request (or an anticipated

1507request) for a fractional lottery ticket. For example, there may be an attempt to allocate a

1508$0.35 portion of a lottery ticket, yet no lottery ticket represented in the ticket supply

1509database 2030 (FIG. 29) has an unallocated portion of $0.35 or more. In such a situation, it

1510may be possible to allocate portions from a plurality of lottery tickets, such that the portions

1511collectively equal $0.35. However, it may be desirable to allocate a portion from a single

1512lottery ticket, rather than from many. For example, it is simpler for a customer to track one

1513set of ticket numbers, rather than a plurality of sets of ticket numbers.

1514Accordingly, it is advantageous to acquire additional lottery tickets for the supply of

1515lottery tickets. It is particularly advantageous to acquire additional lottery tickets at a time

1516before the lottery tickets are needed, so as not to introduce undue delays into a transaction.

1517Additional tickets may be acquired in predetermined amounts to reduce time spent acquiring

1518lottery tickets. For example, thirty tickets may be acquired at once. In addition, the

1519predetermined amount may depend on criteria such as the number of POS terminals in use.

1520Additional lottery tickets may be acquired by purchasing "quick pick" tickets (Tickets with

1521randomly selected ticket numbers) from the state lottery in a known manner.

1522In one embodiment, the store controller 2010 (FIG. 28) counts the number of tickets

1523that have an unallocated portion that is above a first predetermined threshold. For example,

1524the store controller 2010 may count the number of tickets that have an unallocated portion that is above $0.50. This number is compared with a second predetermined threshold, and

1525one or more additional lottery tickets are acquired if this number is below the second

1526predetermined threshold. For example, if there are less than ten lottery tickets having

1527unallocated portions above $0.50, additional lottery tickets are acquired.

1528In another embodiment, the store controller 2010 (FIG. 28) counts the number of

1529tickets that have an unallocated portion that is above a requested portion. For example, a

1530POS terminal may request a $0.40 fractional lottery ticket from the store controller. The

1531store controller 2010 then counts the number of tickets that have an unallocated portion that

1532is above $0.40. This number is compared with a predetermined threshold, and one or more

1533additional lottery tickets are acquired if this number is below the predetermined threshold.

1534For example, if there are less than eight lottery tickets having unallocated portions above

1535$0.40, additional lottery tickets are acquired.

1536In another embodiment, the store controller 2010 (FIG. 28) calculates the sum of the

1537unallocated portions of all tickets. If the sum is below a predetermined threshold, additional

1538tickets are acquired. For example, if the total remaining unallocated amount is below

1539$10.00, a block of thirty additional tickets are acquired.

1540Redeeming Portions of Lottery Tickets

1541The business or other entity acquiring and maintaining the supply of lottery tickets

1542may check each to determine whether any are winning tickets. If so, the business preferably

1543redeems the winning tickets for prizes as soon as practical, so that the prizes may be used to

1544pay those customers that have corresponding fractional lottery tickets. Winning ticket

1545numbers may be entered manually into the store controller 2010 (FIG. 28) when available. Ideally, the store controller 10 will receive from the lottery server 2012 (FIG. 28) the

1546winning ticket numbers for each drawing date. The store controller can store these winning

1547ticket numbers in the winning lottery ticket database 2036 (FIG. 29).

1548Referring to FIG. 38, the winning lottery ticket database 2036 includes entries 2260,

15492262 and 2264, each defining winning ticket numbers for a drawing date. Each entry

1550includes (i) a corresponding drawing date 2266, (ii) winning ticket numbers 2268, and (iii) a

1551prize 2270. The winning lottery ticket database 2036 should include entries for all drawing

1552dates corresponding to valid and redeemable fractional lottery tickets. For example, if

1553fractional lottery tickets may be redeemed up to one year after the corresponding drawing

1554date, then the entries for each drawing date of at least the past year should be stored. The

1555prize 2270 may be, for example, the prize won upon matching all winning ticket numbers.

1556More prizes may be specified for each entry. For example, a prize for matching only five of

1557six winning ticket numbers may be specified for each entry as well.

1558When winning ticket numbers for a drawing date are received by the store controller

15592010 (FIG. 28), the store controller 2010 may simply store them in the winning lottery ticket

1560database 2036, where they are accessed when fractional lottery tickets are redeemed by

1561customers. However, the store controller 2010 may also determine which fractional lottery

1562tickets include portions of a winning lottery ticket. Then the corresponding records of the

1563fractional ticket database 2034 (FIG. 29) may be modified to indicate that the fractional

1564lottery tickets include portions of winning lottery tickets. In addition, if those fractional

1565lottery tickets were purchased using frequent shopper cards, then the corresponding

1566customer may be notified.

1567Referring to FIG. 39, the frequent shopper database 2038 includes entries 2280,

15682282, 2284 and 2286, each defining a frequent shopper (a customer who has used a frequent shopper card for the transaction). In particular, each entry includes (i) a frequent shopper

1569number 2288 for uniquely identifying the frequent shopper; (ii) an address 2290 of the

1570frequent shopper; (iii) a telephone number 2292 of the frequent shopper; (iv) a name 2294 of

1571the frequent shopper; and (v) an email address 2296 of the frequent shopper. With such

1572stored information, frequent shoppers may be notified by mail, telephone call, email or other

1573forms of notification as desired. In addition, frequent shoppers may be notified by the POS

1574terminal when they next use their frequent shopper card. Providing frequent shopper with

1575the additional benefit of notification is advantageous because it may prompt customers to

1576become frequent shoppers. Consequently, these customers are more likely to continue

1577frequenting the corresponding business.

1578To redeem a fractional lottery ticket, a customer preferably provides the printed

1579ticket to show that he is entitled to the indicated share of the prize. The printed ticket is

1580verified to assure that it is valid and unaltered. For example, if the printed ticket is valid, the

1581fractional lottery ticket identifier inscribed on the printed ticket indicates a record in the

1582fractional ticket database. That record should in turn indicate corresponding information on

1583the printed ticket. In addition, the encrypted code can be verified.

1584Referring to FIG. 40, a method 2300 for redeeming a fractional lottery ticket initiates

1585by receiving (i) a ticket identifier that identifies a lottery ticket, and (ii) a portion identifier

1586that identifies an allocated portion of the lottery ticket (step 2302). Such identifiers may be

1587received by manually entering one or more identifiers into a POS terminal, from which the

1588identifiers are transmitted to the store controller 2010 (FIG. 28). Alternatively, a bar code

1589scanner of the POS terminal may read a bar code on the printed ticket, and transmit the bar

1590code to the store controller 2010. The entered identifier or bar code may be indicative of the

1591fractional lottery ticket identifier, which may be used to retrieve a corresponding ticket identifier and portion identifier from the fractional ticket database 2034 (FIG. 29). The store

1592controller thus receives the ticket identifier and portion identifier.

1593Once the identifiers are received, thereby identifying one or more lottery tickets and

1594allocated portions thereof, a prize value of the lottery tickets is determined (step 2304). As

1595discussed above, the prize value may be determined by comparing ticket numbers of a

1596lottery ticket with winning ticket numbers stored in the winning lottery ticket database 2036

1597(FIG. 29). As also described above, the portion of the prize that is to be provided to the

1598customer is determined by the allocated portion of the lottery ticket. This portion of the

1599prize is provided to the customer (step 2306), typically by providing cash from a cash

1600register or by writing or printing a check made out to the customer.

1601A winning lottery ticket may have an unallocated portion greater than zero. Such a

1602winning lottery ticket will have an associated portion of the prize value that is not to be paid

1603to customers. This portion of the prize is instead retained by the business, and may be used

1604to finance various customer incentives. For example, a portion of retained prize value may

1605be provided back to customers in the form of fractional lottery tickets (e.g., $0.05 of change

1606buys a $0.50 fractional lottery ticket).

1607The business may retain further winnings by providing winning tickets with portions

1608of certain prize values. For example, customers may only be provided with shares of

1609"jackpot" prizes (e.g. matching all six winning ticket numbers). Any other prizes are

1610retained by the business. Of course, such restrictions would typically be explained to the

1611customers through advertising and printed information on the fractional lottery ticket.

1612Although the present invention has been described with respect to a preferred

1613embodiment thereof, those skilled in the art will note that various substitutions may be made

1614to those embodiments described herein without departing from the spirit and scope of the present invention. For example, the present invention is applicable to many types of games

1615besides lotteries in which prizes are awarded. In addition, in some embodiments the data

1616stored on the store controller may instead be stored among the POS terminals. Similarly,

1617some of the functions performed by the store controller may be performed by the POS

1618terminal, and vice versa.

1619A method an apparatus are provided whereby an upsell to offer to a customer is determined

1620from the items in his purchase, according to predefined relationships. Such relationships

1621between items in a purchase and upsells to offer may be described conceptually by a table

1622that includes both the items and the upsells. The table, in turn, describes a corresponding

1623database defining upsells to offer when a customer's purchase consists of particular items.

1624Such a table-based embodiment is particularly easy for a typical store manager to

1625understand. For example, a store manager of a fast-food restaurant might desire to see what

1626upsells can be offered to a customer that orders a hamburger and small French fries. The

1627store manager may search the table for entries that correspond to a hamburger and small

1628French fries, and then determines corresponding upsells from those entries.

1629Such a table-based embodiment is also easy for a typical store manager to adjust as

1630necessary. For example, a store manager might determine that a significant number of

1631customers who order a hamburger and small French fries would also find a dessert

1632appealing. The store manager could then adjust the table (which represents a database) to

1633include an entry which defines a dessert upsell for purchases that consist of a hamburger and

1634small French fries.

1635Since upsells are exchanged for spare change due, not all customers pay the same

1636price for the same upsell. For example, if a customer has a first purchase price of $4.64, a

1637particular upsell may be offered in exchange for payment of a rounded price that is $5.00 ($4.64 rounded to the nearest dollar). The customer would thus pay $0.36 for the upsell.

1638However, another customer with a second purchase price of $4.72 may be offered the same

1639upsell for $5.00 ($4.72 rounded to the nearest dollar). Thus, this customer would pay $0.28

1640for the same upsell. Accordingly, the upsell is not a product that is merely on-sale and has a

1641fixed price for every customer. Instead, the upsell is purchased for an amount that may be

1642different for every customer: an amount necessary to round the purchase price to some

1643rounding multiple.

1644Referring to FIG. 41 , a POS terminal 3010 comprises a processor 3012, such as one

1645or more conventional microprocessors. The processor 3012 is in communication with a data

1646storage device 3014, such as an appropriate combination of magnetic, optical and/or

1647semiconductor memory. The processor 3012 and the storage device 3014 may each be (i)

1648located entirely within a single computer or other computing device; (ii) connected to each

1649other by a remote communication medium, such as a serial port cable, telephone line or

1650radio frequency transceiver; or (iii) a combination thereof. For example, the POS terminal

16513010 may comprise one or more computers that are connected to a remote server computer

1652for maintaining databases.

1653An input device 3016, a printer 3018 and a display device 3020 are each in

1654communication with the processor 3012. The input device 3016 preferably comprises a

1655keypad for transmitting input signals, such as signals representative of a purchase, to the

1656processor 3012. The input device 3016 may also comprise an optical bar code scanner for

1657reading bar codes and transmitting signals representative of those bar codes to the processor

16583012. The printer 3018 is for registering indicia on paper or other material, thereby printing

1659receipts as commanded by the processor 3012. The display device 3020 is preferably a

1660video monitor for displaying at least alphanumeric characters to the customer and/or a cashier operating the POS terminal 3010. Many types of input devices, printers and display

1661devices are known to those skilled in the art, and need not be described in detail herein.

1662The storage device 3014 stores a program 3022 for controlling the processor 3012.

1663The processor 3012 performs instructions of the program 3022, and thereby operates in

1664accordance with the present invention, and particularly in accordance with the methods

1665described in detail herein. The program 3022 furthermore includes program elements that

1666may be necessary, such as an operating system and "device drivers" for allowing the

1667processor 3012 to interface with computer peripheral devices, such as the input device 3016.

1668the printer 3018 and the display device 3020. Appropriate device drivers and other

1669necessary program elements are known to those skilled in the art, and need not be described

1670in detail herein.

1671The storage device 3014 also stores (i) an inventory database 3024; (ii) a possible

1672upsells database 3026; (iii) an upsell offer database 3028; and (iv) an accepted offer

1673database 3030. The databases 3024, 3026, 3028 and 3030 are described in detail below and

1674depicted with exemplary entries in the accompanying figures. As will be understood by

1675those skilled in the art, the schematic illustrations of, and accompanying descriptions of the

1676databases presented herein are exemplary arrangements for stored representations of

1677information. A number of other arrangements may be employed besides the tables shown.

1678Similarly, the illustrated entries represent exemplary information, but those skilled in the art

1679will understand that the number and content of the entries can be different from those

1680illustrated herein.

1681Referring to FIG. 42, another embodiment of a POS terminal 3040 includes a control

1682device 3042 which is in communication via a communication medium 3044 with a system

16833046 for printing receipts and/or coupons. The control device 3042 comprises a processor 3048 that is in communication with the input device 3016 (FIG. 41) and the display device

16843020 (FIG. 41). The system 3046 for printing comprises a processor 3050 in

1685communication with the storage device 3014 (FIG. 41) and the printer 3018 (FIG. 41). In

1686this embodiment, the control device 3042 may be a cash register, and the system 3046 may

1687be an electronic device for printing coupons in accordance with data received from the cash

1688register. Other configurations of POS terminals will be understood by those skilled in the

1689art.

1690Referring to FIG. 43, the inventory database 3024 of FIG. 41 includes entries 3100,

16913102, 3104, 3106, 3108, 3110, 3112 and 3114, each defining an item which may be

1692purchased. Each entry includes (i) an item identifier 3116 that uniquely identifies the item;

1693(ii) an item description 3118; (iii) an item price 3120; and (iv) an item cost 3122. For each

1694entry, the item price 3120 indicates a price that a customer normally pays for the

1695corresponding item, and the item cost 3122 indicates a cost of the item to the business.

1696Accordingly, the item cost 3122 may be, for example, a price that the business itself pays for

1697the item. In some embodiments, the inventory database 3024 may also include an indication

1698of the quantity available of each item.

1699Referring to FIG. 44, the possible upsells database 3026 of FIG. 41 includes entries

17003140, 3142, 3144 and 3146, each defining an upsell that may be offered to a customer in

1701exchange for change due. Each entry includes (i) an upsell identifier 3148 that uniquely

1702identifies the upsell; and (ii) an upsell description 3150.

1703Referring to FIG. 45, a table 3155 illustrates one embodiment of the upsell offer

1704database 3028 (FIG. 41). The table 3155 includes entries 3160, 3162. 3164, 3166, 3168 and

17053170, each defining upsells to offer when a customer's purchase consists of particular items.

1706Each entry includes (i) items 3172 included in the purchase; and (ii) upsells 3174 to offer. For example, if a purchase consists of small French fries and a large cola, then the entry

17073164 indicates that the upsell "D" is to be offered. As illustrated by the entry 3146 of the

1708possible upsells database 3026 (FIG. 44), the upsell "D" is an upgrade from small French

1709fries to large French fries. Accordingly, if the customer accepted this offer, he would

1710receive large French fries and a large cola.

1711The items included in a particular purchase may correspond to more than one entry

1712of the upsell offer database 3028. For example, a purchase that consists of a hamburger and

1713small French fries corresponds to the entry 3160 and to the entry 3162. If a purchase

1714corresponds to more than one entry, then one entry may be selected at random, or in

1715accordance with direction from a cashier, and the upsell(s) corresponding to this entry are

1716offered to the customer. Alternatively, the customer may be allowed to select from amongst

1717the entries, and thereby choose the upsell(s) corresponding to the selected entry.

1718An entry of the upsell offer database 3028 may indicate more than one upsell. For

1719example, the entry 3166 indicates that a customer purchasing a hamburger, large cola and

1720small French fries is offered upsells "C" and "D". Similarly, the entry 3168 indicates that a

1721customer purchasing a hamburger, a large cola and medium French fries is offered upsells

1722"C" and "C" (two units of upsell "C"). As indicated by the entry 3144 of the possible

1723upsells database 3026 (FIG. 44), the upsell "C" is an apple pie. Accordingly, if the customer

1724accepted this offer, he would receive a hamburger, a large cola, medium French fries and

1725two apple pies.

1726A rounded price that the customer pays for both the items and the upsell(s) may be

1727determined by rounding up the purchase price to a predetermined multiple, such as to the

1728next higher dollar amount. Alternatively, the upsell offer database 3028 may indicate the

1729rounded price, directly or indirectly, as described below. Referring to FIG. 46, a table 3180 illustrates another embodiment of the upsell offer

1730database 3028 (FIG. 45). The table 3180 includes entries 3190, 3192, 3194, 3196, 3198 and

17313200, each defining upsells to offer when a customer's purchase consists of particular items.

1732Each entry includes (i) items included in the purchase 3202; (ii) upsells 3204 to offer; and

1733(iii) a rounded price 3206 to charge for the items and the upsells if the customer accepts the

1734offer. For example, if a purchase consists of a hamburger, a large cola and large French

1735fries, and upsell "C" is offered and accepted in accordance with the entry 3200, then the

1736entry 3200 also indicates that a rounded price of $5.00 is charged to the customer. Although

1737the exemplary rounded prices depicted in FIG. 46 are each multiples of one dollar, the

1738rounded prices may be multiples of any value, such as five dollars or twenty-five cents.

1739Referring to FIG. 47, a table 3220 illustrates another embodiment of the upsell offer

1740database 3028 (FIG. 45). The table 3220 includes entries 3222, 3224, 3226, 3228, 3230 and

17413232, each defining upsells to offer when a customer's purchase consists of particular items.

1742Each entry includes (i) items included in the purchase 3234; (ii) upsells 3236 to offer; and

1743(iii) an upsell price 3238 to be added to the purchase price if the customer accepts the offer.

1744Preferably, the upsell prices are such that, when added to the corresponding purchase price,

1745the resulting sum is a rounded price, such as a multiple of a dollar.

1746Referring to FIG. 48, a table 3250 illustrates another embodiment of the upsell offer

1747database 3028 (FIG. 45). The table 3250 includes entries 3252, 3254. 3256, 3258, 3260 and

17483262, each defining upsells to offer when a customer's purchase consists of particular items.

1749Each entry includes (i) items included in the purchase 3264; (ii) upsells 3266 to offer; and

1750(iii) a rounding multiple 3268 that indicates an amount to which the purchase price is

1751rounded if the customer accepts the offer. Thus, the purchase price would be determined,

1752and then rounded in accordance with the corresponding rounding multiple to yield a rounded price. For example, the entries 3252, 3254, 3256, 3258, 3260 and 3262 each define that the

1753purchase price is rounded to the nearest dollar.

1754Referring to FIG. 49, a method 3280 for providing a supplementary product sale at a

1755POS terminal initiates when the POS terminal receives the items in a purchase (step 3282).

1756Typically, each item will have a bar code that is scanned by a bar code scanner, and the POS

1757terminal in turn receives, from the bar code scanner, signals representative of the items.

1758Alternatively, various keys of the input device 3016 may be pressed to generate signals

1759representative of the items. The POS terminal then determines an upsell based on the items

1760(step 3284). To determine the upsell, the POS terminal may search the upsell offer database

17613028 (FIG. 41) in order to determine one or more records that correspond to the items, and

1762thereby determine the corresponding upsells of those records.

1763The POS terminal determines a rounded price that the customer may pay for both the

1764items and the upsell(s) (step 3286). As described above, the rounded price may be

1765determined by rounding up the purchase price to a predetermined multiple, such as to the

1766next higher dollar amount. In other embodiments, the rounded price is determined from the

1767upsell offer database. In one embodiment, the rounded price may be determined based on a

1768record of the upsell offer database. For example, as described above with respect to FIG.

176946, each entry of the upsell offer database may include the rounded price. In another

1770embodiment, as described above with respect to FIG. 47, each entry of the upsell offer

1771database may include a rounding multiple, and the purchase price is rounded in accordance

1772with the rounding multiple to thereby generate the rounded price. In still another

1773embodiment, as described above with respect to FIG. 48, each entry of the upsell offer

1774database may include an upsell price that is added to the purchase price to thereby generate

1775the rounded price. The customer is provided with an offer to exchange (purchase) the items and the

1776upsell(s) for the rounded price (step 3288). For example, the POS terminal may output an

1777indication of the upsell(s), such as the name of the upsell(s), on the display device 3020

1778(FIG. 41). If the customer accepts the offer, a required payment amount is set to be the

1779rounded price. This required payment amount is an amount of money expected to be paid in

1780return for products provided to the customer. From the required payment amount, the

1781processor 3012 (FIG. 41) may determine, for example, the total amount of money that

1782should have been collected by the POS terminal at the end of a day. Those skilled in the art

1783will note that the required payment amount is typically stored on the data storage device

17843014, and may comprise, for example, a single stored value for the transaction or a plurality

1785of values which each correspond to an amount of money expected to be paid for one or more

1786products in the transaction.

1787The customer responds to the offer, and the response is received by the POS terminal

1788when a key on the input device 3016 is pressed, or in other manners known to those skilled

1789in the art (step 3290). If the response indicates acceptance of the offer, the items and the

1790upsell(s) are exchanged for the rounded price (step 3292). If desired, the POS terminal

1791makes appropriate adjustments to stored indications of available quantities of items to

1792reflect that the items and upsell(s) have been sold. The POS terminal may also store the

1793response to the offer for accounting and marketing analysis.

1794Applicants have recognized that supplementary processes performed by POS

1795terminals may introduce delays in the completion of customer transactions, and that these

1796delays may be acceptable under certain circumstances. For example, when there are few

1797pending customer transactions, such delays do not significantly affect relevant measures of

1798performance such as sales per hour or profit per hour. Accordingly, performing supplementary processes during periods of low activity, yet reducing or refraining from supplementary processes during periods of high activity, can result in increased profit. Such increased profit can exceed the profit of POS terminals that either always perform the supplemental process or never perform the supplemental process. In one embodiment of the present invention, a POS terminal measures one or more criteria, such as an activity rate of a terminal, and performs a supplementary process if the criteria are less than predetermined thresholds. In another embodiment, a POS terminal measures an activity rate of a terminal, determines an offer schedule in accordance with the activity rate, and in turn provides a supplementary product offer in accordance with the offer schedule. The offer schedule may specify that time-consuming offers (offers with a low "offer speed") are made during periods of low terminal activity, while quicker offers (offers with a high "offer speed") are made during periods of higher terminal activity.

1799It is particularly desirable to provide an offer to exchange spare change due for an upsell, as described in the aforementioned parent application, Application No. 08/920,116. Accordingly, the present invention contemplates providing offers for upsells having high performance rates. In addition, the present invention contemplates providing offers for different upsells in accordance with an offer schedule.

1800Referring to FIG. 50, a POS terminal 4010, which may be the IBM "4683" or IBM "4693" manufactured by International Business Machines, comprises a processor 4012, such as one or more conventional microprocessors. The processor 4012 is in communication with a data storage device 4014, such as an appropriate combination of magnetic, optical and/or semiconductor memory. The processor 4012 and the storage device 4014 may each be (i) located entirely within a single computer or other computing device; (ii) connected to each other by a remote communication medium, such as a serial port cable, telephone line or radio frequency transceiver; or (iii) a combination thereof. For example, the POS terminal 4010 may comprise one or more computers which are connected to a remote server computer for maintaining databases.

1801An input device 4016 preferably comprises a keypad for transmitting input signals, such as signals indicative of a purchase, to the processor 4012. A printer 4018 is for registering indicia on paper or other material, thereby printing receipts, coupons and vouchers as commanded by the processor 4012. A display device 4020 is preferably a video monitor for displaying at least alphanumeric characters to the customer and/or cashier. Many types of input devices, printers and display devices are known to those skilled in the art, and need not be described in detail herein. The input device 4016, printer 4018 and display device 4020 are each in communication with the processor 4012.

1802A sensor 4022 is also in communication with the processor 4012. The sensor 4022 and processor 4012 may be used to measure, for example, the number of customers entering a store or the number of customers in the vicinity of the POS terminal 4010. Many other types of sensors are known and need not be described in detail herein.

1803The storage device 4014 stores a program 4024 for controlling the processor 4012. The processor 4012 performs instructions of the program 4024, and thereby operates in accordance with the present invention, and particularly in accordance with the methods described in detail herein. The program 4024 furthermore includes program elements that may be necessary, such as an operating system and "device drivers" for allowing the processor to interface with computer peripheral devices, such as the input device 4016, the printer 4018, the display device 4020 and the sensor 4022. Appropriate device drivers and other necessary program elements are known to those skilled in the art, and need not be described in detail herein.

1804FIG. 51 illustrates another embodiment of the POS terminal 10 of FIG. 50, in which a control device 4028 is in communication via a communication medium 4030 with a system 4032 for providing a supplementary process. The control device 4028 comprises a processor 4034 in communication with the input device 4016 and the display device 4020. The system 4032 for providing a supplementary process comprises a processor 4036 in communication with the storage device 4014, the printer 4018 and the sensor 4022. In this embodiment, the control device 4028 may be a cash register, and the system 4032 may be an electronic device connected thereto for printing coupons in accordance with data received from the cash register. Other configurations of the POS terminal 4010 will be understood by those skilled in the art.

1805Referring to FIG. 52, a method 4040 for controlling the performance of a supplementary process initiates with the POS terminal 4010 of FIG. 50 and FIG. 51 measuring one or more criteria, such as the activity rate of the POS terminal 4010 (step 4042). For example, the POS terminal 4010 may measure the number of completed transactions per time (transaction rate), the number of items purchased through the POS terminal 10 per period of time (item sale rate), or the number of upsells accepted by customers per period of time (upsell acceptance rate). The POS terminal 4010 may measure the number of customers, such as the number of customers in a store or the number of customers in the vicinity of the POS terminal 4010, through input signals received from the sensor 4022. Many other types of measurements may be made by the POS terminal 4010. The POS terminal 4010 then determines, based on the measured activity rate or other criteria, whether to perform a supplementary process, such as offering an upsell in exchange for change due. In one embodiment, the POS terminal 4010 compares the activity rate to a predetermined threshold. Such a threshold may be determined (step 4044) in a number of ways. For example, the threshold may be a predetermined value (e.g. a rate of three transactions per minute), or a variable value (e.g., three transactions per minute after 5:00 PM, two transactions per minute otherwise). Many methods of calculating thresholds, based on many variables such as time of day and day of the week, will be understood by those skilled in the art.

1806Once the threshold is determined, the activity rate is compared to the predetermined threshold (step 4046). One comparison is to determine whether the activity rate is less than the threshold. For example, the POS terminal 4010 may determine whether the measured number of completed transactions in the last ten minutes is less than a predetermined threshold of seven transactions per ten minute period.

1807If the comparison is valid, (e.g., the measured activity rate is less than the threshold), then the POS terminal 4010 performs the supplementary process (step 4048). The POS terminal 4010 may perform the supplementary process by executing instructions of the program 4024 (FIG. 50). Alternatively, the POS terminal 4010 may perform the supplementary process by sending control signals from the control device 4028 (FIG. 51 ) to the system 4032 for providing a supplementary process. In such an embodiment, the control device 4028 determines whether to enable or disable the system 4032. For example, the control device 4028 may disable the system 4032 if the activity rate is greater than a predetermined threshold, and enable the system 4032 if the activity rate is less than the predetermined threshold. The control device 4028 may enable and disable the system 4032 by transmitting thereto appropriate enable signals and disable signals. Such signals may be control signals, which serve only to enable or disable the performance of the supplementary process, or may be data signals, which contain additional information for use by the system 4032. Instead of separate enable and disable signals, the control device 4028 may transmit to the system 4032 a signal that toggles the system 4032 between an enabled mode and a disabled mode.

1808It will be understood by those skilled in the art that the system 4032 may alternatively be "enabled-until-disabled". In other words, the control device 4028 would only need to transmit a disable signal when the supplementary process is not to be performed. When no disable signal is transmitted to the system 4032, the system 4032 would perform the supplementary process (even if no enable signal is received). Similarly, the system 4032 may be "disabled-until-enabled". In other words, the control device 4028 would only need to transmit an enable signal when the supplementary process is to be performed. When no enable signal is transmitted to the system 4032, the system 4032 would not perform the supplementary process (even is no disable signal is received). As an illustration of the above-described method 4040, the POS terminal may measure an activity rate, and determine if the activity rate is less than a predetermined threshold. If so, the POS terminal then determines an upsell in dependence on a purchase, as described in a parent application of the present application, Patent Application No.

180908/920,116, entitled METHOD AND SYSTEM FOR PROCESSING SUPPLEMENTARY PRODUCT SALES AT A POINT-OF-SALE TERMINAL, filed on August 26, 1997. The POS terminal further determines an upsell price in dependence on the purchase, and offers the customer an upsell in exchange for the upsell price. In the above-described embodiments, the POS terminal 4010 determines whether a supplementary process is or is not performed. In other embodiments, the POS terminal 4010 may further select a supplementary process based on the measured activity rate or other criteria. For example, it may be desirable that different types of offers are provided to customers depending on the activity rate of the POS terminal. In particular, more time- consuming offers are provided when the measured activity rate is low, while quicker offers are provided when the measured activity rate is high.

1810FIG. 53 is a table 4060 that illustrates an offer schedule, which may be implemented as a database stored on the storage device 4014 in a manner well known in the art. Each row of the table 4060 represents an entry, and each entry defines an upsell to offer for an activity rate. In particular, each entry includes an activity rate identifier 4062 that uniquely identifies the entry, an activity rate 4064 which describes a rate or range of rates, and an upsell to offer 4066 at that activity rate. As described in Patent Application No. 08/920,116, the upsell to offer 4066 may include two or more upsells which are offered one at a time until an upsell is accepted.

1811An entry 4068, corresponding to activity rates less than eight transactions per fifteen- minute period, indicates that an additional product is to be offered during these (relatively low) activity rates. Additional product offers typically have low "offer speeds", since it may be several seconds for a cashier to retrieve the additional product if the offer is accepted by the customer. An entry 4070, corresponding to activity rates between eight and fifteen transactions per fifteen-minute period, indicates that a "triple-your-change" coupon is to be offered during these activity rates. Typically, printing a coupon is quicker than offering an additional product. A coupon offer thus has a higher offer speed, which is why a coupon is to be offered during periods of higher terminal activity. An entry 4072 indicates that no offer is to be provided at activity rates greater than fifteen transactions per fifteen-minute period.

1812The above embodiments describe how the POS terminal automatically controls the performance of a supplementary process. It may further be desirable to provide a method and apparatus to, at times, counteract such automatic control. Allowing a manual override of the decision of the POS terminal would provide even finer control over the performance of the supplementary process. For example, a store manager may wish to test the supplementary process, even though the POS terminal is not currently performing the supplementary process. In addition, there may be certain situations, which a device cannot accurately account for, in which a supplementary process should not be performed.

1813Referring to FIG. 54, an apparatus 4080 includes an override decision manager 4082 which receives input from an override signal circuit 4084 and from an automatic control signal circuit 4086. The override signal circuit 4084 is a device that provides an override signal, such as a switch in communication with the POS terminal. The override signal circuit 4084 may be one or more keys on the input device 4016 (FIG. 50 and FIG. 51), or may be another device that transmits and/or generates signals. The automatic control signal circuit 4086 is the portion of the POS terminal that provides the control signal for controlling automatic performance of the supplementary process, as described above. The override decision manager 4082 receives the override signal and control signal from circuits 4084 and 4086, respectively, and generates in dependence thereon an "enhanced control" signal for controlling performance of the supplementary process. The enhanced control signal is transmitted to a system 4088 for performing a supplementary process. The system 4088 may be a software module which is a component of the POS terminal 4010 of FIG. 50, or may be the system 4032 for providing a supplementary process of FIG. 51.

1814The override signal may be used to counteract the performance of the supplementary process that would have otherwise occurred in accordance with the control signal from the automatic control signal circuit 4086. Referring to Table 1 below, the Truth Table shown describes the output (Enhanced Control Signal) as a function of the inputs (Override Signal and Control Signal). Table 1 describes an embodiment where the override signal may attain one of two values (i.e., 0 or 1). However, those skilled in the art will understand that the override signal may attain more than two values.

1815Override Si gnal Control Signal Enhanced Control Signal

18160 0 0

18170 1 1

18181 0 0

18191 1 0

1820where:

1821Override Signal = 0 for Allowing Automatic Control Override Signal = 1 for Disabling the Supplemental Process

1822Control Signal = 0 for Disabling the Supplemental Process Control Signal = 1 for Enabling the Supplemental Process

1823Enhanced Control Signal = 0 for Disabling the Supplemental Process

1824Enhanced Control Signal = 1 for Enabling the Supplemental Process

1825TABLE 1 - Truth Table for Override Decision Manager For example, when Override Signal = 1 and Control Signal = 1 , then a user is overriding the automatic determination to enable the supplemental process. Accordingly, the Enhanced Control Signal = 0, and the supplemental process is disabled.

1826Referring to FIG. 55, a network 4100 includes a server computer 4102 in communication with POS terminals 4104, 4106 and 4108. The server computer 4102 may itself be a POS terminal, as described above. Although three POS terminals are shown in FIG. 55, any number of POS terminals may be in communication with the server computer 4102 without departing from the spirit and scope of the present invention. The server computer 4102 may perform many of the above-described processes, especially those processes which are performed for more than one POS terminal. For example, the server computer 4102 may (i) measure the activity rate of any or all of the POS terminals 4104, 4106 and 4108, (ii) determine whether to provide a supplementary process at any or all of the POS terminals 4104, 4106 and 4108, (iii) enable or disable one or more systems for providing a supplementary process, and/or (iv) transmit an override signal to any or all of the POS terminals 4104, 4106 and 4108. The server computer 4102 may also collect data from the POS terminals 4104, 4106 and 4108, thereby aggregating information about the processes that each POS terminal performs. For example, each POS terminal may measure its own activity rate, and transmit to the server computer 4102 signals indicative of the measured activity rate. The server computer 4102 may then determine an overall activity rate for the network 4100 of POS terminals.

1827The measured activity rate may be, for example, the number of POS terminals in use (processing transactions) or the percentage of POS terminals in use. Based on the activity rate, the server computer 4102 may determine whether to permit the supplementary process to be performed at each POS terminal. Alternatively, the server computer 4102 may determine which of the POS terminals are to perform the supplementary process.

1828FIG. 56 shows a table 4120 that illustrates an offer schedule for a network of POS terminals. Each row of the table 4120 represents an entry, and each entry defines an upsell to offer for an activity rate. The activity rate used in the table 4120 is based on which of a plurality of terminals are in use. Each entry includes an activity rate identifier 4122 that uniquely identifies the entry, an activity rate 4124 which describes a rate or range of rates, and an upsell to offer 4126 at that activity rate. For example, the entry 4128, corresponding to less than 50% of all POS terminals in use, indicates that three products are to be offered. and the customer is to choose one. The entries 4130, 4132 and 4134 similarly describe upsells to be offered for different activity rates. As described above, more time-consuming upsells such as multiple upsells offered one after the other may be offered during periods of lower activity. The present invention allows a customer to select an upsell before a purchase is processed at

1829a POS terminal. Thus, the customer need not be offered a system-selected upsell at the POS

1830terminal that may be rejected. The present invention thus may save time at the POS

1831terminal. The selected upsell also indicates an amount to which the purchase price should

1832be rounded, saving even more time.

1833If a business has old or aging inventory, it may be advantageous to allow that

1834inventory to be selected as an upsell in exchange for change due. Customers would act to

1835clear the inventory, and thereby eliminate the costs of otherwise disposing of the inventory.

1836Referring to FIG. 57, a POS terminal 5010, which may be the IBM "4683" or IBM

1837"4693" manufactured by International Business Machines, comprises a processor 5012, such

1838as one or more conventional microprocessors. The processor 5012 is in communication

1839with a data storage device 5014, such as an appropriate combination of magnetic, optical

1840and/or semiconductor memory. The processor 5012 and the storage device 5014 may each

1841be (i) located entirely within a single computer or other computing device; (ii) connected to

1842each other by a remote communication medium, such as a serial port cable, telephone line or

1843radio frequency transceiver; or (iii) a combination thereof. For example, the POS terminal

18445010 may comprise one or more computers which are connected to a remote server

1845computer for maintaining databases.

1846An input device 5016 preferably comprises a keypad for transmitting input signals,

1847such as signals indicative of a purchase, to the processor 5012. The input device 5016 may

1848also comprise an optical bar code scanner for reading bar codes and transmitting signals indicative of those bar codes to the processor 5012. A printer 5018 is for registering indicia

1849on paper or other material, thereby printing receipts, coupons and vouchers as controlled by

1850the processor 5012. A display device 5020 is preferably a video monitor for displaying at

1851least alphanumeric characters to the customer and/or cashier. Many types of input devices,

1852printers and display devices are known to those skilled in the art, and need not be described

1853in detail herein. The input device 5016, printer 5018 and display device 5020 are each in

1854communication with the processor 5012.

1855The storage device 5014 stores a program 5022 for controlling the processor 5012.

1856The processor 5012 performs instructions of the program 5022, and thereby operates in

1857accordance with the present invention, and particularly in accordance with the methods

1858described in detail herein. The program 5022 furthermore includes program elements that

1859may be necessary, such as an operating system and "device drivers" for allowing the

1860processor 5012 to interface with computer peripheral devices, such as the input device 5016,

1861the printer 5018 and the display device 5020. Appropriate device drivers and other

1862necessary program elements are known to those skilled in the art, and need not be described

1863in detail herein.

1864The storage device 5014 also stores (i) inventory database 5024; (ii) rounding code

1865database 5026; and (iii) transaction database 5028. The databases 5024, 5026 and 5028 are

1866described in detail below and depicted with exemplary entries in the accompanying figures.

1867As will be understood by those skilled in the art, the schematic illustrations and

1868accompanying descriptions of the databases presented herein are exemplary arrangements

1869for stored representations of information. A number of other arrangements may be

1870employed besides the tables shown. Similarly, the illustrated entries represent exemplary information, but those skilled in the art will understand that the number and content of the

1871entries can be different from those illustrated herein.

1872FIG. 58 illustrates another embodiment of the POS terminal 5010, in which a control

1873device 5029 is in communication via a communication medium 5030 with a system 5032 for

1874providing an offer for an upsell. The control device 5029 comprises a processor 5034 in

1875communication with the input device 5016 and the display device 5020. The system 5032

1876for providing an offer comprises a processor 5036 in communication with the storage device

18775014 and the printer 5018. In this embodiment, the control device 5029 may be a cash

1878register, and the system 5032 may be an electronic device for printing coupons in

1879accordance with data received from the cash register. Other configurations of the POS

1880terminal 5010 will be understood by those skilled in the art.

1881Referring to FIG. 59, a network 5040 includes a server 5042 in communication with

1882POS terminals 5044, 5046 and 5048. The server 5042 directs the operation of, stores data

1883from and transmits data to the POS terminals 5044, 5046 and 5048. The server 5042 may

1884itself be a POS terminal, as described above, or may be another computing device that can

1885communicate with one or more POS terminals. Although three POS terminals are shown in

1886FIG. 59, any number of POS terminals may be in communication with the server 5042

1887without departing from the spirit and scope of the present invention. Each of the POS

1888terminals 5044, 5046 and 5048 may be located in the same store, in different stores of a

1889chain of stores, or in other locations. The server 5042 may perform many of the processes

1890described below, especially those processes that are performed for more than one POS

1891terminal. The server 5042 may furthermore store data, such as the inventory database 5024

1892(FIG. 57), that is to be shared by the POS terminals 5044, 5046 and 5048. Referring to FIG. 60, the inventory database 5024 includes rows 5032, 5033. 5034,

18935035, 5036, 5037 and 5038, each of which represents an entry of the inventory database

18945024. Each entry defines an item of inventory that may be sold. In particular, each entry

1895includes (i) an item identifier 5040 that uniquely identifies the entry; (ii) a description 5042

1896that describes the item of inventory; (iii) a price 5044 of the item; and (iv) an taxable status

18975046 that indicates whether the item is subject to sales tax (or other tax). The inventory

1898database 5024 is accessed to determine a purchase price in a manner known in the art. For

1899example, each item of a purchase may include a bar code that can be read by a POS

1900terminal. The price of each item, corresponding to the bar code identifier, would in turn be

1901determined from the inventory database 5024. The sum of the item prices and any

1902appropriate taxes applied thereto would yield the purchase price.

1903Referring to FIG. 61, the rounding code database 5026 includes rows 5050, 5052 and

19045054, each of which represents an entry of the rounding code database 5026. Each entry

1905defines a rounding code. In particular, each entry includes (i) a rounding code identifier

19065056 that uniquely identifies the entry; (ii) a rounding multiple 5058 that indicates an

1907amount to which a purchase price is to be rounded; and (iii) a fixed value 5060 that indicates

1908a fixed price to pay for the corresponding upsell, if the upsell is not purchased for an amount

1909of change due. For example, a rounding code corresponding to the entry 5050, identified by

1910"567", has a rounding multiple of $ 1. Thus, if a purchase includes an upsell having the

1911rounding code "567", the corresponding purchase price will be rounded to next higher dollar

1912amount (e.g. from $7.38 to $8.00). It can be advantageous, and simpler for customers, to set

1913the rounding multiple of each upsell equal to the fixed price of that upsell.

1914The upsells are accessible to customers, allowing customers to select the upsells as

1915they select the items of their purchase. Each upsell has a rounding code which may be determinable from a bar code printed on an adhesive label that is affixed to the upsell. For

1916example, in a bookstore, there may a set of bins located near the POS terminals. Each bin

1917holds several books, each having a bar code. The customer selects a book from a bin, and

1918brings it to the POS terminal with the items he wishes to purchase. An optical bar code

1919scanner of the POS terminal reads the bar code of the book, and the bar codes of the items of

1920the purchase.

1921Instead of a bar code, each upsell may include another indication of the

1922corresponding rounding code. For example, each book in a first bin may be affixed with a

1923green adhesive label, and each book in a second bin may be affixed with a blue adhesive

1924label. In such an embodiment, the green adhesive label would indicate a first rounding

1925code, and the blue adhesive label would indicate a second rounding code. A cashier or other

1926operator of the POS terminal would in turn press a button or otherwise allow the POS

1927terminal to receive data indicating the rounding code.

1928It can be advantageous for upsells having the same rounding code to be grouped

1929together. For example, a first bin could contain a number of books that each have a first

1930rounding code. A second bin could contain a number of books that each have a second

1931rounding code. If any book from the first bin is selected as an upsell, the purchase price

1932would be rounded to a first multiple (e.g. the nearest $5). Similarly, selecting any book

1933from the second bin would cause the purchase price to be rounded to a second multiple (e.g.

1934the nearest $10).

1935Referring to FIG. 62, the inventory database 5024 and the rounding code database

19365026 are used in determining an amount of money due as payment for items of a purchase

1937and an upsell. Tables 5080 and 5082 each represent data corresponding to a transaction

1938identified by a transaction identifier "12345678". Accordingly, the tables 5080 and 5082 represent data stored in the transaction database 5028 (FIG. 57). Typically, the transaction

1939database 28 will include data representing a plurality of such transactions.

1940The table 5080 represents one or more items included in the transaction, and the

1941table 5082 represents one or more upsells included in the transaction. The table 5080

1942includes entries 5084 and 5086, each defining a type of item to purchase. Each entry

1943includes (i) an item identifier 5088; corresponding to the item identifier 5040 of FIG. 60; (ii)

1944a quantity 5090 of the item; (iii) a price 5092 of each unit of the item, the price

1945corresponding to the price 5044 of FIG. 60; and (iv) a price with tax 5094 of each unit of the

1946item. The price with tax of an item may be determined from the corresponding price 5092,

1947the taxable status 5046 of FIG. 60 (which indicates whether the item is subject to sales tax

1948or other tax), and a tax rate 5096. Those skilled in the art will readily understand that the tax

1949rate 5096 may be, for example, stored on the storage device 5014 (FIG. 57) as a database or

1950as a variable of the program 5024. The price with tax of each item is summed to yield a

1951subtotal price with tax 5098. The subtotal price with tax 5098 is a price that would be due if

1952no upsell is included in the transaction.

1953The table 5082 includes an entry 5100 that defines an upsell included in the

1954transaction. The entry 5100 includes (i) a rounding code identifier 5102, corresponding to

1955the rounding code identifier 5056 of FIG. 61 ; (ii) a rounding multiple 5104, corresponding

1956to the rounding multiple 5058 of FIG. 61; and (iii) a fixed value 5106, corresponding to the

1957fixed value 5060 of FIG. 61. The rounding multiple of the entry 5100 has the value $5,

1958indicating that the subtotal price with tax 5098 is to be rounded to the next higher multiple

1959of $5. Accordingly, the subtotal price with tax 5098, which has the value $26.20. is rounded

1960to the next higher multiple of $5, yielding a rounded price 5108 having the value $30. FIG. 63 depicts a table 5120 that represents further information relating to

1961transactions. Such information may be stored in the transaction database 5028 (FIG. 57) in

1962certain embodiments of the present invention. The table 5120 includes entries 5122 and

19635124, each defining further information relating to a transaction. Each entry includes (i) a

1964transaction identifier 5126 that uniquely identifies the transaction; (ii) a date 5128 on which

1965the transaction occurred; (iii) a time 5130 at which the transaction occurred; (iv) a POS

1966terminal identifier 5132 that indicates the POS terminal at which the transaction occurred;

1967and (v) a revenue 5134 that was derived from the transaction. Information represented by

1968the table 5120 may be used, for example, in determining patterns in revenue generation over

1969time.

1970FIG. 64 illustrates a method 5150 in which the above-mentioned databases are used

1971in determining a rounded price for a purchase that includes an upsell and one or more items.

1972A POS terminal receives a code for each item in the purchase (step 5152). For example, a

1973bar code scanner reads a bar code imprinted on each item and generates signals indicative of

1974the bar code. The POS terminal also receives a rounding code for an upsell (step 5154).

1975Those skilled in the art will understand that the rounding code may be received before,

1976during or after the receiving of the item codes. After all codes are received, the POS

1977terminal determines a purchase price from the item codes (step 5156). As described above

1978with reference to FIG. 62, the purchase price is determined by summing the price with tax of

1979each item. The POS terminal determines a rounding multiple from the rounding code (step

19805158) by accessing the rounding code database 5026 (FIG. 57). Based on the rounding

1981multiple, the POS terminal rounds the purchase price to yield a rounded price (step 5160).

1982The rounded price is the price due in exchange for the items and the upsell. In the embodiments described above, one upsell was included in a purchase.

1983However, a plurality of upsells may be included in a purchase. In such an embodiment, one

1984upsell would be sold in exchange for change due, while the remaining upsells would be sold

1985at a fixed price. As described above with reference to FIG. 61, each rounding code has both

1986a fixed price and a rounding multiple. Thus, a fixed price may be determined for each

1987upsell.

1988FIG. 65 illustrates a method 5180 for determining a rounded price for a purchase that

1989includes a plurality of upsells with rounding codes. The POS terminal receives a code for

1990each item in a purchase (step 5182) and also receives a rounding code for each of a plurality

1991of upsells (step 5184). As described above, a purchase price is determined from the item

1992codes (step 5186).

1993One of the rounding codes is selected (step 5188), and its rounding multiple is

1994determined (step 5190). The selection defines a selected rounding code and a set of

1995unselected rounding codes. The set of unselected rounding codes may consist of one

1996rounding code (if there are two rounding codes) or more than one rounding code. The

1997choice of which rounding code is selected may depend on different criteria. In one

1998embodiment, the POS terminal selects a rounding code having the smallest (minimal)

1999rounding multiple. That is, the POS terminal selects a rounding multiple that is not greater

2000than the rounding multiple of each unselected rounding code. For example, if there are three

2001rounding codes, having corresponding rounding multiples of $5, $5 and $10, then either of

2002the first two rounding codes (having rounding multiples of $5) would be selected.

2003Once a rounding code is selected, the fixed price of each remaining (unselected)

2004rounding code is determined (step 5192). As described above, the fixed prices are

2005determinable from the rounding code database 5026 (FIG. 57 and FIG. 61). These fixed prices are added to the purchase price determined at step 5186, thereby generating an

2006augmented price (step 5194). This augmented price is rounding based on the rounding

2007multiple determined at step 5190, thereby generating a rounded price (step 5196). This

2008rounded price is exchanged for the items and the upsells included in the purchase. Those

2009skilled in the art will understand that the step 5196 may be performed before the step 5194,

2010rather than after.

2011Referring to FIG. 66, tables 5210 and 5212 each represent data corresponding to a

2012transaction identified by a transaction identifier " 12345671". Accordingly, the tables 5210

2013and 5212 represent data stored in the transaction database 5028 (FIG. 57). The table 5210,

2014similar to the table 5080 of FIG. 62, represents one or more items included in the

2015transaction, and the table 5212, similar to the table 5082 of FIG. 62, represents upsells

2016included in the transaction. The table 5210 includes entries 5214 and 5216, each defining a

2017type of item to purchase. A subtotal price with tax 5218 and tax rate 5220 function as those

2018described above with respect to FIG. 62.

2019The table 5212 includes entries 5222, 5224 and 5226 that each define an upsell

2020included in the transaction. Similar to the table 5082 (FIG. 62), each entry of the table 5212

2021includes (i) a rounding code identifier 5228, corresponding to the rounding code identifier

20225056 of FIG. 61 ; (ii) a rounding multiple 5230, corresponding to the rounding multiple 5058

2023of FIG. 61; and (iii) a fixed value 5232, corresponding to the fixed value 5060 of FIG. 61.

2024As described above, one upsell is selected to define a rounding multiple, and the remaining

2025upsells have fixed prices that are added to the subtotal price with tax. In accordance with an

2026embodiment described above, in the example described by FIG. 66 an upsell having a

2027minimal rounding multiple is selected. Such an upsell may be either upsell defined by the entries 5224 and 5226, each having a rounding multiple of $1. Accordingly, the remaining

2028two upsells have fixed prices of $1 and $10.

2029A table 5234 represents the use of the fixed prices of the upsells. The additional

2030upsell fixed prices 5236, which is the sum of the fixed prices of the remaining (unselected)

2031upsells, is $11. Thus the subtotal price with the additional upsells 5238 is the sum of $26.20

2032and $11, which is $37.20. This subtotal price is rounded in accordance with the rounding

2033multiple of the selected upsell ($1), generating a rounded price 5240 of $38.00.

2034In another embodiment of the present invention, each upsell may have a

2035corresponding "minimum price", which is a minimum difference betwenn the subtotal price

2036with tax and the rounded price. For example, if a subtotal price with tax is $4.98, and a

2037corresponding rounding multiple is $5.00, then the rounded price would normally be $5.00

2038(only $0.02 extra). However, if a minimum price for the upsell is $2.00, then a rounded

2039price of $7.00 ($4.98 + $2.00 rounded up to the nearest dollar) is generated.

2040One or more POS terminals control offers that are provided to customers, such that

2041those offers which have high performance rates are provided. The present invention

2042determines the best offers by providing customers with a group of offers, and evaluating the

2043performance rates of the offers. By contrast, random or manual (human) selection of offers

2044is unlikely to determine the best offers. Furthermore, the present invention advantageously

2045relieves managers or other personnel of the task of selecting offers.

2046By continually evaluating the performance rates of offers, the offers provided to

2047customers continue to be the highest performing. If the performance rate of a once-

2048attractive offer decreases, it can be replaced by other, higher-performing offers. The present invention may further make the offer appear to the customer to be

2049random, since a POS terminal typically provides different offers at different times. This, in

2050turn, can make it difficult for customers to manipulate the offer system to their advantage.

2051Referring to FIG. 67, a POS terminal 6010, which may be the IBM "4683" or IBM

2052"4693" manufactured by International Business Machines, comprises a processor 6012, such

2053as one or more conventional microprocessors. The processor 6012 is in communication

2054with a data storage device 6014, such as an appropriate combination of magnetic, optical

2055and/or semiconductor memory. The processor 6012 and the storage device 6014 may each

2056be (i) located entirely within a single computer or other computing device; (ii) connected to

2057each other by a remote communication medium, such as a serial port cable, telephone line or

2058radio frequency transceiver; or (iii) a combination thereof. For example, the POS terminal

20596010 may comprise one or more computers which are connected to a remote server

2060computer for maintaining databases.

2061An input device 6016 preferably comprises a keypad for transmitting input signals,

2062such as signals indicative of a purchase, to the processor 6012. A printer 6018 is for

2063registering indicia on paper or other material, thereby printing receipts, coupons and

2064vouchers as commanded by the processor 6012. A display device 6020 is preferably a video

2065monitor for displaying at least alphanumeric characters to the customer and/or cashier.

2066Many types of input devices, printers and display devices are known to those skilled in the

2067art, and need not be described in detail herein. The input device 6016, printer 6018 and

2068display device 6020 are each in communication with the processor 6012.

2069The storage device 6014 stores a program 6022 for controlling the processor 6012.

2070The processor 6012 performs instructions of the program 6022. and thereby operates in

2071accordance with the present invention, and particularly in accordance with the methods described in detail herein. The program 6022 furthermore includes program elements that

2072may be necessary, such as an operating system and "device drivers" for allowing the

2073processor 6012 to interface with computer peripheral devices, such as the input device 6016,

2074the printer 6018 and the display device 6020. Appropriate device drivers and other

2075necessary program elements are known to those skilled in the art, and need not be described

2076in detail herein.

2077The storage device 6014 also stores (i) a database of offers 6024; (ii) a transaction

2078database 6026; and (iii) a performance rate database 6028. The databases 6024. 6026 and

20796028 are described in detail below and depicted with exemplary entries in the accompanying

2080figures. As will be understood by those skilled in the art, the schematic illustrations and

2081accompanying descriptions of the databases presented herein are exemplary arrangements

2082for stored representations of information. A number of other arrangements may be

2083employed besides the tables shown. Similarly, the illustrated entries represent exemplary

2084information, but those skilled in the art will understand that the number and content of the

2085entries can be different from those illustrated herein.

2086FIG. 68 illustrates another embodiment of the POS terminal 6010, in which a control

2087device 6028 is in communication via a communication medium 6030 with a system 6032 for

2088providing an offer. The control device 6028 comprises a processor 6034 in communication

2089with the input device 6016 and the display device 6020. The system 6032 for providing an

2090offer comprises a processor 6036 in communication with the storage device 6014 and the

2091printer 6018. In this embodiment, the control device 6028 may be a cash register, and the

2092system 6032 may be an electronic device for printing coupons in accordance with data

2093received from the cash register. Other configurations of the POS terminal 6010 will be

2094understood by those skilled in the art. Referring to FIG. 69, a network 6040 includes a server 6042 in communication with

2095POS terminals 6044, 6046 and 6048. The server 6042 directs the operation of, stores data

2096from, and transmits data to the POS terminals 6044, 6046 and 6048. The server 6042 may

2097itself be a POS terminal, as described above, or may be another computing device which can

2098communicate with one or more POS terminals. Although three POS terminals are shown in

2099FIG. 69, any number of POS terminals may be in communication with the server 6042

2100without departing from the spirit and scope of the present invention. Each of the POS

2101terminals 6044, 6046 and 6048 may be located in the same store, in different stores of a

2102chain of stores, or in other locations. The server 6042 may perform many of the processes

2103described below, especially those processes that are performed for more than one POS

2104terminal. The server 6042 may furthermore store data such as the database of offers 6024.

2105Referring to FIG. 70, a table 6060 illustrates an embodiment of the database of offers

21066024 (FIG. 67). The table 6060 includes entries 6062, 6064, 6066 and 6068, each of which

2107describes an offer to be provided to customers. It will be understood by those skilled in the

2108art that the table 6060 may include any number of entries. Each of the entries 6062, 6064,

21096066 and 6068 specifies (i) an offer identifier 6070 for uniquely indicating the offer; (ii) an

2110offer description 6072 for describing the offer; (iii) a cost of the offer 6074 to the offeror;

2111and (iv) an offer frequency 6076. The offer frequency 6076 indicates the average

2112percentage of times that the corresponding offer is to be provided when an offer is provided.

2113For example, each of the entries 6062, 6064, 6066 and 6068 includes an offer frequency of

211425%, and thus each of the entries 6062, 6064, 6066 and 6068 will be provided to customers

2115approximately one out of every four times an offer is provided, on average.

2116Referring to FIG. 71, a record 6090 of the transaction database 6026 (FIG. 67)

2117defines the transactions performed at a POS terminal identified by a POS terminal identifier 6092. The transaction database 6026 (FIG. 67) typically includes a plurality of records such

2118as the record 6090, each defining the transactions performed at a different POS terminal.

2119The record 6090 includes entries 6094, 6096 and 6098 which each describe a transaction. It

2120will be understood by those skilled in the art that the record 6090 may include any number

2121of entries. Each of the entries 6094, 6096 and 6098 specifies (i) a transaction identifier 6100

2122that uniquely indicates a transaction; (ii) a date 6102 of the transaction; (iii) a time 6104 of

2123the transaction; (iv) a purchase description 6106 that describes details of the transaction,

2124such as the items purchased, the purchase price and/or the identity of the customer; (v) an

2125offer identifier 6108 that indicates an offer that was provided during the transaction; (vi) an

2126indication of whether the offer was accepted 61 10; and (vii) a revenue 6112 that is derived

2127due to the customer accepting the offer.

2128Referring to FIG. 72, a flow chart 6120 illustrates a method for controlling offers

2129that are provided at one or more POS terminals. Offers are provided to customers (step

21306122) in accordance to the database of offers 6024 (FIG. 67). As described above with

2131reference to the table 6060 (FIG. 70), each offer includes an offer frequency that indicates

2132the average percentage of times that the corresponding offer is to be provided. Thus, the

2133database of offers 6024 indicates which offers are to be provided to customers, and also

2134indicates the frequency with which the offers are to be provided.

2135For example, the POS terminal 6010 (FIG. 67) (or the server 6042 of FIG. 69, in a

2136networked embodiment) may generate a random number between 0 and 1 each time an offer

2137is to be provided. Then, an offer would be selected in accordance with the random number

2138and with the offer frequency illustrated in FIG. 70. A random number between 0.00 and

21390.25 would correspond to the offer "A", while a random number between 0.26 and 0.50

2140would correspond to the offer "B", and so on for offers "C" and "D". Alternatively, the POS terminal 6010 or server 6042 can provide a first offer during a

2141first series of transactions, and then provide subsequent offers during consecutive series of

2142transactions. The sizes of the series of transactions (the number of transactions in the series)

2143would be selected in accordance with the offer frequencies 6076 of the table 6060 (FIG. 70).

2144For example, each of the offers specified by the table 6060 of FIG. 70 has an equal offer

2145frequency (25%). Thus, the first offer "A" defined by the entry 6062 could be provided to

2146customers during a first series often transactions, and the remaining three offers defined by

2147the entries 6064, 6066 and 6068 could be provided during subsequent series often

2148transactions each. Since there are four offers and each offer is provided to customers during

2149ten out of forty transactions, each offer has a frequency of 25%.

2150In another embodiment, each of a plurality of POS terminals may provide a different

2151offer to customers. For example, a first POS terminal could provide a first offer during a

2152series of one hundred transactions, and a second POS terminal could provide a second offer

2153during a series of one hundred transactions. Accordingly, both the first offer and the second

2154offer would have a frequency of 50% (100 / (100 + 100) = 0.50 = 50%).

2155Once offers are provided to customers at step 6122, the POS terminal 6010 or server

21566042 calculates the performance rate of each offer (step 6124). The performance rate may

2157be any measured and/or calculated quantity, such as an Acceptance Rate or a Profit Rate.

2158Many other performance rates will be understood by those skilled in the art. The

2159performance rate of each offer may be calculated at predetermined periods, such as at the

2160end of each day, or after predetermined numbers of offers have been provided to customers.

2161An Acceptance Rate may be calculated in accordance with the following:

2162Acceptance Rate = Number of Times Accepted / Number of Times Provided The Number of Times Provided is the number of times a particular offer was provided to

2163customers. Similarly, the Number of Times Accepted is the number of times that the

2164provided offer was accepted by customers. Both the Number of Times Provided and the

2165Number of Times Accepted may be determined from data stored in the transaction database

21666026 (FIG. 67). It is typically desirable to have a high Acceptance Rate, and ideally an offer

2167will have an Acceptance Rate of 100%. However, it is likely that the Acceptance Rate of an

2168offer will be less than 100%.

2169Referring to FIG. 73, a table 6140 illustrates an embodiment of the performance rate

2170database 6028 (FIG. 67). In this embodiment, the performance rate database 6028 is

2171configured to store Acceptance Rate data as described above. The table 6140 includes

2172entries 6142, 6144, 6146 and 6148, each of which describes an offer that has been provided

2173to customers. It will be understood by those skilled in the art that the table 6140 may

2174include any number of entries. Each of the entries 6142, 6144, 6146 and 6148 specifies (i)

2175an offer identifier 6150 for uniquely indicating the offer; (ii) a number of times accepted

21766152; (iii) a number of times provided 6154; and (iv) an acceptance rate 6156 of the offer.

2177The table 6140 may thus be used in determining which offers have the highest performance

2178rate.

2179A Profit Rate is a performance rate of an offer that may be calculated in accordance

2180with the following:

2181Profit Rate - (Revenue - Cost) / Number of Times Provided The Revenue is the amount of all income derived due to customers accepting the offer. The

2182Cost is the expense incurred from customers accepting the offer. The Number of Times

2183Provided is the number of times a particular offer was provided to customers.

2184Referring to FIG. 74, a table 6170 illustrates another embodiment of the performance

2185rate database 6028 (FIG. 67). In this embodiment, the performance rate database 6028 is

2186configured to store average profit per offer. The table 6170 includes entries 6172, 6174,

21876176 and 6178, each of which describes an offer that has been provided to customers. It

2188will be understood by those skilled in the art that the table 6170 may include any number of

2189entries. Each of the entries 6172, 6174, 6176 and 6178 specifies (i) an offer identifier 6180

2190for uniquely indicating the offer; (ii) a number of times accepted 6182; (iii) a number of

2191times provided 6184; (iv) an average revenue derived per accepted offer 6186; (v) an

2192average profit derived per accepted offer 6188; and (vi) an average profit derived per offer

21936190.

2194Those skilled in the art will understand that the number of times accepted 182, the

2195number of times provided 6184 and the average revenue 6186 may be determined from data

2196stored in the transaction database 6026 (FIG. 67). For example, referring again to the record

21976090 of FIG. 71, at the POS terminal #7 the offers "A", "B" and "C" have each been offered

2198once, as seen from the offer identifier 6108. The offers "B" and "C" have each been

2199accepted once, as indicated by the offer accepted 6110 field. Similarly, the revenue derived

2200for the offers "A", "B" and "C" is $0.00, $0.50 and $0.78 respectively. An average revenue

2201for each offer would be derived by dividing the total revenue from each offer by the number

2202of times it was offered.

2203The average profit per accepted offer 6188 may be determined by subtracting the

2204cost per offer (the cost 6074 of FIG. 70) from the average revenue 6186. Finally, the average profit per offer 6190, which is the profit rate defined above, may be determined by

2205multiplying the average profit per accepted offer 6188 by the acceptance rate of the offer.

2206As described above, the acceptance rate of the offer is determined by dividing the number of

2207times accepted 6182 by the number of times provided 6184.

2208Referring again to FIG. 72, after the performance rates of the offers have been

2209calculated (step 6124), the POS terminal 6010 or server 6042 determines modifications to

2210the database of offers 6024 based on the performance rates (step 6126). Each offer may be

2211provided at a different offer frequency, or even discontinued, in accordance with the

2212calculated performance rate of that offer. As described below, offers with higher

2213performance rates continue to be provided to customers, and are typically provided at higher

2214offer frequencies. Similarly, offers with low performance rates are typically provided at

2215lower offer frequencies, or may even cease to be provided altogether.

2216In one embodiment, only offers having performance rates greater than a

2217predetermined threshold continue to be provided to customers. If one or more offers cease

2218to be provided, each offer frequency must be changed, as described below.

2219FIG. 75 illustrates the selection of offers to discontinue. A table 6200 depicts data

2220stored in an embodiment of the performance rate database 6028 (FIG. 67). For each offer,

2221there is an offer identifier 6202 and an acceptance rate 6204. A threshold 6206 of 10%

2222defines which of the offers in the table 6200 will continue to be provided. In particular, the

2223offers defined by entries 6208 and 6210 (the offers "A" and "B") have acceptance rates

2224greater than 10%, and thus will continue to be provided. By contrast, the offers defined by

2225entries 6212 and 6214 (the offers "C" and "D") have acceptance rates less than 10%, and

2226thus will be discontinued. A table 6216 depicts data stored in an embodiment of the database of offers 6024

2227(FIG. 67). As described above with respect to FIG. 70, each offer has an offer identifier

22286218 and an offer frequency 6220. Since the offers "C" and "D" have been discontinued,

2229the corresponding offer frequencies of those offers are 0%. The offer frequencies of the

2230offers "A" and "B", which continue to be offered, change accordingly. The offer

2231frequencies may be changed so that they are equal to each other (50% each). Alternatively,

2232the offer frequencies may be changed in accordance with their relation to one another, as

2233follows:

2234*Old ' T total

2235Where:

2236F_new is the new offer frequency

2237F_old is the offer frequency prior to being changed

2238F_total is the sum of the values of F_old for the offers that are not discontinued

2239In FIG. 75, the offer frequency "58%" of the offer "A" is calculated by from the offer

2240frequencies of the offers that are not discontinued:

224158% = 20.4% / (20.4% + 14.8%)

2242The offer frequency "42%" of the offer "B" is similarly calculated:

224342% = 14.8% / (20.4% + 14.8%) Those skilled in the art will understand that there are other methods for changing the offer

2244frequencies of offers.

2245In another embodiment, a predetermined number of the highest-performing offers

2246continue to be provided to customers. The remaining offers, if any, are not provided. FIG.

224776 illustrates the selection of offers to discontinue in this embodiment. A table 6240 depicts

2248data stored in another embodiment of the performance rate database 6028 (FIG. 67). For

2249each offer, there is an offer identifier 6242 and an average profit per order 6244. A

2250threshold 6246 of "three" defines the number of highest-performing offers in the table 6240

2251which will continue to be provided. In particular, the offers defined by entries 6248. 6250

2252and 6252 (the offers "A", "B" and "C") are the top three offers with respect to average profit

2253per order, and thus will continue to be provided. By contrast, the offer defined by entry

22546254 (the offer "D") will be discontinued.

2255A table 6256 depicts data stored in an embodiment of the database of offers 6024

2256(FIG. 67). As described above, each offer has an offer identifier 6258 and an offer

2257frequency 6260. Since the offer "D" has been discontinued, the corresponding offer

2258frequency is 0%. The offer frequencies of the offers "A", "B" and "C", which continue to be

2259offered, change accordingly. The offer frequencies may be changed so that they are equal to

2260each other (33 1/3% each). Alternatively, the offer frequencies may be changed in

2261accordance with their relation to one another, in the manner described above.

2262Once offers have been discontinued, it may be desirable to make them available

2263again at some time in the future. For example, after an offer has been discontinued due to a

2264poor performance rate, conditions such as consumer tastes may change. Accordingly,

2265discontinued offers may continue to be maintained in the database of offers 6024 (FIG. 67), and, after an offer has been discontinued for more than a predetermined amount of time, it

2266may be advantageous to evaluate its performance rate once again. The discontinued offer

2267may be granted a randomly-selected or predetermined offer frequency, allowing the

2268corresponding performance rate to be evaluated.

2269In addition, in some situations, after offers are discontinued only one offer may

2270continue to be offered. The performance rate of this offer is evaluated, and compared with

2271the performance rate of the offer in prior time periods. If the performance rate declines

2272below that of prior time periods, the offer may be discontinued and replaced. As a

2273replacement, another (discontinued) offer may be granted a randomly-selected or

2274predetermined offer frequency, allowing the corresponding performance rate to be

2275evaluated.

2276In some embodiments it may be desirable that the offer frequency of certain offers be

2277unchanged, regardless of the performance rate calculated for those offers. For example, a

2278high- value offer could have a very low offer frequency. The offer could then act as a prize

2279that few customers could receive. Accordingly, the cost of giving such a high-value offer in

2280exchange for change due would be incurred rarely, yet could serve as advertising to prompt

2281customers to frequent a business.

2282Referring to FIG. 77, a table 6300, similar to the table 6060 of FIG. 70, illustrates

2283another embodiment of the database of offers 6024 (FIG. 67). The table 6300 includes

2284entries 6302, 6304, 6306 and 6308, each of which describes an offer to be provided to

2285customers. Each of the entries 6302, 6304, 6306 and 6308 specifies (i) an offer identifier

22866310 for uniquely indicating the offer; (ii) an offer description 6312 for describing the offer;

2287(iii) a cost of the offer 6314 to the offeror; (iv) an offer frequency 6316 and (v) a fixed

2288frequency indication 6318. The fixed frequency indication 6318 indicates whether the corresponding offer frequency may be changed based on the performance rate of the offer,

2289as described above. For example, the entry 6308 includes an offer frequency of 1%. Since

2290this offer has a relatively high value ($50 gift certificate), it is likely that it will be accepted

2291often, perhaps always. However, the high cost ($50) of the offer can make it unprofitable to

2292offer more frequently. Accordingly, the frequency of that offer is fixed at 1%.

2293Although the present invention has been described with respect to a preferred

2294embodiment thereof, those skilled in the art will note that various substitutions may be made

2295to those embodiments described herein without departing from the spirit and scope of the

2296present invention.

2297I l l WHAT IS CLAIMED IS:

22981. A system comprising:

2299a lottery data processing system;

2300a controller including a storage device storing merchandise information, said

2301controller adapted to receive lottery information from said lottery data processing system;

2302at least one POS terminal connected to said controller, for performing

2303merchandise transactions and lottery transactions in accordance with the received lottery

2304information; and

2305said POS terminal including a recorder for recording on a recording medium the

2306merchandise and lottery information.

23072. The system according to Claim 1, wherein said controller communicates in

2308substantially real-time with said lottery data processing system.

23093. The system according to Claim 1, wherein the storage device stores lottery

2310information received from said lottery data processing system that includes randomly

2311selected lottery ticket numbers.

23124. The system according to Claim 2, wherein said POS terminal is adapted for input of

2313customer-selected lottery numbers, said controller is adapted to transmit the customer-

2314selected lottery numbers to said lottery data processing system, and said controller is

2315adapted to receive from said lottery data processing system an encrypted authentication code

2316and authorization to perform the lottery transaction. 5. The system according to Claim 1, wherein said controller is a store network server.

23176. A method for performing a lottery transaction, comprising the steps of:

2318initiating the lottery transaction at a POS terminal adapted to perform both

2319lottery transactions and merchandise transactions;

2320communicating from the POS terminal to a POS controller, operatively connected to

2321said POS terminal, that the lottery transaction has been initiated;

2322establishing communication between the POS controller and a lottery data

2323processing system adapted to communicate with the POS controller;

2324requesting lottery information be transmitted from the lottery data processing system

2325to the POS controller;

2326generating the lottery information in the lottery data processing system;

2327transmitting the lottery information from the lottery data processing system to the

2328POS terminal via the POS controller; and

2329outputting the lottery information on a recording medium by the POS terminal.

23307. The method according to Claim 6, wherein said generating step comprises generating

2331lottery information that includes randomly selected lottery numbers and an encrypted

2332authentication code.

23338. The method according to Claim 6, wherein said outputting step comprises outputting

2334a recording medium comprising a sales receipt having information relating to the lottery

2335transaction and a merchandise transaction. 9. A method according to Claim 6, further comprising the steps of:

2336inputting customer-selected lottery numbers to the POS terminal;

2337sending the customer-selected lottery numbers to the lottery data processing system;

2338and

2339wherein said generating step comprises generating lottery information that includes

2340an authorization to complete the lottery transaction using the customer-selected lottery

2341numbers and an encrypted authentication code related to the customer-selected lottery

2342numbers.

234310. A method according to Claim 6 further comprising the steps of:

2344inputting into the POS terminal an indication of a percentage of a full price lottery

2345ticket;

2346sending the indication to the lottery data processing system; and

2347wherein said generating step comprises generating lottery information that includes

2348an authorization for a fractional lottery ticket transaction.

234911. A lottery data processing system comprising:

2350a lottery controller including a CPU and a memory operatively connected to said

CPU;

2352said lottery controller adapted to communicate with at least one remote

2353controller that includes a storage device for storing merchandise information, said lottery

2354controller adapted to receive a request for lottery information from said remote controller

2355and to transmit, in response, the lottery information to said remote controller; and said memory in said lottery controller containing a program, adapted to be executed

2356by said CPU, for processing the request for the lottery information, generating the requested

2357lottery information, and maintaining a database within said memory to store the requested

2358lottery information.

235912. The system according to Claim 1 1, wherein said program in said memory is adapted

2360to generate lottery information that includes at least one group of randomly selected lottery

2361numbers and an encrypted authentication code for transmittal to said remote controller.

236213. The system according to Claim 1 1, wherein said lottery controller is adapted to

2363receive from said remote controller at least one group of customer-selected lottery numbers.

236414. The system according to Claim 13, wherein said program in said memory is adapted

2365to generate lottery information that includes an authorization to complete a lottery

2366transaction related to the request for the lottery information and an encrypted authentication

2367code related to the group of customer-selected lottery numbers for transmittal to said remote

2368controller.

236915. The system according to Claim 12, further comprising:

2370an IVRU operatively connected to said lottery controller and to a PSTN;

2371wherein said lottery controller is adapted to receive an alphanumeric code from said

2372PSTN via said IVRU; and

2373said program in said memory is further adapted to search said database within said memory to find a stored encrypted authentication code that

2374matches the alphanumeric code, and if a match is found, decrypt the alphanumeric code, and

2375send a first message to said PSTN via said IVRU, otherwise send a second message to said

2376PSTN via said IVRU.

237716. The system according to Claim 14, further comprising:

2378an IVRU operatively connected to said lottery network controller and to a PSTN;

2379wherein said lottery controller is adapted to receive an alphanumeric code from said

2380PSTN via said IVRU; and

2381said program in said memory is further adapted to

2382search said database within said memory to find a stored encrypted authentication code that

2383matches the alphanumeric code, and if a match is found, decrypt the alphanumeric code, and

2384send a first message to said PSTN via said IVRU, otherwise send a second message to said

2385PSTN via said IVRU.

238617. The system according to Claim 15, wherein the first message includes information

2387based on the decrypted alphanumeric code.

238818. The system according to Claim 15, wherein the second message includes an

2389indication that no match was found.

239019. The system according to Claim 15, wherein the first message comprises an

2391indication as to whether the alphanumeric code is from a winning lottery ticket. 20. A method for processing a request for lottery information using a lottery controller

2392including a CPU and a memory operatively connected to said CPU, wherein the memory

2393contains a program, adapted to be executed by said CPU, for processing lottery information

2394requests, said method comprising the steps of:

2395receiving a request for lottery information from a data processing system adapted to

2396perform lottery ticket transactions and merchandise transactions;

2397generating lottery information based on the request for lottery information;

2398storing the lottery information in the memory; and

2399transmitting the lottery information to the data processing system adapted to perform

2400lottery ticket transactions and merchandise transactions.

240121. A method for processing a lottery ticket request, comprising the steps of:

2402receiving a request for at least one lottery ticket;

2403generating randomly selected numbers to be used for the lottery ticket;

2404generating an authentication code comprising the randomly selected numbers;

2405encrypting the authentication code;

2406storing the randomly selected numbers and the encrypted authentication code in a

2407storage device; and

2408outputting the randomly selected numbers and the encrypted authentication code.

240922. A method according to Claim 21 , wherein the request in said receiving step is for a

2410fractional lottery ticket. 23. Computer executable process steps, stored on a computer readable medium, for

2411processing lottery ticket transactions, comprising:

2412a step to receive a lottery ticket request;

2413a step to generate randomly selected lottery numbers;

2414a step to generate an authentication code based upon the randomly selected lottery

2415numbers;

2416a step to encrypt the authentication code;

2417a step to store the randomly selected lottery numbers and the encrypted

2418authentication code in a storage device; and

2419a step to output the randomly selected lottery numbers and the encrypted

2420authentication code.

242124. Computer executable process steps according to Claim 23, wherein the lottery ticket

2422request in said step to receive is for a fractional lottery ticket.

242325. A system for performing lottery ticket transactions and merchandise transactions,

2424comprising:

2425a POS controller including a storage device storing merchandise information and

2426lottery information;

2427said POS controller adapted to communicate with a lottery data processing system;

2428said POS controller further adapted to transmit a request for lottery information to

2429said lottery data processing system and to receive, in response, the requested lottery

2430information from said lottery data processing system; at least one POS terminal, operatively connected to said POS controller, for

2431performing merchandise transactions and lottery transactions in accordance with the

2432received lottery information; and

2433a recorder connected to said POS terminal for issuing a receipt for the merchandise

2434and lottery transactions, said receipt comprising the lottery information from said lottery

2435data processing system.

243626. A method for performing lottery ticket transactions and merchandise transactions

2437utilizing a POS terminal operatively connected to a POS controller including a storage

2438device storing merchandise information, comprising the steps of:

2439initiating at the POS terminal a transaction for a plurality of items to be purchased,

2440including a request to purchase at least one lottery ticket;

2441inputting to the POS terminal a request for lottery ticket information;

2442transmitting to the POS controller the request for lottery ticket information;

2443receiving at the POS terminal from the POS controller the requested lottery ticket

2444information; and

2445recording on a recording medium the lottery ticket information and the merchandise

2446transaction.

244727. A method according to Claim 26, further comprising the step of storing the requested

2448lottery ticket information in the storage device of the POS controller.

244928. A data processing system, comprising: a POS controller including a CPU and a storage device operatively connected to said

CPU;

2451said POS controller adapted to receive from at least one POS terminal, capable of

2452performing lottery transactions and merchandise transactions, a request for lottery

2453information;

2454said POS controller further adapted to communicate the request for lottery

2455information to a lottery data processing system that is capable of generating lottery

2456information, and to receive, in response, the requested lottery information; and

2457said storage device in said POS controller containing a program, adapted to be

2458executed by said CPU, for processing the request for the lottery information from said POS

2459terminal.

246029. A method for processing lottery ticket requests using a POS controller including a

2461CPU and a storage device operatively connected to said CPU and containing a program,

2462adapted to be executed by said CPU, for processing lottery ticket requests, comprising the

2463steps of:

2464receiving a request for lottery information from a POS terminal performing lottery

2465transactions and merchandise transactions;

2466transmitting the request to a lottery data processing system capable of generating

2467lottery information based on the request for lottery information;

2468receiving the lottery information from the lottery data processing system; and

2469sending the lottery information to the POS terminal.

247030. A transaction processing device, comprising: a POS terminal adapted to perform lottery transactions and merchandise transactions;

2471said POS terminal adapted to communicate with a POS controller;

2472said POS terminal adapted to transmit a request for lottery information to said POS

2473controller and to receive the requested lottery ticket information from said POS controller;

2474and

2475said POS terminal including a recorder for recording on a recording medium the

2476merchandise and lottery transactions.

247731. A method for performing lottery ticket transactions and merchandise transactions

2478utilizing a POS terminal operatively connected to a POS controller that is adapted to

2479communicate with a lottery data processing system, comprising the steps of:

2480initiating at the POS terminal a transaction for a plurality of items to be purchased,

2481including a request to purchase at least one lottery ticket;

2482inputting to the POS terminal a request for lottery information;

2483receiving at the POS terminal lottery information including an encrypted

2484authentication code; and

2485recording on a recording medium the lottery information and the merchandise

2486transaction.

248732. The method according to Claim 31, wherein said inputting step comprises inputting a

2488request for lottery information that includes randomly selected lottery numbers, and said

2489receiving step comprises receiving the randomly selected lottery numbers and the encrypted

2490authentication code. 33. The method according to Claim 31 , wherein said inputting step comprises requesting

2491that specific customer-selected lottery numbers be used as at least a part of the lottery

2492information being requested.

249334. The method according to Claim 31 , wherein the request in said initiating step is for a

2494fractional lottery ticket.

249535. The method according to Claim 34, wherein the received lottery information

2496includes an authorization to perform a fractional lottery ticket transaction.

249736. A method of purchasing a lottery ticket, comprising:

2498requesting the purchase of at least one lottery ticket and at least one item of

2499merchandise;

2500receiving a recording medium constituting the lottery ticket and containing

2501information concerning the purchase of the item of merchandise.

250237. A method according to Claim 36, wherein the lottery ticket requested in said

2503requesting step is a fractional lottery ticket.

250438. A method of purchasing a lottery ticket comprising:

2505requesting the purchase of an item of merchandise; tendering an amount of money

2506for the purchase, in excess of the purchase price;

2507directing that the amount of money for the purchase in excess of the purchase price

2508be applied to the purchase of a fractional value lottery ticket; and receiving a recording medium constituting the fractional value lottery ticket and

2509containing information concerning the purchase of the item of merchandise.

251039. A method for authenticating a lottery ticket using a lottery central controller

2511including a storage device, comprising the steps of:

2512receiving first information related to the lottery ticket;

2513determining whether the first information is equivalent to second information stored

2514in the storage device, where the second information relates to a plurality of authorized

2515lottery tickets;

2516if no equivalent is found, outputting a first message indicating that no match was

2517found;

2518if an equivalent is found, performing a decryption operation on the first information;

2519and

2520outputting a second message based on the decryption operation.

252140. The method according to Claim 39, wherein the received first information comprises

2522an encrypted authentication code.

252341. The method according to Claim 39, wherein said receiving step comprises receiving

2524the first information via an IVRU operatively connected to a PSTN.

252542. The method according to Claim 39, wherein said receiving step comprises receiving

2526the first information from another data processing system. 43. The method according to Claim 39, wherein the second message comprises a report

2527as to whether the lottery ticket is a winning lottery ticket.

252844. The method according to Claim 40, wherein the decryption operation comprises

2529decrypting the encrypted authentication code, and the second message comprises

2530information based on the decrypted authentication code.

253145. A receipt, comprising a recording medium, recorded thereon lottery ticket

2532information, merchandise transaction information and an encrypted authentication code.

253346. The receipt according to Claim 45, wherein the lottery ticket information comprises a

2534fractional lottery ticket.

253547. A transaction processing system, comprising:

2536a POS terminal adapted to perform lottery ticket transactions and merchandise

2537transactions;

2538an input device associated with said POS terminal for inputting information to said

2539POS terminal related to at least one item to be purchased and an amount of money tendered

2540to pay for the item;

2541said POS terminal adapted to calculate an amount of change based on the amount of

2542money tendered to pay for the item;

2543said input device including an actuable member for causing said POS terminal to

2544perform a lottery ticket transaction by applying the amount of change toward purchase of an

2545amount of lottery tickets equal in value to the calculated amount of change; and said POS terminal including a recorder for recording on a recording medium the

2546merchandise transaction and the amount of lottery tickets purchased with the calculated

2547amount of change.

254848. The system according to Claim 47, where the amount of lottery tickets purchased

2549includes a fractional lottery ticket.

255049. A method for determining an upsell of a purchase at a point-of-sale terminal,

2551comprising:

2552generating a purchase price of the purchase;

2553generating a rounded price;

2554calculating a round-up amount, the round-up amount being a difference between the

2555purchase price and the rounded price;

2556generating a selection signal for indicating selection between the upsell and change;

2557and

2558exchanging the round-up amount for the upsell if the selection signal indicates selection of

2559the upsell.

256050. The method of claim 49, further comprising:

2561if the selection signal indicates selection of change,

2562identifying a second upsell,

2563generating a second selection signal for indicating selection between the second upsell and

2564change, and exchanging the round-up amount for the second upsell if the second selection signal

2565indicates selection of the second upsell.

256651. The method of claim 50, further comprising:

2567generating a random value; and wherein the step of identifying a second upsell is

2568performed only if the random value is within a prescribed range of values.

256952. The method of claim 49, further comprising:

2570printing a voucher.

257153. The method of claim 52, further comprising:

2572maintaining an identifier database;

2573generating a unique identifier;

2574storing the unique identifier in the identifier database; and

2575printing the unique identifier on the voucher.

257654. The method of claim 52, further comprising:

2577generating a date identifier in dependence on a date of the purchase; and

2578printing the date identifier on the voucher.

257955. The method of claim 49, further comprising:

2580maintaining a database of offered upsells;

2581storing the round-up amount in the database of offered upsells;

2582storing the upsell in the database of offered upsells; and

2583storing the selection signal in the database of offered upsells.

258456. The method of claim 55, further comprising: storing a date of the purchase in the database of offered upsells.

258557. The method of claim 49, wherein the upsell comprises a game entry.

258658. The method of claim 57, further comprising:

2587maintaining a game database;

2588generating a unique identifier;

2589storing the unique identifier in the game database; and

2590storing the round-up amount in the game database.

259159. The method of claim 49, further comprising: