System and method for facilitating commercial transactions

Abstract

An electronic fund transfer system that provides vital marketing information to participating merchants and purchasing records to customers while offering the most efficient and effective system to deliver the best terms and conditions for the products and services requested by customers. The system includes an electronic funds transfer card that can be used as a debit or charge card to purchase goods and services. At checkout, the system operates invisibly to the consumer and the cashier. Approval of the transaction operates similarly to a conventional debit card or credit card. All discounts are managed by the data clearinghouse which receives consumer data and merchant data. The clearinghouse communicates with the financial institution and forwards a statement which displays the accumulated discounts to the consumer.

1 . A method of facilitating a reward program for buying club members comprising the steps of:
 a) forming a buying club including club members, merchants and financial institutions;   b) monitoring transactions between club members and merchants and financial institutions by a data clearinghouse;   c) providing said data clearinghouse with purchase detail information from a merchant when a club member makes a purchase at a participating merchant;   e) said purchase detail information includes item by item discounts on purchases and said merchant authorizes said data clearinghouse to obtain a club member refund from said financial institution; and,   f) providing said club member with a statement from said data clearinghouse which includes discounts.   
     
     
         2 . The method of facilitating a reward program for buying club members as set forth in  claim 1 , further comprising the step of:
 providing said merchant with a statement from said data clearinghouse.   
     
     
         3 . The method of facilitating a reward program for buying club members as set forth in  claim 1 , wherein:
 when a club member makes a purchase, said club member uses a card having a machine readable indicia thereon to purchase items.   
     
     
         4 . The method of facilitating a reward program for buying club members as set forth in  claim 3 , wherein:
 said merchant scans said card through a scanning device which transmits club member information to said financial institution for purchase authorization.   
     
     
         5 . The method of facilitating a reward program for buying club members as set forth in  claim 1 , further comprising the step of:
 transmitting purchase authorization information from said club member to said financial institution using a cellular telephone.   
     
     
         6 . The method of facilitating a reward program for buying club members as set forth in  claim 1 , further comprising the step of:
 transmitting purchase detail information from said merchant to said data clearinghouse.   
     
     
         7 . A method of operating a reward program for a buying club, comprising the steps of;
 a) creating a reward program group of at least one participating merchant and at least one financial institution and a data clearinghouse;   b) enrolling at least one customer as a buying club member and providing said club member with a buying club account;   c) initiating a purchase by a club member at said participating merchant using buying club account;   d) obtaining authorization for said purchase from said financial institution;   e) transmitting purchasing information from said financial institution to said data clearinghouse which records said purchasing information;   f) said purchasing information includes item identifiers so that purchased products and services can be identified;   g) transmitting a request for a discount amount from said data clearinghouse to said merchant;   h) calculating the total discount of said purchase by said data clearinghouse;   i) invoicing by said data clearinghouse from said merchant for the total discount;   j) sending to said data clearinghouse from said financial institution payment of the invoice amount;   k) wherein, upon receipt of said payment, said data clearinghouse applies a credit to said club member's account.   
     
     
         8 . The method of operating a reward program for a buying club as set forth in  claim 7 , wherein;
 providing a buying club member with an account includes providing said club member with a debit card.   
     
     
         9 . The method of operating a reward program for a buying club as set forth in  claim 7 , wherein;
 providing a buying club member with an account includes providing said club member with a credit card.   
     
     
         10 . The method of operating a reward program for a buying club as set forth in  claim 7 , wherein;
 providing a buying club member with an account includes providing said club member with a personal identification number.   
     
     
         11 . The method of operating a reward program for a buying club as set forth in  claim 10 , further comprising the step of;
 using a cellular telephone to provide account information to said financial institution.   
     
     
         12 . The method of operating a reward program for a buying club as set forth in  claim 7 , further comprising the step of;
 using an card scanning device to transmit account information to said financial institution.   
     
     
         13 . A system for facilitating a reward program for buying club members comprising:
 a) a buying club including club members, merchants and financial institutions;   b) a data clearinghouse server for recording transaction data between club members and merchants and financial institutions;   c) a merchant server for transmitting transaction data to said data clearinghouse server wherein said transaction data includes purchase detail information from a merchant when a club member makes a purchase at a participating merchant;   d) said purchase detail information includes item by item discounts on purchases;   e) said data clearinghouse server calculates refund information and authorizes said data clearinghouse to obtain a club member refund from said financial institution; and,   f) said data clearinghouse server produces a statement from said data clearinghouse to said club member identifying said refund information.   
     
     
         14 . The system for facilitating a reward program for buying club members as set forth in  claim 13 , further comprising:
 a card having a machine readable indicia thereon for use by a club member to purchase items.   
     
     
         15 . The system of facilitating a reward program for buying club members as set forth in  claim 14 , further comprising:
 a scanning device which transmits club member information to said financial institution for purchase authorization.   
     
     
         16 . The system of facilitating a reward program for buying club members as set forth in  claim 13 , further comprising:
 a cellular phone for transmitting purchase authorization information from said club member to said financial institution.   
     
     
         17 . The system facilitating a reward program for buying club members as set forth in  claim 13 , wherein:
 said purchase detail information includes an item by item list of purchased products.   
     
     
         18 . The system facilitating a reward program for buying club members as set forth in  claim 17 , wherein:
 discount amounts are determined from said purchase detail information on an item by item basis.   
     
     
         19 . The system facilitating a reward program for buying club members as set forth in  claim 17 , wherein:
 said purchase detail information is provided to participating merchants.