Online reward point exchange method and system with user bids of rewards for purchase of a product

Abstract

An online reward exchange system and method of operation, which includes an exchange computer that interoperates via a computer network with user computers, reward point issuer computers, and merchant computers. The merchants' products may be purchased by a user by requesting an issuer(s) to redeem reward points in exchange for payment to the merchant for the product. The exchange computer is the gateway to the system and manages various transactions such as providing online product catalogs to users that list the merchants products, as well as displaying to the user the reward points he has available in his reward programs with the issuers. Once a user selects a desired product the exchange computer can mediate or manage the purchase transaction in which reward points are redeemed by the selected issuer and consideration is conveyed to the merchant in exchange for the merchant providing the product to the user.

What is claimed is: 
     
         1 . A computer-implemented method of executing a purchase transaction using reward points for at least partial payment for an item comprising:
 a reward issuer computer receiving from an exchange computer a bid made by a user computer to the exchange computer, the bid comprising a quantity of reward points from a user reward account stored on the reward issuer computer that are offered for redemption towards purchase of an item from a merchant computer at a listed price, the quantity of reward points bid by the user computer having a value to the reward issuer computer that is lower than the listed price of the item; and   the reward issuer computer accepting the bid and paying for the item by reducing the user reward account by the quantity of reward points bid by the user computer and conveying consideration corresponding to the listed price to pay for the item.   
     
     
         2 . The method of  claim 1  wherein the reward issuer computer conveys the consideration to the exchange computer for payment to the merchant computer towards purchase of the item. 
     
     
         3 . The method of  claim 1  wherein the reward issuer computer conveys the consideration to the merchant computer towards purchase of the item. 
     
     
         4 . A reward issuer computer for execution of a purchase transaction using reward points for at least partial payment for an item, the reward issuer computer programmed to:
 receive from an exchange computer a bid made by a user computer to the exchange computer, the bid comprising a quantity of reward points from a user reward account stored on the reward issuer computer that are offered for redemption towards purchase of an item from a merchant computer at a listed price, the quantity of reward points bid by the user computer having a value to the reward issuer computer that is lower than the listed price of the item; and   accept the bid and pay for the item by reducing the user reward account by the quantity of reward points bid by the user computer and conveying consideration corresponding to the listed price to pay for the item.   
     
     
         5 . The reward issuer computer of  claim 4  wherein the reward issuer computer is further programmed to convey the consideration to the exchange computer for payment to the merchant computer towards purchase of the item. 
     
     
         6 . The reward issuer computer of  claim 4  wherein the reward issuer computer is further programmed to convey the consideration to the merchant computer towards purchase of the item. 
     
     
         7 . A computer-implemented method of executing a purchase transaction using reward points for at least partial payment for an item comprising:
 a reward issuer computer receiving from an exchange computer a bid made by a user computer to the exchange computer, the bid comprising a quantity of reward points from a user reward account stored on the reward issuer computer that are offered for redemption towards purchase of an item from a merchant computer at a listed price, the quantity of reward points bid by the user computer having a value to the reward issuer computer that is lower than the listed price of the item;   the reward issuer computer submitting a counteroffer bid to the exchange computer for approval by the user computer; and   the reward issuer computer paying for the item by reducing the user reward account by the quantity of reward points in the counteroffer bid and conveying consideration corresponding to the listed price to pay for the item.   
     
     
         8 . The method of  claim 7  wherein the reward issuer computer conveys the consideration to the exchange computer for payment to the merchant computer towards purchase of the item. 
     
     
         9 . The method of  claim 7  wherein the reward issuer computer conveys the consideration to the merchant computer towards purchase of the item. 
     
     
         10 . A reward issuer computer for execution of a purchase transaction using reward points for at least partial payment for an item, the reward issuer computer programmed to:
 receive from an exchange computer a bid made by a user computer to the exchange computer, the bid comprising a quantity of reward points from a user reward account stored on the reward issuer computer that are offered for redemption towards purchase of an item from a merchant computer at a listed price, the quantity of reward points bid by the user computer having a value to the reward issuer computer that is lower than the listed price of the item;   submit a counteroffer bid to the exchange computer for approval by the user computer; and   pay for the item by reducing the user reward account by the quantity of reward points in the counteroffer bid and conveying consideration corresponding to the listed price to pay for the item.   
     
     
         11 . The reward issuer computer of  claim 10  wherein the reward issuer computer is further programmed to convey the consideration to the exchange computer for payment to the merchant computer towards purchase of the item. 
     
     
         12 . The reward issuer computer of  claim 10  wherein the reward issuer computer is further programmed to convey the consideration to the merchant computer towards purchase of the item.