Patent Application
20130103487
The present application relates to the field of smart cards. More particularly, the described embodiments relate to a system and method in which smart cards designed for use in implementation of WIC (Women, Infants & Children) programs are further used in the implementation of promotional offers.
The present invention involves a new processing technique for smart cards. The preferred embodiment is enabled by a platform created by the assignee of the present invention, which is called the Solutran Super Smart Card Platform (or “S3”). The technique for processing transactions on this system involves a number of components including a smart card, data and programming loaded into the smart card, a retailer Point-of-Sale system (POS), a smart card reader, a retailer Electronic Cash Register (ECR), a software program in the retailer's centralized store server, a file exchange between the retailer and the processor and a funds settlement protocol.
The foundation for this process is the current Women, Infants and Children's Electronic Benefit Transfer process (WIC EBT). This process was developed by the USDA's Food Nutrition Service in conjunction with the State of Texas, the State of New Mexico and the State of Wyoming. Details of this process can be found in the “Texas Department of Health Specification for Integrated WIC EBT Grocer Systems,” Version 1.5, Apr. 9, 2004 (which is hereby incorporated in its entirety).
The S3 platform will be used to drive a number of consumer incentive and benefit distribution programs. S3 smart cards will be distributed to cardholders, which can be used at participating retail locations. After inserting their S3 card into the retailer's smart card reader, users will be prompted to enter a Personal Identification Number (PIN). Once validated, incentives such as product discounts and free product samples will be made available to cardholders. Discount types, quantities, expiration dates and maximum spending limits will all be controlled by the S3 platform.
A digital processor 112 in the POS/ECR system 110, such as a general purpose CPU manufactured by Intel Corporation (Mountain View, Calif.) or Advanced Micro Devices, Inc. (Sunnyvale, Calif.) accesses and performs the software 122. To improve efficiency, the processor 112 may load software 122 stored in non-transitory memory 120 into faster but volatile RAM 114. Data operated upon by the software 122 can also be stored in non-volatile memory 120 and retrieved into RAM 114 for analysis, recording, and reporting. Data relevant to the disclosed embodiments of the present invention are an approved product list (or APL) 124 and a hot card list (or HCL) 126. The POS/ECR system 110 preferably further includes a network interface 116 to communicate with other computerized devices across a digital data network 130. In one embodiment, the network 130 is the Internet, and the network interface 116 includes TCP/IP protocol stacks for communicating over the network 132. The network interface 116 may connect to the network 132 wirelessly or through a physical wired connection. Instead of being a single device with a single processor, the POS/ECR system 110 could also implemented using a network of devices all operating according to the instructions of the software, or a network of independent devices communicating with a server. In one embodiment, a retailer implements the ECR system 110 as a plurality of electronic cash registers at each checkout lane, with each electronic cash register in communication with a central server physically located in the back office of the retailer's store location.
The POS/ECR system 110 is in electrical connection with a scanner or terminal 130. This scanner 130 is designed to read data off of a smart card 140. The smart card 140 itself contains a processor 142 and smart card software 144 that operates on the processor 142. In addition, the smart card 140 contains a physical, non-volatile memory 146 that contains data 148-162 that is stored on and manipulated by the smart card 140. The software 144 can be stored on the same memory device 146 as the data, or can be stored in some other physical, computer readable storage medium. The data 148-162 contains promotional values specific to each consumer and tells the POS/ECR system 110 how to reduce the purchase price for specific products in the checkout basket. The scanner 510 can read this card data off of the card 140, and provides the data to the POS/ECR system 110. This information is compared to hot card list or HCL 126 for authentication of the smart card 140 and compared to the approved product list or APL 124 to allow and compute product promotions.
The POS/ECR system 110 communicates over the network 132 with a central server computer 170. The primary purpose of the communication is to upload claim files from the ECR system 110 to the server 170, and to download APL 124 and HCL 126 information from the server 170 to the ECR system 110. In one embodiment, the APL 124 is downloaded to retailers each night and contains information on the currently running promotions and the qualifying products via specific product identifiers (UPC's and PLU's). The APL information 124 is correlated with the smart card data 148-162 to inform the ECR system 110 which individual products are allowed a promotion and the rules for that promotion. The POS/ECR system 110 can then determine the extent to which the consumer has utilized those promotions by examining the data on the smart card 140. By changing the APL 124 stored on the ECR system 110 frequently, the promotions can be frequently changed without having to reprogram the data on the smart card 140. By using a smart card 140 instead of a “dumb” identification card, prior usage of promotions can be tracked inside the card 140 to ensure that users to not exceed limits placed on the promotion.
Like the ECR system 110, the server computer 170 has a processor 172 to perform programming instructions, RAM 174 to speed up the handling of instructions and data, a network interface to allow communication with other computerized devices (such as ECR system 110) over the network), and tangible, non-volatile, computer-readable memory 178 such as a hard drive or flash memory. The memory 178 contains the server software 180 that operates on the processor 172 and performs the computer-implemented methods described below. The server 170 also maintains on memory 178 a hot card list or HCL 182 that identifies smart cards (such as card 140) that are no longer valid. By maintaining a central list of card identifiers that have been lost, stolen, or otherwise inactivated in the HCL 182, this information can be shared frequently with a variety of retailers in order to prevent fraudulent or otherwise inappropriate use of smart cards 140. The server 170 also maintains an approved product list or APL 190. In the preferred embodiment, the APL itself contains four types of information, namely a product identifier 192, a promotion identifier 194, a price type 196, and a product list 198. This information is regularly shared with ECR systems 110 of various retailers in order for the ECR software 122 to properly allow promotions under the system 100. By regularly updating the APL 124 stored at a retail location through downloads from the APL 190 stored at a central server 170, changes to the promotions can be centrally made and downloaded frequently to individual retail locations. In the preferred embodiment, separate APLs 190 can be created at maintained at the server 170 for different retailers. The particular APL 190 downloaded to an ECR 110 will then be determined based upon the retailer and location of the ECR 110 receiving the data.
The S3 platform design is flexible to accommodate many program designs. In order to understand how programs can be structured, it is important to understand three elements: i) the information stored on the card; ii) the information stored in the Approved Product List (APL); and iii) the information stored in the retailer Electronic Cash Register system (ECR).
Each S3 smart card 140 contains a smart chip including a processor 142. The card includes application software 144 that manages card information and interoperability with the ECR 110. Information regarding each promotion is also preloaded onto cards 140. Certain key data elements drive card functionality and are listed below:
Each S3 smart card 140 also includes reload type information 160 that controls when promotions defined by data items 148-158 can be reloaded on the card 140. In addition, the card 140 uses a primary account number or PAN 162 to identify the card account number.
The server 170 will transmit an Approved Product List (APL) 190 to participating retailers. The APL 190 (item 124 when stored on the ECR 110) contains detailed information regarding specific product promotions. A few data elements are the same as the items listed above in “Information stored in the card,” and are used to map card elements to APL data. The APL 190 contains specific UPC or other product codes that determine specific program functionality. Key data elements in the APL 190 include:
Below is a sample program where all S3 cards 140 are loaded with a sample program. No configuration exists in this example for customized benefits by consumer. Rather, all changes to program design are handled through changes to the APL 124, 190. This example will be used to describe how the S3 card 140, APL 124, 190 and ECR logic 122 interact to create a fully functional S3 platform 100. The information stored on the card 140 and in the APL 124 in the ECT 110 at program launch is shown in
Given this program configuration, consumers could use this card to get the following:
This is seen by comparing the program and promotion IDs 192, 194 on the APL 190 with the program and promotion IDs 148, 150 on the card 140. Those products listed in the first row of the APL 190 (assuming the IDs in the product list to be Pampers products) are associated with a program and promotion ID both being equal to 1, and a price type of 6.
How to Modify Cardholder Benefits after Program Launch
After the program is launched, the APL can be modified to change program benefits. The diagrams in
Given this program configuration, consumers could use this card to get the following:
In one embodiment, the S3 system 100 can manage up to 99 different promotions. Obviously, variations of this invention could be structured to hold more than 99 programs. Each promotion can be structured to hold different discount types, quantities, start dates and end dates. This flexibility allows program managers to pre-configure a variety of programs that could be used in the future. These may never be used, but they are created to allow future program flexibility. Changes to the APL can immediately “turn on” these benefits for cardholders.
Below are a few promotional examples. For each example the corresponding card configuration APL structure is outlined. These examples show how the S3 Card can be modified over time to create interesting and flexible promotions.
These examples are meant to describe the flexibility of the S3 platform. Many additional programs possibilities exist given the platform's flexible configuration.
The above structure creates numerous benefits, including:
Using the described embodiments, it is possible to create a fully branded, customized portal. We create a data-gathering portal that customizes query information with your name, company colors, and distinct personality. Each card application has its own screen, making it easy for merchandisers and retailers to access. Editing capabilities make it simple to change promotions and product offerings, with privacy secured at all times.
Another benefit is that consumers enter their data online. Consumers fill out a short form with brief, required information on the appropriate application screen. PIN numbers are given for identification purposes. Information is processed through Solutran channels and delivered to merchandisers and retailers for use in enhancing marketing efforts, communication, and building customer relationships.
In addition, accumulated benefits are viewable as long as the card is active. Consumers can log onto their accounts around the clock to check benefits and retrieve discount, prebate, and product information.
The S3 Card can be used to drive employee engagement in healthy living though incentives to eat better by developing a wellness card. By offering price discounts on healthy foods, employers can create a healthier, happier and more productive workforce. The S3 card will keep track of monthly benefit allowances and product discounts used. For example, a typical program may offer “25% off fruits and vegetables, up to a maximum benefit of $50/month.” Similarly, S3 allows product promotions for wellness-related products such as vitamins and diabetes test strips. The applications for a S3 wellness program are broad and unique.
Discount card can be developed whose benefits include i) generating revenue with brand loyalty—know who uses your discounts and what products they purchase; ii) eliminating paper coupon management, which saves labor for retailers, merchandisers, and consumers; iii) reducing fraud, risk of taking expired coupons, and loss from misplaced coupons and mailings; and iv) easy-to-read reports indicate redemption trends, retailer payments, and promotion performance.
Prebate card can be developed whose benefits include i) investing consumers in the purchase process; ii) creating buying incentives by providing a branded card with rebate money in hand; iii) reducing paper rebate fulfillment costs; tracking data redemption within days of usage; iv) increasing consumer satisfaction with up-front discounts; and v) creating future marketing to known buyers via market intelligence (after TV sales, you can promote monster cables, blue-ray, etc.).
Product sample card can be developed whose benefits include i) targeting your market with meticulous precision through consumer online registration website information; ii) more cost-effective compared to traditional product fulfillment packaging/shipping costs; iii) streamlining the product sample process by simplifying delivery through smart card use; iv) identifying future marketing opportunities based on buying trends; and v) leaving a lighter footprint on the environment by reducing waste.
Target market card can be developed whose benefits include i) the ability to build customized programs designed for each target market to drive sales; ii) uniquely branded cards for each promotion; iii) flexible card can structure promotions by product category or at the UPC level; iv) detailed reporting of consumer usage—by product, by store, and by day to help drive future promotions and sales; and v) supports channel partner programs on the same card.
The method for utilizing the S3 platform is shown in
The various parties to the entities that will participate in the system and method of the present invention are shown in
Comparison with WIC EBT
Similar to the WIC EBT system, S3 uses a smart card payment platform to deliver food (and other) benefits to a target audience. The basic purpose of the WIC EBT platform is to deliver government benefits to a target population, WIC participants. As explained by the USDA, “the Special Supplemental Nutrition Program for Women, Infants, and Children—better known as the WIC Program—serves to safeguard the health of low-income women, infants, & children up to age 5 who are at nutritional risk by providing nutritious foods to supplement diets, information on healthy eating, and referrals to health care” (http://www.fns.usda.gov/wic/aboutwic/). The purpose of the S3 platform is to process transactions that are fundamentally different in nature. In particular, the S3 platform is designed to deliver a variety of consumer marketing and other initiatives. These initiatives may include the following:
Due to the many target applications of S3, the functionality of this platform is significantly enhanced as compared to WIC EBT. The largest difference relates to the type of discount transactions that can be applied through the smart card platform. The WIC EBT provides for free benefits, thus the only transaction type available is the ability to make free food items available to the cardholder. In contrast, S3 offers additional discounting options beyond free food items. In particular, the S3 platform allows for i) percentage (%) discounts made available on food items for cardholders; ii) dollar ($) discounts made available on food items for cardholders; and iii) buy-one-get-one-free discounts made available on food items for cardholders.
An additional S3 enhancement includes enhanced functionality relating to funding of benefits to the card. S3 allow multiple entities to support the funding of its programs whereas WIC EBT does not include this capability. An S3 program will include multiple promotions inside each program. S3 allows for multiple funders for each individual promotion. This compares to WIC EBT that only allows one funder per program.
S3 has modified the structure of various platform components to enable the enhanced functionality as compared to WIC EBT. A more detailed description of S3's platform design can be found below. The key differences of S3 as compared to WIC EBT relate to the functionality changes/additions to each of the following components:
S3 smart card compared to the WIC EBT smart card:
S3 Approved Product List (APL) 124, 190 compared to the WIC EBT APL:
S3 software installed at retailer POS/ECR System 110
Of course, the system and methods described above are exemplary and are not the exclusive techniques for using the disclosed embodiments. Numerous modifications and variations will readily occur to those skilled in the art. Since such modifications are possible, the invention is not to be limited to the exact construction and operation illustrated and described. Rather, the present invention should be limited only by the following claims.
The present application claims the benefit of U.S. Provisional Application No. 61/475,993, filed Apr. 15, 2011.
| Number | Date | Country | |
|---|---|---|---|
| 61475993 | Apr 2011 | US |
