WO2002060699A2

WO2002060699A2 - Method and system for using postage stamps for payment

Info

Publication number: WO2002060699A2
Application number: PCT/US2002/001229
Authority: WO
Inventors: Christopher C. Conboy; Ronald J. Gleason
Original assignee: United States Postal Service
Priority date: 2001-01-31
Filing date: 2002-01-31
Publication date: 2002-08-08
Also published as: AU2002235387A1; WO2002060699A3

Abstract

A method and system are provided for enabling a marketer (400) to offer a premium to a customer (410) and accept postage stamps as legal tender in exchange for the premium. An offer post card is provided to the customer (410). The customer (410) fills in requested information on the offer post card and affixes postage stamps in an amount equal or greater than the amount requested for the premium. The customer then returns the post card to a processing center (430) through the postal service. The returned post card is processed to gather customer information (432) and to determine the amount of postage affixed to the card (436). The customer informaiton is provided to the marketer (400) to fulfill the premium offer. The marketer (400) is also provided with funds based on the amount of postage affixed.

Description

METHOD AND SYSTEM FOR USING POSTAGE STAMPS FOR PAYMENT

DESCRIPTION

Cross-Reference to Related Applications

This application claims the benefit of priority from U.S. Provisional Application No. 60/265,112, filed January 31 , 2001 , the disclosure of which is expressly incorporated herein by reference.

Field

[001] This invention relates generally to marketing of lower-cost premium goods and, more particularly, to a system and method enabling marketers to offer lower-cost premiums to customers using postage stamps as legal tender.

Background

[002] Marketers often offer lower-cost premium goods, such as photographs, sports cards, or small toys, to customers. The marketing for these lower-cost premiums, for example, may be done by presenting the offer to the customer via direct mail, inserts in other mailings or products, or via the Internet. One problem that customers may face in accepting these offers is remitting payment.

[003] Payment for lower-cost premiums, or premiums costing between $1 and $10, for example, may not be convenient using any conventional payment methods. Customers are often hesitant to send cash through the mail; however, customers often avoid writing a check or paying via a debit or credit card for such a small amount, particularly if their banking institution charges fees for use. Further, marketers may not be willing to accept debit or credit card payment for small transactions due to the service charges involved.

[004] Accordingly, the present invention is directed towards providing a payment method and system for lower-cost transactions that solves one or more of the disadvantages of prior art systems.

SUMMARY OF THE INVENTION

[005] In accordance with the invention, a system and method are provided for enabling marketers to offer lower-cost premiums to customers using postage stamps as legal tender. The marketer provides an offer for a premium in, for example, a post-card-based format. The customer fills out the required information on the post card, affixes sufficient postage to cover the cost of the premium, plus a stamp for mailing if necessary, and mails the post card through normal mail channels.

[006] The post card is then processed at a processing center, where the information filled out by the customer may be captured, as well as information about the number and denomination of stamps affixed. The captured customer information may be stored in a database. The information about the number and denomination of stamps affixed may be used to compute a total amount and may be stored in an account. The marketer may be provided with the database of customer information in order to fulfill the premium offer. Further, if the post card processing is handled by a provider other than the marketer, the marketer may also be provided a percentage of the amount of money represented by the stamps returned on the offer post card, as stored in the account. The processing center may retain a remaining percentage of the amount of money represented by postage stamps for providing the processing service.

[007] Additional features and advantages of the invention will be set forth in part in the description which follows, and in part will be obvious from the description, or may be learned by practice of the invention. The features and advantages of the invention will be realized and attained by means of the elements and combinations particularly pointed out in the appended claims.

[008] It is to be understood that both the foregoing general description and the following detailed description are exemplary and explanatory only and are not restrictive of the invention, as claimed.

BRIEF DESCRIPTION OF THE DRAWINGS

[009] The accompanying drawings, which are incorporated in and constitute a part of this specification, illustrate one embodiment of the invention and together with the description, serve to explain the principles of the invention.

[010] Figure 1 is a flow chart illustrating a method for offering lower- cost premiums using postage stamps as legal tender, consistent with an embodiment of the present invention;

[011] Figure 2 is a flow chart illustrating a method for processing a returned offer post card, consistent with an embodiment of the present invention; [012] Figure 3 is an exemplary offer post card, consistent with an embodiment of the present invention; and

[013] Figure 4 illustrates an exemplary system, consistent with an embodiment of the present invention.

DESCRIPTION OF THE EMBODIMENTS

[014] Reference will now be made in detail to an embodiment of the invention, an example of which is illustrated in the accompanying drawings. Wherever possible, the same reference numbers will be used throughout the drawings to refer to the same or like parts.

[015] Figure 1 illustrates a method consistent with an embodiment of the present invention. When a marketer decides to offer a lower-cost premium and accept postage stamps as tender for that premium, the marketer may first consult with a mail piece design analyst to create the offer mail piece, such as a post card. The mail piece design analyst may examine the offer post card for correct specifications (stage 100). For example, the mail piece design analyst may ensure that postal regulations, such as size, shape, and layout, are met. Next, the marketer distributes the offer to a customer (stage 110). The offer may take any form, such as a direct mailing, a freestanding insert, an offer available for download off the Internet, a hand-out at a point of purchase or other location, or any other method for distributing an offer post card to a customer.

[016] If the customer wishes to take advantage of the offer, the customer then affixes postage stamps to the offer post card for payment, using the stamps as legal tender (stage 120). The customer may need to fill in or indicate some customer identification information, such as name and/or address, so the marketer is able to fulfill the premium offer. The customer would affix stamps in the amount requested by the marketer. Additionally, the customer may need to affix a stamp to cover the postage of mailing the offer post card back through the postal service. Alternatively, the return postage may be pre-paid by the marketer. The stamps may be limited to full value, first-class postage stamps, as opposed to, for example, pre-sort stamps or non-profit stamps.

[017] The customer then mails the offer post card to a processing center, which may be a postal service centralized processing center (stage 130). The customer can deposit the offer post card anywhere into the mail system, because they have affixed a stamp to cover postage, or alternatively, the return postage was pre-paid by the marketer. The postal service will then forward the offer card to the processing center. If the processing center is a postal service centralized processing center, the mail may come in using a phantom post office box system. A phantom post office box system includes a certain post office box number being assigned to each marketer or each offer, but instead of being a physical post office box, it would be an indication that the offer post card is to be sent to a processing center for a particular marketing campaign. For example, a phantom post office box may be assigned to a particular marketer, with a zip-code plus four being used to indicate different offers for the particular marketer.

[018] The processing center will process the offer post card (stage 140). At the processing center, the offer post cards may be processed using optical character recognition (OCR) or other imaging technology. For example, image technology may be used to capture customer data using handwriting improvement programs, or other existing technology. Customer data may be captured and stored in a database. The database may then be downloaded to the marketer to permit fulfillment of the premium offers. In addition to obtaining the customer data via OCR or other technology, existing technology may also be used to determine the denomination and number of stamps affixed for payment. For example, an imaging machine may determine the number and value of the stamps and then store the amount in an account database or other memory until the end of a processing run. The amount in the account database may then be used to perform an electronic funds transfer, or other payment, to the marketer. In one embodiment, a percentage of the amount in the account database may be taken out prior to the funds transfer as payment to the processing center for services. In yet another embodiment, gathering of the customer data and/or gathering of the stamp amount data may be performed manually. After the database is downloaded to the marketer, the marketer may send the offered premium or product to the customer and receive the funds from the processing center (stage 150). In an alternative embodiment, the above described method may be used to permit small amount donations to a charity, filling the role of marketer. In this case, stage 150 would not include the marketer sending the offered premium to the customer. Customer data may still be forwarded to the marketer, or charity, in order to enable an acknowledgement of the donation. [019] It should be understood that, although the processing center is described as a separate entity from the marketer, it is consistent with the present invention for the processing center to be the same entity as the marketer. In this embodiment, the customer database may not need to be downloaded to the marketer and the funds transfer between the marketer and the processing center may not occur.

[020] Figure 2 describes the stages of processing the returned offer post cards in greater detail. First, customer data is read from the offer post card and entered into a database (stage 200). The offer post card may include one or more blanks or spaces to be filled out by the customer, including, for example, name and/or address. Existing imaging and OCR technology is able to read this customer data. Further, by use of handwriting recognition programs, the imaging technology may read the customer data from the offer post card and also perform algorithms to ensure greater accuracy of customer data. The data is then stored in a database. If a processing center handles offers for more than one campaign or more than one marketer, the data may be stored in a database indicated by the phantom post office box number, as described above.

[021] The stamp payment is also scanned, using imaging technology (stage 210). For example, form recognition technology may be used to count or read the number of stamps on an offer post card, as well as to determine the denomination of the affixed stamps. The system may then determine a total payment associated with the offer post card. For example, if an offer post card had six 33-cent stamps affixed, the system would determine that a $1.98 payment had been received. If that amount satisfied the amount required by the offer, the amount may be added to an account database.

[022] Finally, the database of customer data and the accounting data are sent to the marketer (stage 220). This information may be sent, for example, via the Internet or other electronic means. This downloading may be done at the end of a marketing campaign, or alternatively, may occur at a pre-designated time, such as once weekly. By providing the data in electronic form, the marketer may be able to fulfill the premium offers sooner. As described above, the funds transferred to the marketer may be reduced by processing fees charged by the processing center for services. The amount of processing fees may vary based on a number of factors and/or based on the agreement between the processor and the marketer.

[023] Figure 3 illustrates an exemplary offer post card 300 that may be used with methods and systems consistent with the present invention. The back of offer post card 300 provides for affixing of postage stamps for payment. Instructions 320 explain steps for accepting the premium offer, such as the number of stamps to affix and what customer data is required. Grid mark 330 illustrates where payment stamps are to be affixed. For example, this particular grid mark 330 shows a total of six stamps. Six stamps, however, is merely exemplary; the number of stamps can vary greatly. In one implementation, the minimum payment amount is $1.00 and the maximum payment amount is $10.00. Grid mark 330 may also include different configurations, such as a horizontal array or other arrangement. Grid mark 330 may also be configured for larger or smaller stamps. A marketer, for example, may request that a particular stamp be used, such as a stamp promoting adoption or breast cancer research. Grid mark 330 would then be designed for stamps of those particular sizes and shapes. Clear zone 340 may be included as well. Clear zone 340 is an area printed, or "sprayed," by the postal service for OCR during the first line of processing.

[024] Post card front 310 includes blanks 350 for customer data. Alternatively, customer data blanks 350 may be located on the back 300 of the offer post card. Customer data blanks 350 may request such information as name and address. Customer data blanks 350 may also request other information, such as age, e-mail address, or account number. Any data that a marketer wishes to collect may be requested in customer data blanks 350. If the marketer is not supplying pre-paid return postage, the customer would need to affix a stamp 360 to handle return postage. Alternatively, if the marketer did supply return postage, area 360 would include an indicia that postage had been pre-paid.

[025] A facing identification mark 370 designates the orientation of the offer card and is used to position, or "face" the card correctly for OCR processing. A return address area 380 of the offer post card may include the phantom post office box, or alternatively may indicate the address of the processing center handling this campaign. A barcode 390 may also be included to direct the offer post card through the postal carrier to the appropriate processing center.

[026] Figure 4 illustrates a system consistent with one embodiment of the present invention. A marketer 400 may submit the offer post card to a mail piece design specialist 405 to ensure that the post card is formatted appropriately before distribution. Marketer 400 may then distribute the offer to the customer using any appropriate method, such as direct mail, free-standing inserts, Internet downloads, direct handouts, or any other method to supply the offer post card to customer 410. When customer 410 receives the offer post card and decides to purchase the premium being offered by marketer 400, or alternatively, to donate to a charity, customer 410 simply fills out any requested customer information and affixes stamps in the correct amount for payment, as well as for return postage, if necessary The customer then deposits the offer post card in any designated place for mail drop-off, such as a post office or mail drop 420. The offer post card goes back through the mail stream and is delivered to a stamp processing center 430. The mail piece may come into the processing center, for example, via the designated phantom post office box that is used to designate the marketer. It may also designates the actual processing facility.

[027] The mail may then be processed using an optical character reader (OCR) 432. As the mail flows through the OCR or a similar machine to the OCR, the mail is scanned. The technology reads the customer data off the card using, for example, handwriting recognition technology and image lift technology. The data will then be stored in a database 434 designated for each marketer for that campaign. At the same time that the system is performing character recognition on the customer data, an image reader/processor 436 also reads the number of stamps and the stamp denomination. After reading, image reader/processor 436 will multiply the number of stamps by the denomination to obtain the total amount of postage affixed to the card. This amount is stored in an account database 438. Image reader/processor 436 may also deduct a percentage of the determined amount as a fee for processing performed on behalf of the marketer. At a specified time, processing center 430 electronically downloads the information containing the customer data in database 434 to the marketer and may also perform an electronic funds transfer of the money in the account database 438 to the marketer, crediting the marketer with the postage collected, minus the amount taken out for processing.

[028] An additional option is a storage area 440. Many marketers require proof of purchase and may use a specific card having a small pouch in which the customer can insert proofs of purchase. The card can still go through all the processes at the OCR 432 and image reader/processor 434. After processing, the system may physically store all cards in storage area 440. Then, the marketer may participate in a mail-back option to receive the proofs of purchase. The physical mail pieces must first be sent through a cancellation step to cancel all the affixed postage stamps. The affixed stamps may be cancelled through another process, but the system may still physically send those cards back to the marketer, who can then obtain the proofs of purchase

[029] Other embodiments of the invention will be apparent to those skilled in the art from consideration .of the specification and practice of the invention disclosed herein. It is intended that the specification and examples be considered as exemplary only, with a true scope and spirit of the invention being indicated by the following claims.

Claims

WHAT IS CLAIMED IS:

1. A method for offering to a customer a product comprising at least one of a good or a service, comprising 'the steps of: providing to a customer an offer for the sale of the product, the offer comprising a physical mail piece for return mailing, wherein the mail piece comprises an area for receiving postage stamps denoting a payment for the product and an area for receiving customer identification information; deriving customer identification information from a returned mail piece; and providing the offered product to the customer based on the derived information.

2. The method of claim 1 , wherein the mail piece comprises an area for receiving a designated amount of postage stamps.

3. The method of claim 1 , further comprising: receiving funds based on the postage stamps denoting payment affixed to the returned mail piece.

4. The method of claim 3, wherein the received funds are reduced by a predetermined amount for processing of the returned mail piece.

5. The method of claim 1 , wherein the step of providing the offer includes at least one of the following: mailing the offer directly to the customer, including the offer as a free-standing insert, providing the offer for download over the Internet, and providing the offer to the customer as a direct hand-out.

6. A method of processing an offer, made by an offeror to a customer, for sale of a product comprising at least one of a good or a service, the offer including a physical mail piece for return mailing having an area for receiving postage stamps denoting payment for the product, the method comprising the steps of: receiving a returned mail piece with affixed postage stamps denoting payment; and processing the returned mail piece.

7. The method of claim 6, wherein the step of processing the returned mail piece includes: determining a payment amount denoted by affixed postage stamps on the returned mail piece.

8. The method of claim 7, further comprising: updating a total amount in an account database based on the determined payment amount.

9. The method of claim 8, further comprising: transferring funds to the offeror based on the total amount in the account database.

10. The method of claim 9, wherein the funds transferred to the offeror are reduced by a predetermined amount for processing of the returned mail piece.

11. The method of claim 6, wherein the mail piece further has an area for receiving customer information, and wherein the step of processing the returned mail piece includes: obtaining customer information from the returned mail piece.

12. The method of claim 11 further comprising: forwarding the obtained customer information to the offeror.

13. The method of claim 11 , wherein the step of obtaining customer information includes performing algorithms to improve accuracy of the obtained customer information.

14. A system for processing an offer, made by an offeror to a customer, for sale of a product comprising at least one of a good or a service, the system comprising: a physical mail piece including the offer for return mailing having an area for receiving postage stamps; and a processing center for receiving a returned mail piece with an affixed amount of postage.

15. The system of claim 13, wherein the processing center includes: a stamp reader for determining the amount of postage affixed to the returned mail piece.

16. The system of claim 14, wherein the processing center further includes: an account database for storing an amount representing the determined amount of affixed postage.

17. The system of claim 13, wherein the mail piece further has an area for receiving ςustomer identification information and wherein the processing center further includes: a character reader for gathering the customer identification information from the returned mail piece.

18. The system of claim 16, wherein the processing center further includes: a database for storing the gathered customer identification information.

19. The system of claim 13, wherein the processing center further includes: a storage area for collection of the returned mail piece after processing.