February 12, 1997

The chore of sorting through newspapers and magazines for discount coupons may be coming to an end. Battelle researchers have developed a smart card that will eliminate the need for coupons by electronically logging all discounts onto a single computer chip.

Battelle developed the device with internal research funds.

The new system works this way:

• Regular shoppers of a store would fill out an application and be issued a permanent card. Less frequent patrons could receive a temporary card.
• Items that are carrying a manufacturer's discount would have an electronic reader - about the size of a deck of cards - attached to the shelf near the product. If the shopper wants to purchase the item, they would insert their smart card into the electronic reader, which would log the discount on to the card.
• At the checkout, the card would be inserted into another reader, which would tally the discounts. The reader would be connected to the cash register, which would run a cross check to verify the recorded discounts with the items actually purchased. The total of the discounts would then be calculated and subtracted from the total.

Battelle researcher Jane O'Loughlin said the system could decrease the time and cost of coupon processing for the retailer and the manufacturer. "Currently, it can take up to 60 days for stores to get their money back from the manufacturer," O'Loughlin said. "They want a better turnaround time."

O'Loughlin said the current system is extremely cumbersome and time consuming. Once the coupons are collected by the retailer, they are sent to a clearing house where they are frequently sorted by hand before being mailed back to the respective manufacturer.

With the Battelle system, however, O'Loughlin said the interaction between retailer and manufacturer could be conducted electronically, simplifying the middleman's role. Also, manufacturers would be able to better monitor sales and plan future sales strategies based on purchase information.

The cards also would enable the retailer and manufacturer to conduct better marketing strategies as the card application could contain demographic information about the user and their family.

The card readers are easily programmable and can be moved from one product location to another as different manufacturers elect to offer discounts on purchases.

For more information, contact Battelle, 505 King Ave., Columbus, Ohio 43201-2693; telephone 614-424-3304; fax 614-424-3776.

Battelle serves industry and government by developing, commercializing and managing technology. With a wide range of scientific and technical capabilities, Battelle puts technology to work for clients in 30 countries.