A system and method are provided for reimbursing merchants for coupons used by the customers of those merchants is disclosed. Pursuant to the Present Invention, a Coupon Data File is prepared, identifying the products potentially subject to coupons and/or incentives, and the nature of the associated discount. A Transaction Log Data File is also prepared, describing one or more purchase transactions undertaken by consumers. Finally, a Transaction Log Processor analyzes the transaction log data, compares the information in the Transaction Log Data File with information in the Coupon Data File and tabulates coupons redeemed by consumers during the transactions associated with the information in the Transaction Log Data.