The method of processing merchandise discounts by providing a computerized membership system is disclosed. At least one provider's computer has a database for the storage and retrieval of information. The database stores demographic information regarding merchants, manufacturers, and consumers in predetermined files. A communication system, such as a cash register, provides real time communication between members and the provider's computer. The consumer and merchandise identification codes are stored in the database, including the identification code of merchandise subject to a price discount. Discounted merchandise is displayed through media advertisement and/or notification proximate the merchandise. The consumer selects merchandise to purchase. The consumer membership card, containing the consumer's identification, and product code of the merchandise is scanned. The merchandise identification code is scanned and compared with the stored product identification codes of the discounted merchandise. The discounts are deducted and a slip printed. The merchandise and consumer information is sorted and stored in the database. The data is compiled and reports are generated when providing purchasing demographics using the data stored in the demographics database.