Classifications

• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q30/00—Commerce
  • G06Q30/02—Marketing; Price estimation or determination; Fundraising
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q20/00—Payment architectures, schemes or protocols
  • G06Q20/38—Payment protocols; Details thereof
  • G06Q20/387—Payment using discounts or coupons
• • G—PHYSICS
  • G07—CHECKING-DEVICES
  • G07F—COIN-FREED OR LIKE APPARATUS
  • G07F17/00—Coin-freed apparatus for hiring articles; Coin-freed facilities or services
  • G07F17/42—Coin-freed apparatus for hiring articles; Coin-freed facilities or services for ticket printing or like apparatus, e.g. apparatus for dispensing of printed paper tickets or payment cards
• • G—PHYSICS
  • G07—CHECKING-DEVICES
  • G07G—REGISTERING THE RECEIPT OF CASH, VALUABLES, OR TOKENS
  • G07G1/00—Cash registers
  • G07G1/0036—Checkout procedures
• • G—PHYSICS
  • G07—CHECKING-DEVICES
  • G07G—REGISTERING THE RECEIPT OF CASH, VALUABLES, OR TOKENS
  • G07G1/00—Cash registers
  • G07G1/12—Cash registers electronically operated
  • G07G1/14—Systems including one or more distant stations co-operating with a central processing unit
  • G07G1/145—PLU-management

Definitions

• This invention relates to transaction processing and analysis methods and systems, including check, credit card and debit card verification and marketing systems, and more particularly, to a method and system for processing and developing a customer database of customer information, such as credit verification status and transaction frequency and dollar volume over specified intervals, that can be used for credit verification, targeted customer marketing and other customer relations purposes.
• Retail and other business establishments that serve a large number of customers generally have a problem obtaining transactional information about their customers, such as for identifying new customers and determining transactional patterns for repeat customers (such as transactional frequency and dollar volume) .
• a typical grocery store does a high transactional volume with checks comprising a significant percentage of the total transactions (typically as much as 85%) .
• These businesses strive for maximum efficiency in completing transactions at the checkout counter, which results in a minimum of contact between the customer and the sales clerk.
• neither clerks nor store managers typically develop any significant personal relationship with an individual customer.
• check transactions account for such a significant percentage of a grocery store's business
• these stores naturally make an effort to minimize the number of bad checks that will be returned.
• the store will require an additional piece of identification, such as a driver's license and/or a major credit card.
• this requirement for additional identification reduces the efficiency of the checkout process, and inconveniences the significant majority of check transaction customers who do not write bad checks — typically, a grocery store's bad check experience will be approximately 2% of its check transactions.
• check verification presents a store with problems in customer relations and risk management.
• a store naturally seeks to improve customer relations with the great majority of customers who do not present check transaction problems by efficiently and quickly authorizing check transactions.
• the store must guard against the financial risks from customers who do write bad checks, either as part of a concerted bad check scheme or as a result of less larcenous conduct that may range from simple bookkeeping mistakes to overly aggressive check floating.
• bad check risk is greatly dependent upon abnormal check transaction activity over a given interval.
• the bad check risk is greatly dependent upon check transaction history (total check transaction frequency and dollar volume at a store) .
• the check transaction risk management problem has two principal aspects — the risk that a person will write a bad check and the risk that a bad check cannot be recovered. Again, both of these risk factors are greatly dependent upon a customer's historical check transaction activity. As the total number of check transactions by a customer at a particular store increases, both the risk that the customer will write a bad check decreases, and more significantly, the risk that store will not be able to recover on a bad check decreases. For example, a customer with fewer than 200-300 check transactions at a store presents a relatively high risk in terms of recovery on a bad check, while a customer with more than 600-700 check transactions presents a minimal risk. Thus, a store practicing risk management should put substantially more restrictions in terms of check transaction frequency and total dollar volume over given intervals in the former case than in the latter.
• Prior credit verification systems require connecting a point-of-sale terminal through telephone lines to a remote transaction processing system, thereby increasing not only the cost of operating the systems, but also increasing the time for providing check or credit verification.
• existing systems typically do not focus on maintaining a local customer database useful not only for check or credit or debit card transaction processing, but also for identifying new customers and developing customer profiles for regular customers.
• information regarding checks returned to a store by its bank is entered into a computer (PC) .
• This PC stores information on that check (name, address, dollar amount of the check, reason for the return of the check, etc.) and this PC can be programmed to transfer that data to other processors controlling point-of-sale keypad terminals, both in the same and in other store-based operations.
• Responses displayed by one of these point-of-sale terminals may be altered pursuant to these transfers of data.
• data on returned checks may be entered into a multiple tasking computer environment in which the same processor simultaneously manages the operations of returned check entry and point-of-sale keypad operation.
• This multiple tasking processor can be programmed to transfer data to other similar store-based operations by telephone communications.
• Copending patent application Serial No. 07/826,255 discloses a system and technique wherein a customer's checking account number may be used as a unique customer identification number to provide credit verification and also to perform marketing functions. In such a prior system, such customer checking account numbers have been manually entered by the retail store clerk, thus causing delay and possible inaccuracies. A need has thus arisen for an automated system for providing quick and efficient check verification and marketing follow-up. Previous automatic readers have, however, not been satisfactory for such purposes, because of their inability to uniformly detect desired account information on all checks in a consistent manner.
• Retail stores have heretofore attempted to provide marketing to its customers by the issuing of cards bearing individual numbers associated with a customer (which may or may not be smart cards) which contain information which may be automatically detected by a reader. Before a customer can obtain such a card, the customer has to fill out a substantial amount of information, such information is being entered into the system prior to the card being issued. Stores, however, have found that it is difficult to get a large segment of its customers to provide such information and customers also do not wish to or forget to use such cards at the checkout terminal. Hence, use of such cards for marketing purposes has not been particularly successful.
• Important aspects of the present invention are to facilitate transactions by reducing the requirements for customer identification, to enable a store to adopt a risk management approach to credit verification based on a customer's transactional history (frequency and dollar volume over specified intervals) , and to improve a store's marketing and other customer relations programs by collecting transactional data for that store, both current and historical, that can be used to identify new or infrequent customers, develop customer profiles and to perform targeted marketing.
• this invention is a transaction processing system that uses a customer's financial instrument account number (check, credit card, debit card or the like) as a unique customer identification number.
• a customer's financial instrument account number check, credit card, debit card or the like
• the system does not require time-consuming checking of additional customer identification, but only requires the speedy entry of the customer's account number by use of an improved automatic reader in accordance with the present invention.
• the system operates at an individual store, and maintains at that store a local customer database of customer records, each identified by the corresponding customer identification number.
• the customer records also include customer information, such as verification data (such as verification status) as well as other selected transactional data (such as transaction frequency and dollar volume) , the verification and transaction data being regularly updated with new data (such as during transaction verification) .
• the system includes one or more transaction terminals, coupled to a transaction processor that stores the customer database.
• a transaction terminal is used to transmit a customer information request (such as for check or credit card transaction verification) , which includes an automatically read customer's identification number, from the point-of-sale (POS) to the transaction processor.
• POS point-of-sale
• the transaction processor processes the customer information request, using the identification number to search the customer database and retrieve the corresponding customer record, if any. Based on the customer information in the customer record, or the lack of a customer record, the transaction processor returns an appropriate response (such as credit verification status) and marketing response information to the transaction terminal.
• an appropriate response such as credit verification status
• the method of this invention for transaction processing involves various aspects of: (a) identifying a customer by automatically reading the customer's unique ID; (b) developing and maintaining for a store a local customer database of customer records, each identified by the corresponding customer identification number, and each including customer information (such as verification status and transactional data) ; (c) generating a customer information request; (d) processing the request using the customer identification number to access the corresponding customer record, if any; (e) returning an appropriate customer information response based on the customer information in the customer record; (f) updating the customer database regularly to reflect new customer information; and (g) utilizing the database to perform targeted marketing functions based upon the customer's prior shopping history.
• Each transaction terminal includes (a) an automatic reader constructed in accordance with the present invention for automatically entering identification numbers, along with a keypad for entering function codes and appropriate transaction data, which form customer information requests, and (b) a display for displaying the requests and the returned responses.
• the customer records in the customer database include an assigned check verification status, such as POSITIVE (transaction authorized) , NEGATIVE (transaction not authorized) or CAUTION (transaction should be scrutinized or subject to certain conditions) .
• the local customer database may include credit or debit card data and transactional data such as transaction frequency and dollar volume over specified intervals.
• This transactional data can be used to place conditions risk management on transaction verification over and above verification status. For example, in the case of a customer with either CAUTION or POSITIVE status, if a transaction exceeds certain specified transaction limits frequency and/or dollar amount over a specified interval (such as day, week or total) , a CALL MANAGER response is returned in response to a verification request, regardless of customer status.
• the transactional data is generated and maintained locally, it provides significant information about the store's customers over and above the information necessary for verification risk management. New customers are readily identified, and prior shopping history such as frequency and dollar volume information may be used to establish customer profiles and to target advertising, marketing and promotional programs, and for other customer relations purposes.
• each store has a local transaction processing system, with one of the systems being designated a host site and the rest being designated remote sites.
• each remote system transmits to the host selected customer information from its local customer database (such as customer records for those customers with CAUTION and NEGATIVE status including transactional data) , which is used to update the host customer database to include this global customer information.
• the host transmits that global customer information to the other remote systems.
• Transaction processing is implemented by a multi ⁇ tasking program executing in the transaction processor.
• the program includes: (a) a terminal manager task that implements network data communication for the transaction terminals, communicating customer information requests and responses; (b) a Data Manager Task that controls the database operations necessary to respond to customer information requests and to update the customer information in the database; and (c) an Event Manager Task that implements system activities such as backup and database purge, and in the case of multiple-store systems, implements host/remote communications activities to transfer selected customer information among the stores for updating each store's local customer database with the selected global customer information.
• Important features and advantages of this invention are the following.
• the transaction processing system uses the automatic reading of the customer's identification number, which is used as a unique customer identification number, thus avoiding the requirement for additional identification and the attendant delay in completing the transaction.
• the system develops and maintains a local customer database, allowing the store to accumulate customer information relevant to the store's customers over and above that information necessary for credit verification.
• the system provides for the selection of procedures and criteria for database management and credit verification, allowing the store owner/manager considerable flexibility in developing and using the customer information in the store's customer database.
• the system uses three primary status levels — POSITIVE, NEGATIVE and CAUTION - - allowing the store to identify those customers with a bad check outstanding, and to identify new customers and establish selected interim risk management procedures for granting those customers check transaction privileges.
• the system collects and accumulates selected additional transactional data, including frequency and dollar amounts over specified intervals (such as Day/Week/Month/Quarter/Total) and other historical information such as departments shopped, products purchased and the like, thus allowing the store to adopt risk management approach to check verification tailored to the store's particular customer and financial situation by conditioning check authorization on meeting certain selected transactional limits regardless of customer status (the CALL MANAGER response) , and allowing the store to develop customer profiles and to target advertising, marketing and promotions, and otherwise improve customer relations.
• selected additional transactional data including frequency and dollar amounts over specified intervals (such as Day/Week/Month/Quarter/Total) and other historical information such as departments shopped, products purchased and the like
• the system can use automatic host/remote transfer of selected customer information to upgrade the local customer database at each store with global customer information (such as those customers with CAUTION and NEGATIVE check verification status) , thereby maximizing protection against bad checks while maintaining the local character of the store's customer database.
• global customer information such as those customers with CAUTION and NEGATIVE check verification status
• the transaction processing system is implemented by a multi-tasking program, and uses local area network data communication among the transaction terminals and the transaction processor, allowing efficient operation of the system at each individual store.
• the system and method of the invention also provides automatic targeting of individual customers based upon their shopping history.
• coupons or other incentives may be generated which are specifically targeted to a specific customer based upon his prior history.
• coupons may be later mailed to selected customer.
• substantial rewards may be given to an infrequent shopper, while less substantial rewards may be given to a more frequent shopper.
• a marketing program may be implemented whereby a customer is sequentially induced to purchase additional volume or additional products based upon the customer's prior history. Based upon that customer's prior history, the types of incentive coupons can be varied by the system. Further, the redemption and efficiency of the coupons are subsequently monitored, and subsequent coupons are varied in dependency upon the monitoring. All of these and many other marketing techniques described herein are able to be accomplished in coordination with a check verification or credit authorization system without requiring additional customer identification codes.
• FIGURE 1 shows the check transaction processing system of this invention, including a multiple store remote/host configuration
• FIGURE 2A shows a POS terminal, including the check reader, display and the keypad;
• FIGURE 2B shows a block diagram of the automatic check reader
• FIGURE 2C illustrates a typical check with MICR symbols for reading by the check reader
• FIGURE 2D shows schematic circuit detail for the transaction terminal
• FIGURE 3 functionally diagrams the check transaction processing system
• FIGURES 4A-1 through 4A-3 illustrate the MICR parsing function
• FIGURE 4B diagrams the verification function
• FIGURE 5 diagrams the local status update function for both Add and Delete NEGATIVE status
• FIGURES 6A and 6B diagram the global update function for, respectively, the host and a remote system
• FIGURE 7 shows the program tasks that form the check transaction processing program
• FIGURE 8 is a program flow diagram of the System Kernal that provides task switching and intertask communication for the other program tasks;
• FIGURE 9A is a program flow diagram of the Data Manager Task
• FIGURES 9B-9H are program flow diagrams of selected function execution routines in the Data Manager Task, respectively, verify roll, add NEGATIVE, delete NEGATIVE, host global update (negative status records) , host global update (customer records) , and remote global update (customer records) ;
• FIGURES 10A and 10B are program flow diagrams of, respectively, the Terminal Manager Task network polling function, and the terminal request subtask;
• FIGURES 11A and 11B are program flow diagrams of, respectively, the Event Manager Task, and the event subtask;
• FIGURE 12 is a program flow diagram of the Modem Manager Task
• FIGURES 13A and B are a program flow diagram of the Build-Check-Database subroutine used to build a database
• FIGURES 14A and B are a program flow diagram, of a non-customer database building technique
• FIGURES 15A and B are a program flow diagram of a last shopping date database building technique
• FIGURES 16A and B are a program flow diagram of a range of last shopping date database building technique
• FIGURES 17A and B are a program flow diagram of a technique for distributing point-of-sale coupons based upon predetermined shopper criteria.
• FIGURES 18A, B, and C are a program flow diagram for distributing point-of-sale coupons based upon the shopping habits of the customer in various departments of the retail store.
• FIGURE 19 is a block diagram of a second embodiment of the invention which provides check, credit card, debit card or the like transaction processing as well as targeted marketing;
• FIGURE 20 shows in greater detail the elements of a conventional electronic cash register (“ECR”) system for use with the system shown in FIGURE 19;
• ECR electronic cash register
• FIGURE 21 is a block diagram of the All Payments/Marketing ("AP/M”) system of the invention, including peripheral financial instrument reading devices and a coupon printer in accordance with the invention;
• FIGURE 22 is a program flow diagram of the first portion of the payment processing and point-of-sale (“POS”) marketing technique used in conjunction with the system in FIGURE 19.
• FIGURE 22 illustrates scanning in of a product by the bar code scanner of FIGURE 20;
• FIGURES 23A, B, and C are a program flow diagram of the various techniques for verifying and accepting payments from the various readers shown in FIGURE 21;
• FIGURE 24 is a program flow diagram of the acceptance of shopping cards by the present system.
• FIGURE 25 is a program flow diagram illustrating the storage and access of account records by the present system
• FIGURE 26 is a program flow diagram illustrating the building of a marketing record based upon multiple accounts in a single household
• FIGURES 27 and 28 are program flow diagrams illustrating a method of tracking infrequent shoppers who are to receive a Coupon "A"
• FIGURE 29 is a program flow diagram illustrating a method of increasing a customer's average purchase by providing the customer with a Coupon "M”;
• FIGURES 30 and 31 are program flow diagrams illustrating the method of building a coupon list for a POS disbursement of coupons
• FIGURE 32 is a program flow diagram of a subroutine for coupon disbursements, providing the perform build coupon list in the flow diagram of FIGURE 30;
• FIGURE 33 is a program flow diagram of a method for disbursing electronic point-of-sale incentives previously stored on a smart card or controller's mass storage device.
• FIGURE 34 is a program flow diagram illustrating the disbursement of point-of-sale incentives for future shopping visits by the customer;
• FIGURE 35 is a program flow diagram of a subroutine for the echo coupon procedure shown in FIGURE 32;
• FIGURE 36 is a program flow diagram of the transfer of marketing data from a store's CVC controller via a dial-out telephone line to a remote master controller at another store;
• FIGURE 37 is a program flow diagram of the building of a profile value indicating what products a customer bought
• FIGURE 38 is a program flow diagram illustrating use of the profile value to denote how valuable a coupon will be for the customer " of FIGURE 37;
• FIGURE 39 is a schematic electronic diagram of the AP/M terminal of FIGURE 21;
• FIGURE 40 is a program flow diagram of the operation of the AP/M terminal of FIGURES 21 and 39;
• FIGURE 41 is a program flow diagram of the Perform Polling Process subroutine of FIGURE 40;
• FIGURE 42 is a program flow diagram for the routine of determining a criteria for infrequency to a product or product group based on actual consumption;
• FIGURE 43 is a program flow diagram for the routine for response driven marketing based on shopping history criteria
• FIGURES 44A and B are a program flow diagram for a method of tracking infrequency to a product group and using Coupon "A";
• FIGURES 45A and B are a program flow diagram for a method of maximizing purchases to a product group with Coupon "M";
• FIGURES 46A and B are a program flow diagram illustrating the use of a value formula and consumption rate analysis in the generation of incentive coupons.
• FIGURE 47 is a program flow diagram illustrating the selection of products for use as ECHO coupon incentives. DESCRIPTION OF THE PREFERRED EMBODIMENT
• FIGURES 1 through 18A-C of the drawings like numerals being used for like and corresponding parts of the various drawings.
• a second embodiment is shown in FIGURES 19 through 47.
• the check transaction processing system of the present invention enables a store with a significant volume of check transactions to accumulate and process transactional customer information for check verification and customer profiles for target marketing.
• the system operates at the store using a local database of customer information useful in that store's business.
• a customer's bank checking account number provides a unique identification for that customer — using this check ID, a customer record is created and included in the local customer database.
• the customer record includes an assigned customer verification status, as well as selected transactional data.
• Customer status designations include POSITIVE, NEGATIVE and CAUTION, while transactional data includes transaction frequency and dollar volume over given intervals (such as Day/Week/Total or DWT) .
• Selected transactional (CALL MANAGER) limits are assigned to both CAUTION and POSITIVE status.
• This customer information (customer status and transactional data) in the customer database is continuously updated (a) on a local basis through either processing check verification requests, or inputting customer status, and (b) in the case of a multiple store business, on a global basis through inter-store transfers of selected customer information (such as CAUTION and NEGATIVE status information) .
• the check transaction processing system is located at a store, and maintains a local customer database for that store.
• a local system is located at each store and global customer information transfers are used to supplement the essentially local customer database.
• a check transaction processing system 110 located at a store includes a transaction processor 112 coupled to a disk system 114 that stores the customer database used in check transaction processing.
• Transaction processor 112 handles all file 1/0 for accessing, managing and updating the customer database.
• Transaction processor 112 is coupled through a network data communications interface 116 (including network communications ports and associated drivers) and a network bus 118 to a plurality of transaction terminals 120.
• Transaction processor 112 is able to communicate with other check transaction processing systems through a telecommunications interface 117 (including a modem) .
• Transaction terminals 120 are each located at a point-of-sale (such as a grocery store checkout stand) .
• Transaction terminals 120 are used to communicate information to transaction processor 112 for check transaction processing and customer database management.
• a transaction terminal transmits a request (including a function code identifying the requested function together with other request data) to the transaction processor, which processes the request and returns an appropriate response.
• a transaction terminal is used to transmit a verification request — the customer's check ID, the verification function code, and the dollar amount.
• the transaction processor processes the request, updates the customer database to reflect that transaction, and returns a customer verification status response.
• Data communi ⁇ cations between transaction processor 112 and transaction terminals 120 is implemented using a multi-drop token ring network.
• Network bus 118 connects the transaction terminals to the transaction processor in a star configuration so that all data signals transmitted over the network are received at each node.
• Each transaction terminal 120 is assigned a unique terminal address to identify its data communications.
• Transaction processor 112 implements a token-passing protocol by broadcasting polling sequences (or cycles) in which tokens are sequentially addressed to the transaction terminals. For each poll, the transaction processor sends to a terminal one of two tokens (which both include the terminal address) :
• RXDATA Token Includes data requested by the terminal
• the transaction terminal transmits back one of two answers:
• TXDATA Answer Includes data entered into the terminal NODATA Answer Indicates no data
• each transaction terminal is in one of three polling states that control the polling operation:
• a transaction terminal may transmit a TXDATA Answer containing a check verification request. Once the request is transmitted, the terminal is placed in the Wait state until the verification response from the transaction processor is available. The response is placed in the terminal's buffer, and the terminal is placed in the Data state. The response is included in an RXDATA token sent to the terminal during the next polling sequence, and the terminal is placed in the Poll state ready to receive a POLL token in the next polling sequence.
• network communications interface 116 provides 32 ports for up to 32 transaction terminals.
• the data communications network uses the
• RS485 line protocol which specifies differential signal lines SIG+ and SIG-, as well as +12V and ground lines.
• the network communications interface and the corresponding interfaces for each transaction terminal use a differential line driver for signal communication over network bus 118, which provides the necessary 4-wire signal path.
• each POS terminal 120 includes an automatic check reader 119 and a transaction terminal 121 which includes a keypad 122 and a display 124.
• a bar code reader 123a is also connected to terminal 121 and is used to read bar code numbers on products purchased at the point-of-sale.
• a coupon dispenser 123b is connected to terminal 121 to dispense coupons at the point-of-sale.
• Keypad 122 is a 4X4 key matrix that includes specific keys for Function, Enter, Scroll, Clear and Back Space, as well as 0-9 and $.
• Display 124 is a liquid crystal display capable of displaying two lines of up to twenty characters each.
• check reader 121 automatically scans the magnetic ink character recognition (MICR) data printed along the bottom edge of the customer's check and then the store clerk operates the keypad 122 to enter the amount of the check, along with the function code designating check verification.
• MICR magnetic ink character recognition
• This request is displayed on display 124, and sent, along with data from the check reader 121, to transaction processor 112.
• the check verification response including the customer's verification status (such as POSITIVE, NEGATIVE or CAUTION) , and marketing information (such as the type of coupon to be dispensed) returned by the transaction processor is then displayed on display 124.
• FIGURE 2B illustrates a block diagram of an automatic check reader 119 in accordance with the present invention.
• the field of the MICR symbology located on the bottom of the check is broken into various data fields in which different banks can place different data at different locations.
• Conventional automatic check readers such as those noted in the above-noted patents often cannot detect a customer's checking account number because it is interspersed with other data such as the check sequence number.
• the present automatic check reader is provided with structure which enables the customer checking account number and the bank transit number (which identifies the bank) to be detected within the code printed on the customer's check. This process involves detecting or parsing (the examination or analysis of a string of numbers or characters which is designed to detect or identify various subgroupings or sets within the string) followed by extraction of that set or sets which have been defined as the customer checking account number.
• the present automatic check reader is thus provided with circuitry which enables the customer's checking account number and the bank transit number to be parsed or detected and the remainder of the data extracted or omitted, such that the customer's checking account number and the bank transit number may be used as the unique customer identification code for the present invention.
• the present check reader thus provides substantial advantages over prior check readers which have not been useful for check verification or marketing techniques because it was not possible for such prior check readers to consistently detect customer account numbers on checks presented from different banks and bank branches.
• the check reader 119 of the present invention incorporates a read head 125a which comprises a magnetic or optical read head operable to read MICR characters imprinted on checks which are passed through the check reader.
• the output from read head 125a is applied to a magnetic wave-form analyzer 125b which applies an analog signal to the analog to digital converter 125c.
• a digital output from converter 125c is applied to the character recognition logic 126b of the present invention.
• a disk or EEPROM 126a contains stored therein an E-13(b) character table which is applied to the character recognition logic 126b.
• the logic 126b Utilizing conventional technology, the logic 126b generates recognition data to data store registers 127 for application to microprocessor 128a when required.
• the disk or EEPROM data storage 126a includes a transit code table and a parsing program, and provides data and instructional programming for the microprocessor 128 to perform a parsing program discussed in more detail in FIGURE 4B.
• An input/output device 129a is connected to microprocessor 128a, as is an output device 129b.
• the read head 125a reads MICR characters on the check and applies signals to the analyzer 125b to provide an output from the analog to digital converter 125c of the MICR characters being detected.
• the character recognition logic 126b provides optical character recognition to generate an indication of the characters represented by the MICR symbology on the check. This data is stored in the data stored registers 127 for application to the microprocessor 128a.
• the microprocessor 128 utilizes information from the transit code table in the disk or EEPROM 128b to determine the particular bank whose check is being scanned and also the particular location of the customer account number in the MICR code for that particular bank.
• the parsing program 128 is then operable to parse or eliminate all aspects of the MICR code except for the desired customer account number.
• the microprocessor 128 then generates an output to the output device 129b which indicates the desired customer account number of that particular check.
• the output device 129b is connected to pins 1-3 which serve as the I/O of the transactional terminal 121 circuitry which is shown in FIGURE 2D, to be subsequently described.
• the present automatic check reader differs from previously developed check readers in its ability to detect the location of the customer account number and to omit all other portions of the MICR code except for the desired account number and perhaps the transit number. In this way, the present automatic check reader may be used to process all checks from all banks and their branches, regardless of the location of the customer account number and regardless of which branch of a particular bank is being utilized or even in such situations where a branch is sold or transferred to another entity.
• FIGURE 2C illustrates a typical check which will be used to illustrate the operation of the automatic check reader of the invention.
• the MICR check field contains four fields, namely the Amount, On Us, Transit, and Auxiliary On Us fields.
• the Amount field includes positions 1-12 in the MICR field
• the On Us field includes positions 14- 31, the Transit field positions 33-43 and the Auxiliary
• On Us field encompasses positions 45-65 in the MICR band.
• the Transit field comprises symbols plus the transit number sequence 101010733. This transit number identifies the particular banking institution. This transit number is set apart from the data contained in the On Us field, which field contains the customer's account number and' also contains the number of the particular check. In this instance, the number sequence in the On Us field is 179201476663. The last two digits 0 and 1 in the MICR field are optionally included on many checks and may be offset by a symbol to indicate the branch number of the particular bank.
• the sequence 179201476663 contains both the sequence number of the particular check, which in this particular instance is 1792, and also the customer's checking account number 01476663.
• An important aspect of the present invention is the ability of automatic check reader 119 to find the sequence number of the check and omit that number to leave the true customer account number.
• the encoding scheme may be different for each bank. This is accomplished by utilization of the disk or EEPROM 128a which contains tables which designate what encoding scheme is used in the MICR band for each bank. For example, the table stored in EEPROM 128b would indicate that the Mills County Bank, identified by the transit number 101010733, had a convention of always placing the check number in the first four locations of the On Us field.
• the check reader 119 would access this information to know that the first four digits of the On Us field were merely the number of the check and should thus be omitted or parsed in order to determine the true checking account number of the customer, which was 01476663. Specifically, in the check illustrated in FIGURE 2C, it can be seen that the number of the check at the upper right hand corner is 1792. This number would then be omitted by the check reader 119 to provide the true customer account number. In some instances, the customer account number may be combined with the transit number to provide a unique ID number. It will be understood that the check number advances one unit each time a new check is written and therefore the data contained in the On Us field of the Mills County Bank would be continuously changing. Only by the check reader of the present invention having a stored knowledge of a particular location of the check number of the Mills County Bank would it be able to detect and omit or parse out the unwanted check number information.
• the present check reader of the invention can determine the instances when the On Us field contains a space or suitable symbology separating the check number from the customer's account number, in addition to the scheme previously noted. In such cases, the check reader parses and omits the shortest number, which will be the check number.
• a particularly important aspect of the present invention is that the automatic check reader can read the MICR code of all banks and accurately pick out the customer's account number for utilization as a unique customer ID to perform the advantages of the invention.
• Another important aspect of the invention is the ability of the automatic check reader 119 to be taught by the operator to recognize the eccentricities of each bank's MICR code.
• the present system could be taught by the operator an the new knowledge stored in table 128b. From that point forward, the system would be trained to recognize the customer's account number and to omit the unwanted check number in the first four positions of the On Us field.
• the present automatic check reader 119 also can be taught to detect changes of a bank's branch number, and instances in which institutions are purchased and their transit number is changed, and cases wherein financial institutions run into difficulties and are required to change owners and therefore change transit IDs. Previous check readers were not able to keep track of such changes in banks and transit numbers. With the present check reader 119, such information can be stored in the transit code table 128b. Therefore, if the Mills County Bank of FIGURE 2C changes its transit number or its branch number, that information can be entered into the transit code table 128b and from that point forward, the system will continue to recognize Jack Smith's checks and his unique checking account number even though the bank's transit number has been changed.
• the information for each particular bank is stored in the transit code table 128b of the present reader 119 such that all branches and types of accounts of a bank may be accurately detected.
• the ability to teach or train the system to accommodate such new information upon the occurrence of changes is also important, as such new information may be input by the operator into the transit code table 128b and used from that point onward to detect accurately the customer's checking account number, as well as all customers for that bank.
• MICR parsing operation previously described and shown in FIGURES 4A-1 through 4A-3 does not have to be accomplished inside the automatic check reader 119.
• the transit code table and parsing program may be incorporated in the host computer 110.
• a conventional check reader may thus be used to read in the information and the parsing program shown in FIGURES 4A-1 through 4A-3 can be accomplished in the host computer 110.
• the automatic check reader 119 might be incorporated into the transactional terminal 121 and that both the automatic check reader 119 and the transactional terminal 121 might be incorporated or associated directly with an automatic cash register commonly in use by retailers.
• the important aspect of the invention is the ability to always recognize a customer's checking account number in a MICR line automatically, no matter which bank or which type of account is involved.
• a unique customer identification code is provided which may be utilized to provide the many advantages of the invention to be subsequently described. While the preferred customer identification code comprises the checking account number and the bank transit number, it should be understood that various aspects of the invention may be practical using different customer identification codes. For example, many of the marketing and verification techniques hereinafter described can be accomplished by the store clerk manually entering the name, address and/or phone number into the system through data terminal keypad 122. This unique identifying data could then be used to identify the store customer. While such manual entry is slower and not as efficient or accurate as the automatic reading of the MICR code, the manual technique may have applications in certain circumstances.
• the transaction terminal 121 includes:
• An LCD (liquid crystal display) module 136 (d) An LCD (liquid crystal display) module 136; and (e) A differential transceiver 138.
• Address and data paths are provided by an Address/Data Bus and a separate Address Bus.
• the transaction terminal is coupled to the RS485 multi-drop network bus (118 in FIGURE 1) through a 5-Pin DIN connector 140.
• the RS485 network bus provides signal lines SIG+ and SIG-, along with a +12 volt power line and a ground line.
• EPROM 134 provides program memory for microprocessor 130, while LCD module 136 constitutes data memory. That is, the LCD module functionally interfaces to the microprocessor as memory, providing an 80-character display data register that is treated by the microprocessor as data memory.
• EPROM 134 stores programs to control keypad 122, display 124 (i.e., LCD module 136) and network data communications.
• the keypad program includes conventional routines for decoding key-struck signals and receiving entered characters, as well as key-debouncing and N-key rollover.
• the display program includes conventional routines that write characters to and read characters from the display data register in LCD module 136. To that end, the display program provides mode control commands to LCD module 136 that control read/write operations, as well as operations for cursor positioning, backspace and scroll.
• the network program controls token-ring network communications, including establishing a terminal polling address when the transaction terminal becomes active, detecting POLL tokens addressed to the transaction terminal, building and sending NODATA and TXDATA answers, and receiving RXDATA tokens containing response data for the transaction.
• LCD module 136 is a self-contained liquid crystal display module that includes liquid crystal display 124, and provides many display control functions internally.
• Display 124 is arranged in two lines of 20 characters each, with the internal 80-character display data register providing 40 characters of display memory for each line. Each line is independently scrolled under control of the LCD module in response to microprocessor mode control commands (for example, when the scroll key on keypad 122 is depressed) .
• the LCD module includes an internal control/status register. Logically, these registers are treated as, respectively, data and control/status ports. Data may be read to or written from the data port, while control is written to and status is read from the control/status report.
• the display control program in EPROM 134 provides the various mode control commands that invoke the display control functions implemented by the LCD module. For example, in response to appropriate mode control commands, the LCD module performs the necessary internal operations to move the cursor, output the character under the cursor, write a character in the cursor position, delete a character in the cursor position, clear the display, and output sequentially all characters in the display data register (such as after the enter key is depressed) .
• Microprocessor 130 provides four input/output ports 0-3. Port 0 is output only, and provides the higher order address bits A08-A12 over the Address Bus (the 3 higher order bits A13-A15 of the 16-bit Z8 microprocessor address are not used by the transaction terminal) . Port 1 is input/output, providing the lower order address bits A00-A07 and receiving 8-bit data bytes over the Address/Data Bus. Port 2 is input only, and is coupled to the column/row matrix lines of the 4 X 4 keypad matrix for keypad 122, i.e., column lines C0-C3 and row lines R0-R3.
• Port 3 (0-7) is a multi-purpose input/output port.
• Pins 0 and 7 are a serial I/O port for an internal UART (universal asynchronous receiver transmitter) .
• Pin 5 is an output drive enable line that controls the transmit/receive state of differential line driver 138.
• Pin 4 is a data memory DM line used to select either program memory (i.e., EPROM 134) or data memory (i.e.,
• Pins 1-3 are an I/O port for the check reader 119 or for a credit card reader, and Pin 6 is an output port for a buzzer.
• microprocessor 130 provides an address strobe line AS, a data strobe line DS and read/write line R/w.
• a clock circuit 131 includes a crystal oscillator that establishes a 7.3728 MHz system clock.
• the Z8 microprocessor is clocked down (from its 12 MHz specification) to accommodate the LCD module's response time.
• Address latch 132 receives the lower order address bits A00-A07 from microprocessor port 1 over the Address/Data Bus during the first address cycle.
• the address latch is enabled to latch these address bits by a microprocessor address strobe provided through an inverter 142.
• the latched address bits A00-A07 are available at the output of address latch 132 which is coupled to the Address Bus.
• EPROM 134 receives a 12-bit address A00-A12 from the Address Bus.
• the lower order bits A00-A07 are provided by address latch 132, and are available on the Address Bus during the second address cycle when the higher order bits A8-A12 are provided by microprocessor port 0 over the Address Bus.
• EPROM 134 receives the complete 12-bit address A00-A12 from the Address Bus during the second address cycle.
• the addressed data byte AD0-AD7 is available from the EPROM output port over the Address/Data Bus and may be read when microprocessor 130 provides a data strobe DS to the chip enable CE input to the EPROM.
• LCD module 136 includes an I/O port (pins D0-D7) coupled to the Address/Data Bus (lines AD0-AD7) .
• I/O port pins D0-D7 coupled to the Address/Data Bus (lines AD0-AD7) .
• Microprocessor 130 selects either data port operation or control/status port operation with a register select signal provided by the address bit AOO from the Address Bus to the R/S input of the LCD module — if AOO is even (logic 0) , the display data register is connected to the I/O port, and if AOO is odd (logic 1) , the control/status register is connected.
• Read/write operation is selected by R/W signal from microprocessor 130 to the R/W input to LCD module 136.
• LCD module 136 is enabled for output over the Address/Data Bus by an enable signal from a NOR gate 146, which receives input from the microprocessor's data strobe DS line and data memory DM line (port 3, pin 4). That is, LCD module 136 may be read only if both the data strobe and data memory lines are active.
• EPROM 134 is enabled for a read operation only if the data strobe line is active while the data memory line is inactive causing an active output from an inverter 144.
• microprocessor 130 uses the data memory line to select between program memory (EPROM 134) and data memory (LCD module 136) .
• a potentiometer 148 is used to adjust contrast for the LCD display 124. The potentiometer is connected between the pins +5 volts and ground on LCD module 136, with the potentiometer voltage being applied to the voltage reference pin VREF.
• EPROM 134 provides a 12-bit address on the Address Bus — the lower order address bits A00-A07 from port 1 through address latch 132, and the higher order address bits A08- A12 from port 0.
• EPROM 134 is enabled for output by the data memory line (port 3, pin 4) being held inactive resulting in an active output-enable signal from inverter 144 to the EPROM.
• LCD module 136 is disabled for a read operation because the inactive data memory line insures an inactive signal from NOR gate 146 to the LCD module, thereby insuring that EPROM 134 has exclusive access to the Address/Data Bus.
• microprocessor 130 enables EPROM 134 to output the addressed data byte by providing a data strobe DS to the chip-enable input to the EPROM.
• Microprocessor 130 executes a read display routine in the display control program stored in EPROM 134.
• Microprocessor 130 first disenables EPROM 134 by holding the data memory line (port 3, pin 4) active, causing the output-enable output from inverter 146 to be inactive.
• LCD module 136 is then enabled for input/output when a microprocessor data strobe drives active the output from NOR gate 148, which now has both its inputs (DM and DS) active.
• a display-data-register read operation is accomplished as follows.
• Microprocessor 130 outputs from port 1 an LCD mode control byte including a register select bit AOO over the Address/Data Bus.
• the register select bit is coupled through address latch 132 and the Address Bus to the RS input to LCD module 136 which selects bit is in the C/S state, causing LCD module 136 to select the control/status register for 1/0 access to the Address/Data Bus.
• Microprocessor 130 also places its read/write R/W line in the write state, so that the mode control byte can be written into the control/status register.
• Microprocessor 130 then provides a data strobe DS that enables LCD module 136 to latch the mode control byte from the Address/Data Bus into the control/status register.
• LCD module 136 places a not-ready status byte in the control status register, makes the designated display character in the display data register available for output on the Address/Data Bus, and then places a ready status byte into the control/status register.
• Microprocessor 130 switches the read/write line to read (the control/status register is still selected for I/O) , and then provides a data strobe DS to read the status byte in the control/status register. (The microprocessor continually strokes the LCD Module until a ready status byte is returned from the control/status register.)
• Microprocessor 130 then outputs a register select bit (AOO) that causes LCD module 136 to select the display data register for output. Finally, the microprocessor provides a data strobe to read the first display data character over the Address/Data Bus into port 1.
• AOO register select bit
• microprocessor 130 first reads the status register to determine when LCD module 136 is ready (i.e., when the next display data character is available) , and then reads the character.
• microprocessor 130 provides display data characters for display by LCD module 136, writing the characters into the display data register, is analogous to the procedure for reading display data characters. Executing a write display routine in the display control program, microprocessor 136 first writes a corresponding mode control command into the control/status register of the LCD module, and then reads status to determine when the LCD module is ready. Microprocessor 130 then selects the display data register, and writes the first display data character over the Address/Data Bus. Microprocessor 130 reads the status register to confirm that the LCD module is ready prior to writing the next display data character. This procedure of reading the status register and then writing a display data character is continued until all display data characters have been written.
• Differential transceiver 138 controls data communications over the network bus 118 connected to connector 140.
• the RS485 communications protocol is implemented by microprocessor 130 executing the network communications program stored in EPROM 134.
• Port 3 of microprocessor 130 is used as a communications port, with pins 0 and 7 providing a serial 1/0 port, and pin 5 providing a transceiver drive enable line through an inverter 152 (the differential transceiver is in the transmit mode if the signal is active, and in the receive mode if the signal is inactive) .
• signal lines 6 and 7 are coupled, respectively, to the network bus signal lines SIG+ and SIG-. These signal lines are coupled to the +12 volt line through opposite sides of a protective diode network 154.
• microprocessor 130 While waiting for a token (either POLL or RXDATA) over the network bus, microprocessor 130 holds the transceiver drive enable line inactive, thereby placing differential transceiver 138 in the receive mode.
• a token is received through differential transceiver 138 into the serial 1/0 port (port 3, pins 0 and 7)
• microprocessor 138 switches the transceiver drive enable line active and transmits either a TXDATA or NODATA answer via the serial 1/0 port and the differential transceiver.
• Keypad input is accomplished in a conventional manner using a 4 X 4 keypad matrix with column lines C0- C3 and row lines R0-R3.
• Key-struck decoding is accomplished as follows. Column lines C0-C3 are normally held high by a resistor network 160, while microprocessor 130 (port 2) holds the row lines R0-R3 low. When a key is struck, the corresponding column line is brought into contact with that key's row line, and the column line is brought low, which is detected by microprocessor 130. The microprocessor then switches the port 2 lines high, and sequentially drops a row line low until the key-struck column line goes low, thereby identifying the key that was struck by its row/column intersection.
• Keypad control functions such as debouncing and N- key rollover are accomplished in a conventional manner using program routines of the keypad control program stored in EPROM 134.
• Power for the transaction terminal is provided by a voltage regulator 165 that receives +12 volts from the +12 volt line of the network bus. Voltage regulator 165 provides a stable +5 volt logic level.
• a transaction terminal is initialized as follows. At power on, voltage regulator 165 provides a reset signal to microprocessor 130 when the +5 volt logic level is stable. Microprocessor 130 turns port 0 off, so that the Address Bus is controlled by the low-current resistor network 160, which holds the Address Bus lines A08-A12 high.
• Microprocessor 130 outputs from port 1 an initialization address over the Address/Data Bus, which is latched into address latch 132 and placed on the Address Bus.
• EPROM 134 receives the initialization address A00-A12 (with bits A08-A12 being held high by resistor network 160) , and makes the addressed instruction available at its data output port.
• Microprocessor 130 then reads the first instruction over the Address/Data Bus. Port 0 is turned on, so that resistor network 160 no longer controls the address lines A08-A12 of the Address Bus, and normal operation commences under control of microprocessor 130.
• a check transaction processing system 110 is located in each store.
• One store is designated as a "host” system, and the other stores are designated as “remote” systems.
• the host system coordinates the global exchange of check verification data and other customer information, but otherwise operates as a local system for that store in the same manner as the remote systems. Operation as a host does not affect concurrent local operation, i.e., host/remote status is transparent to the check transaction processing operation at each store.
• Each store operates relatively autonomously in developing and maintaining its local customer database and providing check transaction processing. However, the stores are also able to globally exchange certain customer information useful to all of the stores, particularly for purposes of check verification.
• the stores While it is probably unnecessary from a credit standpoint for the stores to exchange information about customers who typically frequent only a single store and do not present check transaction problems, the stores will probably want to exchange information about customers who have written bad checks at one or more stores, or who are in a cautionary status as new customers. Moreover, the present system permits exchange of data between stores for marketing purposes. Such a global exchange of customer information reduces the likelihood that the business will experience a significant loss from a concerted bad check writer.
• Each store's customer database is updated with both local and global customer information.
• Each local check transaction processing system 110 including the designated host system, continually updates its customer database with local customer information, either automatically through processing check transactions or through operator-input of customer status data (such as negative status information) .
• customer status data such as negative status information
• each remote system transfers to the host selected customer information (such as negative and caution status information) .
• the host updates its customer database with this customer information, and transfers back to each remote system global customer information from all remote systems.
• Each remote system then updates its customer database with this global customer information.
• transaction processor 112 uses a Western Digital Processor Board Model No. WD286-WDM2 based on the Intel 80286 processor chip.
• Disk storage unit 114 is a Seagate Technologies Model ST225, and communications interface 116 is Sealevel Systems RS485 Communications Board Model No. SIO-485.
• the transaction processor runs MSDOS 3.3.
• the detailed specification for point-of-sale transaction terminals 120 is not critical to this invention, being a matter of routine design specification.
• transaction terminal 120 includes the following components:
• Microprocessor 130 Zilog Z8 (86C9112PSC)
• the check transaction processing system performs the following general functions: (a) Verification (with Transactional Update) and
• the verification function involves sending a request for check transaction verification from a point-of-sale terminal 120 to the transaction processor, which performs the necessary database operations to process the request, update the customer database with transactional data (such as frequency and dollar amount) to reflect the current transaction, and return an appropriate response.
• the local status update function involves continuously inputting customer status changes (particularly to reflect bad check experience) for customers in a store's local customer database.
• the global update function for multiple-store systems, involves continuously transferring among the stores selected customer information (preferably caution and negative status information) .
• the purge function involves removing obsolete or unwanted customer records from the customer database based on specified purging criteria.
• the event- driven activities involve certain database management functions (such as purge and backup) , as well as host/remote communications for global update, automatically performed at regular intervals.
• database management functions such as purge and backup
• host/remote communications for global update, automatically performed at regular intervals.
• the customer database includes all customer information used and maintained by the check transaction processing system.
• the customer database comprises two separate files containing customer information: the customer file and the negative status file.
• a system control file contains transactional limits used during check verification and purge limits.
• the customer file contains customer records that include the following customer information:
• User Flags User assigned flags that designate a customer as PREAPPROVED for check transactions regardless of any transactional limits, or as being authorized for check transactions on a MANAGER ONLY approval basis regardless of actual status Transfer Date/Time Date/time the customer record was last accessed and updated (written to disk) , used in host/ remote transfers for global update (transfers from host to remote generally do not affect this date)
• Previous Status Customer's previous status (such as CAUTION prior to being rolled POSITIVE)
• the customer file is indexed by (a) check ID, and (b) status/transfer date/check ID.
• the preferred intervals for maintaining frequency and dollar amount transactional data are Day/Week/Month/ otal, where the day is the current 24- hour period, the week is the previous 7 days, the month is trailing 30 days, and the total is the total since the customer's first check transaction.
• the DWT designation will be used throughout this specification to indicate the three separate values for either Frequency or $Amount.
• DWT Frequency and $Amounts are maintained on a global basis, so that for those records that have been globally updated (such as NEGATIVE and
• the DWT values will be global rather than local.
• separate local and global DWT transactional data can be maintained in the customer records, as shown in Table 2.
• a customer can be assigned one of five check verification status designations:
• Customer status is assigned during customer record creation, and then updated (transactionally, locally or globally) to reflect changes in customer status, such as due to elapsed time between check transactions or bad check history.
• the local update function can be used to assign to a customer either of the following user flag designations, which override normal status responses to check verification or status query requests:
• the transaction processor In response to a check verification (or status query) request entered at a transaction terminal, the transaction processor returns a response with either customer status, or if specified transactional limits have been exceeded, a CALL MANAGER directive, unless the PREAPPROVED or MANAGER ONLY user flags in the customer's record have been set.
• a check transaction will be authorized if the customer has a POSITIVE status or is PREAPPROVED, will require manager approval for
• Check authorization for customers with CAUTION status is a matter of store policy. For example, check authorization can depend upon DWT Frequency or $Amount, or the type of check transaction (such as amount of purchase only) , or upon having the check transaction approved by a store manager.
• the CALL MANAGER directive is not a verification status contained in a customer record, but rather, is the response to a verification request if, for any status (including POSITIVE) , the current check transaction causes transactional limits specified in the system control file for DWT Frequency and $Amount to be exceeded.
• the negative status file contains negative status records that include the following customer information (by location for multiple store systems) :
• the location identification for the store (each store having a NEGATIVE and/or CASH ONLY status history is assigned a separate negative status record)
• the file specification for a negative status record is set forth in Table 2 at the end of the specification.
• the negative status file is indexed by (a) status/check ID/location, and (b) status/access date/check ID/location.
• the negative status file supplements the customer file for those customers with a bad check history by recording BAD Frequency/$Amount by location, and also maintains CASH ONLY status by location.
• the system control file includes the following selectable limits:
• CAUTION/POSITIVE This limit defines a check clearance interval for new customers who will be rolled for check transactions after that interval (assuming the first check is not returned)
• CALL MANAGER Separate DWT limits are provided by status for both Frequency and $Amount, defining the transactional limits applied to each status PURGE Separate Purge limits are specified for each of the five customer status designations; also used to define a Reset/CAUTION interval
• the file specification for the system control file is contained in Table 3 at the end of the specification. These limits are all specified by the user during system configuration.
• the CALL MANAGER limits are used to override the normal customer status response to a verification request when any DWT Frequency/$Amount CALL MANAGER limit is exceeded by the current check transaction.
• these limits can be used to roll a POSITIVE or any other status back to CAUTION if the specified Reset/CAUTION interval between check transactions (defined by the corresponding Purge limit) has passed.
• the system control file contains various system information.
• customer database and in particular the file specifications for the customer file, negative status file, and system control file, are not critical to the invention, being a matter of design choice.
• Any customer database will likely comprise customer records identified by the customer check ID, and include selected transactional/customer information; such as check verification status and transactional frequency and dollar volume over specified intervals.
• the specific functions available in the check transaction processing system are invoked by entering at a transaction terminal 121 a request including an appropriate function code (function key plus code number) and request data (such as check ID and $Amount) .
• function code function key plus code number
• request data such as check ID and $Amount
• Verify Request check verification status for the current check transaction (F55) (updating the corresponding customer record to reflect the current transaction)
• Input Status Add (F40, F41, F44) and Delete (F60, F61, F62, F63, and F66) the status values CASH ONLY,. STOLEN and NEGATIVE, and Add (F42, F43) and Delete (F62, F63) PREAPPROVED and MANAGER ONLY user flags
• Event Activity Start (F950) and Stop (F951) an event activity, request event time (F952) , and request activity status (F953) System Information Request certain system information, including memory usage (F902) , disk usage (F903) , customer file size (F904) , negative status file size (F905) , CAUTION/POSITIVE roll period (F906, F907), Purge limits (F906, F908-F912), CALL MANAGER limits (F906, F913-F917)
• System Diagnostics Request system diagnostic functions including log-in/out (F77/F88) , keypad debug (F960) , modem debug (F970) , data manager debug (F980) , open/close customer database (F981/F982) and shutdown (F999)
• the verify function is used both to provide verification status (such as POSITIVE, NEGATIVE or CAUTION) for a check transaction, and to update the transactional data in the customer database.
• the principal difference between the verify and query functions is that, while both functions retrieve the specified (by check ID) customer record (or in the case of query, the negative status record) to provide an appropriate response, only the verify function actually updates the customer database by writing the updated customer record back to disk.
• check reader 119 reads the MICR code on checks and senses the customer account number in order to generate a unique customer ID for use by the processor of the present invention.
• an advantage of the present check reader 119 is its ability to detect the customer account number on any and all bank checks, regardless of the location of the account number within the MICR number and regardless of whether the account number is properly identified by spaces or symbols.
• the present check reader operates to check against a stored Transit Code Table to detect changes in the bank's transit code and the like.
• FIGURES 4A-1 through 4A-3 illustrate a flow chart illustrating the operation of the MICR parsing and omitting function of the present invention. This function can be accomplished in the processor and storage of the check reader 119 or in the host processor 110. Explanation of the MICR parsing and omitting function is as follows:
• Scanning device sends MICR data to parsing processor 128a.
• Processor may be in reader itself or external computer.
• MICR code must now be parsed for meaningful data.
• ANSI standards specify the following field locations within MICR band:
• the check's sequence number (which matches the number on the top right hand corner of the check) must be located in order to determine the customer's bank checking account number.
• TABLE is maintained for checks that cannot be successfully parsed.
• information for MICR changes such as new transit number or addition or change of Transaction Processing Code (TPC - used for branch banking) are indicated in the table.
• the indexed key for this table is the transit number allowing duplicates for multiple entries for each bank. Included for each table entry is the current MICR
• step 16 If NO entry is found for this transit number, proceed to the parsing functions starting at step 29. Otherwise continue to step 17 to determine if this table entry pertains to this check. -18 Use the current MICR "mask" in the table as a template to determine if this MICR data corresponds with this table entry. If they do match proceed to step 19, otherwise go to step 24 to try the next entry.
• MICR MICR "mask” and use this to remove sequence number from MICR data.
• the sequence number is either not present or is embedded in such a way that its location cannot be determined.
• the operator is signaled that the sequence number cannot be determined.
• Operator then enters the sequence number including any lead zeros.
• the system can then determine the relative position of the sequence number in the On Us field and stores this as an additional entry to the TRANSIT CODE TABLE.
• the number with the lesser value is the check sequence number, and the number with the greater value is the customer's checking account number. -55 If three discrete numbers are located in the On Us field, unless otherwise indicated in the TRANSIT CODE TABLE, the number with the greatest value is the customer's checking account number. The smallest value is the Transaction Processing Code and is appended to the end of the checking account number. The middle value is the check sequence number.
• a packet such as following is built and passed to the Data Manager: char source_id; /* Node ID indicating source of packet */ char FLAG; /* A flag signaling a change in account number */ char ID_CODE[30]; /* 30 byte field containing current ID CODE */ char OLD_CODE[30]; /* 30 byte field containing old ID CODE
• step 83 Use ID CODE as primary key for accessing check database. 68 If record is found, go to step 83 for the verification process. Otherwise proceed to step 72 for possible account change processing.
• step 72 If FLAG indicates there was a change in the account number, proceed to step 73 to locate the old record, otherwise go to step 83 for the verification process.
• step 73-75 Using OLD CODE as primary key to query the check database. If no record is found, proceed to step 83 for the verification process, otherwise proceed to step 76 to transfer the information from the OLD record to the NEW.
• the check reader 119 in combination with the MICR parsing subroutine of FIGURES 4A-1 through 4A-3 operates to detect and extract the customer's account number on all checks, regardless of where located or even if improperly identified by a space or symbol.
• the processor By teaching the processor any changes in the bank transit number or any unique positioning of the account number, the system thus is always able to promptly identify and detect a customer's unique ID for further use.
• FIGURE 4B diagrams the check verification function.
• a check verification function is initiated (202) by entering a verify request (check ID/function code/$Amount) from a transaction terminal, which is transmitted to the transaction processor for check transaction processing and to determine the appropriate check verification response.
• the transaction processor uses the check ID input from the MICR parsing subroutine of FIGURES 4A-1 through 4A-3 to search (204) the customer file for a corresponding customer record, which is retrieved (206) , or if it does not exist, created (208) with a CAUTION status.
• the customer record is updated (210) by rolling Access Date/Time, Status and DWT Frequency and $Amount to reflect the current access date/time.
• the Access Date/Time in the customer record is rolled (212) forward to the date/time for the current check transaction, establishing the transaction interval, i.e. the time elapsed since the customer's last check transaction.
• the transaction interval is compared (214) with a corresponding selected reset/CAUTION interval — if the transaction interval is such that the reset/CAUTION interval for the customer's status is exceeded, Status is rolled (215) to CAUTION, and the customer is treated as a new customer from that time. If the customer record has a CAUTION status, the transaction interval is compared (216) with a selected CAUTION/POSITIVE limit defining a check clearance period — if this check clearance period has passed, the CAUTION status is rolled (217) POSITIVE. The last roll/update operation is to roll (218) the DWT values for Frequency and $Amount to reflect the current access date/time.
• the current transactional data are added (220) by incrementing DWT Frequency and adding the transaction $Amount to the corresponding DWT $Amount.
• the DWT transactional data in the updated customer record now reflects the current transaction.
• the user flags in the customer record are checked (222) — if the MANAGER ONLY flag is set, a MANAGER ONLY response is returned (225) regardless of status, while if the PREAPPROVED flag is set, the normal status response (POSITIVE) is returned (226) regardless of any transactional CALL MANAGER limits.
• DWT Frequency/$Amount are compared (228) with the CALL MANAGER limits for the customer's status to determine whether any of these limits are exceeded. If not, a normal response with the customer's check verification status is returned (226) ; if any limit is exceeded, a CALL MANAGER response is returned (229) .
• Local Status Update Local status update of the customer database is accomplished by inputting certain status (and user flag) information to reflect bad check experience or store policy.
• Status input functions are used to Add or Delete the status values NEGATIVE, CASH ONLY and STOLEN. Typically these functions will involve modifying the Status of an existing customer record and/or negative status record, although new records may be created.
• local input functions are used to Add or Delete user flags that designate the customer as PREAPPROVED or MANAGER ONLY.
• each store's negative status file will contain separate negative status records for the various locations, sometimes for the same customer.
• a store can only affect through the local update function, negative status records for its location.
• the update operation for the customer record includes the roll/update operation described in connection with FIGURE 4B (210) to reflect the current access (update) to the customer record (which is written to disk to update the customer file) .
• FIGURE 5 diagrams the local status input function for Add/Delete NEGATIVE status.
• a store uses this operation only for the negative status records for that location, and only when all bad checks have been recovered or otherwise resolved.
• the Add NEGATIVE status function the corresponding negative status record for that location is retrieved or created (230) , and NEGATIVE status is set (232) Active and BAD
• Frequency/$Amount is adjusted (233) by adding the current bad check transaction.
• the corresponding customer record is then retrieved or created (235) , and updated by the roll/update operation (238) but with status set (239) to NEGATIVE.
• the Delete NEGATIVE Status function the corresponding negative status record is retrieved (230) , and NEGATIVE Status is set (232) to Inactive and BAD Frequency/$Amount are set (233) to zero.
• Add/Delete CASH ONLY which status is also kept by location in negative status file
• the basic operation is the same as for Add/Delete NEGATIVE except that the BAD Frequency/$Amount data are unaffected.
• Add/Delete STOLEN For the status input functions that Add/Delete STOLEN, only the customer file need be updated.
• Add STOLEN the corresponding customer record is updated in accordance with the roll/update operation, but with status rolled to STOLEN.
• Delete STOLEN the corresponding customer record is updated and rolled to CAUTION.
• Global Update For multiple-store systems, the global update function is used to coordinate the exchange of certain customer information among the individual stores.
• Global update is accomplished by file (record) transfers between each remote system and the host system.
• the host system receives selected customer records and negative status records from each remote, updates its customer database, and then transmits globally updated records back to each of the remotes.
• Each remote is able to maintain a local customer database, supplemented with selected global customer information deemed to be useful to all stores in the system.
• the type of customer information transferred by the global update function is based on store management policies. The recommended approach to exchanging global customer information is as follows:
• Negative Status Records All NEGATIVE status records (NEGATIVE or CASH ONLY status) accessed (created or updated) since the last transfer;
• POSITIVE status records are not recommended for global transfer.
• the local customer database contains negative status records (including NEGATIVE and CASH ONLY status and BAD Frequency/$Amount) for all store locations (although each remote system only transfers to the host the negative status records for its location) .
• DWT Frequency/$Amounts can be maintained either globally or locally and globally. That is, a store may decide not to maintain both global and local transaction data since, for regular customers that primarily frequent that store (i.e., the customers of primary interest) global and local transaction data are essentially the same anyway. On the other hand, a store may want to keep its local transaction data completely separate from the global data attributable to all stores.
• host/remote file transfers that support global update are accomplished automatically through the event/activity function described in Section 2.7.
• host/remote file transfer constitutes an activity automatically invoked at predetermined regular event intervals. This procedure insures that the local customer databases are regularly supplemented with globally updated status and other customer information affecting check verification.
• a global update session is initiated by a remote system, or in the alternative by a host computer.
• the remote transmits only those negative status or selected customer records accessed (updated) since the last host/remote file transfer. Since a remote only updates (or creates) negative status records for its location (although negative status records for other locations may be queried) , a remote only transfers those local records (but will receive back from the host recently updated negative status records for all locations) . And, only those updated customer records meeting the selected status criteria are transferred (i.e., POSITIVE status records are not transferred, even if designated MANAGER ONLY) .
• Negative status records are extracted using the index [status/transfer/date/ID/location] , while customer records are extracted using the index [status/access date/ID] .
• FIGURE 6A diagrams the host global update function by which the host system receives recently updated negative status and customer records, and performs a global update of its customer database.
• the host retrieves or creates (240) a corresponding host record, and sets (243, 244) host Status (NEGATIVE/CASH ONLY, ACTIVE/INACTIVE) and host BAD Frequency/$Amount equal to the corresponding remote values.
• the host retrieves or creates a corresponding host record, and updates existing host records using the roll operation (246) .
• Host and Remote status are compared, and if different, the host assigns status (247) according to predetermined status arbitration criteria.
• the host then adds (248) the Frequency/$Amount accumulated at the remote since last transfer to the Host DWT Frequency/$Amount, and selects (249) the greater of host/remote DWT data as correct, updating the host record accordingly.
• the host After global update of the host customer database, the host transmits to the remote all negative status records and selected customer records accessed (updated) at the host since the previous transfer. Because every remote record transferred to the host caused a corresponding host record to be created or updated, and therefore accessed, the host-to-remote file transfer necessarily includes all host records corresponding to the remote records transferred to the host during that session. In particular, host negative status records for all locations, meeting the recently accessed transfer criteria, are transferred to the remote. For negative status records from other locations, the remote merely copies (253) the host record (remote location records received from the host are necessarily the same as the remote record) . For customer records, the remote first rolls (254) the DWT Frequency and $ Amount.
• the customer database purge function allows a store to orient its customer database toward active customers, stabilizing the database size by deleting certain customer records and negative status records deemed to be obsolete.
• the purge limits are also used to define a reset/CAUTION interval (described in connection with FIGURE 4B) . If a record is not accessed during that interval, its status is rolled to CAUTION. Thus, the check transaction processing system defaults to the reset/CAUTION operation if the purge function is not operational.
• the purge limits are a matter of design selection.
• customer record status is not rolled automatically from CAUTION to POSITIVE, but only as a result of a transaction in which the access date/time is also rolled current, the customer database maintains an accurate record of CAUTION status for those first-time customers who do not return after the check clearance interval. Those CAUTION status customers who do not return to a store within a reasonable period of time can be eliminated from the customer database. Likewise, POSITIVE status customers who stop transacting business with a store can be eliminated from the active customer database.
• Selected purge limits are entered into the system control file during system installation/ configuration. If the purge function is selected, performing it automatically as an event-driven activity (described in Section 2.7) is recommended.
• Event/Activities Event-driven activities are performed automatically by the check transaction processing system to implement certain functions without operator intervention. The configuration and timing of these activities is a matter of routine design selection. The following event-driven activities, and the associated event intervals, are recommended:
• certain report functions can be made automatic as event-driven activities, such as reporting every day all customer records with CAUTION or NEGATIVE status.
• the specified event-driven activities and associated event intervals are contained in an event table established during system installation/configuration.
• performing the host/remote file transfers necessary for global update on a regular, event-driven basis insures that CAUTION/ NEGATIVE status information for check verification purposes is kept current throughout the system. Performing such transfers at relatively short intervals keeps the individual host/remote communications sessions sufficiently short that other functions, such as check verification, are not significantly affected. Moreover, performing host/remote file transfers on a regular basis at short intervals helps guard against fraudulent bad check passing schemes. Regularly, purging the customer database facilitates database stabilization, and focuses the database on reasonably regular customers. The need for regular, and often, event-driven driven backup is obvious, and is not burdensome of system computing resources because only those customer records actually updated during the short interval between backup events need be backed up.
• the communications function is primarily used to support host/remote file transfers for global update in multiple-store systems.
• the communications function can be used for remote diagnostic operations.
• the communications function is implemented in a conventional manner. Both the implementation of the communications function and the mode of communications (such as using modem communications over dial up lines) are a matter of routine design selection. Implementing the communications function so as to be essentially transparent to the local operation of the remote and host check transaction processing systems is recommended (see Section 3.6) . 2.9. System. Certain system diagnostic and system information functions are available to users of the check transaction processing system.
• system functions are not critical to the inventory but are a matter of routine design selection.
• the recommended system functions are identified in Section 2.2 and Table 4, and include querying the customer database and system control file, obtaining disk usage and file size information, starting/stopping activities in the event file, and controlling certain keypad and modem configuration functions, as well as controlling certain system level functions such as log ⁇ on, log-off, open/close database, debug and system shutdown.
• these system functions are useful to store supervisory personnel for querying the customer database and for controlling event-driven activities, and to vendor support personnel for remote diagnostic purposes.
• the check transaction processing system enables a store to adopt a risk management approach to check verification. Specifically, through selection of the CALL MANAGER limits for each status (including POSITIVE) a store has considerable flexibility in adjusting its check authorization policy to accommodate the different risks presented by different customers, both in terms of bad check risks and recovery risk.
• Adopting specific risk management procedures for check verification is a matter of store policy implemented by routine design selection.
• the reset/CAUTION interval can be selected to force customers who do not return for that interval into a CAUTION status.
• the user flags —
• PREAPPROVED and MANAGER ONLY can be used to assign special check verification treatment to selected customers regardless of status or transactional (CALL MANAGER) limits.
• Adopting risk management approach to check verification through selecting transactional CALL MANAGER limits enables each store to make a policy' decision about the degree of risk the store is willing to take within a given interval. Moreover, this approach can be tailored to the specific business climate of the store in terms of dollar volume, profitably, customer base and management philosophy. By specifying transactional CALL MANAGER limits in terms of status, frequency, dollar amount and transaction interval, the store's risk management approach to check verification can reflect statistical patterns for bad check/recovery risks.
• frequency and dollar volume limits are important for the CAUTION status to reduce the risk that a store will be hit by a concerted bad check scheme. (Global update is particularly important in this area.)
• a new customer can be restricted in terms of numbers of checks and/or dollar volume during the selected check clearance interval.
• the check transaction processing system allows a store to build and maintain a customer database containing customer information useful for identifying new customers and developing customer profiles, in addition to its use for check verification. Reporting customer information, such as verification status and DWT Frequency/$Amounts, is a matter of routine design selection and store policy.
• Customer information reports are recommended (a) to identify new customers, and (b) to develop customer profiles, both of which can be used in targeting marketing, advertising and promotional programs, and for other customer relations purposes.
• new customers are identified by regularly reporting customer records with a CAUTION status.
• Regular customers are identified by reporting customer records based on DWT
• Frequency data while the level of a customer's business is identified by reporting customer records based on DWT $Amount data. Additional customer information that can be readily collected in the customer records includes zip code and marital status information useful in demographic analysis.
• the check transaction processing system permits the customer information contained in the customer database to be collected in an unobtrusive and efficient manner during high volume check transactions.
• CTPS check transaction processing system
• the CTPS Program must implement several operations in real time: (a) transaction terminal network communications, including communicating verification requests and the corresponding responses;
• event-driven activities including global update, which must execute in the background while the check verification function is executing; and
• host/remote communications to support global update.
• the purge function may be run after- hours as a batch operation, system backup should be executed at regular intervals throughout a business day as an event-driven background activity.
• the preferred embodiment of the CTPS Program uses a multi-tasking architecture.
• the various functions performed by the CTPS Program are implemented as separate program tasks executed by the transaction processor in a multi-tasking mode.
• a multi-tasking architecture for the CTPS Program is superior in performance to available alternatives, such as polled interrupts.
• the CTPS Program includes various task programs interfaced through a System Kernal. Since the preferred MS/DOS Operating System is not multi-tasking, the System Kernal is required to implement (a) task switching, and (b) intertask communications. In this operating environment, • the MS/DOS operating system is used only for disk file I/O, with the System Kernal interfacing functionally to the individual task programs as an operating system. System Kernal 400 controls task switching, intertask message communications (requests and responses) , subtask spawning, and task synchronization using semaphores.
• Data Manager Task 500 controls all database operations used in check transaction processing functions (such as verification with transactional update, query, local status update, global update and purge) , executing function requests from the other task programs (such as the Terminal Manager Task and the Event Manager Task) and returning response data.
• Terminal Manager Task 700 controls data communications over the transaction terminal network, receiving function requests from the transaction terminals and spawning terminal request subtasks that transmit a request to an executing task (usually the Data Manager Task) and then build an appropriate response from the response data provided by that executing task.
• Event Manager Task 800 implements activities designated for automatic execution on an event-drive basis, such as host/remote file transfers for global update, spawning a background event subtask at the specified event time to execute the specified activities.
• Modem Manager Task 900 controls telecommunications primarily for host/remote file transfer for global update, but also for remote diagnostic purposes.
• a Screen Manager Task 950 and a System Utilities Task 960 are provided for maintenance and diagnostic purposes. In general, for the Verify/Query and Local Status
• Terminal Manager Task sequentially polls the transaction terminals which enter and transmit requests, such as:
• the Terminal Manager Task For each terminal request, the Terminal Manager Task spawns a corresponding terminal request subtask that dispatches the request to a corresponding function/request routine, which sends the request to the Data Manager Task.
• the Data Manager Task executes the request, and notifies the function/request routine (by a semaphore operation) that response data is ready.
• the function/request routine then builds the appropriate response from the response data, and writes it into the terminal buffer for the requesting terminal.
• the Terminal Manager Task sends the response to the requesting terminal in the next polling sequence.
• the Event Manager Task running in a remote system sequences through an event table, and at specified event times and intervals, spawns a corresponding event subtask to execute the global update activities, i.e., send/receive customer records and negative status records.
• the subtask dispatches to corresponding activity routines, i.e. activities that send/receive customer and negative status records.
• the send activity routines first request the remote Data Manager Task to retrieve records accessed since the previous global update, and then request the remote Modem Manager Task to transfer those records to the host Data Manager Task for global update.
• the receive activity routines first send requests for globally updated records through the remote Modem Manager Task to the host Data Manager Task, and then requests the remote Data Manager Task to globally update the remote customer database using the records returned by the host.
• the System Kernal Program is implemented functionally by a multi-tasking module and a system services module.
• the multi-tasking module controls resource allocation through task switching, with multi-task execution being implemented using standard context switching to swap task instructions/data between (a) the program and data memory areas allocated to the task, and (b) the task execution registers (i.e., the program counter, stack and other specified and general purpose registers) .
• the multi-task module allocates for each task data memory areas for request and response data, and maintains a task control block that contains for each task (a) task queues for intertask requests, and (b) semaphore flags.
• the system services module implements intertask communications through calls to the multi-task module.
• the system services module implements semaphore operations on the allocated semaphore flags in the task control block.
• the System Kernal interfaces to the various task programs that comprise the CTPS Program as a multi-tasking operating system.
• the Kernal performs four principal operations that establish a multi-tasking environment for the check transaction processing system:
• (d) spawning subtasks.
• the first two operations are performed by the multi ⁇ tasking module, while the second two operations are performed by the system services module.
• the System Kernal manages the system control file, and performs diagnostic and system utility operations (these operations being implemented by the system services module) .
• the System Kernal can be replaced with a commercially available multi-tasking operating system.
• the multi-tasking module is implemented with a commercially available program, Time Slicer from Life Boat Systems. Time Slicer provides a conventional multi-tasking environment, including task switching (context switching) and task control block management (request queues and semaphore flags) . These multi-tasking operations are implemented in a conventional manner. Alternative multi-tasking modules are commercially available.
• the System Kernal allocates the task control block (queues and semaphores flags) and the data areas for the various tasks. Thereafter, the System Kernal receives service requests from a requesting task addressed to a responding task and written into the System Kernal's request queue.
• the requesting task builds a service request in the following format responding task ID requesting task ID function code address of request data address for response data stope semaphore
• the function code is one of the function codes set forth in Table 4.
• the addresses for the request and response data are data memory locations allocated to the requesting task.
• FIGURE 8 diagrams the intertask communication and subtask call functions implemented by the System Kernal.
• the System Kernal continually monitors (402) the request queue, executing service requests on a first-in first-out basis.
• the system kernal first determines (404) whether the next-in-line request is a service request or a subtask request from a requesting task, or a stop request (indicating request execution completed) from a responding task.
• the system kernal builds (410) a corresponding intertask packet, and writes (412) the packet into the responding task queue in the task control block.
• the System Kernal spawns (414) the specified subtask (which typically executes the called function using intertask service requests) .
• the System Kernal sets (416) the specified semaphore flag in the task control block, notifying the requesting task that request execution is complete and response data is ready.
• the intertask request packet built by the System Kernal is in the following format: requesting task ID function code address of request data address for response data semaphore flag
• the intertask request packet includes the same information as contained in the service request from the requesting task, but without the responding task ID. That identification is unnecessary since each task is assigned a specific allocation of address space for its task queue and semaphore flags in the task control block, and for its data area.
• the stop request is the intertask request packet, which the System Kernal recognizes as a stop request when it appears in its request queue.
• intertask request execution is accomplished as follows: Each task monitors its task queue in the task control block. If the task queue does not contain a request, the task continues executing internal functions. When an intertask request packet is written into a task queue by the System Kernal (in response to a service request) , the responding task reads the packet from the queue.
• the responding task decodes the request packet, and dispatches the request to an execution routine (either directly or by first spawning a subtask that handles dispatching) .
• This execution routine reads the request data located in the requesting task's data area at the address specified in the intertask request packet, and executes the requested function using the request data.
• the execution routine provides a response by writing response data to the specified address in the requesting task's data area, and sends a stop request (which is the intertask request packet) to the System Kernal indicating that request execution is complete and response data is ready.
• the System Kernal executes the stop request by setting the specified semaphore flag.
• the Terminal Manager Task spawns (through the System Kernal) a terminal request subtask.
• the terminal request subtask dispatches to a verification/request routine that sends a verification request through the System Kernal to the Data Manager Task.
• the Data Manager Task reads from its task queue the verification request (i.e. the intertask verification/request packet) , and determines that a verification function is requested.
• the Data Manager Task reads from its task queue the verification request (i.e. the intertask verification/request packet) , and determines that a verification function is requested.
• Task dispatches the request to an verification execution routine that reads the request data (check ID and $Amount) from the specified request data address, and performs the necessary customer database operations, including retrieving or creating a corresponding customer record and updating status and transactional data (DWT Frequency and $Amount) to reflect the current transaction.
• the execution routine then writes the updated customer record to the specified response data address, and sends a stop request (i.e., the intertask request packet) to the System Kernal.
• the System Kernal sets the specified semaphore flag, and the terminal request subtask reads the customer record and builds an appropriate response that is sent to the terminal by the Terminal Manager Task.
• the Data Manager Task manages the customer database, maintaining the customer record file and negative status record file, and the related indices.
• the Data Manager Task controls all database operations for check transaction processing functions (such as verify/query and local and global update) and customer database management functions (such as backup and purge) , including record creation, retrieval, modification and deletion.
• check transaction processing functions performed by the Data Manager Task are, generally:
• the verify, query, and local status update functions are invoked from a transaction terminal.
• the global update function is an activity invoked by the Event
• the Data Manager Tasks interfaces to the disk files (i.e., the customer, negative status and system control files) through a commercially available library of database management routines, C-Tree from Faircom Software.
• the C-Tree library uses the MS/DOS File System (DFS) to handle disk file I/O.
• DFS MS/DOS File System
• the configuration of those routines to operate with the Data Manager Task and the MS/DOS DFS is a matter of routine design specification.
• Other such libraries of database management routines are commercially available.
• the Data Manager Task opens the customer and negative status files, and a password file (used for supervisor functions requiring a password) .
• FIGURE 9A is a program flow diagram for the Data Manager Task.
• the Task continually monitors (502) its task queue for requests (intertask request packets) written into the queue by the system kernal. These requests primarily involve database operations in connection with check transaction processing functions, and are received from the Terminal Manager Task
• Some requests involve system diagnostic or information requests such as for disk or database information (see Section 2.2) .
• the function execution routine executes the function, performing the necessary database operations, and upon completion, writes appropriate response data into the location specified by the requesting task, and then sends a stop request (the intertask request packet) to the system kernal.
• FIGURE 9A Verify (510) , Host Global Update (Negative Status)
• FIGURE 9B is a program flow diagram for the Verify routine in the Data Manager Task.
• the Data Manager Task dispatches (508) to the Verify Execution Routine 510.
• the Verify routine reads (512) the verification request data (check ID and $Amount) from the request data location specified in the intertask request packet.
• the customer database is searched (514) using the check ID, and the corresponding customer record is retrieved (515) or created (516) with status set to CAUTION and DWT Frequency and $Amount set to zero.
• the Verify routine then calls (520) a roll routine that updates status and transactional data in the record to reflect the current access date/time.
• the Data Manager Task does not independently update customer records to make status and DWT Frequency/$Amount reflect a current date/time. Rather, the customer records are updated in real time as they are accessed, such as during execution of verify and update functions. Because this roll/update operation is used by many of the function execution routines in the Data Manager Task, a separate routine is provided and called by these routines.
• FIGURE 9C is a program flow diagram for the roll routine.
• the routine first rolls (522) the Access Date/Time in the customer record to the current date, and then calculates (524) the transaction interval, i.e., the elapsed time since the customer's previous check transaction.
• the purge limit for the customer's status is read (526) from the system control file and compared (528) with the transaction interval. If the transaction interval exceeds the purge limit, a status roll subroutine is called (530) and instructed to roll the status of the customer record to CAUTION.
• the roll routine determines whether, for customer records with a CAUTION status, the predetermined check clearance period defined by the CAUTION/POSITIVE limit has passed. If the customer status is CAUTION (532), then the CAUTION/POSITIVE limit is read (534) from the system control file and compared (536) with the status change date, i.e., the date on which the customer became a CAUTION, either because of an initial check transaction or because of a roll to CAUTION (such as through the reset/CAUTION procedure in 526, 528 and 530) . If the period during which the customer has been a
• the status roll subroutine is called (537) and instructed to roll customer status to POSITIVE.
• the roll routine then rolls (538) the DWT totals for both Frequency and $Amount to reflect the current access date.
• the customer record is now updated to the current access date, the roll routine having rolled/updated the Access Date/Time, Status and DWT Frequency and $Amount.
• the status roll subroutine is called when any function routine rolls customer status from one value to another.
• the status roll subroutine receives a new status, CAUTION in the case of the reset/CAUTION operation.
• Program state-logic determines whether the roll is allowable according to specified roll state-logic: (a) if allowed, status is rolled to the specified new status; or (b) 'if not allowed, status is rolled to an allowable status value, or is not rolled, in accordance with the roll state- logic.
• the status roll subroutine then rolls the status change date in the customer record to the current date (if the subroutine effected a change in status) .
• the customer record is modified to reflect a CAUTION status with a corresponding status change date.
• the roll routine returns (539) to the calling routine, in this case, the Verify routine in FIGURE 9B.
• the verify routine adds (540) to the roll/updated customer record the current transaction by incrementing DWT Frequency and adding the current $Amount to the DWT $Amount.
• the customer record is now updated to reflect both the current access date and the current transaction.
• the updated customer record (with its transfer date updated current) is written (542) to disk, to update the customer database.
• the updated customer record constitutes the response data for the verify request
• the Verify routine writes (544) the record into the response data location specified in the intertask request packet.
• the Verify routine sends (546) a stop request to the System Kernal.
• the stop request comprises the intertask request packet received from the System Kernal by the Data Manager Task. The appearance of this packet in the Kernal's service request queue notifies the Kernal that request execution by the verify routine is complete.
• the System Kernal sets the semaphore flag specified in the intertask request packet to notify the Terminal Manager Task that the verification request is complete, and the response data is in the specified location.
• the query function is used to query the customer database, and retrieve an updated customer' record or updated negative status record from which the desired information may be extracted.
• the Data Manager Task dispatches to a corresponding query execution routine that retrieves and updates the requested customer record or negative status record.
• the essential difference between the query routines and the verify routine is that no current check transaction data is involved, and the updated record is not written to disk to update the customer database.
• the Data Manager Task dispatches the intertask query request packet to the corresponding Query execution routine.
• the routine reads the check ID from the specified location for the request data, and initiates a search of the customer record file. If no corresponding customer record is found, the query routine returns an error message response. If a corresponding customer record is retrieved, the Query routine calls the roll routine to update Access Date/Time, Status and DWT Frequency/$Amount. The roll/updated customer record is written to the specified location for the response data, and a stop request is sent to the System Kernal. The Query routine does not update the customer database by writing the updated customer record back to disk.
• the Data Manager Task In addition to updating the customer database in real time through the verification operation, the Data Manager Task also implements the following local status update functions: Add/Delete NEGATIVE Add/Delete CASH ONLY Add/Delete STOLEN Add/Delete PREAPPROVED Add/Delete MANAGER ONLY
• FIGURE 9D is a program flow diagram for the add NEGATIVE local status update function. After receiving and decoding the appropriate intertask request packet from the Terminal Manager Task, the Data Manager Task dispatches (508) to the Add NEGATIVE execution routine (550) .
• the Add NEGATIVE routine reads (551) the request data (check ID/location/$Amount) from the location specified in the intertask request packet.
• the negative status file is searched (552) for a corresponding negative status record, which is either retrieved (553) or created (554). If NEGATIVE status is Inactive (556), the status roll subroutine in called (557) and instructed to roll to Active.
• the current bad check data is then added (558) to the BAD Frequency and $Amount totals for that location.
• the routine then writes (559) the updated negative status record into the negative status file.
• the customer file is searched (560) for the specified customer record, which is either retrieved (561) or created (562) .
• the roll routine is called (564) to roll/update the customer record (Access Date/Time, Status and DWT Frequency/$Amount) as described in connection with FIGURE 9C.
• the status roll subroutine is called (566) and instructed to roll customer status NEGATIVE.
• the updated customer record (with its transfer date updated current) is then written (568) into the customer file.
• a confirmation response is written (570) into the specified response data location, and a stop request is sent (572) to the System Kernal (which sets the specified semaphore flag) .
• FIGURE 9E is a program flow diagram for the delete NEGATIVE function. After receiving and decoding the appropriate intertask request packet from the Terminal Manager Task, the Data Manager Task dispatches (508) to the Delete NEGATIVE execution routine (580) .
• the Delete NEGATIVE function is used according to the following criteria: (a) it is only used to delete NEGATIVE status for the location requesting the delete NEGATIVE function; i.e., to change NEGATIVE status from Active to Inactive only in the negative status record for that location; and (b) it is only used if all bad checks for that location have been paid off or otherwise resolved.
• each location can only affect its own negative status record — the global update function is used to distribute negative status records among all locations.
• the Delete NEGATIVE routine reads (581) the request data (check ID/location) from the location specified in the intertask request packet.
• the negative status file is searched (582) , and the negative status record for that location is retrieved (584) , if it exists.
• the status roll subroutine is called (586) to roll NEGATIVE status from Active to Inactive.
• the BAD Frequency and $Amount data are then deleted (587) indicating that all bad checks have been paid or otherwise resolved.
• the routine determines (590) whether another negative status record exists for that customer, i.e., whether the customer has a NEGATIVE status active at other locations. If the negative status file contains no other negative status records for the customer, the customer file is searched to retrieve (592) the corresponding customer record.
• the roll routine is then called (594) to roll/update the customer record as described in connection with FIGURE 9C, and the status roll subroutine is called to roll status to the previous status (i.e., the customer's status prior to becoming a NEGATIVE) .
• the updated customer record (with its transfer date updated current) is then written (596) to the customer file.
• the routines that Add/Delete STOLEN affect only the customer file.
• these routines read the specified request data (check ID/status) , and either retrieve or, for the add routine, create a corresponding customer record.
• the customer record is updated using the roll routine, and then rolled to STOLEN (add function) or to CAUTION (delete function) using the status roll subroutine.
• the updated customer record is written to the customer file, and a confirmation response is written to the specified response data location.
• the routine terminates with a stop request sent to the System Kernal.
• the routines that Add/Delete PREAPPROVED and MANAGER ONLY operate to set/clear the corresponding user flags in the customer record in a manner analogous to the Add/Delete STOLEN routine. That is, these routines roll/update the corresponding customer record, set/clear the specified user flag, and then provide an appropriate confirmation response.
• the host Data Manager Task receives negative status and selected customer records from all the remote systems, and executes a host global update function. Host negative status and selected customer records are then sent to the remote Data Manager Task which executes a remote global update function.
• the global update function is implemented by the remote Event Manager Task which executes a global update event/activity (see Section 3.5) .
• Negative Status File All records accessed since the previous host/remote file transfer for global update (NEGATIVE or CASH ONLY status) ;
• FIGURE 9F is a program flow diagram for the host global update function for the negative status file. After receiving and decoding the appropriate intertask request packet (containing the global update request from the remote Event Manager Task) , the host Data Manager Task dispatches (508) to the Host Global Update (Negative Status) execution routine 600.
• the host For each negative status record received (602) from a remote location, the host searches (604) its negative status file for a corresponding negative status record for that remote location. If it does not exist, the remote record is copied (607) .
• the host NEGATIVE status (Active or Inactive) is replaced (608) with the remote NEGATIVE status from the remote negative status record, and the host BAD Frequency/$Amount is replaced (610) with the remote BAD Frequency/$Amount.
• the Access Date/Time is then rolled (612) current.
• the updated (or copied) host negative status record for the remote location is written (614) to the negative status file, and the negative status file is searched (616) to determine if it contains any NEGATIVE status Active records for that customer for any locations (including the remote negative status record just processed) .
• the corresponding customer record is retrieved (618) from the customer file.
• the record is updated by the roll routine (620) , and rolled to previous status (622) .
• the updated customer record (with its transfer date updated current) is then written (624) back to the customer file.
• the Global Update (Negative Status) routine terminates with stop request sent (626) back to the requesting remote Event Manager Task (see Section 3.5).
• FIGURE 9G is a program flow diagram for the host global update function for the customer file. After receiving and decoding the appropriate intertask request packet (containing the global update request from the remote Event Manager Task) , the host Data Manager Task dispatches (508) to the Host Global Update (Customer) execution routine 630.
• the host For each customer record received from the remote (632) , the host searches (634) its customer file. If a corresponding customer record does not exist, one is created (636) with the local DWT Frequency/$Amount set to zero.
• a corresponding host customer record is retrieved (635) , it is updated (638) in accordance with the roll routine in FIGURE 9C. If status is CAUTION, POSITIVE or STOLEN, the status for the updated host customer record is compared (640) with the status for the remote customer record. If status is different, the host assigns (642) status in accordance with predetermined arbitration rules, and updates its customer record accordingly.
• the host updates DWT Frequency/$Amount in the host customer record by adding (644) to the host DWT Frequency and $Amount the Transfer Frequency and $Amount totals from the remote customer record, and then selecting (646, 648, 649) the greater of the host or remote DWT Frequency/$Amount totals. Finally, the host customer file is updated by writing (650) the host customer record (with its transfer date updated current) to disk, and a stop request is sent (652) to the remote Event Manager Task.
• the remote requests that the host transfer to the remote the host negative status and selected customer records that have been accessed since the previous transfer. That is, the same criteria that the remote used in selecting records for transfer are used to select host records for transfer back to the remote. Since for each remote record transferred to the host, the host performs an update operation that changes Access Date/Time, the host-to-remote file transfer will necessarily result in all such updated records being retransmitted back to the remote.
• the host will transfer to the remote NEGATIVE status and selected customer records accessed and updated by the host during either (a) local-host verification or update operations, or (b) a host global update operation initiated by another remote.
• the remote receives the negative status and customer records transferred from the host, and performs a global update of its customer database.
• the remote Event Manager Task requests host records from the host Data Manager Tasks, and then sends them to the remote Data Manager Task with a global update request.
• the remote global update function for the negative status file is based on two criteria: (a) for remote- location negative status records, the remote record is assumed to be correct and the remote record is ignored; and (b) for other-location negative status records, the host record is assumed to be correct and it is copied without any update or other access by the remote.
• the remote Data Manager Task After receiving and decoding the appropriate intertask request packet (containing the global update request for the host negative status record from the remote Event Manager Task) , the remote Data Manager Task dispatches to the Remote Global Update (Negative Status) execution routine that implements these global update operations.
• FIGURE 9H is a program flow diagram for the remote global update function for the customer file. After receiving and decoding the appropriate intertask request packet (containing " the global update request from the remote Event Manager Task) , the remote Data Manager Task dispatches (508) to the Remote Global Update (customer) execution routine (660) .
• the remote determines (664) whether it has a corresponding customer record, and if not, creates (666) one with the local DWT Frequency and $Amount data set to zero.
• An existing remote customer record is retrieved (665) , and DWT
• Frequency/$Amount rolled (668) current The remote then compares (670) its global DWT Frequency/$Amount with the corresponding totals from the host customer record, and if the remote totals are greater, rolls (672) the Access Date/Time current. Updating the Access Date/Time for the customer record insures that that record will be transferred back to the host during the next remote/host file transfer session. If the host transactional data is greater, then the Access Date/Time is not changed. If status is CAUTION, POSITIVE or STOLEN, the status for the updated remote customer record is compared (674) to the host customer record status, and if different, the remote assigns (675) status in accordance with predetermined arbitration rules. (If either host or remote status is NEGATIVE, global update is accomplished through the host global update function for negative status records.)
• the updated customer record (with its transfer date updated current) is written (676) to the customer file, and a stop request is sent (678) to the host System Kernal.
• the arbitration rules used by the host during global update to assign status (642 in FIGURE 9G and 675 in FIGURE 9H) for customer records in the case of a conflict between host and remote status are a matter of design choice and routine program implementation.
• the recommended criteria for specifying arbitration rules are (a) where either the host or the remote indicates POSITIVE and the other indicates CAUTION, the POSITIVE status value is selected; (b) where either the host or the remote indicates STOLEN, the STOLEN status is selected; and (c) NEGATIVE status is not arbitrated.
• the database operations associated with purge and backup are also handled by the Data Manager Task. These functions are implemented as event activities by the Event Manager Task. In response to requests from the corresponding event activity routine, the Data Manager Task retrieves the specified records and processes them in accordance with conventional record delete (purge) or copy (backup) operations. Thus, for backup, the Event Manager Task provides a backup key [status/access date/time] , and all records accessed since the last backup are copied to a backup file.
• a purge routine operates analogously to the roll routine (FIGURE 9C) in reading purge limits from the system control file and comparing them against a purge interval defined by the last access date/time, deleting (or copying off-line) those records that meet the predetermined purge criteria.
• Terminal Manager Task manages the communication of requests/responses between the transaction terminals and the transaction processor, implementing a token ring local area network.
• Terminal Manager Task sequentially polls each transaction terminal using the token ring protocol described in
• request data such as check ID/$Amount
• the transaction terminal responds to its next POLL token by transmitting TXDATA answer packet including the request to the
• Terminal Manager Task which writes the request data into the corresponding terminal buffer.
• Terminal Manager Task For each request received from a transaction terminal, the Terminal Manager Task spawns a terminal request subtask that:
• the responding task depends upon the request function code entered into the terminal. (See Section 2.2) Most of the request functions are for the Data Manager Tasks because they involve customer database access. However, requests to the other tasks for diagnostic or system information can be made from a transaction terminal.
• the Terminal Manager Task (a) Initializes the 32-port network communications interface (116 in FIGURE 1) ; (b) Allocates TXBUFFER, RXBUFFER and LASTDATA terminal buffers for each of 32 allowable terminals; and (c) Allocates two poll state flags, Poll/Data and Wait, for each of 32 allowable terminals.
• the TXBUFFER buffer holds TXDATA transmitted by the terminal, while the RXBUFFER buffer holds RXDATA to be sent to the terminal.
• the LASTDATA buffer contains selected data from the last request transmitted by or the last response received by the terminal (used to hold data that might be used in the next terminal request) .
• FIGURE 10A is a program flow diagram of the token ring network communication function implemented by the Terminal Manager Task.
• the Terminal Manager Task continually monitors (702) its task queue, which is maintained by the System Kernal. Through the System Kernal, system and diagnostic requests can be written into the queue for execution by the Terminal Manager Task. That is, in response to a TMT request (such as a system diagnostic or system information request) written into its queue, the Terminal Manager Task calls (703) a corresponding routine that executes the request.
• a TMT request such as a system diagnostic or system information request
• the Terminal Manager Task begins a token polling sequence (704, 706).
• a token polling sequence is accomplished by sequencing through the terminal addresses 0-31. During each polling sequence the Terminal Manager Task polls all 32 ports without regard to whether a port has an active, on-line transaction terminal coupled to it, provided however, that an active terminal in a Wait state (i.e., waiting to receive requested data) is not polled.
• the Terminal Manager Task makes no attempt to segregate active and inactive communications ports, or to remove from the polling sequence terminal addresses not assigned to active, on-line transaction terminals. This design choice does not significantly impact network communications for the 32 terminal configuration of the preferred embodiment.
• An active-terminal-only polling scheme would be a matter of routine program implementation. Terminal addresses are determined as follows.
• the Terminal Manager Task polls each of the 32 ports — beginning with Port 0, a POLL token (including the corresponding terminal address between 0 and 31) is broadcast and the Task waits until either (a) an answer packet is received, or (b) a time ⁇ out period transpires, before sending the next POLL.
• a transaction terminal signs on, its internal network communication software causes an [ENTER TERMINAL ID] message to be displayed.
• the terminal operator is supposed to enter a number between 0 and 31 that is uniquely assigned to that terminal; however, the internal software processes the terminal ID entry using module 31, so that any numeric entry is forced into the 0-31 range.
• the Terminal Manager Task determines (710) the polling state of the corresponding transaction terminal — Poll, Wait, or Data.
• the Terminal Manager Task sends (712) a POLL token for that transaction terminal (i.e., a token that includes the corresponding terminal address) .
• the POLL is received by the addressed terminal, and recognized as an invitation to transmit data.
• the polled terminal transmits either a TXDATA answer (including request data) or a NODATA answer. If a NODATA answer is returned (714) , the Terminal Manager Task continues with the polling sequence. If the polled terminal transmitted request data in TXDATA answer (715) , the Terminal Manager Task writes (716) the request data into the corresponding terminal buffer, sets (718) the terminal Wait state flag, and spawns (720) a terminal request subtask to execute the request, and then continues the polling sequence.
• the Terminal Manager Task During execution of the request, while the requesting terminal is in the "Wait" state, the Terminal Manager Task does not poll that terminal, but rather, continues with the polling sequence. Once a request has been executed and the response data placed in the terminal buffer for the requesting transaction terminal, the request subtask sets the terminal Data state flag. During the next poll sequence, the Terminal Manager Task reads (722) the response from the terminal buffer and sends (724) an RXDATA token that includes the response.
• the task queue is checked (702) to determine whether any system or diagnostic TMT requests have been written into the queue. If not, a new polling sequence is commenced (704) .
• the network software watches for that terminal address — when a POLL with that address is received, the network software waits for a time-out to determine whether another terminal has that address. If not, the network software grabs the next POLL with that address and commences normal network communications.
• the POLL token is one byte (0-7) :
• Bits 0-4 Terminal address All data communications over the network are in 7 bit ASCII (0-6), so that only the POLL token uses bit 7.
• the answer packets are also one byte:
• the TXDATA byte is followed by up to 40 characters of data in 7-bit ASCII (0-6) , with a single END of data byte (ASCII carriage return) .
• the RXDATA token [Token Flag Set/RX/Terminal Address] is followed by up to 40 characters of data, with the next POLL token designating END of data.
• a transaction terminal watches the network for its POLL token (with its terminal address) . When its POLL is received it sends back either a NODATA answer byte, or a TXDATA byte followed by up to 40 characters of data terminated in an END character. If the terminal is waiting for response data, so that it has been placed in a Wait state, it will not receive a POLL token.
• the Terminal Manager Task When response data is available, the Terminal Manager Task will retrieve the data from the terminals' RXBUFFER and transmit it with the next TXDATA token.
• This implementation for a token ring network is a matter of design choice. Other implementations are a matter of routine program design. Commercial token ring program packages are available.
• the terminal request subtask To execute a request sent by a transaction terminal during a polling sequence, the terminal request subtask first determines which function is requested, and then dispatches to an appropriate service request routine that:
• the verify service request routine determines whether any "CALL MANAGER” limits have been exceeded, and if so, causes the "CALL MANAGER” response to be returned to the terminal. From Section 3.2, a service request is in the following format:
• the service request is sent to the System Kernal, which builds a corresponding intertask request packet.
• the responding task that executes the request depends upon the function code. Of course, most function codes will be executed by the Data Manager Task because they involve accessing in some way the customer database. After execution of the request, the response data returned by the responding task depends upon the request function code.
• the Data Manager Task returns updated customer or negative status records in response to verify/query requests and confirmations in response to local status update functions and global update functions.
• Exemplary terminal request subtask operation is described in connection with a verify request in which the responding task is the Data Manager Task.
• FIGURE 10B is a program flow diagram for a terminal request subtask that implements a verification or query status request, to which the response from the Data Manager Task is an updated customer record.
• the subtask first reads (732) the TXBUFFER terminal buffer for the transaction terminal, parses (734) the request data to identify the function code (verify) and the other request data (check ID and $Amount) .
• the subtask then dispatches (736) the request to a verify service request routine specified by the verify function code.
• the service request subroutine builds (740) an appropriate service request addressed to the Data Manager Task responding task) , which is sent (742) to the System Kernal.
• the terminal request subtask then suspends execution and monitors (744) the semaphore flag specified in the service request.
• the semaphore flag is set by the System Kernal in response to a stop request from the Data Manager Task, indicating that the request has been executed and response data (a customer record) written to the response data location specified in the service request.
• the terminal request subtask then reads (746) the response data, and builds an appropriate response for the requesting terminal.
• the corresponding service request routine builds a response from the customer record (response data) only after testing (750) corresponding user flags and CALL MANAGER limits. These user flag and CALL MANAGER operations are not required for other function service requests (such as query negative, local status update or global update) .
• the first operation in building an appropriate verification response from the customer record returned by the Data Manager Task is to test the MANAGER ONLY flag (752) . If that flag is set, the verify service request routine builds (754) a MANAGER ONLY response regardless of customer status, and without testing any CALL MANAGER limits.
• the next operation is to test the PREAPPROVED flag (756) . If the flag is set, and customer status is POSITIVE (758) , a normal (i.e. PREAPPROVED) response is built (762) without regard to any CALL MANAGER limits. If customer status is other than POSITIVE, the PREAPPROVED flag is ignored and CALL MANAGER limits are tested. After testing the user flags, the next operation in building a response for a verify request is to test the CALL MANAGER limits (760) for the customer's status and DWT data.
• the DWT Frequency/$Amount CALL MANAGER limits appropriate for the customer's status are read from the system control file and compared with DWT Frequency and $Amount from the customer record. If any CALL MANAGER limit is exceeded, CALL MANAGER RESPONSE is built (764) regardless of status. If no limits are exceeded, the normal response for that status is built (762) . As described in Section 2.3 and 2.10, the CALL MANAGER limits are used to place predetermined transactional limits (DWT Frequency/$Amount) on a check transaction primarily for customers with CAUTION and POSITIVE status. These limits are set as a matter of store policy, and placed in the system control file during system configuration.
• the user flag and CALL MANAGER operations are not included in the service request routine, and a normal response is automatically built (762) from the response data read (746) from the specified response data location.
• the terminal Data state flag is set (768) to indicate that a response is in the terminal's RXBUFFER buffer and should be sent to the terminal in the next polling sequence.
• the terminal request subtask then terminates (770) .
• the basic operation of the terminal request subtask for each request function is as described in connection with FIGURE 10B for the verify request, except that the service request routines for request functions other than verify do not implement the user flag or "CALL MANAGER" response functions (750) .
• Event Manager Task manages background activities that are executed automatically without operator intervention, maintaining an Event File that includes an Event Table, an Activity Table and associated indices.
• the Event Table includes event records each specifying an event time, an event interval and associated activity pointers into the Activity Table.
• the Activity Table includes a list of activity codes.
• Event Manager Task The basic activities implemented by the Event Manager Task are:
• (c) Backup These activities are regularly invoked to backup the customer and negative status files.
• the host/remote communications and backup activities operate only on those customer records or negative status records that are accessed (i.e., that have their transfer dates updated) after the last corresponding activity was performed.
• Host/remote communications are implemented in connection with the Modem Manager Task.
• the Event Table contains an event record for each event, with each event record including: (a) an event interval specifying the interval between execution of the associated event activities; (b) the next event time, calculated by the event subtask after completing execution of an event/activity based on the event interval and the system clock; (c) up to 10 activity pointers into the Activity Table; (d) active/inactive flag set or cleared by a start/stop function request (F950 and 951 in Table 4) ; and (e) diagnostic abort flag that is tested during event/activity execution by the event subtask, and can be used to abort an event/activity.
• each event record including: (a) an event interval specifying the interval between execution of the associated event activities; (b) the next event time, calculated by the event subtask after completing execution of an event/activity based on the event interval and the system clock; (c) up to 10 activity pointers into the Activity Table; (d) active/inactive flag set or cleared by a start/stop function request (F950 and 951 in Table 4) ;
• Event Manager Task sequences through the events (event records) in the Event Table, spawning a corresponding event subtask to execute the specified activity.
• Event/activities are started and stopped using a transaction terminal to enter a corresponding request (see the function codes 950 and 951 described in Section 2.2 and set forth in Table 4).
• the Terminal Manager Task (terminal request subtask) addresses a service request to the Event Manager Task through the System Kernal.
• the Event Manager Task receives the service request from its task queue, executes the request by correspondingly modifying the event file, and returns an appropriate response to the Terminal Manager Task.
• the purge function is more a matter of system administration designed to control the size of the customer database. Indeed, the purge function can be omitted as an event activity.
• the status purge limits contained in the system control file define the reset/CAUTION interval used in the roll routine to roll all statuses back to CAUTION if the specified reset/CAUTION (i.e., purge) limits are exceeded, as described in connection with FIGURE 9B.
• the selection and timing of event-driven activities is a matter of design choice.
• the recommended event- driven activities, and the associated event intervals are:
• Event Manager Task sequences through the event file, selecting the specified event-driven activities on a read-next basis. Event times are specified as time intervals starting from a baseline system time
• the transaction processor includes a battery assisted hardware clock synchronized to this baseline system time
• the event time is incremented by the event interval, based on the previous event time and not on when the activity was actually completed. For example, if host/remote file transfers to support global update activities (i.e., transfers of negative status records and selected customer records are to be accomplished every 15 minutes, then each activity is entered into the event file with an interval of 15:00[mmss].
• the activity will be entered into the event file, along with its event interval and its initial event time of 15 minutes after system initialization (assumed to be 00:00[mmss]) .
• the activity will the ⁇ first be executed at 15:00, and when the activity is completed, the associated event time will be incremented to 30:00.
• the Event Manager Task opens the Event Table and Activity Table, and clears all semaphore flags. Thereafter, the Event Manager Task sequences through the Event Table, spawning event subtasks at specified event times to execute corresponding activities. While a given event may have several activities associated with it, only one event subtask
• FIGURE 11A is a program flow diagram for the Event Manager Task.
• the task continually monitors (802) the Event Manager Task queue, to determine if any EMT requests have been received from the System Kernal. These requests may be for diagnostic or system information purposes. If so, the appropriate system routine is executed (804) . If the task queue is empty, the Event Manager Task tests the event-active semaphore (810) to determine whether an event is active. If so (semaphore set) , the task checks the task queue (802) .
• the Event Manager Task reads (812) the next event record from the Event File, and compares (814) the event time in the event record with the current system time. If the event is greater than or equal to the system time, the Event Manager Task spawns (816) an event subtask to execute the activities associated with the event (sending a subtask request to the System Kernal) . The Event Manager Task then the task reads (812) the next event/activity from the event file.
• Event Manager Task spawns (816) an Event Subtask to execute the event/activity.
• FIGURE 11B is a program flow diagram for the event subtask.
• the Event Manager Task spawns the event subtask, which receives (822) the current event record from the Event Table.
• the current event record includes a current event time and an activity pointer to each of up to 10 associated activities identified in the Activity Table.
• the event subtask sequentially executes each activity associated with the current event time.
• Event subtask operation will be described in connection with executing at a remote system the activities associated with the global update function. Specifically, the event subtask will be described in connection with sequentially executing the following global update activities:
• each of the send/receive activities reads all selected statuses.
• the remote event subtask receives the event record containing the event time pointers into the Activity Table, it sets (824) the event-active semaphore (810 in FIGURE 11A) , preventing the Event Manager Task from spawning another event subtask.
• the subtask then initiates an activity sequence (826, 828) .
• the subtask sequentially reads (826) activity codes from the Activity Table.
• the activity codes are read on a read-next basis, with each read operation being tested to determine when the last activity in the sequence is completed (828) .
• the event subtask For each activity code read from the Activity Table, the event subtask dispatches (830) to a corresponding activity routine for execution.
• Each activity routine includes an activity data control data block containing certain fixed and/or variable data used by the routine in executing the activity.
• the originate call routine includes in its activity control data block the phone number for the host (as well as other system numbers that may be called by the remote) and a corresponding log-in ID.
• the send/receive record routines include in their respective activity control data blocks the previous event time for the activity which defined the end of the previous event interval for that activity.
• the current event interval for a global update (send/receive) activity is defined by the previous event time in the activity routine's control data block, and the current event record. After execution of the activity, the current event time is written into the activity routine's control data block to define the beginning of the next global update event interval. (A similar control data block operation is used for the backup activity.)
• a global update event begins at a remote system with an originate call activity that directs the remote Modem Manager Task (MMT) to establish a communications link to the host.
• MMT Modem Manager Task
• This activity is dispatched to an originate call routine (840) for execution.
• the originate call routine begins by building and sending to the remote MMT a request (842) to dial the host — the MT request includes a dial function code and the request data location into which the originate call routine writes the host telephone number, together with a specified semaphore flag.
• the originate Call routine waits on a response from the MMT (843) , periodically testing the stop semaphore flag.
• the originate call routine When the specified semaphore flag is set by the MMT, indicating that the host has been dialed and is in an off-hook condition opening a communications line, the originate call routine builds and sends to the remote MMT a request (844) to send a log-in ID to the host MMT, writing the log-in ID into a specified request data location. The originate call routine then waits on the specified stop semaphore flag being set (845) .
• the originate call routine terminates by setting (846) a modem flag to indicate that a communications link is active, and then returns (826) to the event subtask for execution of the next activity.
• the event subtask reads (826) the code for the next activity in the global update activity sequence — the send customer record activity.
• the event subtask dispatches (830) to the corresponding send customer record routine (850) .
• the routine first reads (852) the previous ending event time from its control data block to provide an initial customer record retrieval key to be used by the remote Data Manager Task (DMT) to retrieve a customer record from the customer record file.
• the retrieval key includes two fields [check ID/transfer date/time] — each is used by the Data Manager Task to sequence through the customer record file (incrementing check ID first and then transfer date/time) .
• the send customer record routine builds and sends to the DMT a request (854) to retrieve by the retrieval key the first customer record meeting the criteria for transfer to the host during the current activity — any customer record that was accessed (updated) during the current event interval at any time after the time specified in the retrieval' key (initially, the ending time for the immediately preceding event interval during which customer records were transferred to the host) .
• the routine writes the initial retrieval key (with check ID set to zero) into the specified request data location to provide the DMT with the initial customer record retrieval key for the current event interval.
• the send customer record routine then waits (855) on the specified stop semaphore flag being set by the DMT.
• the DMT receives the initial customer record retrieval request, and dispatches it to a corresponding customer record retrieval routine.
• This routine reads the initial record retrieval key (including the ending time for the previous event interval which is the beginning time for the current event interval) from the specified request data location, and using this initial key and the index [status/transfer date/check ID], retrieves the first customer record with an access date/time equal to or greater than the beginning event time (if more than one customer record has the same access date/time, then the customer record with the lowest check ID is retrieved) .
• the DMT retrieval routine When the DMT retrieval routine has retrieved this first customer record in the current event interval, it provides an appropriate response to the send customer record routine, writing the retrieved customer record into the specified response data location and sending a stop request to the System Kernal.
• the send customer record routine When the stop semaphore is set (855) , the send customer record routine reads the retrieved customer record from the specified response data location, and determines (858) that the DMT has returned a customer record. The routine then extracts (859) the transfer date/time and check ID from the retrieved customer record, and determines (860) that the current event time, which defines the end of the current global update event interval, is greater than the transfer date/time for the retrieved customer record, thereby confirming that the retrieved customer record was accessed during the current event interval.
• the send customer record routine then sends a global update service request to the host DMT, along with the just-retrieved remote customer record, through the remote MMT (862) .
• the routine then waits (863) on the specified stop request being sent, along with a response
• the host DMT by the host DMT through the host MMT and the remote MMT to, respectively, the remote System Kernal and the specified response data location in the data area for the remote event subtask.
• the above remote/host intertask communication operation is described in greater detail in Section 3.6 (Modem Manager Task) .
• the Modem Manager Task is designed so that remote/host intertask communications is essentially transparent to the requesting and responding tasks. That is, the remote/host requesting task sends a service request with request data and a stop semaphore to its System Kernal addressed to the host/remote responding task.
• the remote/host MMTs provide an essentially transparent communications link between the remote/host System
• Kernals to effect the return of the stop semaphore and response data from the host/remote responding task to the remote/host requesting task Kernals to effect the return of the stop semaphore and response data from the host/remote responding task to the remote/host requesting task.
• the send customer record routine When the send customer record routine detects (863) the specified stop semaphore flag being set, it requests (854) the DMT to retrieve the next customer record in the current global update event interval, writing the transfer date/time and check ID extracted (859) from the just-sent customer record into a request data location to provide a new retrieval key for the DMT.
• the DMT dispatches this request to a customer record retrieval routine that reads the new retrieval key from the specified request data location, and using the index [status/transfer date/check ID], searches the customer file by incrementing first check ID and then transfer date/time until the next record is retrieved.
• the DMT retrieval routine then responds to the customer record retrieval request, writing the retrieved customer record into the specified response data location for the send customer record routine.
• This procedure requesting a customer record using the transfer date/time and check ID for the previous record as the retrieval key, retrieving that customer record by reading the customer file using the retrieval key, sending the retrieved customer record to the host, and requesting the next customer record — continues until either (a) the remote DMT responds to a retrieve customer record request from the send customer record routine by indicating that the customer file contains no other customer records accessed after the just-sent customer record (as detected in step 858) , or (b) the send customer record routine determines that the customer record retrieved by the DMT has a transfer date/time after the current event time (which defines the end of the current global update event interval as determined in steps 859, 860) . In either case, the send customer routine returns to the event subtask (826) , which reads the next activity from the activity table.
• the next activity specified in the Event Table is for sending negative status records (both NEGATIVE and CASH ONLY status) .
• the corresponding routine in the event subtask for executing the send negative status record activity operates identically to the send customer record routine (850) in retrieving negative status records accessed during the current global update event interval from the negative status file and sending those records to the host.
• the receive customer records and negative status records activities are executed. Because of the essential transparency of the remote/host communications operation using the host/remote MMTs, the receive activity is analogous to the send activity.
• the remote receive record activity routine requests records from the host DMT.
• the host DMT responds with globally updated records that are sent by the remote routine to the remote DMT for remote global update.
• the event subtask determines that the current event time contains no more activities to be executed (826) so that the activity sequence is complete (828) .
• the event subtask checks the modem flag (870) to determine whether any communications link is active.
• the originate call routine (840) connects to the host and sets the event subtask modem flag (846) .
• the event subtask detects that the modem flag is set (870) and requests the MMT (872) to disconnect from the host.
• the event subtask monitors its semaphore flag (873) until notified by the remote MMT that the communications link to the host has been terminated.
• the event subtask clears (874) the modem flag, and then clears (876) the event active semaphore in the Event Manager Task.
• the event subtask (a) calculates the new event time for the event record based on the event interval and writes it into the event record, and (b) writes the current event time into its control data block for access during the next event/activity execution.
• the event subtask If the event subtask had been executing an event time and associated activity sequence in which communications was not necessary, such as backup or purge, the event subtask detects that the modem flag is clear (870) . In that case, the event subtask would immediately clear the event active semaphore (876) and terminate (878) .
• Modem Manager Task manages modem communications, primarily to support host/remote file transfer for global update, but also for remote diagnostic purposes. Operation for host/remote file transfer depends in part upon whether the modem manager task is running in the host or remote check transaction processing system — all host/remote file transfers are initiated and controlled by the remote system.
• Modem communications through the Modem Manager Task are essentially transparent to the other tasks, functionally operating as an extension of the normal intertask communications using intertask service requests.
• the remote Event Manager Task sends service requests to the host Data Manager Task through: the remote System Kernal, the remote Modem Manager Task, the host Modem Management Task and finally the host System Kernal.
• the host Data Manager Task responds with a reply, including response data and a stop request, over the same host/remote communications path.
• the remote Event Manager Task first issues a dial host request to the remote Modem Manager Task, which the Modem' Manager Task executes by dialing the host Modem Manager Task and detecting an off-hook condition at the host.
• the remote Event Manager Task When the remote Event Manager Task is notified by a stop semaphore that a connection has been made, it requests the MMT to send a Log-In ID to establish an active communications link. The remote Event Manager Task then issues a service request to the host Data Manager Task, which is directed by the remote System Kernal into the Modem Manager Task queue. The Modem Manager Task reads the request and sends it to the host system, where the host Modem Manager Task transfers the request to the host Data Manager Task through the host System Kernal. The host data manager task responds with a reply that includes a stop request — this response is communicated through the host/remote Modem Manager Task link to the remote Event Manager Task.
• the Modem Manager Task opens its communications port, and conducts modem start- up diagnostic tests.
• FIGURE 12 is a program flow diagram for the Modem Manager Task.
• the task continually monitor (902) its task queue to detect either (a) intertask request packets written into the queue by the System Kernal, or (b) a ring indication.
• the Task reads (904) the packet, and decodes the function code and dispatches (906) the request to an appropriate modem control routine: Dial, Send, Disconnect and Reset.
• a communications session will always be initiated with a
• the Modem Manager Task which executes the request by dialing the number specified by the request data (typically the host) , and in conjunction with the host Modem Manager Task, establishing a line connection between the two systems.
• the Event Manager Task sends, via the Modem Manager Task a Log-In ID that establishes an active communications link between the two systems.
• the remote Event Manager Task sends a request for global update of a record to the host Data Manager Task, writing the record into a specified request data location.
• the remote System Kernal builds an intertask request packet and routes it to the remote Modem Manager Task.
• the Modem Manager Task reads (920) the request data from the location specified in the intertask request packet, and builds (922) a corresponding communications packet, including both the request and the request data.
• the communications packet is sent (924) to the host Modem Manager Task, and the remote Modem Manager Task waits for a reply.
• Modem Manager Task When the Modem Manager Task receives (926) a reply from the host, which includes both response data (such as an acknowledgement) and a stop request, the response data is written (920) to the specified location for response data, and the stop request is sent (929) to the System Kernal, which sets the appropriate semaphore flag.
• response data such as an acknowledgement
• stop request is sent (929) to the System Kernal, which sets the appropriate semaphore flag.
• a remote/host file transfer session is terminated by the remote Event Manager Task sending to the remote Modem Manager Task a disconnect request (916) .
• the host and remote Modem Manager Tasks cooperate to establish a communications link as follows.
• a communications session is initiated by a dial request from the remote Event Manager Task is directed to the remote Modem Manager Task, which responds by dialing the host.
• a ring indication at the host modem is detected (908) by the host Modem Manager Task, which directs the modem into an off-hook condition (930) , establishing a remote/host connection.
• the remote Event Manager Task then sends an appropriate log-in identification (932) .
• Modem Manager Task builds (936) a corresponding service request that is sent (938) to the host System Kernal.
• the service request is directed to the designated responding task, such as the host Data Manager Task, which executes the request and provides both response data and a stop request.
• the host Modem Manager Task reads (940) the stop request from its queue, and reads (942) the response data from the specified location.
• the host Modem Manager Task then builds (944) an appropriate reply packet (including the response data and the "stop" request) , and sends (946) the reply to the host Modem Manager Task.
• the next communication to the host Modem Manager Task will either be a Disconnect instruction (948) or another communications packet.
• the Modem Manager Task implements remote/host communications functions in a manner that is essentially transparent to the other tasks and the System Kernal.
• intertask communications between a remote task and a host task are accomplished in a manner identical to intertask communications between tasks running in the same check transaction processing system, except that both the remote and the host System Kernal are involved in the intertask communication, as are the remote and host Modem Manager Tasks.
• the communications function provided by the remote and host Modem Manager Tasks is essentially transparent to the other tasks running in either the remote or the host.
• the remote event subtask sends requests in the form of service requests to the host Data Manager Task just as it would send requests to the remote Data Manager Task.
• the remote event subtask builds a request to the host DMT, and sends the service request to the remote System Kernal.
• the remote System Kernal builds a inner task request packet and places it in the remote MMT task queue.
• the remote MMT task reads the intertask request packet and builds a communications packet for the request to the host DMT (including function code, request data and stop semaphore flag) .
• the remote MMT transmits the communications packet to the host MMT, which builds a corresponding service request for the host System Kernal.
• the host System Kernal builds an intertask request packet that is placed in the host DMT task queue.
• the host DMT retrieves the intertask request packet, which constitutes a request from the remote event subtask, and executes it in the same manner that it would a request from the host event subtask, writing response data into the specified response data location and sending a stop request to the host System Kernal.
• the host System Kernal recognizing the stop request as being directed to the remote event subtask, builds an intertask packet with both the response data and the stop request and writes into the remote MMT task queue.
• the remote MMT reads the intertask request packet, builds a communications packet and sends it to the remote MMT.
• the remote MMT writes the response data into a specified location in the data area for the Event Manager Task, and sends the stop request to the remote System Kernal.
• the remote System Kernal sets the specified stop semaphore, notifying the remote event subtask that response data from the host DMT is available, completing the request/response cycle.
• the preferred embodiment includes separate, essentially autonomous check transaction processing systems at each store site, thereby permitting each store to establish and maintain an essentially local customer database, and limiting off-site data communications activities to remote/host file transfers for global update.
• the local customer database and associated disk system
• the local customer database need not be located at the store site, but may be remote from the stores' transaction terminal network (such as by locating it in a central office) so long as: (a) transaction terminal response time is not adversely affected and, (b) the essentially local character of the customer database for each is maintained.
• the preferred embodiment's implementation of a multitasking system using a System Kernal for task- switching and intertask communications can be readily adapted to operate under a commercial, multi-tasking operating system.
• These operating systems provide the task switching and intertask message communications functions performed by the System Kernal.
• Adapting the CTPS multi-tasking program to a commercially available multi-tasking operating system is well within the programming capabilities of those skilled in the art.
• Each program task would be modified in a conventional manner to accommodate the specific message communication function implemented by the multi-tasking operating system.
• this manual database building technique would mean a substantial amount of labor and time required to manually key in the name and address information to find out if, in fact, that record was already in the database and was complete. If the database was incomplete, the new information would have to be manually loaded into the database.
• the present invention provides a method which may be accomplished utilizing the automatic check reader 119 in order to automatically build a database for use in a retail store marketing program.
• a customer's check is quickly scanned by the check reader 119 of the invention at the point-of-sale, or at another suitable location within the store. Due to the unique nature of the reader 119, all checks from all banks can be read and the customer identification number can be detected in any MICR location. Moreover, changes in bank transit codes and other identification changes can be automatically detected by the system so that the customer may be tracked, as previously described.
• the detected unique customer identification code is then transmitted to the host computer 110 which stores a previously stored database of unique customer identification codes. The detected unique customer identification code is then compared against the stored database.
• the system detects the occurrence of a match between information in the stored database and the detected unique customer identification code.
• a match occurs, a determination is made if all necessary predetermined identification criteria related to the detected unique customer identification is in the stored database. Specifically, a determination is made if the full address and the telephone number of the detected identification code was previously stored in the database.
• a signal is transmitted from the host processor 110 to the POS terminal 120 to provide a display that the customer record is complete and that no further data is required, or in the alternative a signal may be transmitted in only those instances when additional information is required to complete the database criteria.
• a signal is generated to the POS terminal 120 to indicate that insufficient identification criteria exists.
• the store personnel may then input the required additional identification criteria into the database.
• the additional identification criteria is then entered into the database of the host processor 110 for storage in conjunction with the unique customer identification code. This entering of additional identification criteria will normally be done “after hours” by setting aside the check in question and entering the data in a "back room” in the store.
• the system also generates information about the date and amount of the transaction, which is also stored in the database.
• the present system may continuously build an up-to-date database which contains relevant information about the frequency of the customer's transactions, the amount of the transaction, along with the current address and information.
• this database may be used for various types of targeted marketing in order to enhance the retail store's marketing.
• FIGURES 13A and B describe this aspect of the present invention, which is accomplished in conjunction with the present check reader 119 which can detect a customer account number in the MICR check code, regardless of location therein, as previously noted.
• An explanation of the features of FIGURES 13A and B are as follows:
• MICR code from the bottom of the check.
• MICR code must now be parsed for meaningful data.
• ANSI'standards specify the following field locations within MICR band:
• the check's sequence number (which matches the number on the top right hand corner of the check) must be 20 located in order to determine the customer's bank checking account number.
• CODE TABLE is maintained on disk for checks that cannot be successfully parsed.
• the index key for this table is the bank's transit number.
• each table entry includes the beginning and ending positions of the sequence number within the MICR band.
• the system will prompt the operator for the sequence number if it cannot determine its location within the On Us field, and then add the entry to the TRANSIT CODE TABLE.
• the modifications to the TRANSIT CODE TABLE and/or the TABLE may be maintained and downloaded from another computer.
• CODE TABLE is the check sequence number. This would indicate that all data in the On Us field make up the customer's bank account number.
• This ID is used as the primary key for a customer database on disk indexed by checking account ID.
• the key is passed to the processor and the database is searched by checking account ID key.
• Targeted Marketing Program It has been previously known to utilize marketing programs wherein users of a retail store's services are targeted to attempt to induce the customers to make additional purchases from the retail store. What has not before been possible, however, is to allow a retail store owner to target only non-customers. If such were possible, store owners would not waste mailing and marketing expenses on people in their targeted geographic area who had been previous customers. In other words, the retailer would be able to use his marketing dollars to attempt to entice non-customers or infrequent customers to visit the store.
• FIGURES 14A and B illustrate a software program subroutine operable to be performed in the host processor 110 in order to purge existing customers from a database.
• the system of the present invention is utilized so such that the check reader 119 automatically scans a customer's check and inputs the customer's unique identification number based upon the customer's checking account number into the system.
• the specific steps of the routine of FIGURES 14A and B are described in detail as follows:
• a file containing a complete list of residents in a predetermined geographic area is obtained from a third party.
• FIGURES 14A and B provides a method for retail store marketing which begins with the stored database of existing customers of the retail store which has been accumulated in the manner previously described.
• the database includes each customer's checking account identification number for use as a unique customer identification code, along with additional customer identification data such as home address, telephone number and the like.
• a list of prospective customers of the retail store in a predetermined geographical area is obtained through conventional sources and is stored in the host processor 110. Comparison is made of the stored database with the list of prospective customers.
• the present system generates a non-customer database which would allow the mailing of advertising material in a geographic area to customers who have not previously shopped, or who have infrequently shopped at the retail store.
• Table 5 attached hereto illustrates customer shopping frequency data which was accumulated by the present system at an actual grocery store over an eight week period in 1991. Surprisingly, it was found in this particular store that 55% of the store's customers during this period only visited the grocery store one time. Only a few percentage points of the customers visited the store over seven times during that period. Specifically, for a total number of almost 30,000 customers over the eight week period, 8,794 customers only visited the store one time, while 2,776 customers visited the store only twice. Over 20% of the store's revenue during the period was based upon a single visit by 8,794 customers.
• Table 6 illustrates an infrequent customer analysis of a different grocery store over an eight week period. This table illustrates that 24.3% of the total customer base, or 5,581 customers, averaged visiting the grocery store only 1.08 times during the eight week period.
• This shopping data which was developed using the present invention, has come as a surprise to grocery store owners. Many owners did not previously understand the large percentage of their business which was coming from infrequent shoppers. A need has thus arisen for a marketing technique to target these infrequent shoppers to encourage them to visit the grocery store more often. It will be understood that many families visit a grocery store approximately one time per week, and thus a visit of only once every eight weeks means that the store is being visited by many infrequent shoppers who are shopping at different stores. It could substantially enhance the store's revenues if these infrequent shoppers could be induced to shop more often at a particular store.
• FIGURES 15A and B illustrate a marketing program which uses the system of the present invention to detect infrequent customers such that marketing may be directed at those infrequent customers.
• the techniques shown in FIGURES 15A and B identify customers who have not shopped since a predefined target date, such as thirty days. After developing this list of infrequent shoppers, the store can then mail out direct mail enticements to the customer, such as providing them with coupons and the like if they shop at that particular store.
• Said TARGET FILE now contains a list of the store's customers who have not shopped this store since a preselected shopping date, and may be used for targeted marketing such as mailings.
• FIGURES 15A and B provides an efficient technique of building a customer database and mailing list using checks from a variety of different banks.
• a customer's checking account identification number is detected by the check reader 119 for use as a unique customer identification code.
• a unique aspect of this invention is that the present check reader can determine checking account identification numbers even if the proper spacing and symbology is not utilized.
• the system can also detect changes in bank transit numbers.
• the checking account identification number is entered into processor 110 which contain a database that maintains customer records including the customer's name and address, the checking account identification number, and customer shopping habits and transactional data over a preselected time interval. The checking account identification number is compared with the database.
• a response is generated by the processor 110 to signal the presence of the customer's checking account identification number or the failure to locate the customer's checking account identification number.
• a new record is then created in the database for that customer's checking account identification number in response to a processor 110 response indicating the failure to locate, so that the customer's name and address is entered into the record along with a shopping incidence and shopping data being recorded in the database concurrently.
• a list of customers is then generated in the database whose last transaction date is prior to a preselected interval of inactivity so that grouping or subgrouping of customers is available for marketing efforts. Alternatively, the system may use dollar amounts to determine an "infrequent shopper".
• the system determines that the cumulative dollars spent at the store by a specified customer is equal to or less than a predetermined dollar level within a predetermined time interval, the specified customer is designated as an "infrequent shopper".
• the database is maintained with the shopping history for each unique check identification. Each time the system detects a check with a unique check identification number, it is checked against the database. If the last date shopped is prior to a preselected date, a signal is generated and transmitted to the POS. The check is then marked or set aside to be used to create a mailing list. Alternatively, the signal may be used to prompt the store clerk to disburse incentive coupons at the POS.
• FIGURES 15A and B illustrated a database building technique to obtain a list of infrequent shoppers based upon their last shopping date.
• FIGURES 16A and B illustrate a database building technique to provide a list of a store's customers whose last shopping date falls within a preselected shopping date range. For example, it would be possible using the techniques shown in FIGURES 16A and B to provide a list of customers whose last shopping date falls within a period of 30 to 60 days prior.
• a customer's checking account identification number is entered as a unique customer identification code by the check reader 119.
• Host processor 110 is programmed to store a database which includes a plurality of unique customer identification codes and check cashing history of prior customers of the retail establishment, including date of check transactions. The processor then compares each newly entered unique customer identification code against the stored database. A signal is generated to indicate the presence of a complete customer information record or of an incomplete customer information record as a result of the comparison. A second database is then generated which lists customers whose last unique customer identification code entry date falls within a preselected date range. A promotion may then be selectively offered by the retail establishment to customers within the second database. For example, coupons or other enticements may be mailed directly to the customers on the second database, or distributed at the POS.
• FIGURES 16A and B are described in detail as follows:
• Said TARGET FILE now contains a list of the store's customers whose LAST SHOPPING DATE falls with a preselected shopping date range.
• the selection criteria for an "infrequent shopper" may also include a required minimum dollar amount in a preselected time range.
• FIGURES 17A and B illustrate a program flow chart of a marketing technique utilizing the present invention, wherein coupons may be distributed to customers based upon the frequency of shopping, dollar volume or other criteria based upon the shopping habits of the customer.
• retail establishments such as grocery stores, using the present invention, can now determine the importance of inducing infrequent shoppers to shop and also the maintenance of existing customers.
• the technique shown in FIGURES 17A and B enables the stores to issue coupons and other inducements to customers based upon the shopping habits of the customer.
• the technique shown in FIGURES 17A and B enables the store to reward a high volume shopper in order to hold on to especially good shoppers.
• the store can award a lesser incentive package to good shoppers in order to maintain a consistency such that each shopper receives a coupon package.
• the technique enables a high incentive coupon pack to be delivered to a'customer who is a secondary shopper or who is an infrequent shopper, in order to make them a primary shopper.
• FIGURES 17A and B A detailed description of the operation of the technique illustrated by FIGURES 17A and B utilizing the present invention is as follows:
• the store has on hand coupons to be handed out at the point-of-sale. These coupons may be arranged into varying value packages.
• Steps 2'3-34 deal with ON-LINE determination based on prior 30 days shopping VS two preselected dollar LIMITS (LIMIT 1 and LIMIT 2). 10
• Preselected criteria such as shopping volume, frequency, demographics, etc.
• Coupon offerings are set for OFF-LINE analysis.
• ON-LINE processor uses said downloaded Coupon VALUE information to flag to clerk which point-of-sale Coupon VALUE
• LIMIT 1 100.00
• LIMIT 2 350.00
• Coupon VALUE C is dispersed to customer.
• 40-46 Coupons are dispersed either with clerk manually handing indicated packet to customer or by ON-LINE processor spooling selected Coupon VALUE to a point-of-sale coupon printer, or by having the clerk mark the check with a code so that coupons may be subsequently distributed to the customer by direct mail.
• coupon rewards and other incentives may be made at the time of the point-of-sale.
• the invention contemplates at least three different ways of accomplishing a coupon reward at the point-of-sale.
• One is to utilize display 124 (FIGURE 2A) which displays information to the store employee to indicate what type of coupon or other incentive reward is to be dispensed, and the employee hands the coupons to the customer, or in the alternative the clerk/operator may mark or set aside the check for use as a source of a mailing list for distribution of incentives.
• a third technique of distributing coupons utilizes a system to actually print, at the point-of-sale, coupons bearing the desired information based upon selected criteria.
• Commercially available printers may be used for generating coupons at a point-of-sale, such as disclosed in U.S. Patent No. 4,723,212 issued on
• systems may be provided to generate coupons at the point- of-sale based upon the type of product purchase.
• a coupon relating to a particular type of a product is generated based upon a bar code reader determining that a triggering or competing product has just been purchased by the consumer.
• the same coupon dispensing apparatus described in the two aforesaid patents may be utilized to print the coupons as described in FIGURES 16A and B, but based upon the criteria and the operation of the present invention.
• the present invention looks at the history of the shopper in question and induces the shopper to return based upon preselected criteria such as has the customer purchased above a certain amount of dollars, has the customer purchased between certain amounts of dollars or less than a certain amount of dollars, or has the customer purchased over a certain amount of merchandise over a period of time, or has the customer not been at the store to shop within a predetermined time interval.
• the present system provides a more efficient distribution of point-of-sale coupons, as an alternative to the circuitous and expensive route of mailing coupons.
• FIGURES 18A, B, and C illustrate a technique for generating coupons based upon the particular transaction currently being accomplished by the customer.
• the technique of FIGURES 18A, B, and C detects the particular store departments in which the products being purchased are located. This system requires the use of the bar code scanner to detect which products are being purchased, and which departments are being shopped by the customer. For example, the technique shown in FIGURES 18A, B, and C detects whether or not items have been purchased from the meat department, dairy department or deli. Based upon data stored within the computer, the decision is then made as to whether to award a coupon and what type of coupon to award.
• the processor 110 pulls up the customer's history and generates a coupon to induce the customer to shop at the delicatessen the next time the customer shops. This inducing can be done by providing the customer with a very high value coupon used only for deli shopping.
• the stored data in processor 110 may contain information regarding particular product groups. If it is determined that the customer is a frequent shopper but does not purchase coffee, the data may determine that a coupon providing a large discount on coffee would be suitable to give to the customer. Alternatively, the system might determine that the customer had no history of buying a specific brand of coffee, and incentive coupons can be distributed for that brand of coffee. To provide this information, information regarding the particular product and the department of the product is generated by the bar code reader 123a, or through entry through the cash register, and transmitted to the host processor 110. The host processor 110 then identifies each particular product being purchased, compares it against the stored data tables and generates an indication of the type of coupon to be given to the customer.
• this indication from the host processor 110 may comprise a signal transmitted on the display 124 or the signal may be utilized to generate the actual printing of a coupon using the system similar to that shown in U.S. Patent Nos. 4,723,212 and 4,910,672.
• the present invention differs from the systems disclosed in the above-identified patents because, among other things, the present system generates coupons based upon the lack of purchase of a particular item by comparing against stored history for unique customer IDs, rather than because of the purchase of a particular item.
• FIGURES 18A, B, and C A more detailed description of the technique of FIGURES 18A, B, and C is as follows:
• Processor updates customer's record with the said scanned information of preselected criteria.
• Coupon VALUE B For customer who has been determined to be a PRIMARY shopper. This would be a lessor incentive package to primarily maintain a consistency whereby everyone receives a package.
• Steps 30-33 deals with preselected criteria analyzed OFF-LINE and downloaded to the font end computer.
• Steps 35-46 deals with 5 ON-LINE determination based on prior
• LIMIT 1 and LIMIT 2 30 days shopping VS two preselected dollar LIMITS
• VALUE information is then downloaded to the ON-LINE processor.
• ON-LINE 25 processor uses said downloaded Coupon
• Coupon VALUE B is dispersed to customer. Proceed to step 51 to determine WHICH coupons to disperse.
• Coupon VALUE C is dispersed to customer.
• Customer's database record contains fields to monitor preselected shopping activities such as purchase of particular products, product groups , departments, etc.
• Processor has determined what VALUE of coupons to be dispersed, now said database fields monitoring preselected shopping activities are used to determine which coupons in particular to disperse based upon 5 exception to previous shopping activity.
• MAX-SUB represents the number of said preselected items (products, product
• TABLES represent a table of coupons 15 that represent incentives for each said preselected item (products, product groups, departments, etc.) . TABLES are arranged in order of decreasing priority.
• VALUE as determined in steps 29-46. 74-78 If after stepping through said preselected items and the value of dispersement does not meet or exceed said VALUE as determined in steps 29- 46, an alternate table of general incentive coupons in order of decreasing priority is stepped through until said VALUE is met or exceeded.
• FIGURES 1 through 18A-C Processing and Point-of-Sale Marketing System.
• the previously described check verification system of FIGURES 1 through 18A-C has been found useful for verifying checks and providing targeted marketing as described herein.
• the second alternate embodiment to be hereinafter described provides similar functions, but enables the use of account numbers from a variety of financial payment or transaction instruments such as checks, credit cards and debit cards to be utilized as a customer identification number. Smart cards and marketing cards may also be utilized for the cash customer. This substantially enhances the breadth of uses of the present system and enables the retail store to track all customers whether or not they pay by check or not.
• the present system may thus be usable with checks, credit cards, debit cards, electronic checks (such as paperless check ACH) , electronic benefits transfer such as food stamps, cards and the like, as well as proprietary merchant issued marketing cards for charging, check cashing identification or for marketing purposes which may or may not be magnetically encoded or bar encoded, as well as a smart card containing non ⁇ volatile memory.
• proprietary merchant issued marketing cards have not been found to work well in practice for targeted marketing, but the present system may be used to accept their customer identification codes in order to enhance the universality of the present system.
• the present system provides automatically printed coupons at the point-of-sale, or alternatively, later mailed coupons, which are particularly targeted to a customer based upon his prior shopping history.
• an output might be provided to a smart card by encoding the smart card with incentives for the next visit.
• an electronic incentive could be stored in the processor for use in conjunction with the user's identification such that credit can be automatically given at the subsequent purchase times.
• the system shown in FIGURES 1 through 18A-C has described the generation of coupons for infrequent shopper incentives.
• the present system shown in FIGURES 19 through 45A-B provides techniques in order to distinguish between degrees of absenteeism, such as zero visits in a certain time period as compared to multiple visits to the store in a certain time period.
• the present system in differentiating between dollar ranges spent by a customer such that coupons may be generated per visit based upon the degree of absenteeism and the shopping price range.
• the present system may also be used to lay out future coupons such that incentives are decreased or increased in order to maintain certain required levels of spending.
• the subsequent performance of a customer is tracked by the present system to determine which coupons are redeemed or not by the customer, or to determine the customer's response to the incentive.
• the marketing program of incentives may then be changed by the system based upon that customer's subsequent performance.
• performance may be tracked by the present system at a product level, a department level or a store level.
• the present system also enables the tracking of customer buying to determine how they spend.
• the present system may be used to obtain an average which may be weighted in order to provide a base dollar spent per visit or per week on a particular product, in a particular store department, or in a particular store.
• This base may then be looked at by the present system and incremental increases may be added in order to provide a target for expected behavior.
• the system may then generate coupons or issue incentives to induce that higher level of performance by the customer.
• the performance of a customer is tracked and incentives are modified based upon the criteria of performance such that incentives are added or subtracted.
• the present system enables the tracking of products purchased by a customer. If a customer continuously buys a certain type of product, such as a certain type of coffee or a particular size of a brand of wieners, the system will track those purchases so that coupons can be printed out at the point-of-sale which relate to products which the customer has previously indicated a tendency to buy. It has been found that by storing a shopper's prior history and by generating coupons for particular products which he desires to buy, such coupons provide an increased inducement to shop more frequently or to spend more money in the store.
• a certain type of product such as a certain type of coffee or a particular size of a brand of wieners
• the system can also predict a customer's next due date to purchase a type of product. If a customer begins a pattern of buying a certain type of diapers, but the customer is an infrequent shopper or sub-par spender, this system may induce that customer to shop more often or to spend more by issuing an incentive to the customer to purchase diapers at the time which the customer's history has indicated that the customer buys diapers. By tracking the purchase cycle of various products, the system can anticipate the next purchase date in order to issue incentives prior to that anticipated purchase date, or issue other incentives if the next purchase date passes and no purchase is made.
• the system also can provide inducement coupons that can be combined. For example, coupons may be generated for a detergent for customers who buy diapers. If a customer continuously buys coffee, a coupon can be generated by the system to provide an incentive on coffee filters. If a customer tends to buy spaghetti sauce at a particular time, the system can generate a coupon to provide a coupon on spaghetti. The system thus uses a prior shopping history of the customer in order to provide the type of coupon most likely to provide an incentive.
• the system also enables the tracking of "bargain hunter" customers.
• Retail stores traditionally stock depending upon the size and amount of floor space. In grocery stores, between 30,000 and 60,000 items may be stocked at any point in time. Several hundreds of these items may be involved in some type of promotion by the manufacturer or distributors of the product, or the store.
• the present system stores a shopping history or spending history of the customer to identify whether or not the customer is a "bargain hunter" and to what degree the customer is price sensitive.
• the system might be loaded with one hundred different generic food items in the grocery store as leading indicators. For example, cola might be a leading indicator.
• the system can store the absolute number of generics purchased by a particular customer or the ratio of generics to non-generics, or alternatively the proportion of generic expenditures to total expenditures. This information enables the system to arrive at a picture of how price driven a particular customer is or how price motivated the customer is. This information is then used to determine how to best incent the customer.
• Another aspect of the system is the detecting and storing of the amount of redemption of coupons by a customer.
• Customers who are intensive with savings will clip more such coupons and redeem more coupons.
• customers who redeem such deeply discounted items may be detected to identify a "bargain shopper", such that incentives may be generated at the point-of-sale in order to enable that customer to be incented.
• the electronic cash register detects such coupons by scanning and that information is monitored by the present system so that the coupon cashing history of a customer may be stored and maintained.
• Another aspect of the present invention is the generation of a random or lottery coupon.
• the system may be programmed to reward random customers with a particular reward. For example, every repeat customer might receive a coupon for a free turkey or six-pack of drinks by the coupon printer. Alternatively, the generation of such gifts could be randomly generated in order to provide more of a lottery atmosphere to the awards. Different types of shoppers, as determined by their shopping history, might be provided with different random prizes. Alternatively, a "grab bag" coupon may be issued which covers a group of incentives, which may be accessed in a random fashion as will be subsequently described.
• the system may also be used to generate installment coupons, such that the customer does not get the ultimate prize but points toward a prize. For example, each shopping trip might result in five points given toward a prize, such that when the customer accumulates all twenty-five points he may obtain a free turkey or other food item.
• the present system normally uses ID numbers obtained from financial instruments such as checks, rather than relying solely on store produced shopping cards.
• store produced cards have been found to have substantial barriers to their use.
• Such a requirement may imply to the customer that his money is not good enough for the store; that is a strong psychological barrier to participation.
• It may also be an affront to customers when a visible system like prior card-based systems are employed that require the customer participate in the program in order to shop.
• FIGURES 19 through 45A-B illustrate various apparatus and program flow diagrams of a system which not only performs automatic payment processing of a customer's payment at the POS but also generates automatic targeted marketing to the customer at the POS, in dependance upon the customer's prior shopping history.
• FIGURE 19 illustrates a block diagram of a typical embodiment of such a system in a retail store.
• ECR Electronic Cash Register system
• AP/M and its associated peripherals which are designated generally by the numerals 963A-E.
• each of the ECRs 962A-E are applied through wires or other transmission link to a conventional ECR controller, which operates to provide conventional automatic cash register functions as are well known.
• ECRs and ECR controllers are those manufactured and sold by IBM Corporation under the Model No. 4680ECR.
• Other conventional ECRs are manufactured and sold by NCR and other companies.
• the ECR controller is linked to the CVC master controller 965 by an integration link so that transaction data is input to the controller 965. It should also be noted that the present invention could be implemented solely within an ECR based system with suitable peripherals.
• the present system also couples to the conventional ECR network through a passive listening device 964 which may, for example, comprise the passive listening device manufactured and sold by Scanning Management Incorporated.
• the passive listening device 964 allows data routed to and from the ECR controller to be detected and utilized, without affecting the operation of the ECR system.
• the output of the passive listening device 964 is indicative of the UPC data and is applied to the CVC master controller 965 which may comprise, for example, a conventional 486PC processor and associated memory or other similar equivalent types of processors.
• a CVC slave controller is illustrated as running in redundant tandem with the CVC controller 965 to provide redundancy in case of a malfunction or the like.
• the outputs of the CVC controller 965 are applied to each of the AP/M terminals and associated peripherals 963A-E as illustrated.
• controller 965 may be integrated into the ECR controller.
• the system illustrated is a system for one store. It will be appreciated that similar systems for multiple stores may be networked together such that information may be transferred between each store to provide marketing at different stores in different areas.
• the CVC controller 965 is connected via a dial-out telephone linked to other remote master controllers at other stores, which are in turn connected to various ECRs and AP/Ms at that store. In this way, not only can credit verification be accomplished between stores, but integrated credit and marketing techniques can be used to service individual customers at different stores and maintain a comprehensive listing of a customer's shopping history at multiple stores.
• the products are identified by the UPC bar code scanner, and information regarding the products and their costs are applied to the ECR controller in the known manner. This information is also received from the passive listening device 964 and is detected and stored by the CVC controller 965.
• the customer pays for the purchases at the point-of-sale (POS)
• the customer may do so in a variety of forms of payment, including without limitation cash, check, credit card, debit card, smart card, ACH (automatic clearing house) , electronic benefit system (EBS) , or other types of financial instruments.
• EBS electronic benefit system
• the advantage of using the account numbers on financial or transaction instruments is that the account numbers are preissued by companies other than the retail store, thus saving the store from the difficulty and expenses of issuing cards or identification numbers. Furthermore, all customers except those paying cash will have such preissued numbers. Further, the identification numbers can be automatically read during the payment cycle, thus saving time and facilitating targeted marketing during the sales procedure.
• Each of the present AP/M terminals 963A-E and their associated readers can detect the identity of the customer by means of the account or identification code associated with the customer, such as by the checking account number as previously discussed with respect to the first embodiment of this invention.
• a customer's account or identification number may comprise the credit card number associated with a credit card, a smart card number, a debit card number or the like.
• a shopping card number or the like can be automatically read by one of the readers or can be manually input by the clerk at the AP/M keypad.
• Data relating to the customer's unique identification code is applied from the individual AP/M 963A-E to the CVC controller 965, where it is associated with a database storage of the particular customer's past shopping history.
• the identification code is also used to provide credit verification. For checks, the verification procedure previously described in this application may be provided. In the case of credit cards, or the like, the credit card number may be checked against a periodically refreshed database in the controller 965, or the credit card number may be checked against a remote database in the known manner.
• the CVC controller 965 In dependence upon the credit check and the shopping history, as previously defined in this application and as will be subsequently described in greater detail with respect to this embodiment, the CVC controller 965 generates signals which are applied through the AP/M terminal to provide credit verification on the AP/M display and also to cause a high-speed printer at each point-of-sale location to print out a series of inducement coupons particularly designed to target that particular customer based upon the customer's prior shopping history.
• electronic inducements may also be provided in lieu of the printed coupons, such as by the way of automatic discount of the customer's bill or by automatic discount of a future bill.
• the present system thus enables a store to provide credit verification as well as to maintain accurate information regarding the shopping habits of its individual customers and to target marketing to those customers based upon the customer's individual shopping history.
• the present technique thus allows the targeting and incentive marketing of infrequent shoppers, as previously described and as will be described in subsequent detail.
• FIGURE 20 shows in greater detail a typical ECR point-of-sale system which includes a UPC bar code scanner 966 which automatically scans the UPC affixed to each product purchased at the point-of-sale.
• This scanner is conventional and generates electronic signals indicative of the UPC such that the identity of the particular product, the department from which the product was sold and the price of the product can be associated therewith and stored by the ECR controller.
• the system further includes an electronic cash register of the type previously disclosed which includes one or more key pads 967 to enable the entry of items and other information by the clerk and to facilitate the processing of the customer's purchases.
• the electronic cash register also includes a display 968 which provides information regarding the price and description of the products being read by the UPC bar code scanner 966 to provide other desired information to the customer.
• the ECR includes a receipt printer 969 which generates a written receipt provided to the customer to indicate the amount of his purchases.
• FIGURE 21 illustrates in greater detail the elements of a typical AP/M terminal and its associated peripherals as shown in FIGURE 19. Details of the AP/M terminal 970 will be provided in greater schematic, in FIGURE 39 hereinafter described. As previously indicated, a plurality of financial instrument readers are coupled to the AP/M 970, including an impact receipt printer 971, a debit card magnetic stripe reader with a PIN pad 972, a smart card reader 973, a credit card magnetic stripe 974 and a MICR code check reader 975 as previously described in FIGURE 2B. It should be understood that the system shown in FIGURE 21 is intended to include all possible types of automatic reading of financial instruments, but also that it is not necessary in some embodiments to have all of the peripherals.
• certain retail stores may find that the majority of their purchases are by cash or by check; thus, the remainder of the readers might be omitted.
• the check reader 975 and other readers might be omitted or added as needed.
• a high-speed point- of-sale coupon printer 976 which may comprise, for example, a conventional thermal coupon printer such as sold by Epson Corporation (model #T80 printer) .
• the AP/M 970 also includes a visual display, such as a LCD display or the like. The display generates prompts to the clerk to assist in operation of the system, as well as providing credit verification and other functions.
• the keypad on the AP/M 970 enables the clerk to input customer identification data and the like into the system.
• a PIN pad 972-A is associated with reader 972 in order to enable the customer's PIN number to be entered by the customer, if necessary or desired. Although, the PIN pad 972-A is shown with its data path going through the reader 972, in many instances, the PIN pad 972-A output would go directly to the AP/M 970.
• the CVC controller 965 would indicate on the display of the AP/M 970 that sufficient funds are available in the account indicated on the debit card.
• the CVC controller 965 would operate through a conventional dial-up credit verification system to obtain the credit verification and debit card information for authorizing the debit card transaction. Information regarding the unique customer identification and the transaction would then be stored in the database of the CVC controller 965 such that the targeted marketing of the system could be accomplished by printing desired coupons at the printer 976.
• different coupons are printed in response to the prior shopping history of the customer in order to induce customers using different techniques based upon their prior shopping history.
• the impact receipt printer 971 would then generate a receipt or other indication of the purchase. In some instances, the receipt printer 971 will not be necessary due to the presence of the printer 969 shown in FIGURE 20, which can be used to print the coupons and the receipts.
• the customer provides a smart card for payment of the purchases just made, the smart card would be swiped through the smart card reader 973 and the particular account code associated with the smart card would be detected by the CVC controller 965 and compared against the database. If the system detects the account code and the customer is a recognized customer, then the purchases of the customer are stored in the CVC controller database and, in dependence upon the customer's prior shopping history, coupons are generated by the printer 976 in order to induce that customer.
• the customer presenting the smart card might make the payment in cash or by debit card, credit card or check and those transactions would be processed as hereafter described.
• the credit card is swiped through the reader 974 and the credit card number is used by the CVC controller to identify the customer for accessing the customer's database.
• the clerk at the point-of-sale would then enter in the transaction volume through the keyboard of the AP/M 970.
• the CVC controller 965 would provide credit authorization by use of a conventional dollar verification technique and would provide an identification of the verification of the credit card via the display in the AP/M 970.
• the amount of purchase information and the items purchased would be received by the CVC controller 965 from the ECR system through the passive listening device 964.
• the check is swiped through the MICR reader 975 and the MICR code is read and detected as previously described in prior figures and descriptions.
• the check can then be authorized by the display on the AP/M terminal 970 and the MICR code banking account number is used to identify the individual customer to enable the providing of unique marketing incentives by printing out unique coupons at the printer 976.
• FIGURES 22-38 comprise program flow diagrams illustrating the operation of the system shown in FIGURE 19-21 to perform a wide variety of targeted'marketing functions, as well as credit verification.
• FIGURE 22 illustrates a series of steps to scan the individual products purchased by a customer in order to provide such information to the ECR controller and to the CVC master controller 965.
• the steps include:
• BCTT Load Bar Code Tracking Table
• UPCs Universal Product Codes
• Incentive level from 1 to 10 prioritizing store's inclination to use product as an incentive.
• a profile level from 1 to 10 that would be used to indicate the economical level of the product or coupon redemption. These levels are used to build an economic profile on an account based on historical purchases.
• 15 device 964 detects the product UPC code and the ECR from which it was sent.
• Controller 965 checks for UPC in the
• Controller 965 updates coupon database to reflect redemption of coupon.
• Controller 965 has a holding workspace for each ECR where any products scanned that contain matches in the BCTT may be written and held until the Customer's account number is entered.
• FIGURES 23A, B, and C illustrate the various operations of the system for accepting payments with different types instruments by use of the various readers Of FIGURE 21.
• ECR 962 now sends the total for this purchase to the AP/M. If the AP/M 963 and ECR are not integrated, the clerk enters the total by hand.
• Controller parses the MICR removing the sequence number to form an account number.
• Controller verifies the check's account number against stored positive and negative databases.
• the credit card is swiped in the magnetic card swipe which reads the account number and sends it to the AP/M 963.
• 22 AP/M 963 sends the account number to the controller 965.
• Controller 965 initiates a phone call via modem to a payments processing ⁇ switch.
• the credit card account number and amount to tender are sent for verification.
• Controller 965 sends result verification to the AP/M 963 for display to the clerk.
• 25 A receipt is printed out on the receipt printer, ECR printer, or coupon printer 976.
• Debit card is swiped in a magnetic card swipe which reads the account number and sends to the AP/M 963.
• a message is sent to the PIN pad for the customer to enter their PIN number. Customer enters PIN and it is sent to AP/M 963.
• 29 AP/M 963 sends account number and PIN to controller.
• Controller 965 initiates phone call via modem to a payments processing switch.
• the customer's debit card bank number, PIN, amount, and store's bank account number for transfer of funds are sent to the switch for processing.
• Controller 965 sends the completion status to the AP/M for display to clerk.
• ACH Automatic Clearing House
• a message is sent to the PIN pad for the customer to enter their PIN number. Customer enters PIN and it is sent to AP/M.
• Controller initiates phone call via modem to a payments processing switch.
• the customer's ACH card bank number, customer bank account number, PIN, amount, and store's bank account number for transfer of funds are sent to the switch for processing.
• Controller sends the completion status to the AP/M for display to clerk.
• Receipt is printed on receipt printer, ECR printer, or coupon printer.
• EBS Electronic Benefits
• EBS card is swiped in a magnetic card swipe which reads the account number and sends to the AP/M 963.
• a message is sent to the PIN pad for the customer to enter their PIN number. Customer enters PIN and it is sent to AP/M.
• 43 AP/M 963 sends account 'number and PIN to controller.
• Controller initiates phone call via modem to a payments processing switch.
• the customer's EBS card account number, PIN, and amount are sent to the switch for processing.
• Controller sends the completion status to the AP/M for display to clerk.
• Receipt is printed on receipt printer, ECR printer, or coupon printer 976.
• FIGURE 24 is a flow chart of the taking of a shopping card which has been previously distributed by the retail store to the customers.
• these types of cards are presented only after obtaining substantial financial and other history of the customer which may then input into the database of the CVR controller 965.
• Such cards are a useful adjunct in that they may continue in use so that cash paying shoppers are not otherwise excluded from participation in marketing promotions distributed by this system.
• Each of the cards is provided with a unique number which is used to identify the customers in place of the customer checking account, bank account number or credit card number or the like.
• This flow chart illustrates the reading of the various types of shopping cards, including magnetic stripe and/or smart cards.
• the system provides for manual input of the customer identification numbers through the key pad on the AP/M and also envisions the use of a shopping card which may be scanned by the UPC code scanner.
• Swipe shopping card in magnetic card swipe which reads the account number and sends it to the AP/M.
• Smart card contains a computer chip that can be read and written to.
• Passive device reads UPC code and source ECR from ECR network.
• FIGURE 25 illustrates the storage and access of account records for " a network of the marketing systems and illustrates accessing the customer's account in the primary database of the CVC controller 965, as well accessing of data in the secondary database.
• the first database includes the customer's actual visits to the particular store.
• the secondary database comprises visits by the customer to the other stores interconnected with the system as shown in FIGURE 19. As previously described in FIGURE 19, each store may be connected via a dial-out telephone line with other remotely located CVC master controllers at other stores.
• the flow chart of FIGURE 25 illustrates how data may be shared between the stores in order to both verify payments by customers, but also to provide target marketing of customers in a group of stores. The steps include:
• GOTO 122 63 Clerk enters phone number into AP/M which is sent to the controller. Controller builds a CASH account key based on phone number and accesses
• a customer database resides on the mass storage device of the CVC controller. This database is keyed
• Controller searches customer database 15 for account's record.
• a secondary database resides on the mass storage device of the CVC controller. This database contains
• Controller searches secondary database for account's record.
• the controller maintains for each account number a list of items (ITEM LIST) that the customer has purchased from the BCTT.
• This ITEM LIST retains information such as:
• Total purchases - Last purchase information including date and quantity.
• a running purchase frequency reflecting the average days between each purchase.
• FIGURE 26 illustrates the building of a marketing record based upon multiple accounts in a single household. As is known, often a wife and a husband will have individual checking accounts and those checking accounts will be detected and indicate individual shoppers. However, it has been found advantageous to be able to coordinate all the shoppers in a household so that target marketing can be directed toward a household rather than to individual people living within that household.
• the steps include:
• Any number of accounts may be combined for a single household if a link exists.
• a telephone number is often on personal checks, may be required on credit and debit card transactions, or may be volunteered by the customer. The phone number is used in this process to provide a link.
• GOTO 82 If phone number is NOT obtained, other accounts from customer's household cannot be merged.
• a phone number has been used to build a secondary key index so that all records with the same phone number may be accessed very quickly. These records will be combined to form a single marketing record.
• FIGURE 27 illustrates the method of tracking infrequent shoppers such that a Coupon "A” may be generated by the high-speed point-of-sale printer 976.
• Coupon “A” is defined as “coupons to incent what has been determined to be an infrequent shopper, that is a shopper who fails to meet predetermined shopping criteria". For example, criteria may be set of a predetermined number of shopping visits in a predetermined time. If the customer fails to meet the required number of shopping visits, he/she is determined to be an infrequent shopper and Coupon “A” may be used to incent that shopper. As will be subsequently described, Coupon “A” provides greater coupon incentives than are provided to customers who are more frequent shoppers.
• an infrequent shopper has been herein described as a customer failing to meet previous shopping criteria, the infrequent shopper may also be defined as a customer meeting predetermined infrequent shopping criteria, that is by not having visited a store in a predetermined time in a predetermined time interval.
• the flow chart in FIGURE 27 also illustrates the generation of Super "A" Coupons to an infrequent shopper who has been previously targeted for marketing but has failed to respond. The steps include:
• Coupon "A” (for Absence) is used by the system to identify shoppers that are determined to be infrequent. Each store tailors and stores a definition of the infrequent shopper and a program to incent them which is stored on-line as follows:
• Coupons to be used for incenting the infrequent shopper are Coupons to be used for incenting the infrequent shopper.
• Coupon "A” status and level For example, the customer above attending 0 weeks in
• the last 8 weeks may be identified as an "Al” while the customer attending 3 weeks in the last 8 weeks may be identified as an "A4".
• Each Coupon "A” level of coupons is stored in a series based on 1 to 32 shopping trips. For example, the first trip that the "Al" level of infrequent shopper is identified may
• Subsequent trips #2, #3, and #4 may produce 6 coupons valued at $25.00. Subsequent trips #5 thru #10 may produce 4 coupons valued at $20.00, etc. 5
• Each account record holds fields for tracking coupon programs. These fields include:
• FIGURE 28 illustrates the detecting techniques used to identify an infrequent shopper for placing that customer on an infrequent incentive program such that Coupon "A"s are generated.
• the steps include:
• GOTO 106 If the number of weeks attending does not fall below the preset criteria, GOTO 106.
• the method to determine incentive level is based on the number of weekly attendances: Access preset criteria for assigning an incentive level based on attendance. For example, the criteria may assign level 1 for 0 weeks attended in the prior 8 weeks, level 2 for 1 weeks attended in the prior 8 weeks, level 3 for 2 weeks attended in the prior 8 weeks, etc.
• Access preset criteria for assigning an incentive level based on average expenditures may assign level 1 for an account with an average purchase of $100 or more, level 2 for an average purchase between $75 and $100, level 3 for an average purchase between $50 and $75, etc.
• FIGURE 29 illustrates a method for increasing a customer's average purchases, based upon the database built and maintained by the CVC controller 965. As will be subsequently described, this technique illustrates a progressive generation of coupons in order to incent customers to increase the amount of their purchases. Step Description
• Coupon “M” (for Maximize) is used by the system to track average expenditures and maintain a program for increasing customers' average purchases. Each store tailors criteria for increasing average purchases which are stored on-line as follows:
• 15 contains a minimum target value in order to trigger spooling.
• Customer A has an average base of $40.
• the first Coupon “M” incentive holds a minimum target value of $50. This coupon is NOT spooled.
• each account record holds fields for tracking coupon programs for Coupon 20 "M”. These fields include:
• Coupon "M” base The base average arrived at when the program was initiated. 25
• GOTO 122 If base average is greater than preset ceiling criteria, GOTO 122.
• Coupon "M” program trip counter. If number of trips in Coupon “M” program is greater than or equal to preset criteria determining number of trips before testing results:
• GOTO 122 If average is greater than target value, objective has been achieved.
• EXAMPLE Customer makes a purchase. History shows this customer has made 11 purchases including this purchase.
• the preset criteria for minimum trips required to qualify for Coupon "M” is set to 10, so this customer now qualifies. Assume the average of these 11 purchases is $25. This is stored in the record as the base.
• the preset criteria for maximum base ceiling for Coupon “M” for this example is $50. This means any account with an average purchase of
• Coupon "M” tracking counters are set to zero and the program begins. Assume the preset percentage increase is 20%. A target is arrived at by adding 20% of the base to the base — in this case $25 + $5 or a $30 target. Coupons are spooled with a minimum purchase qualifier of $30 as described previously.
• Coupon "M” program would be complete. If the average was still $25, and preset criteria to determine Super “M” specified that more than 50% of target increase should be achieved
• FIGURE 30 illustrates a flow chart for the building of a coupon list to determine the types of coupons to be printed for disbursal in dependence upon various criteria, such as dollar ranges of prior shopping and other aspects of prior shopping history.
• Coupons are stored and accessed based on type: Standard - these are coupons that everyone gets regardless of shopping history, special coupon programs, dollar range, etc. These are usually 5 the weekly specials found in the store's other advertisement, coupons from other merchants, and "billboard” coupons that simply inform. This standard series ensures that EVERYONE 10 receives something.
• Coupon “B” thru Coupon “E” - these are coupon classes based on preset spending ranges.
• FIGURE 31 illustrates the building of additional coupon lists to allow the distribution of various coupons such as Coupon “A”, Super “A”, Coupon “M”, “Super “M” and the like:

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• 1994
  • 1994-07-21 EP EP05019799A patent/EP1653324A3/de not_active Withdrawn
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  • 1994-07-21 AU AU74022/94A patent/AU7402294A/en not_active Abandoned
  • 1994-07-21 EP EP95906202A patent/EP0711434A4/de not_active Ceased

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