NZ739055B2 - Electronic cheque-based payment system and methods for issuing, transferring, paying and verifying electronic checks - Google Patents
Electronic cheque-based payment system and methods for issuing, transferring, paying and verifying electronic checks Download PDFInfo
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- NZ739055B2 NZ739055B2 NZ739055A NZ73905512A NZ739055B2 NZ 739055 B2 NZ739055 B2 NZ 739055B2 NZ 739055 A NZ739055 A NZ 739055A NZ 73905512 A NZ73905512 A NZ 73905512A NZ 739055 B2 NZ739055 B2 NZ 739055B2
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Abstract
method for securely processing data for electronic check transfers in an electronic check settlement system comprising a server computer device connected to a client computer device. The server computer device is connected to the client computer device via at least an Internet network. The server computer device and the client computer device each comprise an encryption module for secure communication over the Internet network. The server computer device verifies electronic check parameters, registers a request for execution of the electronic check transfer and processes plurality of checks based on the electronic check parameters. computer device and the client computer device each comprise an encryption module for secure communication over the Internet network. The server computer device verifies electronic check parameters, registers a request for execution of the electronic check transfer and processes plurality of checks based on the electronic check parameters.
Description
ELECTRONIC CHECK-BASED PAYMENT SYSTEM AND
METHODS FOR ISSUING, TRANSFERRING, PAYING AND
VERIFYING ELECTRONIC CHECKS
Field of the Invention
The invention relates to the sphere of information technologies, in particular, to
electronic systems and monetary fund circulation methods and can be used for solving
problems of mutual settlements between participants of the electronic payment system in
real-time mode. In doing so, the analogue of monetary funds in the invention in question
are electronic bank bearer checks complying with bank regulations and the requirements
of applicable legislation.
Background of the Invention
Electronic payment systems that use electronic checks for solving mutual
settlement problems are well-known. In particular, the CyberCheck system, which uses
electronic checks as a means of payment for goods and services has become
commonplace. In this system, a check is only used for the execution of payment
operations and is only generated after its signing by the users, which does not ensure the
full scope of monetary fund circulation, considerably narrows settlement system
capabilities and creates prerequisites for issuing uncovered checks.
Also familiar is the NetChex system, which is a conditionally electronic payment
system. In this system, the customer’s order to issue a check is only received in electronic
form, and the check is to be sent to the supplier of services/goods in paper form, which
also narrows settlement system capabilities and significantly complicates the check
circulation process.
The use of Paymer digital checks for settlement purposes is also well-known. In
the implementation of this system, information about checks upon their circulation is
stored in documented form in hard copy, and the execution of transactions by means of
checks between system users is possible both in electronic form and in hard copy. At that,
checks are not referenced to a particular owner, whereby the problem of “joint possession”
of a check arises. It is evident that this system does not permit excluding risks in
implementing electronic mutual settlements and does not ensure the transparency of all
electronic check processing operations.
Summary of the Invention
The goal of this invention is to provide an electronic monetary system supporting
electronic mutual settlements between its participants in real-time mode with the use of
electronic analogues of bank checks, providing its participants with a high level of
security and the possibility of obtaining a full, legally-valid documentary database on all
transactions executed by the participants in the system.
The technical result to be achieved by the invention involves the creation of a
multifunctional electronic check circulation system as well as the security enhancement of
mutual settlements with the use of electronic checks ensured by both engineering means
and methods of electronic check record-keeping, verification of the authenticity of
electronic checks and the authentication of system participants, and by ensuring a full
cycle of electronic check circulation including methods of the issue and payment of
electronic checks and the execution of electronic check transfers.
For achievement of the aforementioned technical result, an electronic check
settlement system is used containing at least one server computer device for data-handling
and storage, including a server application, and at least one client computer device for
data-handling, including firmware client modules ensuring the possibility of connection of
the client computer device to the server device over Internet network communication
channels and the protection of communication channels by firmware means of server and
client modules with the use of encryption and electronic digital signature. In doing so, the
electronic settlement system for electronic checks in question differs from the prototype in
that the client and server applications contain at least interconnected units of user
authorization in the system being interconnected, a unit for the updating and
synchronization of client and server application data, as well as a parameter-input unit for
the execution of transfers and storage of information about client-application payments
related by firmware with units for verification of the parameters of electronic check
transfers connected to the unit of authorization and verification of user parameters and a
unit for the registration and execution of server-application electronic check transfers
connected by feedback channels to units for electronic check management, check
depositing, commissions, and the sending of notices to the user in real-time mode
connected to a unit for the updating and synchronization of client-application data, as well
as the inclusion of an electronic-signature unit in the composition of the client application,
which is connected by firmware to the unit for the generation and storage of digital
documentation of the server application connected to the unit for the registration and
execution of electronic check transfers; at that, the electronic check management unit of
the server application is connected by firmware over the feedback channels to
interconnected units for the registration of electronic check transactions connected to the
electronic check signature unit.
In doing so, the client application units are grouped into modules by categories
corresponding to the user status determined by the authorization unit of the client and
server applications, with provision of the possibility for pre-setting a group of check
circulation parameters for each category.
In particular, the system provides three categories of users – the initial category
with a minimum set of check circulation parameters (in operating mode, when the transfer
of electronic checks in the standard user category as well as those of the bank are
performed via a dealer (broker) – the initial category is used exclusively for registration
and the sending of an application for changing status (user category)); the standard
category – requiring the presentation of additional data on the participant and enabling the
participant to present checks for payment to the bank and select a paying bank for its
checks; and the extended category – having the widest set of functional capabilities,
intended for the operation of the Issuer, Partner-Banks and Dealers (Brokers) of the
system, with provision of the possibility of generating an additional set of check
circulation parameters for each category. In doing so, in order to take part in the system as
a legal entity, the customer shall be assigned to the standard or extended category, which
can only be obtained in the course of completing the corresponding status change
procedure, which guarantees the execution of all of the organization’s necessary checks.
The technical result is also achieved by the fact that methods are proposed for the
payment, issue, transfer and verification of electronic checks with the use of the
aforementioned payment system.
In doing so, the method for implementing electronic check transfers, including the
stage of user-data input and its authorization in the system as well as the input of transfer
data differs in that it allows check transfer in real-time mode in accordance with the
limitations presented in the electronic check record-keeping method and includes the
following stages: authorization in the System; receipt of account data; input of electronic
check transfer parameters; verification of electronic check parameters; registration of
requests for the implementation of electronic check transfer; transactions involving the
sender’s check exchange into several checks (transfer check, commission check, new
balance check), including the presentation of checks for payment, the payment and issue
of new checks; the placement of electronic check commissions in the Operator’s account
or in system operation mode when transferring electronic checks of the standard user
category as well as those of the bank via a dealer (broker) – to the Dealer’s (Broker’s)
account; placing the electronic check in the Payee’s account; transactions involving the
payee’s exchange of checks into a single check (in cases where the payee has a balance in
its account), including the presentation of checks for payment; finalization of transfer to
be accompanied by the creation and signature of electronic documents, and participant
notification of transfer execution. This method for implementing electronic check transfers
is accompanied by the creation of all of the necessary legally-valid documents, with all
completed actions reflected in the check register.
The method for the issue of electronic checks provided by the invention only
allows for the issuance of electronic checks following the completion of mandatory stages
by several user categories. The method of issue includes mandatory stages of the
generation of a check-issue request by the issuer, as well as the bank’s verification of
money depositing in the issuer’s settlement account (security for the issued check),
conformity with request parameters and the bank’s confirmation of electronic check
issuance. Independent issue by a single participant is not possible. Issuance is
accompanied by the creation of legally-valid documents and the reflection of transactions
in the check register.
The method of electronic check payment also includes several stages and requires
the obligatory participation of several user categories. The method includes the stages of
the customer’s sending an application to the bank for payment of the check; the bank’s
verification of the details specified in the application and the possibility of check payment;
the bank’s transfer of the invoice to the customer for placing the check; transfer of the
check to be presented for payment to the bank by the customer, by means of payment of
the issued invoice; the bank’s sending of a request to the issuer for verification of the
check; the issuer’s verification of the check presented for payment; the issuer’s
confirmation of the request by sending a verification notice; and the implementation of
check payment.
Brief Description of the Drawing
Fig. 1 Schematic diagram of the System, which uses methods relating to the
invention.
Fig. 2 Main units comprising the client application.
Fig. 3 Main units comprising the server application.
Fig. 4 Diagram of main client application DB sections.
Fig. 5 Diagram of main server application DB sections.
Fig. 6 Diagram of unit interaction in implementing electronic check transfers.
Fig. 7 Flow chart of the operating algorithm of the client K5 unit for parameter
input and the implementation of transfers.
Fig. 8 Flow chart of the procedure for the execution of operations of the server S5
unit for registration and the implementation of electronic check transfers.
Fig. 9 Flow chart of the procedure for the exchange (combination) of electronic
checks of the server S7 unit for electronic check management.
Fig. 10 Diagram of unit interaction in implementing the electronic check issue
procedure.
Fig. 11 Diagram of unit interaction in implementing the electronic check payment
procedure.
Fig. 12 Diagram of unit interaction in implementing the electronic check
verification procedure.
The following designations are used in the aforementioned illustrative diagrams:
K1 – client unit for registration in the system (KB R)
K2 – client unit for authorization in the system (KB A)
K3 – client unit for data update, synchronisation of the client and server
application DBs (KB ODS)
K4 – client unit for interaction with the server (KB VS)
K5 – client unit for parameter input, implementation of transfers (KB VDVP)
K6 – client unit for data input, sending of invoices for placing checks in an account
(KB VDOS)
K7 – client unit for data input, sending of applications for the purchase, sale of
electronic checks (KB OZPPECh)
K8 – client unit for data input, sending of applications for the payment of
electronic checks (KB OZOECh)
K9 – client unit for the processing of received electronic check transfers (KB
OPPECh)
K10 – client unit for the processing of invoices received for placing checks in an
account (KB OPSZCh)
K11 – client unit for the electronic signature of digital documentation (KB TsP)
K11 (Issuer) – client unit for data input, sending of requests for the issue of
electronic checks (KBE OZVECh)
K12 (Issuer) – client unit for the processing of requests received for the
verification of electronic checks (KBE OPZVFECh)
K13 (Bank) – client unit for the processing of requests received for the issue of
electronic checks (KBB OPZVECh)
K14 (Bank) – client unit for the processing of applications received for the
payment of electronic checks (KBB OPZOECh)
K15 (Bank) – client unit for data input, sending of requests for the verification of
electronic checks (KBB VDOZVFECh)
K16 (Issuer) – client unit for the processing of applications received for the
purchase of electronic checks (KBE OPZPECh)
K16 (Dealer) – client unit for the processing of applications received for the
purchase of electronic checks (KBE OPZPECh)
K17 (Dealer) – client unit for the processing of applications received for the sale of
electronic checks (KBD OPZPrECh)
S1 – server unit for the registration, management of user accounts (SB RUUZP)
S2 – server unit for the authorization and verification of user parameters (SB
APPP)
S3 – server unit for data update, synchronization of the client and server
application DBs (SB ODS)
S4 – server unit for the verification of electronic check transfer parameters (SB
PPPECh)
S5 – server unit for the registration and implementation of electronic check
transfers (SB RVPECh)
S5 – server unit for user account management (SB UUSP)
S6 – server unit for the registration of applications, requests, invoices for placing
checks in an account (SB RZZSZECh)
S7 – server unit for electronic check management (SB UECh)
S8 – server unit for the registration of electronic check transactions in the register
(SB ROEChR)
S9 – server unit for the generation of digital documentation (SB GTsD)
S10 – server unit for the sending of online notices (SB OOU)
S11 – server unit for the issue of electronic checks (SB VECh)
S12 – server unit for the signature of electronic checks (SB PECh)
S13 – server unit for the processing and execution of applications, requests (SB
OIZZ)
S14 – server unit for the write-off of electronic checks (SB SECh)
Detailed Description of the Embodiments
This invention is aimed at providing an electronic check settlement system (a
“System”) between organizations and/or individuals in real-time mode. Technically,
implementation of this System can involve at least one server computer device for data
processing and storage, the server application comprising it and client computer devices
for data processing with the client applications comprising them, which provide for
interaction between the client computer devices and the server computer device. The
interaction of client computer devices with the server is carried out using the Internet
network over protected communication channels. The protection of communication
channels is provided by means of server and client applications with the use of encryption
and electronic digital signature algorithms.
The methods provided herein are expressed in the corresponding operating
algorithms of the server and client computer devices. The conformity of the operation of
the devices to the given algorithms is ensured by execution of the sequence of program
instructions provided in the server and client applications. The architecture of the server
device or set of devices shall be based on the use of one or several computers combined by
a local area network and shall at least include the following modules: a database
management system (DBMS), a web server (module providing for interaction with client
applications via the Internet), an application server (module implementing main
application logic and ensuring interaction with the DBMS), and a module of online
messages (providing instant information to users about events within the System).
Client device architecture can be based on the following possible solutions of the
client application: a separate client application with its own user interface (to be described
hereinafter); a client application in the form of a module built into a standard tool for
viewing Internet network resources (a web browser) with its own user interface to be
reflected in the web browser (with the same units and interaction patterns as described
hereinafter); in thin-client form based on the web browser, with the transfer of units for
data processing and user interface generation to the server. In thin-client mode, only data
input in the web browser user interface, electronic signature of digital documentation, data
encryption, data transfer to the server, data reception from the server, decryption, and
output to the web browser user interface are processed on the client device. In doing so, in
case of implementation of the client application in the form of a built-in module or thin
client, the client device and the entire System as a whole have equal functional capabilities
with the System in case of using a client device based on a separate client application with
its own interface.
The System described above does not restrict any possible implementations of this
invention.
The structure of the client and server application in the form of functional units is
given in Fig. 2 and 3. In the System implementation under consideration, the client
application has several operating modes, which are determined by the status of the user
that has authorized in the System. Additional units are allocated in the form the Issuer,
Bank, Dealer (Broker). The remaining units can be accessible in any operating modes
(possible restrictions are determined by the peculiarities of specific System
implementation). Implementations are possible in which there is more than one client
application, in each of which the corresponding set of units is accessible.
Participant categories
It is assumed that there are three main statuses of Participants in the System.
In doing so, the Participants shall be users (legal entities or individuals), with information
about them presented in electronic form in the System database carrying out interaction
with the System using client computer devices. The status causes a set of rights to be
granted to the Participant whereby it obtains the possibility of execution of certain
algorithms in the System and acquires access to a certain volume of information available
in the System.
The initial status is the Participant level, which is limited as to the set of
possibilities within the System, and does not require the provision of documents for
confirmation of the information entered by the user upon registration. At the initial level,
registration is only possible as an individual. A legal entity can only be registered in the
System in case of transfer from initial level to standard level. In doing so, in system
operating mode, when the transfer of the electronic checks of users with standard status as
well as those of the bank is performed via a dealer (broker), the initial category is used
solely for the registration and sending of a status request for change of status (user
category).
Standard status is the level designed for authorized Participants of the system,
whether individuals or legal entities. In order to obtain this status, the Participant is
obliged to provide additional information about itself and a number of documents for its
confirmation. This status enables the Participant to present checks to the Bank for
payment and select the paying bank for its checks.
Extended status is the level designed for the operation of the Issuer, Partner-Banks
and Dealers (Brokers) of the System.
In order to ensure operability of the methods presented in the invention, the
following Participants shall be obligatorily registered in the System:
Issuer – the organization on whose behalf the issue of electronic checks is
performed;
Operator – the owner of rights to the System ensuring its functioning;
at least one Bank – a partner-bank, in which the monetary funds serving as the
security for issued checks are placed in the Issuer’s settlement account;
at least one Dealer (Broker) – a legal entity that executes electronic check
purchase-and-sale transactions with the Participants on a permanent basis as well
as the purchase of checks from the Issuer.
The Participants registered as the Bank, Dealer (Broker) can also act as customers
and use standard system functionality.
An approximate diagram of a similar System is given in Fig. 1.
In order to acquire the corresponding status and obtain the possibility of working in
the System, the Participant shall complete registration, which, depending upon the status
requested, consists of a different number of stages. The first stage of registration in the
System is performed by means of client application and includes the input of the
participant’s personal data, setup of safety parameters, familiarization with the offer
agreement, and generation of electronic keys for EHS (equivalent handwritten signature).
As a result of the first stage of registration, the Participant is assigned a unique registration
number – a public key designed for EHS verification is registered with its name in the
System server, and the Participant’s data are recorded in the System database.
As a result of the first stage of registration, the user is assigned Initial status. In
order to obtain Standard or Extended status, the Participant shall, via the System, generate
an electronic application, in which it shall specify the category (individual/legal person)
and enter all of the information requested. For confirmation of the entered information, the
Participant shall provide duly-certified copies of documents. Only after successful
completion of the document verification stage and, if necessary, entering into additional
agreements (for the Bank, Dealer (Broker), Issuer), the Participant will be issued the
requested status and provided with the corresponding set of rights within the System.
Participants with any status in the System can open an unlimited number of
accounts expressed in the currency types supported by the System. Participants with a
status greater than initial have the possibility of selecting the bank to serve as the paying
bank for the check, whose nominal value is equal to the account balance. Upon the
opening of an account, it will be assigned a unique number in the System, according to
which the identification of the Participant can be performed unambiguously.
Electronic checks
The equivalent of monetary funds in the System is electronic checks. An electronic
check is a bearer check in non-documentary form and contains the following obligatory
details:
check number – unique identifier of the check;
description of the "check" included in the document text and expressed in the
language of the country in which the document has been drawn up;
requirement to pay a certain amount (nominal value of the check);
name of the paying bank;
indication of the account from which payment shall be executed;
indication of payment currency;
indication of the date and place of check execution;
Issuer’s (check drawer’s) signature.
A non-documentary form of checks shall be considered lawful and checks drawn
up in such form deemed a valid payment instrument in accordance with the Bank of
Russia Regulation “On Cashless Settlements in the Russian Federation,” which predicates
the peculiarities of the electronic check processing methods described below.
The electronic check is presented in the form of a DB record. Electronic check
signature is presented in the form of EHS (equivalent handwritten signature) obtained as a
result of the cryptographic conversion of check details using the Issuer’s closed key and
ensures electronic check protection against forgery while allowing identification of the
check drawer and determination of the absence of information distortion in electronic
checks.
The record-keeping of electronic checks is performed in Participants’ accounts.
Upon completion of check exchange operations, only one check, whose nominal value is
the balance in the account, can be referenced to one standard customer’s account in the
System. For the purposes of the record-keeping of checks presented to the bank for
payment, specialized accounts are used, in which several electronic checks can be placed
simultaneously.
Electronic checks are characterized by the following states:
The check is in circulation – a valid check is at the disposal of one of the
system Participants;
The check has been submitted for payment (to the paying bank);
The check has been submitted for payment via collection;
The check has been paid.
A change in the state of the electronic check or change in the check owner can
occur as a result of certain operations such as check issue, check transfer, check
submission for payment, check submission for payment via collection, check payment, or
collection of payment. All electronic check transactions shall be recorded in the check
register and accompanied by the generation of legally-valid documents certified with the
EHS of the corresponding parties.
Electronic checks have a limited period of validity, upon whose expiry they are
automatically exchanged for equivalent checks with a new number and date of issue.
Method for the implementation of electronic check transfers
The method for the implementation of electronic check transfers presented here
consists of a certain sequence of main stages of the process, whether obligatory or non-
obligatory for execution. The obligatoriness of stages is determined by the fulfilment of
certain conditions disclosed in the algorithms described below. The peculiarities of the
implementation of the algorithms such as programming language, architectural
particularities of the software implementing the method are not limited by the given
invention.
The method assumes that the Participant’s computer device is configured so that it
allows for the execution of programmed instructions of the client application
implementing the method and interaction with the server computer device via the Internet.
The beginning of implementation of the transfer process is the user’s start-up of the
client application, during which the K2 client unit for authorization in the System is
initialized. In the course of execution of this unit, verification of the Participant’s account
and its investment with the rights corresponding to the respective status shall be carried
out. For the execution of these operations, the K2 client unit through the K4 unit for
interaction with the server connects with the S2 server unit for authorization and
verification of user parameters. In doing so, in the K4 unit, when a command and the
necessary data are received, the following will be performed: generation of a request in the
required format, encryption, signature of request, establishment of connection with the
server, transfer of the request (via the Internet over a protected communication channel)
and processing of the reply. It is assumed that the interaction of all client units with server
units is carried out through the K4 unit and shall not be mentioned further.
The implementation of the client and server authorization unit is not the subject of
this invention and can include various combinations of well-known methods for the
authentication and authorization of users.
Obligatory for these units is the verification of the Participant’s account,
accessibility and correctness of the storage of electronic keys, which further will be used
for creating an equivalent handwritten signature (EHS) of requests and electronic
documents as well as obtaining information about the status and corresponding rights of
the Participant. On the basis of the Participant’s status, the possibility is blocked for the
Participant to carry out actions which are not provided for by its status; at that, blocking
occurs both at the level of client application (absence of the corresponding user interface,
execution of the algorithms of checks in the client application) and at the level of sever
application (the server units comprising this application apply to the S2 unit in case of the
processing of each request received in order to verify user status and other parameters).
The successful execution of the authorization unit guarantees that the Participant is
not removed or blocked, its closed electronic key corresponds to the public key registered
in the System.
The successful execution of the authorization unit is an obligatory condition for
transfer to the next K3 unit for updating, synchronisation of client and server application
data. The client K3 unit communicates with the server S3 unit for data update,
synchronization of client and server applications. In the course of the execution of K3, S3
units, information is received about the current state of Participant’s accounts, transfers
received, and invoices for check placement in an account. Depending upon the
Participant’s status, the corresponding types of applications, requests are received and
their states are updated. The execution of these units shall guarantee the Participant’s
access to information on all transfers, invoices for placing checks in an account,
applications, requests and other information, both sent and received by the Participant (for
example, by means of synchronization of the client application database with the server
application database). The methods of implementation of these units are well-known and
are not the subject of this invention. As an example of System implementation, a version
is considered whereby the information received from the server is stored in the local
database, whose diagram is shown in Fig. 4.
After the successful completion of operation of the K3 unit, the application will
display the information received in the user interface, including information about all
customer’s accounts: number, name of the account, active balance in the account, number
of the electronic check referenced to the account, details of the bank associated with the
account, etc. The volume of information to be received and displayed shall be determined
by the System implementation version.
The successful execution of the S3 server unit and K3 client unit for updating,
synchronization of client and server application data is an obligatory condition for transfer
to the K5 unit for parameter input and the execution of transfers.
For initialization of this unit, the Participant shall select the corresponding section
in the user interface of the client application.
The K5 unit enables the user to enter the required initial data for transferring the
electronic check. This unit can provide various possibilities for entering transfer
parameters: direct input of parameters (input of the payee’s account, check amount
receivable or check amount to be written off, purpose of payment), selection of the
variants of parameters from the lists of possible values (selection from the list of the
sender’s private accounts, selection of the recipient’s account number from the
corresponding reference book), generation of transfer on the basis of the invoice received
for placing the checks in an account or an application of a certain type (for example,
application for the purchase of electronic checks). The latter variant is based on the use of
information received in the course of execution of the K3 unit for updating,
synchronization of client and server application data and stored in the application by the
method corresponding to the specific implementation of the System (in the random-access
memory or read-only memory of the computer device). The method of input of transfer
parameters can include automatic validation to be performed in the course of parameter
input, whereby the user will immediately be notified of any errors. The method can
include automatic calculation of the amount of commission to be collected for the transfer
in the course of reception of transfer amount data by the application. The calculation of
commission can be carried out by the module on the basis of the local data of the
application (to be stored in the random-access memory or DB, downloaded, for example,
at the stage of reception of account data) or on the basis of the commission rate, to be
downloaded from the server by means of a separate request. This possibility can be used
for implementation of more complicated commission setup variants such as dependence of
the commission rate upon the Participant’s status in the group (in this case, in order to
determine the commission, both data on the sender and data on the recipient of the transfer
will be required), possibility of setup of the individual commission of the Participant, etc.
After calculation of the commission, the module will notify the user about the sum of
commission to be collected for the transfer and the sum to be written off (or sum
receivable, depending upon the parameter filled in).
An example of the operating algorithm of the K5 unit for parameter input,
execution of transfers is given in Fig. 7.
Implementations are possible whereby, in the course of input of transfer
parameters, information about the transfer recipient is downloaded on the basis of the
recipient’s account number and displayed to the participant in order to minimize the risk
of input of incorrect data.
The method can include a stage for the preliminary verification of transfer
parameters, in the course of which the K5 unit will generate an electronic request for data
verification and transmit it to the S4 server unit for verification of electronic check transfer
parameters. The request includes the sender’s account and transfer recipient’s account
numbers, value, currency of the transfer. In the course of checks, the S4 unit will
determine whether the execution of transfer with the parameters specified is accessible.
Execution of the S2 server unit is triggered, in the course of which the necessary
verifications of both the sender (including a check of the request EHS) and the transfer
recipient (including verification of the accessibility of the recipient’s account) are
performed. The retrieval of data from the DB about the electronic check available in the
transfer sender’s account, comparison of the nominal value of the check with the amount
to be written off (implementations are possible, whereby the blocking of a separate
amount in the account, followed by a comparison of the amount to be written off against
the sum of accessible active balance occurs) and other checks provided by the peculiarities
of the specific implementation of the System are performed. The checks shall be
performed by collation with the information stored in the System database, checks of the
account settings in the DB, execution of the algorithms of verification of the electronic
digital signature.
The K5 client unit for parameter input and the execution of transfers receives
information from the S4 unit about the results of check and displays to the user either a
message on the resulting error, or a window with information on the transfer, which the
customer shall repeatedly confirm. At this stage, the module can display any data on the
transfer (amounts, payee’s name, INN, etc.), corresponding implementations of the
method.
Having received confirmation of the transaction from the participant, the K5 unit
will generate an electronic request to execute the transfer containing the number of the
account for write-off, the number of the invoice for placing checks in an account, amount,
currency of transfer, purpose of payment, and will transfer it to the S5 server unit for the
registration and execution of electronic check transfers.
Having received a request for execution of the transfer, the S5 unit will execute the
transfer registration procedure. In the course of this procedure, in order to check the
request received, transfer to the S4 unit is performed for verifying electronic check
transfer parameters (all the data received are transferred), and after its successful
execution, the information on the transfer will be recorded in the System database, the
amount of commission will be calculated and recorded. In cases where the S4 unit returns
an error, the transfer will not be registered, and the erroneous result of transfer execution
will be returned to the K5 client unit (for example, state of the transaction, error code).
At the stage of the sending and registration of the transfer execution request, the
unit for the generation and storage of digital documentation can be executed (S9). The
method implies the inclusion of this unit either in the server application or in the client
application. As a result of operation of this unit (in the given case, procedures for the
generation of an application for execution of the transfer), a separate electronic document
will be generated (for example, in pdf format), which contains all details of the application
for electronic check transfer, and the Participant’s EHS will be confirmed through the
client unit of electronic signature of digital documentation (K17). The method implies
various variants for storing this document, for example, the document can be transmitted
to the server, saved along with EHS and other information in the application database and
then become accessible to all stakeholders through specialized services of the server
application.
In cases where the document has been generated on the server, the unit for the
electronic signature of digital documentation (K17) shall implement the procedure for
downloading electronic documents from the server.
After the successful recording of the transfer in the server DB, the S5 unit will
execute the transaction implementation procedure. An example of implementation of this
procedure is given in Fig. 8. The input parameters for this procedure are all of the data
received about the transfer being executed.
The S5 unit for the registration and execution of electronic check transfers receives
data from the System database about the electronic check in the transfer sender’s account
and amount of commission (“Information about user accounts,” “Information about
electronic checks,” “Information about electronic check transfers” sections).
If the nominal amount of the balance check on the sender’s account coincides with
the amount of transfer and, at that, the commission for transfer is not collected, the
electronic check will be transferred from the sender’s account directly to the recipient
account.
For transferring a check, the S5 unit initiates execution of the S7 server unit for
electronic check management. In doing so, the procedure for electronic check transfer is
triggered, to whose input the following data are transmitted: number of the electronic
check, number of the transfer sender’s account, number of the transfer recipient’s account.
In implementing the procedure, the modification of information in the DB in the
“Information on user accounts” is performed: the information about the check in the
transfer sender’s account will be removed, the data on the number of the balance check
will be introduced into the account record; the information about the check holder will be
modified in the “Information about electronic checks” section.
Within the framework of this procedure, the execution of the S8 unit is initiated for
the registration of electronic check transactions in the Register. The input parameters upon
triggering of the procedure for recording the check transfer transaction in the Register are
as follows: number of the electronic check, number of the transfer sender’s account,
number of the transfer recipient’s account, type of transaction (“check transfer”). Possible
types of transactions in the Check Register are as follows: “check issue,” “check transfer,”
“check submission for payment,” “check submission for payment via collection,”
“payment of check,” “check collection.” On the basis of input parameters, the S8 units
retrieves the necessary data from the DB, introduces records into the “Electronic check
register” DB section containing at least the following information: number, date, time of
transaction, amount, currency, number of the check being transferred, sender’s account
and recipient’s account numbers, type of transaction, data on balances in the accounts.
After successful recording of the transaction in the Check Register, the procedure for
electronic check transfer of the S7 unit will be terminated.
Implementations are possible, whereby in a similar situation, when the whole
nominal value of the check shall be transferred to the recipient, the electronic check will
first be transferred to the Operator, and the Operator will transfer the check to the transfer
recipient. The check transfer (as in all further references thereto) is carried out within the
framework of the procedure for electronic check transfer of the S7 server unit for
electronic check management described above.
If the aforementioned condition is not met (the nominal value of the check shall
not be transferred to the recipient in full), the S5 unit will trigger the procedure for
exchange of the electronic check of the S7 unit for electronic check management. The S5
unit transfers the following data to the input of this procedure: number of the electronic
check whose nominal value is the balance in the sender’s account, nominal values of the
electronic checks into which the exchange shall be performed, equal to the amount of
transfer and amount of commission to be collected for the transfer.
Within the framework of the procedure for electronic check exchange of the S7
unit, the sender’s electronic check will be transferred to the System Operator (the
procedure is executed for electronic check transfer of the S7 server unit for electronic
check management, to whose input the following data are transferred: number of the
electronic check, number of the transfer sender’s account, number of the Operator’s
account).
The Operator submits the electronic check received for payment to the paying
bank. Submission of the electronic check for payment is carried out by execution of the
procedure for submission of the check for payment of the S7 unit for electronic check
management, to whose input the following data are transferred: number of the electronic
check, information about the bank (registration number), number of the account from
which the check is presented (Operator’s account). In implementing this procedure, the
number of the specialized bank account is determined, to which the check will be
transferred. Then the check transfer is performed similarly to the standard check transfer
procedure. One difference is the change of the electronic check state in the System DB to
the “submitted for payment” state (“Information about electronic checks” section) and the
indication in the Check Register of the type of transaction: “submission of the check for
payment” or “submission of the check for payment via collection” in case of execution of
the S8 unit for registration of electronic check transactions in the Register. The type of
transaction “submission of the check for payment via collection” is used when the bank to
which the electronic check is being presented for payment and the paying bank for the
given check do not coincide.
After successful execution of the procedure for submission of the check for
payment, insofar as the bank to which the electronic check is submitted for payment and
the paying bank for the given check coincide, the execution of the check write-off
procedure of the S7 unit is triggered, to whose input the electronic check number is
transferred. Within the framework of this procedure in the “Information about electronic
checks” section, the data on the paid check will be changed, and the execution of the S8
unit for registration of electronic check transactions in the Register will be triggered.
Within the framework of the procedure for recording the check write-off transaction in the
Register in the “Electronic check register” section, a record will be introduced containing
the following data: number, date, time of the transaction, value, currency, number of the
check to be written off, number of the account to which the check being written off refers,
type of transaction, data on the balance in the given account. Execution of the electronic
check write-off procedure is only possible in case of payment of the check and the
transmitting of real monetary funds equal to the nominal value of the check to its bearer or
in case of set-off of the monetary funds released with payment of the check upon the
purchase of new electronic checks with the System Issuer by the person that has submitted
the check for payment.
After successful recording of the transaction in the Check Register, the procedure
for electronic check write-off of the S7 unit will be terminated.
Using the funds received (released), the Operator will buy new checks of the
required nominal values from the Issuer:
o Check for the amount of transfer.
o Check for the amount of the commission (can be equal to 0, in which case
no check will be issued).
o Check for the amount of balance (balance can be equal to 0, in which case
no check will be issued).
To this end, the S7 unit, within the framework of the electronic check exchange
procedure, triggers sequentially the execution of the S11 unit for electronic check issue for
each of the checks in question. Data shall be transferred to the input of this unit on details
of the new checks, which at least include the following: nominal value, check currency,
data on the paying bank. As the payer for new checks, the paying bank for the check
transferred for exchange will be indicated.
In implementing the S11 unit, the necessary data are retrieved from the system DB
for indication of all check details, the execution of the S12 unit for electronic check
signature is triggered (whereby check signature on behalf of the Issuer is created by means
of execution of the electronic digital signature algorithms), and a record on the new
electronic check will be created in the “Information about electronic checks” DB section.
In implementing the electronic check issue, the S11 unit will cause the execution
of the procedure for recording the check issue transaction of the S8 unit for registration of
electronic check transactions in the Register. As the input parameters in cases where this
procedure is triggered, the following data are transferred: number of the electronic check,
number of the account to which the issued check will be referred to (Issuer’s account),
type of transaction (“check issue”). Within the framework of this procedure, a record shall
be introduced into the “Electronic check register” DB section containing the following
data: number, date, time of the transaction, value, currency, number of the issued check,
type of transaction, number of the account to which the issued check will be referred, data
on the balance in the given account. After successful recording of the transaction in the
Check Register, the operation of the S11 unit for electronic check issue will be terminated
for the check for which unit execution has been triggered.
After successful termination of operation of the S11 unit, the issued checks will be
transferred to the Operator (in accordance with the procedure for electronic check transfer
of the S7 unit for electronic check management).
If the balance check has been issued successfully, the Operator will transfer this
check to the transfer sender. After successful termination of this action, the procedure for
electronic check exchange will be terminated for the transfer sender’s check.
Within the framework of operation of the S5 unit, the Operator will transmit a
check for the amount of transfer to the recipient’s account. From the database
(“Information on user account” section), the S5 unit will retrieve information on the
balance in the transfer recipient’s account and account settings. In cases where there is a
balance check in the recipient’s account or a bank different from the paying bank for the
transfer check is specified in the settings of the given account, the S5 unit will trigger the
procedure for electronic check exchange (combination) of the S7 unit for electronic check
management (Fig. 9). Within the framework of this procedure, the electronic checks
(check) shall be transferred from the recipient’s account to the System Operator’s account.
The Operator shall submit the electronic checks (check) received for payment to
the bank specified as the paying bank according to the transfer recipient’s “balance
check,” or to the Bank specified in the settings of the account in cases where the balance is
missing. Apart from the information provided, other methods are possible for
determination of the bank which will be the payer according to the new check of the
transfer recipient, for example, instead of using the account settings and data of the current
balance check, a paying bank can be selected according to the electronic check with a
larger nominal value.
The submission of checks to the Bank for payment shall be performed within the
framework of the procedure for submission of the check for payment of the S7 unit for
electronic check management.
Check submission for payment to a bank different from the bank specified as the
paying bank for the given check shall be carried out in accordance with the mechanism of
check presentation for collection. This procedure guarantees the availability of a sufficient
amount of monetary funds in the Issuer’s settlement accounts in partner-banks acting as
security for the checks issued by the Issuer.
For the electronic check submitted for payment to the paying bank (in the
implementation being described, the balance check from the transfer recipient’s account),
execution of the standard check write-off procedure of the S7 unit for electronic check
management is triggered.
Using the released funds, the Operator acquires a new check from the Issuer,
whose nominal value is equal to the sum of nominal values of the checks submitted for
exchange (or equal to the nominal value of the check submitted for exchange to the check
of another paying bank).
To this end, the S7 unit, within the framework of the procedure for electronic
check exchange (combination), triggers the execution of the S11 unit for electronic check
issue, transferring to its input the nominal value, currency of the check (equal to the
currency of checks to be combined), and data on the paying bank. The payer for the new
check will be the bank that has performed payment of the checks submitted for exchange.
The Issuer shall transfer the issued check to the System Operator. The Operator
shall transfer the new check to the transfer recipient. After the successful implementation
of these actions, the procedure for electronic check exchange (combination) will be
terminated.
Implementations are possible whereby the exchange of transfer of the sender’s
checks is not performed, and the record-keeping of any number of electronic checks is
maintained in the recipient’s account. For example, in the implementation being
described, the procedure for the exchange of electronic checks is not executed if the
transfer implementation is carried out within the framework of check submission for
payment and the check is transferred to a specialized bank’s account.
In cases where a commission is collected for the transfer, the S5 unit will trigger
the execution of the S13 unit for placing the commission check in an account. In the
implementation being described, if there is a balance check in the Operator’s account or a
bank differing from the paying bank for the commission check is indicated in the settings
of the Operator’s account, the S13 unit will also initiate the execution of the procedure for
electronic check exchange (combination) of the S7 unit for electronic check management,
in the course of which a new check including the amount of commission for the completed
transfer shall be placed in the Operator’s account. The order of exchange of the operator’s
electronic checks is similar to the exchange of the transfer recipient’s check exchange,
except transactions involving check transfer to the Operator and reception of the check
from the System Operator. It is also necessary to take into account that if the check
transfer is performed via a dealer (broker), then a commission shall be charged in the S13
unit to the Dealer (Broker) acting as an intermediary in the implementation of transfer
rather than to the Operator. Check exchange transactions are always performed via the
Operator, irrespective of the recipient of commission.
In implementing the procedure for execution of the transaction of the S5 unit for
the registration and execution of electronic check transfers, the execution of the S9 unit is
triggered for the generation and storage of digital information. As a result of operation of
this unit, on the basis of the information about the transfer parameters being received,
digital reporting documentation is created for the purposes of its signature by Participants’
EHS and providing the possibility of further printout.
In the implementation being described, in the course of operation of the S9 unit,
the following documents are generated: Certificate of acceptance of the electronic check,
Certificate of the services provided, pro forma invoice. Documents stemming from
execution of the K17 unit for the electronic signature of digital documentation are signed
with the EHS of the corresponding parties.
After successful execution of the transfer and generation of the required
documentation, the S5 unit will initiate the execution of the S10 unit for sending online
notices. Information about the transfer recipient and type of message being sent is
transmitted to the input of this unit. As a result of execution of this unit, the execution of
the K3 unit is triggered for updating, synchronization of client and server application data.
After receiving information about the transfer, execution of the K17 unit can be triggered
for the electronic signature of digital documentation for the purposes of signature of the
Certificate of acceptance of the check by the transfer recipient.
Under termination of operation of the S5 unit for the registration and execution of
electronic check transfers, a message is generated with the result of the transaction, which
is transmitted to the K5 unit for parameter input, execution of transfers and storage of
information about payments of the transfer sender’s application. Implementations are
possible (operating modes of applications) whereby the procedure of execution of
transaction of the S5 unit for the registration and execution of electronic check transfers is
not executed in online mode, i.e. after successful termination of the procedure for
registration of the transfer of the S5 unit, a message will be sent at once to the transfer
sender (K5 unit) about the fact that the transfer has been received by the System, and the
transaction execution procedure is performed later.
In cases of reception of the message about termination of the transaction, the K5
unit for parameter input, execution of transfers and storage of information about payments
of the transfer sender displays information about the result of transfer to the user, triggers
execution of the K3 unit for updating, synchronisation of client and server application
data, upon whose operation termination the updating of information about the current
balance in user accounts is carried out.
Method of electronic check issue
Below, the method is presented for electronic check issue to be used in situations
different from transactions involving the automatic exchange of electronic checks in the
implementation of transfers. This method is aimed at ensuring the safety of the process of
the reception of new checks for circulation issued using real monetary funds received in
the issuer’s settlement account, for example, in purchasing checks by a dealer (broker),
rather than using payment for other electronic checks.
The beginning of the process of electronic check issue is the launch of the client
application by the user with the Issuer’s account, in the course of which the client K2 unit
for authorization in the System is initialized, after which execution the K3 unit will be
started for updating, synchronization of client and server application data. Successful
execution of the K2 and K3 units is an obligatory condition for transfer to the K11 unit for
data input and the sending of requests for the issue of electronic checks. For initialization
of this unit, the Issuer shall select the corresponding section in the user interface of the
client application.
The K11 unit provides the user with the possibility of input of the required initial
data for generating a request for the issue of an electronic check. This unit can provide
various possibilities for entering the request parameters, e.g. direct input of parameters,
selection of parameter variants from the lists of possible values (selection from the list of
paying banks), generation of the request on the basis of the check purchase request
received from the dealer (broker).
The obligatory parameters of the request to issue an electronic check are the
Issuer’s details (registration number, description, etc.), nominal value, currency of the
check being issued, paying bank, number of the Issuer’s settlement account in which
payment for the check will be placed, data on the check buyer and payer (name, INN,
registration number, data on the purchase application, buyer’s account for placing the
check in an account). After the Issuer’s correct completion of all required parameters of
the request, the K11 unit will generate a request to issue a check in the form of an
electronic document certified with the Issuer’s EHS. The K11 unit will transmit the
request to the S6 server unit for the registration of applications, requests, invoices for
placing checks in an account.
The S6 unit executes the procedure for verification of the request to issue a check;
execution of the S2 server unit is triggered, in the course of which the necessary
verifications are carried out of both the sender (including verification of the request EHS)
and the request recipient. In case of successful fulfilment of all verifications, the request
will be registered on the server. The records will be introduced into the DB in the
“Information about applications, requests, accounts for placing checks in the account”
section. A message on the availability of a new request will be sent to the Recipient
(paying bank for the check being issued) by means of the S10 unit for sending online
notices.
Upon entry into the Bank System or in case of an online notice being received, the
K3 unit (update, synchronisation of client and server application data) for the Bank’s
client application by means of interaction with the S3 unit will download a request from
the server to issue the electronic check.
In doing so, the S3 server unit for data update and synchronization of client and
server application DBs will perform verification of the fact that request downloading is
being carried out solely by the recipient with the “Bank” status specified in the request.
After successful reception of the request, triggering of the K13 unit for the Bank’s
client application is performed for processing the requests received to issue electronic
checks. The K13 unit will display the information in the user interface about the check
issue request and provide an option to the Bank to decline or confirm the request.
Having received the request, the Bank verifies the availability of payment for the
check being issued that has been received from the payer indicated in the request for
electronic check issue, compares the data in the Issuer’s request (for example: nominal
value of the check, currency, number of the check purchase application, payer’s details)
with the data from the Issuer’s account statement. In cases where monetary funds for
purchase of the check are received in the Issuer’s account, the Bank, through the client
application, will confirm the Issuer’s Request. In doing so, the K13 unit for processing
received requests for electronic check issue shall generate electronic confirmation of the
request and transfer it to the S13 server unit for the processing and execution of
applications, requests.
The S13 unit, in the course of the procedure for confirmation of the application for
the issue of an electronic check, will retrieve data from the DB about the request to issue
the check being confirmed and perform the necessary verifications (including the
triggering of the K2 unit for verification of the Bank’s account); after their successful
completion, execution of the S11 unit is triggered for the issue of electronic checks. Data
on the details of the new check received from the request for issue are transmitted to the
input of this unit, which include the following: nominal value, check currency, data on the
paying bank. A description of the S11 unit is given above (see Method for the execution of
electronic check transfers).
Upon the successful termination of operation of the S11 unit, the S13 unit, in the
course of the procedure for confirmation of the application to issue the electronic check,
triggers execution of the S5 unit for the registration and execution of electronic check
transfers (transfer registration procedure) for the purposes of the automatic creation and
execution of transfer of the check issued from the Issuer’s account to the check buyer’s
account. Data from the application for issuing the electronic check retrieved from the DB,
i.e. recipient’s account, nominal value, check currency, etc., shall be transferred to the
input of the procedure for registration of the transfer of the S5 unit.
After termination of operation of the procedure for registration of the transfer of
the S5 unit, the procedure shall be executed for implementation of the operation of the S5
unit (in accordance with the sequence given above).
The S13 unit will transmit the successful result of processing the request to the
K13 client unit of the Bank’s application, which records the updated state of the processed
request for check issue as well as, through the S10 unit, to the client application of the
sender of the check issue request (Issuer) (to the S3 unit for data update, synchronization
of client and server application DBs, which updates and displays to the Issuer the updated
state of the request and information about the automatic transfer of the check to the
buyer).
Method of payment of electronic checks
Below, a method is presented for the payment of electronic checks to be used in
situations where the check is submitted to the bank for the purposes of receiving real
monetary funds according to the check in the bearer’s settlement account. This method is
aimed at ensuring the safety of the process of receiving payment according to the check,
both on the part of the check bearer and on the part of the bank performing payment.
The beginning of the process of submission of the electronic check for payment
shall be the user’s launch of the client application, in the course of which the K2 client
unit for authorization in the System is initialized, after which execution of the K3 unit will
be launched for the updating and synchronization of client and server application data.
The successful execution of the K2 and K3 units is an obligatory condition for transfer to
the K8 data for data input, sending the applications for the payment of electronic checks.
The K8 unit can be accessible to various user categories (for example, only to legal
entities with a higher status in the System than initial).
For initialization of this unit, the System Participant selects the corresponding
section in the user interface of the client application.
The K8 unit provides the user with the possibility of input of the required initial
data for generating an application for electronic check payment, such as the account from
which the check write-off will be carried out, nominal value of the check, bank details for
placing the payment. On the basis of the data entered by the user, the K8 unit determines
the bank acting as the payer according to the Participant’s check.
Following correct completion of the obligatory details of the application, the K8
unit will generate the application for payment of the electronic check in the form of an
electronic document certified with the user’s EHS. The K8 unit transfers the application to
the S6 server unit for the registration of applications, requests, accounts for placing checks
in an account.
The S6 unit will execute the procedure for verification of the application for
payment of the electronic check – execution of the S2 server unit is triggered, in the
course of which the necessary verifications are carried out with respect to both the sender
(including verification of the request EHS) and the request recipient, and verification of
the correctness of the bank details of the customer for placing the payment (in particular,
according to the applicable bank reference book according to BIC) and the sufficiency of
funds in the sender’s account is executed, along with the other verifications necessary for
proper execution of the transaction.
In case of the successful fulfilment of all verifications, the application will be
registered on the server. The records will be introduced into the DB in the “Information
about applications, requests, accounts for placing checks in an account” section. A
message will be sent about the availability of the new application to the recipient (paying
bank) by means of the S10 unit for sending оnline notices.
When the Bank enters into the System or in case of the reception of an online
notice, the K3 unit (updating, synchronization of client and server application data) of the
Bank’s client application, by means of interaction with the S3 unit, downloads the
application for payment of the electronic check from the server. In doing so, the S3 server
unit for data update, synchronization of client and server application DBs performs
verification of the fact that request downloading is being carried out solely by a recipient
with the “Bank” status specified in the request.
After successful reception of the request, triggering of the K14 unit of the Bank’s
application is performed for processing the applications received for the payment of
electronic checks. The K14 unit will display the information about the application for
payment of the electronic check in the user interface and provide the Bank with the option
to decline or confirm the application.
Having received the application, the Bank will verify the correctness of the
Application parameters, accessibility of the necessary amount of funds in the Issuer’s
settlement account. Confirmation of the application shall be an invoice issued through the
System for placing the check in an account.
The Bank issues the invoice by means of execution of the K6 client unit for data
input, sending invoices for placing checks in an account. In the course of execution of this
unit, an invoice will be generated whose parameters are determined on the basis of the
application for payment of the check and partially completed by the Bank. The Bank shall
specify the details of its account allocated for checks to be submitted for payment. As the
basis for the invoice, it is necessary to specify the number of the application for payment
of the check and indicate the bank details of the check bearer for placing the payment.
Following the correct completion of invoice details, the K6 unit will generate the
invoice to place the check in an account in the form of an electronic document certified
with the user’s EHS. The K6 unit will transfer the invoice to the S6 server unit for the
registration of applications, requests, invoices for placing checks in an account.
The S6 unit executes the procedure for verification of the parameters of the invoice
for placing checks in an account – execution of the S2 server unit is triggered, in the
course of which the necessary verifications are performed of both the sender (including
verification of the request EHS) and the request recipient. In case of the successful
fulfilment of all verifications, the invoice will be registered on the server. The records are
introduced into the DB in the “Information about applications, requests, invoices for
placing checks in an account” section. A message on the availability of the new invoice
will be sent to the Recipient by means of the S10 unit for the sending of online notices.
Following successful issue of the invoice, the K14 unit of the Bank’s client
application for the processing of applications received for the payment of electronic
checks will execute the update of application state. To this end, the corresponding notice
shall be sent to the S13 server unit for the processing and fulfilment of applications,
requests, in the course of which the new state of the application will be recorded in the
server DB and a notice will be sent to the sender.
In cases where the Application cannot be satisfied (the check bearer has not passed
the necessary verifications), the Bank will select the “Decline the application” option and
indicate the basis for the denial. In doing so, the K14 unit for the processing of
applications received for the payment of electronic checks will send a command to the
S13 server unit for the processing and execution of applications, requests (the procedure
for denial of payment by the S13 unit is triggered). In the course of execution of this
procedure, data on the application being declined will be retrieved from the DB, the
necessary verification will be performed and the triggering of the S9 unit for the
generation of digital documentation will be carried out (procedure for generation of the
Notice on refusal to pay the check). Data on the customer, bank, currency of the check
being paid as well as the basis for refusal shall be sent to the input of this procedure. The
document, due to execution of the K17 unit for the electronic signature of digital
documentation, will be signed with the Bank’s EHS. The S13 unit will notify the customer
of the change in the state of the application being sent by the customer.
The Participant, having received the aforementioned invoice to place the check in
an account, will execute a transfer to the bank into the specialized account in the System
specified. The execution of transfer is carried out in accordance with the method described
above for the execution of electronic check transfers.
The Bank, having received the transfer (K9 unit for the processing of received
electronic check transfers), will perform verification of the fact that the check bearer’s
details specified in the purpose of payment, number of the application and other
parameters of the transfer conform to the parameters of the confirmed check payment
application and initiate the procedure for verification of the electronic check received. The
method for electronic check verification is described below.
Only when the Notice on verification of the check and change in the state of the
Request for verification in the System to “confirmed” has been received will the bank
perform payment of the check by transferring the respective monetary funds to the
Participant’s settlement account (and if the Participant is a credit organization, then to its
correspondent account) and write off the check.
The process of write-off of an electronic check occurs upon selecting the
corresponding options in the user interface of the Bank’s application. In doing so, the
execution of the K18 unit for electronic check write-off is triggered. The K18 unit, on the
basis of the confirmed request for verification, will generate an electronic request to write
off the electronic check containing the number of the request for verification, certify it
with the Bank’s EHS and send it to the S14 server unit for the write-off of electronic
checks. The K18 unit can additionally include execution of the stage of the Bank’s input
of the parameters of the payment order on whose basis the transfer of real monetary funds
will be carried out to the check bearer.
The S14 server unit for the write-off of electronic checks executes the stage of
verifications, in the course of which the data on the request confirmed for verification of
the check are retrieved from the DB; the K2 unit is triggered for verification of the Bank’s
account and request EHS, and verification of the electronic check being written off is
executed. After successful completion of all verifications, the S14 unit will carry out
write-off of the check, and the corresponding changes will be introduced into the DB in
the “Information about electronic checks” section (the electronic check state and other
required parameters will be changed).
In implementing the write-off of the electronic check, the S14 unit triggers
execution of the procedure for recording the check write-off transaction of the S8 unit for
the registration of operations with electronic checks in the Register. As the input
parameters in cases where this procedure is triggered, the following data will be
transferred: number of the electronic check, number of the account in which the check
being written off was placed, type of transaction (“check write-off (paid)”). Within the
framework of this procedure, a record containing the following data will be introduced
into the “Electronic check register” DB section: number, date, time of transaction, value,
currency, number of the check being written off, type of transaction, number of the
account to which the check refers, data on the balance in the given account.
After successful recording of the transaction in the Check register, the S14 unit
performs updating of the state of application for check payment, request for verification
(into “payment of the check has been performed”). The corresponding notices shall be
sent to System participants by means of the S10 unit.
Method for the verification of electronic checks
The method for verification of the electronic check enables the Bank to receive
confirmation of the authenticity of the check to be submitted for payment and shall be an
obligatory stage preceding payment of the check.
The verification process begins when the Bank, having received the electronic
check transfer to the specialized account with an indication of the data in the purpose of
payment on the application for payment of the check, generates a Request for verification
of payment of the submitted electronic check.
In the bank’s selection of the “Request for verification” option, execution of the
K15 unit for data input and sending of requests for electronic check verification will be
initiated. The K15 unit will provide the bank with the possibility of automatic completion
of the parameters of the request on the basis of the transfer received. The request for
verification contains data on the electronic check as well as on the person that has
submitted the check for payment.
The K15 unit will certify the request completed in the form of an electronic
document with the Bank’s EHS and send it to the S6 server unit for the registration of
applications, requests, invoices for placing checks in an account.
The S6 unit executes the procedure for verification of the parameters of the request
for verification of the electronic check, which includes automatic verification of the
electronic check details, in the course of which the check EHS is verified (the algorithm of
verification of the electronic digital signature will be executed with the use of the Issuer’s
public key and record on the check in the DB, which guarantees the invariability of all
details of the electronic check), as are the current state of the electronic check and the
request sender’s account (execution of the S2 server unit is triggered).
In case of the successful execution of all verifications, the S6 unit will determine
the Issuer’s registration number and save the request on the server. The records will be
introduced into the DB in the “Information about applications, requests, accounts for
placing checks in an account” section. A message on the availability of the new request
will be sent to the Recipient (Issuer) by means of the S10 unit for the sending of online
notices.
When the Issuer enters into the System or in case of the reception of an online
notice, the K3 unit (updating, synchronization of client and server application data) of the
Issuer’s client application, by means of interaction with the S3 unit, downloads the request
for verification of the electronic check from the server. In doing so, the S3 server unit for
data update, synchronization of client and server application DBs performs verification of
the fact that request downloading is being carried out solely by the recipient with the
“Issuer” status specified in the request.
Following successful reception of the request, triggering of the K12 unit of the
Issuer’s client application is performed for processing the requests received for
verification of electronic checks. K12 unit will display the data in the user interface on the
request for verification of the electronic check and provide the Issuer with an option to
decline or confirm the request.
The Issuer, having received the Request for verification, will trace the electronic
check history with the use of the Check Register – verify the correctness of the check
details (the System provides the possibility of viewing the electronic check in graphical
form), reliability of the data on the check bearer.
If all of the verifications have been performed successfully, the Issuer will confirm
the Request for verification of the check.
In doing so, the K12 unit for processing of the requests received for payment of
electronic checks will send the request to the S13 server unit for the processing and
execution of applications, requests (the procedure for confirmation of the request for
verification of the check of the S13 unit will be triggered). In the course of execution of
this procedure, the data on the confirmed request will be retrieved from the DB, the
necessary verifications will be performed and the triggering of the S9 unit for the
generation of digital documentation will be carried out (procedure for generating the
Notice on electronic check verification). The data on the electronic check received on the
basis of the request for verification will be transferred to the input of this procedure. The
document will be signed by the Issuer’s EHS due to execution of the K17 unit for the
electronic signature of digital documentation. The S13 unit will notify the Bank about the
change in the state of the application sent by the Bank.
In cases where the Request cannot be confirmed, the Issuer will select the “Decline
the request” option and specify the basis for refusal. Denial of the request occurs similarly
to refusal of the application for check payment by the Bank.
Claims (9)
1. A method for securely processing data for electronic check transfers in an electronic check settlement system comprising a server computer device connected to a client computer device, wherein the server computer device is connected to the client computer device via at least an Internet network, the server computer device and the client computer device each comprising an encryption module for secure communication over the Internet network, said method comprising: establishing, via the Internet network, a secure communication channel between the respective encryption modules of the server computer device and the client computer device, wherein: the respective encryption modules of the server computer device and the client computer device each include firmware, and wherein the firmware included in the encryption module of the server computer device comprises: a server unit for authorization and verification of user parameters, a server unit for electronic check management, a server unit for electronic check issue, a server unit for registration of electronic check transfers, and a server unit for sending online notices; receiving, by the server computer device via execution of the server unit for authorization and verification of user parameters and from the client computer device via the secure communication channel authorization information for a sender; executing, by the server computer device via execution of the server unit for authorization and verification of user parameters, authorization of the sender based on the authorization information; after receiving the authorization information for the sender from the client computer device and executing authorization of the sender based on the authorization information receiving, by the server computer device and from the client computer device, encrypted data representative of: account information associated with the sender; and electronic check transfer parameters associated with an electronic check of the sender, wherein the electronic check of the sender is associated with the account information, and wherein the electronic check transfer parameters include a request for execution of an electronic check transfer and an indication of a recipient; 23229123_1 verifying, by the server computer device via execution of the server unit for electronic check management, the electronic check parameters using an electronic signature based verification procedure; registering, by the server computer device, the request for execution of the electronic check transfer; based on the electronic check transfer parameters, processing, by the server computer device, the electronic check of the sender into a plurality of checks by: producing, by the server computer device via execution of the server unit for electronic check issue, the plurality of checks, the plurality of checks including: an electronic transfer check, an electronic commission check, and an electronic balance check, and recording, by the server computer device via execution of the server unit for registration of electronic check transfers, the processing of the electronic check of the sender into the plurality of checks; processing, by the server computer device via execution of the server unit for electronic check management, the plurality of checks including: the electronic transfer check, the electronic commission check, and the electronic balance check based on the electronic check transfer parameters by: electronically depositing the electronic transfer check in an electronic account of the recipient, electronically depositing the electronic commission check in one of: an electronic account of a system operator and an account of a system broker, and electronically depositing of the electronic balance check into an electronic account of the sender based on the account information associated with the sender; and transmitting, by the server computer device via execution of the server unit for sending online notices, a transaction notification to at least one of the sender and the recipient, wherein the transaction notification confirms the execution of the electronic check transfer.
2. The method according to claim 1, further comprising verifying, by the server computer device, the account information by assigning a category to the account information, the category representing permissions that the sender has within the electronic check settlement system. 23229123_1
3. The method according to claim 1, further comprising, in response to the receiving, by the server computer device, the authorization information for the sender from the client computer device: sending, by the server computer device, to the client computer device at least the account information associated with the sender; and wherein the client computer device displays at least the account information associated with the sender, the account information including at least information relating to at least the electronic account of the sender, including information representative of at least one of: an electronic account number, a description of the electronic account, an indication of an active balance in the electronic account, a number of the electronic check referenced to the electronic account, and data on a bank associated with the electronic account.
4. The method according to claim 1, further comprising, when verifying, by the server computer device, the electronic check parameters results in a negative response: generating an error message; and transferring the error message to the client application.
5. The method according to claim 1, further comprising: calculating, by the server computer device, a sum of a commission to be collected, the calculating being based on an indication of an amount contained in the electronic check parameters, the sum of the commission being used to generate the electronic commission check; generating, by the server computer device, at least one message related to the sum of the commission; and transmitting, by the server computer device, the electronic commission message to the client computer device.
6. The method according to claim 5, wherein said step of calculating, by the server computer device, the sum of the commission to be collected is performed based on at least one of: local data stored in a random-access memory of the server computer device; and a rate of commission that has been pre-set in the server computer device.
7. The method of claim 5, wherein said processing, by the server computer device, the electronic check of the sender into the plurality of checks allows for the recipient to deposit an 23229123_1 amount that is lower than a nominal value of the electronic check in the electronic account of the recipient; and wherein: the electronic transfer check is representative of the amount to be deposited in the electronic account of the recipient; the electronic commission check is representative of the sum of the commission; and the electronic balance check is representative of an amount to be electronically deposited back into the electronic account of the sender.
8. The method according to claim 1, wherein: the electronic check parameters further include an amount to be transferred; and the method further comprises: comparing, by the server computer device, the amount to be transferred against an amount available in the electronic account; and blocking, by the server computer device, a reserve amount in the electronic account of the sender account, the reserve amount being sufficient to cover the amount to be transferred.
9. The method according to claim 1, wherein: the electronic check parameters further include an amount to be transferred; and the method further comprises: comparing the amount to be transferred against an amount available in the electronic account; and responsive to the amount to be transferred at least matching the amount available in the electronic account, electronically depositing, by the server computer device, the electronic transfer check in the electronic account of the recipient. My Partners And Global Stars Investments (MP&GSI) Ltd By the Attorneys for the Applicant SPRUSON & FERGUSON Per: 23229123_1
Applications Claiming Priority (3)
Application Number | Priority Date | Filing Date | Title |
---|---|---|---|
RU2011154492/08A RU2011154492A (en) | 2011-12-30 | 2011-12-30 | SYSTEM OF PAYMENT OF ELECTRONIC CHECKS AND METHODS OF ISSUE, TRANSFER OF PAYMENT AND VERIFICATION OF ELECTRONIC CHECKS |
RU2011154492 | 2011-12-30 | ||
NZ721817A NZ721901A (en) | 2011-12-30 | 2012-12-28 | Electronic cheque-based payment system |
Publications (2)
Publication Number | Publication Date |
---|---|
NZ739055A NZ739055A (en) | 2019-09-27 |
NZ739055B2 true NZ739055B2 (en) | 2020-01-07 |
Family
ID=
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