WO1997036267A1 - Procede et systeme automatises pour l'autorisation directe de cheques - Google Patents

Procede et systeme automatises pour l'autorisation directe de cheques Download PDF

Info

Publication number
WO1997036267A1
WO1997036267A1 PCT/US1997/005038 US9705038W WO9736267A1 WO 1997036267 A1 WO1997036267 A1 WO 1997036267A1 US 9705038 W US9705038 W US 9705038W WO 9736267 A1 WO9736267 A1 WO 9736267A1
Authority
WO
WIPO (PCT)
Prior art keywords
check
checking account
positive
set forth
amount
Prior art date
Application number
PCT/US1997/005038
Other languages
English (en)
Inventor
Wade L. Funk
Original Assignee
Electronic Data Systems Corporation
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Electronic Data Systems Corporation filed Critical Electronic Data Systems Corporation
Priority to AU25521/97A priority Critical patent/AU2552197A/en
Publication of WO1997036267A1 publication Critical patent/WO1997036267A1/fr

Links

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
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/04—Payment circuits
    • 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
    • G06Q20/04—Payment circuits
    • G06Q20/042—Payment circuits characterized in that the payment protocol involves at least one cheque

Definitions

  • This invention is related in general to the field of document handling systems. More particularly, the invention is related to an automated system and method for positive check authorization.
  • FIGURE 1 The typical check processing procedure is shown in FIGURE 1 and begins, for example, at a retailer or poin - of-sale. The cashier enters all the purchases and the register provides a total. The customer writes out a check for a specific dollar amount and presents it as payment for the amount owed, as shown in block 100. Most often, the only check verification is a "bad check" list, which records checking accounts which have a history of under-funded checks drawn thereon.
  • the retailer may check its internally-maintained "bad check” list or with a check authorization service. If the account has not been black listed, then the checking account owner may leave the retailer with the goods that were purchased. At the end of the day, the total of all checks received that day are totaled to compare with the register total. The register totals are combined to form a store total. The checks are then deposited with the retailer's bank.
  • the encoding process is performed manually, with an operator physically handling each check, viewing the amount, and then keying it on the face of the check.
  • the encoding speed per operator is typically 1,200 to 1,400 checks per hour.
  • the encoded checks are then tallied and compared with the total or. the deposit ticket. This process is commonly termed “proofing. " The encoded checks are then shipped to a central processing location for the "capturing" step, as shown in block 104.
  • High speed reader/sorters process the checks by reading and sorting the checks according to information printed on the MICR (magnetic ink character recognition) line located at the bottom of the check.
  • the MICR information on the check includes the bank number, account number, check serial number, in addition to the encoded check amount.
  • the checks are read and sorted by bank or some other designation according to the transit and routing information also present in the MICR line. Approximately 1 to 1.5* of checks are rejected because the MICR line information is not readable. The rejected checks are manually handled and corrected. A balance of credits and debits is then computed.
  • the sorted checks and a cash letter listing each check and their amounts are then sent in a collection and transit process to the institutions owning the accounts that the checks are drawn on.
  • the transit process delivers the checks to the bank having the accounts the checks are drawn on, at which place another capturing process commonly termed "inclearing” is performed, as shown in block 106.
  • Inclearing ensures that the checks are actually drawing on that bank's accounts, the amounts are encoded on the checks, the correct settlement amount is given to the other banks, and that the correct amount is finally settled or posted out of the customer's account, as shown in block 108.
  • the checks may then be optionally returned to the checking account owner, as shown in block 110.
  • the period of time starting from tendering check at the point-of-sale, bank teller, or automated teller machine (ATM) to the time the check is finally funded by the money in the customer's account is called the "float" period.
  • the float period may be up to two to three days during which one institution or another is at risk of holding a check drawing from an account that may not have adequate funds.
  • Checks are presented and accepted as payment without validation or verification that funds are available in the account. Because checks are rarely collected or funded by the presenter's institution on the same day as presentment and typically require one or more days to complete collection and funding, any fraudulent check use is usually not discovered in a timely manner. This needlessly subjects check receivers to the risk of nonpayment for services rendered or sales made because of insufficient funds and/or fraudulent use of checks. As a result, collection is a very costly process for banks and businesses.
  • the automated positive check authorization system includes an input device for receiving a check amount and checking account information presented in a transaction, a database having checking account numbers and corresponding balances, and a check verifier receiving the check amount and checking account information from the input device and searching the database for a current balance in response to the transmitted checking account information.
  • the check verifier further issues an approval or decline message in response to a comparison between the check amount and the current balance in the checking account.
  • a method for automated positive check authorization includes the steps of receiving checking account information and a check amount on a check drawing on a checking account, searching a database for a current balance in response to the received checking account information, comparing the current balance with the received check amount, and then issuing an approval or decline in response to the comparison.
  • an automated positive check authorization system includes a check verifier electronically receiving a check amount and checking account information read, at the time of presentment, from a check drawing on a checking account.
  • the check verifier searches a checking account database for a current balance in the checking account in response to the received checking account information, and electronically issues an approval or decline message in response to a comparison between the check amount and the current balance so that the check may be accepted or refused at the time of presentment.
  • FIGURE 1 is a simplified diagram of a typical back office check processing process
  • FIGURE 2 is a simplified block diagram of a positive check authorization system and method therefor constructed according to the teachings of the present invention
  • FIGURE 3 is a representation of a check
  • FIGURE 4 is a flowchart of an automated positive check authorization process according to the teachings of the present invention.
  • FIGURES 2-4 The preferred embodiment (s) of the present invention is (are) illustrated in FIGURES 2-4, like reference numerals being used to refer to like and corresponding parts of the various drawings.
  • FIGURES 2 and 4 are a block diagram and a flowchart of positive check authorization system and method therefor, respectively, and both are referenced below.
  • the discussion below is in the context of a point-of-sale transaction, the check authorization system and method of the present invention are equally applicable to other scenarios where a check is presented as payment or for deposit into an account.
  • a transaction amount becomes available as purchases are summed and a total obtained.
  • a MICR reader 200 may be used to read the MICR line information on the check, as shown in block 404.
  • FIGURE 3 shows a graphical representation of a personal check 300, where the bank number 304, account number 306, and check serial number 308 are shown on the MICR line.
  • Bank number 304 is also commonly termed the transit and routing number. If a device is not available to read the MICR information, the information may be manually keyed or entered. MICR readers 200 are commercially available and have been in use for reading this pre-printed information on checks.
  • the check amount 302 is entered electronically onto a device 202 by the person receiving the check via a numerical keypad, for example.
  • the register total may be accepted as the check amount and no manual entry is necessary.
  • the MICR information as well as the check amount are received by a check verifier 204 and used as search keys in one or more checking account databases 206, as shown in block 406.
  • Checking account database (s) 206 may reside at the site of one or more banks or servicers who are contracted to perform the check authorization service.
  • check verifier 204 is able to select the checking account database 206 that contains information on the check currently being presented based on the received checking account information, such as the transit and routing information.
  • a lookup table (not shown) may be used to determine which database 206 should be accessed to verify the check.
  • MICR reader 200 and check amount entry device 202 are shown in FIGURE 2 as separate entities, they may be implemented by an integrated device 203 that performs functions of both devices. Further, MICR reader 200 and check amount entry device 202 may also be integrated with a cash register for point-of-sale applications.
  • Check verifier 204 is represented as a block in FIGURE 2, but may in fact encompass reader 200, input device 202, and/or checking account database 206. Further, check verifier 204 may be co-located with reader 200 and input device 202 or with checking account database 206.
  • the connection that enables the check information to be transmitted from the point-of-sale for searching check account database 206 may be made through a switched telephony network or a dedicated line.
  • Checking account database 206 contains the checking account numbers, the current account balances, and any other necessary information related to the checking accounts at the institution. Additional information may include whether a stop payment has been issued for specific check serial number(s) or whether an account has been closed.
  • Checking account database 206 is connected to the banking institution 208, which supplies the account information.
  • Checking account database 206 may be maintained by the bank or a servicer contracted to perform the service of positive check authorization and/or check processing.
  • the check data transmitted from the point-of-sale is used to search database 206 for the current balance in the account (block 408) , and the check amount is used to compare with the current balance to determine whether sufficient funds are available to cover the check (block 410) .
  • the check amount is used to compare with the current balance to determine whether sufficient funds are available to cover the check (block 410) .
  • an approval or decline is issued for the current proposed transaction, as shown in block 414, and is electronically transmitted to the point-of-sale for visual display 210.
  • the approval or decline may be in the form of a unique code, which may be used to relay additional information about the check, such as the check was stolen or lost.
  • the retailer may then refuse the check payment if the transaction is declined.
  • a transaction that has been approved and the check accepted for payment may then result in a memo post being made against the account to adjust the current available account balance, as shown in block 416.
  • the accepted check may then be deposited for presentment for final funding as in normal check processing procedures.
  • an automated positive check authorization system and method includes a check verifier electronically receiving a check amount and a checking account information read, at the time of presentment, from a check drawing on a checking account, searching a checking account database for a current balance in the checking account in response to the electronically received checking account information, and electronically issuing an approval or decline message in response to a comparison between the check amount and the current balance so that the check may be accepted or refused at the time of presentment.
  • the positive check authorization system and method may further comprise at least a numerical keypad for entering a check amount at the time of check presentment.
  • the positive check authorization system and method may further include a MICR reader for reading, at the time of check presentment, a MICR line data printed on the check.
  • the MICR reader may be coupled to the check verifier via a telecommunications line.
  • the numerical keypad may be coupled to the check verifier via a telecommunications line.

Abstract

Système automatisé pour l'autorisation directe de chèques, comprenant un dispositif d'entrée (200, 202) destiné à recevoir le montant d'un chèque et des informations concernant un compte-chèques pré-imprimées sur un chèque de prélèvement sur un compte-chèques, présenté lors d'une transaction. Ces informations et ce montant sont électroniquement transmis à un vérificateur de chèques (204) qui reçoit les informations concernant le montant et le compte-chèques du dispositif d'entrée (200, 202) et cherche dans une base de données (206) de comptes-chèques, le solde courant du compte-chèques. Un message d'acceptation ou de refus est émis en réponse à une comparaison entre le montant du chèque et le solde courant sur le compte-chèques. Un message de refus est également émis si une instruction d'opposition au chèque a été émise.
PCT/US1997/005038 1996-03-28 1997-03-27 Procede et systeme automatises pour l'autorisation directe de cheques WO1997036267A1 (fr)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU25521/97A AU2552197A (en) 1996-03-28 1997-03-27 Automated system and method for positive check authorization

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
US62348196A 1996-03-28 1996-03-28
US08/623,481 1996-03-28

Publications (1)

Publication Number Publication Date
WO1997036267A1 true WO1997036267A1 (fr) 1997-10-02

Family

ID=24498243

Family Applications (1)

Application Number Title Priority Date Filing Date
PCT/US1997/005038 WO1997036267A1 (fr) 1996-03-28 1997-03-27 Procede et systeme automatises pour l'autorisation directe de cheques

Country Status (4)

Country Link
AU (1) AU2552197A (fr)
CA (1) CA2250683A1 (fr)
WO (1) WO1997036267A1 (fr)
ZA (1) ZA972768B (fr)

Cited By (3)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO2002046858A2 (fr) * 2000-10-30 2002-06-13 Bozeman William O Systeme universel actualise de paiement: confrontation, authentification, autorisation, reglement et compensation
US6757664B1 (en) * 1999-03-02 2004-06-29 Arbitrage Arbitrageur Llc Method and system for verification of checks at a point of sale
US7185805B1 (en) 2004-08-10 2007-03-06 Transmodus, Inc. Wireless check authorization

Citations (5)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO1984002212A1 (fr) * 1982-11-22 1984-06-07 Siler M Dan 3Rd Terminal d'impression et de verification de cheques
WO1989000318A1 (fr) * 1987-07-06 1989-01-12 Carlson Steven R Mecanisme de point de vente
WO1993002424A1 (fr) * 1991-07-17 1993-02-04 J.D. Carreker And Associates, Inc. Systeme de presentation electronique de cheques a l'acceptation
WO1994010649A1 (fr) * 1992-10-30 1994-05-11 Microbilt Corporation Terminal de transaction a lecteurs multiples
US5327508A (en) * 1989-05-01 1994-07-05 Credit Verification Corporation Method and system for building a database and performing marketing based upon prior shopping history

Patent Citations (5)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO1984002212A1 (fr) * 1982-11-22 1984-06-07 Siler M Dan 3Rd Terminal d'impression et de verification de cheques
WO1989000318A1 (fr) * 1987-07-06 1989-01-12 Carlson Steven R Mecanisme de point de vente
US5327508A (en) * 1989-05-01 1994-07-05 Credit Verification Corporation Method and system for building a database and performing marketing based upon prior shopping history
WO1993002424A1 (fr) * 1991-07-17 1993-02-04 J.D. Carreker And Associates, Inc. Systeme de presentation electronique de cheques a l'acceptation
WO1994010649A1 (fr) * 1992-10-30 1994-05-11 Microbilt Corporation Terminal de transaction a lecteurs multiples

Cited By (5)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US6757664B1 (en) * 1999-03-02 2004-06-29 Arbitrage Arbitrageur Llc Method and system for verification of checks at a point of sale
WO2002046858A2 (fr) * 2000-10-30 2002-06-13 Bozeman William O Systeme universel actualise de paiement: confrontation, authentification, autorisation, reglement et compensation
WO2002046858A3 (fr) * 2000-10-30 2003-03-20 William O Bozeman Systeme universel actualise de paiement: confrontation, authentification, autorisation, reglement et compensation
US6754640B2 (en) * 2000-10-30 2004-06-22 William O. Bozeman Universal positive pay match, authentication, authorization, settlement and clearing system
US7185805B1 (en) 2004-08-10 2007-03-06 Transmodus, Inc. Wireless check authorization

Also Published As

Publication number Publication date
AU2552197A (en) 1997-10-17
CA2250683A1 (fr) 1997-10-02
ZA972768B (en) 1998-07-30

Similar Documents

Publication Publication Date Title
US5801366A (en) Automated system and method for point-of-sale (POS) check processing
US6283366B1 (en) Check writing point of sale system
US7461775B2 (en) Apparatus and methods for processing misread or miskeyed magnetic indicia
USRE40220E1 (en) Check writing point of sale system
US6464134B1 (en) System and method for verifying the authenticity of a check and authorizing payment thereof
US5484988A (en) Checkwriting point of sale system
US7502758B2 (en) Creation and distribution of excess funds, deposits, and payments
CA2455556C (fr) Procede et systeme permettant de fournir des services financiers
US5832463A (en) Automated system and method for checkless check transaction
US5819236A (en) System and method for providing advance notification of potential presentment returns due to account restrictions
US7475807B2 (en) Method and apparatus for processing checks
US6647376B1 (en) System and method for point-of-sale check authorization
US6757664B1 (en) Method and system for verification of checks at a point of sale
US8396279B1 (en) Method and system for transaction decision making
US20050082364A1 (en) Systems and methods for banking transactions using a stored-value card
US20090150284A1 (en) Creation and distribution of excess funds, deposits and payments
US20020026365A1 (en) Method and system for electronic payment and check guarantee
US20130013491A1 (en) System and method for detecting and mitigating duplicate transaction fraud
WO2003030054A1 (fr) Creation et distribution de fonds excedentaires, depots et paiements
US20030050892A1 (en) Electronic point-of-sale check processing method and system
US7865433B2 (en) Point of sale purchase system
WO1997036267A1 (fr) Procede et systeme automatises pour l'autorisation directe de cheques
CA2535837A1 (fr) Systeme d'achat pour points de vente
NZ512036A (en) A system for guaranteeing a cheque using a card and authorisation code
AU2002355143A1 (en) Method and system for providing financial services

Legal Events

Date Code Title Description
AK Designated states

Kind code of ref document: A1

Designated state(s): AU BR CA JP KP KR MX NZ VN

AL Designated countries for regional patents

Kind code of ref document: A1

Designated state(s): AT BE CH DE DK ES FI FR GB GR IE IT LU MC NL PT SE

121 Ep: the epo has been informed by wipo that ep was designated in this application
DFPE Request for preliminary examination filed prior to expiration of 19th month from priority date (pct application filed before 20040101)
ENP Entry into the national phase

Ref document number: 2250683

Country of ref document: CA

Ref country code: CA

Ref document number: 2250683

Kind code of ref document: A

Format of ref document f/p: F

NENP Non-entry into the national phase

Ref country code: JP

Ref document number: 97534642

Format of ref document f/p: F

122 Ep: pct application non-entry in european phase