WO2004008350A1

WO2004008350A1 - Financial document processing method and system

Info

Publication number: WO2004008350A1
Application number: PCT/AU2003/000858
Authority: WO
Inventors: John Ashley
Original assignee: Ajja Productions Pty Limited
Priority date: 2002-07-10
Filing date: 2003-07-03
Publication date: 2004-01-22
Also published as: AU2002950093A0

Abstract

A method for processing financial documents, including the steps of: (a) receiving a batch of one or more financial documents (1) at a customer premises (2); (b) processing the financial documents in a customer system (3; 11-19) to create document images files and associated document data files; (c) transmitting the document image files and document data files from the customer system (3; 11-19) to a bank operations system (20-25); (d) forwarding the financial documents to a bank operations centre (4), and (e) matching the financial documents to the document image files and document data files in the operations system to enable final processing of the financial documents.

Description

FINANCIAL DOCUMENT PROCESSING METHOD AND SYSTEM

The present invention relates generally to the processing of financial documents by financial institutions, and in particular to the electronic capture and use of image and data files created from the financial documents by customers of financial institutions. The present invention has particular application in the electronic processing of cheques by banks and like financial institutions, and it will be convenient to describe the invention hereafter in relation to that exemplary, application. It will be understood however that the invention is not limited to that application only, and may be used in conjunction with, the processing of deposit slips, withdrawal slips or other financial documents.

Currently, information that is contained on cheques is processed three times, twice by bank customers and the third time by the bank itself. The first time that the information is used is when bank customers enter relevant cheque information into their own accounts receivable system. The second time the information is used is when bank customers manually record the cheque amounts and balances to credit. This process is used to prepare a transaction summary sheet for deposit, together with the physical cheques, at a bank branch or with an authorised bank agent.

After the customer has taken the cheques to a bank branch, the cheques are couriered to a bank operations centre. At this location, the cheques are processed a third time by the bank's voucher image processing system. Bank operations staff use this system to capture images of the cheques and enter the information contained on the cheque, balance and encode the cheque transaction data, and then store the physical cheque and credit document transactions. Once the transactions are captured and balanced by the bank, other subsequent processes are carried out including for example verification of credit, electronic exchange of "clean items" and updating of the bank's demand deposit account system. This procedure is cumbersome and inconvenient for both bank customers and the banks themselves. Bank customers would prefer to avoid having to enter cheque information more than once and being required to visit a bank branch to make deposits. On the other hand, banks would prefer a procedure where the data processing steps required to be performed at their bank operations centre are minimised.

It would be desirable to provide a method and system for processing financial documents that alleviates or overcomes one or more problems of known financial document processing systems and methods. It would also be desirable to provide a method and system for processing financial documents that is simple and convenient for both banks and their customers.

It would also be desirable to provide a method and system of processing financial documents that is simple to install, use and/or maintain by banks and their customers.

With this in mind, one aspect of the invention includes a method for processing financial documents, including the steps of:

(a) receiving a batch of one or more financial documents at a customer premises, (b) processing the financial documents in a customer system to create document images files and associated document data files,

(c) transmitting the document image files and document data files from the customer system to a bank operations system,

(d) forwarding the financial documents to a bank operations centre, and

(e) matching the financial documents to the document image files and document data files in the operations system to enable final processing of the financial documents.

Advantageously, bank customers are thus able to create and send images of cheques, deposit slips, withdrawal slips or other financial documents, and associated document data, for submission to an appropriate bank operations centre. Upon subsequent receipt of the physical financial documents at the bank operations centre, the documents are matched with the document images and data to enable final processing of the documents to occur, without the need for bank branch and operations personnel to handle and/or without the need to enter transaction details a third time.

Step (b) may include: capturing document data from a header document, capturing document data contained on financial documents in the batch, entering transaction data indicative of a financial transaction associated with the financial documents, and capturing document images from financial documents in the batch.

The header document may contain machine-readable indicia, such as magnetic ink characters. The machine-readable characters on the header document may be indicative of the customer.

The financial documents may contain machine-readable indicia.

The machine-readable characters on the financial document may be indicative of a financial transaction. Step (b) may also include: validating and repairing document data.

Step (b) may also include: validating an authenticating marking, such as a signature, on the financial documents. Step (e) includes: selectively editing the transmitted document data and image files prior to matching and final processing.

The financial documents may be cheques, deposit slips, withdrawal slips or like documents. The operations centre and operations system may be associated with a financial institution, such as a bank.

The customer premises and customer system may be associated with a customer of the financial institution.

Step (d) may include depositing the financial documents to a branch of the financial institution for forwarding to the operations centre.

The customer system may include a document reading device operatively connected to a computing apparatus.

The computing apparatus may include a processing unit and associated memory device storing program instructions for causing the computing apparatus to carry out steps (b) and (c).

The operations system may include a bank receiving server.

The bank receiving server be operatively connected to a voucher image processing system for performing final processing of the financial documents.

The bank receiving server may include a processing unit and associated memory device storing program instructions for receiving the document image files and document data files from the customer system and for causing the bank receiving server to carry out step (e).

Another aspect of the invention provides a method for processing financial documents, wherein a batch of one or more financial documents are received at a customer premises, the method including the steps of:

(a) processing the financial documents in a customer system to create document images files and associated document data files, and

(b) transmitting the document image files and document data files from the customer system to an operations system for matching with the financial documents.

A further aspect of the invention provides a method for processing financial documents, wherein a batch of one or more financial documents is received at a customer premises, the financial documents are processed in a customer system to create document images files and associated document data files, the document image files and document data files are transmitted from the customer system to an operations system, and the financial documents forwarded to an operations centre, the method including the step of:

(a) matching the financial documents to the document image files and document data files in the operations system to enable final processing of the financial documents.

Yet another aspect of the invention provides a system for processing financial documents, the system including: a customer system acting to process financial documents to create document images files and associated document data files, and to transmit the document image files and document data files from the customer system to an operations system, and an operations system acting to match the financial documents to the document image files and document data files to enable final processing of the financial documents. A still further aspect of the invention provides a customer system including a document reading device operatively connected to a computing apparatus, wherein the computing apparatus includes a processing unit and associated memory device storing program instructions for causing the computing apparatus to carry out steps (b) and (c). Another aspect of the invention provides a bank receiving server including a processing unit and associated memory device storing program instructions for receiving the document image files and document data files from the customer system and for causing the bank receiving server to carry out step (e). A still further aspect of the invention provides a computer program including program instructions for causing the computing apparatus to carry out the above-described functionality.

A computer program including program instructions for causing the bank receiving server to carry out the above-described functionality. The following description refers in more detail to the various features of the processing of financial documents according to the present invention. To facilitate an understanding of the invention, reference is made in the description to the accompanying drawings where the financial document processing is illustrated in a preferred embodiment. It is to be understood, however, that the present invention is not limited to the preferred embodiment illustrated in the drawings.

In the drawings:

Figure 1 is a schematic diagram illustrating the entities involved in the processing of financial documents according to one embodiment of the present invention;

Figure 2 is a schematic diagram showing a financial document processing system;

Figure 3 is a flow chart showing the operation of the financial document processing system shown in Figure 2; Figure 4 is a schematic diagram of an exemplary header document for use in the financial document processing system of Figure 2;

Figures 5 to 8, 10, 11 and 15 to 23 are representative displays presented to a user of a computing device at a customer's premises forming part of the financial document processing system of Figure 2; Figure 9 is a flow chart illustrating the operation of an editing process carried out by the computing apparatus of the financial document processing system shown in Figure 2; and

Figure 12 is a flow chart showing the functional steps involved in the entry of transaction data into the computing apparatus forming part of the financial document processing system of Figure 2.

Referring now to Figure 1, there is shown generally a schematic diagram of the entities involved in the processing of financial documents according to one embodiment of the present invention. Initially, cheques 1 arrive by mail or other forms of submission, such as personal presentation, at the premises 2 of a bank customer. At these premises, the mail containing the cheques is opened, and the cheques moved to a cheque processing department. Within that department, a customer system including cheque processing equipment 3 is used to read information printed on a batch of cheques, and to capture images of the front and back of each cheque. Bank customer staff then perform manual data entry, error correction and other related actions to the captured images and data. Document image files and associated document data files resulting from the processing of the cheques 1 are then transmitted to a bank operations centre 4 via a telecommunications network 5, such as the Internet or a bank's own intranet. Each batch 6 of cheques received at the bank customer premises 2 are grouped, together with a client header document, and deposited in the night safe of a bank branch 7. The next day, a courier collects the batches 6 of cheques and client header documents, and forwards the cheque batches and header documents to the bank operations centre 4. Alternatively, the batches of cheques and client header documents may be mailed to the bank operations centre 4. The cheques received are then matched with the document data files and document image files previously transmitted from the bank customer premises, in order for the processing of the cheques to be finalised.

The electronic capture of the document image files and associated document data files, as well as the subsequent transmission and processing of these files, is facilitated by the financial document processing system 10 shown in Figure 2. This figure shows representative computing apparatus 11 to 13, such as personal computers or servers, installed at the premises of one or more separate bank customers. Document reading devices 14 to 16 are respectively connected to the computing apparatus 11 to 13. The document reading devices 14 to 16 act to drive individual cheques past Magnetic Ink Character Recognition (MICR) devices to read magnetic ink characters printed on the cheques. The document reading devices 14 to 16 additionally scan the front and back surfaces of the cheque in order to generate an image of each surface of the cheque. The captured MICR data and document image data are transmitted to the computing apparatus 11 to 13 via RS-232 communications links 17 to 19 or other forms of connection, such as a USB connection. In other embodiments of the invention, machine readable indicia other than magnetic ink characters may be contained on the documents processed.

Data captured by the computing apparatus 11 to 13 is used to generate document image files and associated document data files. These files are transmitted to the bank operations centre 4, typically via the Internet, the bank's own intranet or another communications network. The elements 11 to 19 of the financial document processing system 10 form the bank customer system.

The document image files and document data files are received at the bank operations centre 4 by a bank receiving server 20. Image terminals 21 are connected to the bank receiving server 20 to enable visualisation and manipulation of the received files. The bank receiving server 20 is connected to the bank's conventional voucher image processing system 22 and a bank host Demand Deposit Accounting (DDA) system 23 via a token ring network 24 or other local area network. Image terminals 25 are connected to the voucher image processing system 22 in order to enable visualisation and manipulation of the files received by and stored in the voucher image processing system. It will be appreciated that computing apparatus 11 to 13 and the bank receiving server 20 include data processing units and associated memory devices storing program instructions to enable the computing apparatus and bank receiving server to carry out functionality described below. The elements 20 to 25 of the financial document processing system 10 form a bank operations system for matching the cheques or other financial documents and the document image files and document data files to enable final processing of the financial documents.

Following initialisation of the financial document processing system 10, a password logon screen is displayed to users of computing apparatus 11 to 13. Once logon has been completed and the identity of each user authenticated, the cheques 1 received at the bank customer premises 2 are processed to capture images of the front and back of the cheque, and to read information contained on the cheque. The logon process may optionally include "finger print recognition" to authenticate a user. The recognition and authentication of a user's finger print adds an extra level of security to the logon process.

As seen in Figure 3, once the computing apparatus in question has been initialised at step 30, the user is prompted to enter today's date at step 31. Once the date has been entered at step 32, and verified by a system clock at step 33, a header record is created to contain notably a location number, and user ID. Blank fields are established by the computing apparatus notably to record the number of cheques processed in a batch, beginning and ending primary transaction numbers, total number of records and the total dollar value of cheques processed. Once the header record and fields have been opened, and the corresponding file name created, the computing apparatus enables the first part of the process to capture document images and document data from the cheques. This process includes the capture of a header document provided by a bank to each bank customer, and of one or more cheques to be processed by each bank customer. The process continues until data from the header document and all cheques are captured by the document reading device. An exemplary header document 60 is shown in Figure 4. The header document includes magnetic ink characters able to be recognised by the document reading devices 14 to 16. The font structure of the magnetic ink characters includes 4 characters used by the banking industry to generate field separation. Each of these characters are alpha characters, and are used to separate strings of numeric fields containing information desired to be captured.

The header document 60, which is supplied to a customer by a bank, includes sufficient information in the Magnetic Ink Character Recognition

(MICR) line 61 to ensure that the correct document is being used, and to create a unique record that can be used by the bank operations centre to access a customer's data file when the cheques 1 arrive at the bank operations centre 4. The header document 60 plays a role in linking the physical cheques 1 to the document image files and associated document data files derived from the cheques 1. For Australian cheques, the MICR line 61 includes an "Extra Aux Dom" field 62, and "Aux Dom" field 63, a "BSB" field 64, "Account Number" field 65, and "Tran Code" field 66. The Extra Aux Dom field includes a string of numbers representing a customer unit serial number together with a cheque digit, separated by 2 alpha characters.

The Aux Dom field 63 includes 6 characters representing a header document serial number supplied by the bank. These numbers are used by the bank to keep track of header document usage, and to provide a header document replenishment system similar to that provided for cheque books.

The BSB field 64 represents the bank branch where the customer will place their deposit of physical cheques in the overnight safe.

The Account Number field 65 includes 9 characters representative of a customer primary account number. The Tran Code field 66 includes 2 characters used by the bank operations centre 4 to confirm that this document is a header document for an electronic image cheque deposit. The combination of the numbers encoded in the fields 62 to 66 creates a unique record to enable the document image files and document data files from the cheques scanned at the bank customer premises to be matched with the physical cheques subsequently received by the bank operation centre 4.

Data in one or more of the fields 62 to 66 may have been embedded in software loaded on the customer computing apparatus during installation, and used to validate the data read from the header document. The Header document mirrors the MICR band structure when used with non Australian cheques such as cheques drawn on US banks which have a Federal Reserve Bank/American Bankers Association MICR band structure.

Returning again to Figure 3, the user is prompted at step 34 to feed the header document into the document reading device. The software resident in the computing apparatus of the bank customer will not allow any other item to be captured until the header document 60 has been accepted. During capture of the header document, the user is presented with a display 70, as shown in Figure 5. This display provides the user with a visual indication of the step being performed in window 72. The display 70 also presents a captured image of the header document in a window 73 for verification by the user. The computing apparatus then acts to authenticate the captured header details against data embedded in the software loaded in the computing device apparatus, before enabling cheque capture by the document reading device.

The display 70 may also present specific business advertising content to the user. The bank receiving server 20 may maintain or access business advertising content for transmission and display to the user via any of the graphic user interfaces presented during operation of the financial document processing system.

At step 35, cheques are individually fed into the credit document reading device. During cheque capture, images of both the front and back of the cheque are captured, as well as the data included in the MICR line on each cheque. During this process, the user is presented with a display 74 shown in Figure 6. This display provides the user with a visual prompt in a window 75 to feed in the cheques to be processed, as well as displaying an image in a window 76 of the front of each cheque as it is being processed. During the cheque capture process, a file of the data included in the MICR line of the processed cheque, is stored within the computing apparatus. As each new cheque is captured, the data from the MICR line is compared to the data in that temporary file. Any matches indicate that a user has attempted to capture the same cheque twice. If this happens, the computing apparatus will suspend the cheque capture process. Supervisor intervention will subsequently be required to restart the process.

During the cheque capture process, a suspend button 77 provided on the display 74 enables users to temporarily suspend cheque processing. Once this button has been activated, the user is presented with an option to temporarily shut down the computing apparatus or leave it in a suspended state. In order to restart, the user is required to re-enter a password via the window 78, shown on the display 79 of Figure 7. Following re-entry of the password, the user is required to activate a restart button 80 in order to resume cheque capture 80. Once all cheques have been captured, the user terminates the capturing process at step 36 by selecting a "stop transport" button 81 on the display 79.

Once the capture cheques process 37 has been concluded, image data entry is carried out by the user. The purpose of this step is to correct any misreads of the MICR line data and to manually enter the amount of each cheque. During the cheque capture process, the MICR line data and document image files are stored on the hard drive of the computing device in question. A series of simple edits are also performed on the MICR line data. For example, a field size check is performed on the BSB field, a range check performed on the Aux Dom field, calculation of characters between MICR line special characters is performed, and areas where rejected characters have been identified are edited. Using this information, which will have resulted in identifier flags being inserted into a record created for each cheque, the user will be presented with one or more "electronic scissored" areas of the MICR line.

Figure 8 shows an example of the "electronically scissored" areas presented to a user by the computing apparatus at the bank customer premises. In this example, the MICR line 90 of a cheque 91 is dissected by the software resident in the computing apparatus into three MICR line segments 92 to 94 for display to the user. The manner in which these MICR line segments are used for data validation, repair and editing is illustrated in the flow chart 100 shown in Figure 9. Following cheque processing, the captured MICR line data will either be complete, or will have reject characters embedded or failed some basic editing tasks due to character substitution. In the last two cases, a flag is set by the software resident in the computing apparatus to "electronically scissor" the MICR line, as described in relation to Figure 8, from the front image of the cheque. Selected image portions of the MICR line, together with the data captured from the cheque processing, are then displayed to a user during a MICR line repair process.

At step 101, the MICR line of each cheque is read. If no MICR band is detected at step 102, the user is advised at step 103 to alert the bank to a possible fraud. If the cheque in question has been read only once, the cheque is re-fed in a different orientation. If it is detected at step 102 that the cheque has been fed in two different orientations, a determination is made at step 104 as to whether the MICR line data has been completely captured or not. If the data has been completely captured, a bank logical test is performed at step 105 to verify the format and range of data within each of the fields 62 to 66 of the MICR line 61.

However, if the MICR line data has not been completely read, the "electronically scissored" MICR line segments retrieved at step 106 are displayed to the user together with the captured MICR line data. Figure 10 provides exemplary displays 120 and 121 of two manners in which the incomplete MICR line data may be edited. The first, as exemplified by display 120, is to re-key the entire field, whilst the second, as shown in display 121, is to key only missing characters. The software resident in the computing apparatus in the bank customer premises makes this determination based upon the number of errors detected in the field in question. Operational usage has determined that where there are more than three errors, it is quicker and more accurate to re-key the entire field.

Once the missing characters have been input at step 107, the bank logical test is performed at step 105. If it is determined at step 108 that the bank logical test was failed, steps 106 and 107 are repeated. If a second time failure is detected at step 108, the cheque capture process is discontinued at step 109. However, if as a result of editing the bank logical test was passed, a determination is made as to whether the item is a master control file at step 110. If so, the MICR line data validation, repair and editing process is discontinued at step 109. If the item is not on a master control file, the MICR data record is moved to a disc storage master control file, together with associated control data, at step 111. Figure 11 represents a display 130 presented to a user during the operation of the afore-mentioned MICR line data correction.

Following the capture of the MICR line data, and images of the front and back of each cheque, the user is then prompted to manually enter transition data indicative of the amount of each cheque. The process for amount data entry is represented in the flow chart 140 shown in Figure 12. At step 141, the amount field 95 is electronically scissored from the image of the front of each cheque and displayed to the user, as shown in Figure 13, of the computing device at the bank customer premises. At step 142, and as shown in Figure 14, the amount field 95 cut from the cheque image 91 is displayed to the user on a display 150 together with an amount entry window 151.

Once the amount has been keyed by the user, a determination is made at step 143 as to whether the amount is below a threshold value. If so, the amount field for that cheque is updated at step 144. However, if it determined at step 143 that the cheque amount exceeds a predetermined threshold, the user is prompted at step 145 to re-key amount backwards. Accordingly, a display 152 is presented to the user, including the amount field from the cheque image and a reverse amount data entry window 153. If it is determined at step 146 that the correct amount has been keyed, then the amount field is updated. If differing amounts have been entered forwards and backwards, the user is once again presented with the display 150 and the amount keyed in the forward direction again.

At step 148, the software determines whether the amount keyed in step 147 corresponds to either of the two previously keyed amounts. If so, the amount field is updated, otherwise the amount data entry process is discontinued at step 149. An exemplary amount data entry screen 160 is shown in Figure 16.

In order to ensure that cheques being presented have been signed, application software resident in the computing apparatus at the bank customer premises electronically scissors out an area of each cheque in the signature panel to perform a "pixel or byte count" test. A minimum pixel or byte level will be set in the software so that a range check can be performed. In exemplary cheque 91, shown in Figure 17, the signature panel 161 is determined to include 2,250 bytes, whereas the signature panel 162 is determined to have only 1,400 bytes. If the image byte counter is calculated to be below a set minimum value of 2,000 bytes, then a display 163 is presented to the user inviting the user to validate the signature. If a "no" button is selected, a flag is set to prevent the item from being captured again in error. This flag will also be used to prevent data for this cheque being included in the document data and image files transmitted to the bank operations centre 4.

At the end of this process, the computing apparatus in the bank customer premises is ready to generate document image files and associated transaction data files for transmission to the bank receiving server 20. As part of the completion of the cheque capture process, the resident software causes a summary of capture screen 170 to be presented to the user. This display presents to the user the total number of items that have been successfully captured (electronic items) and the value of those electronic items, together with the total number of items that have failed a critical edit during data capture (non electronic items) and a total value of those non-electronic items. The user is also able to select whether a single account or multiple accounts are to be credited or not. The user is also able to select one or more cheques which will be processed through an Automated Clearing House (ACH).

If a user choses to credit one or more bank accounts with the values of the captured cheques, the user is presented with a display 180, shown in Figure 19. This display shows to the user an account allocation table 181 summarising the values of scanned cheques to be applied to a selected account, as well as identifying un-allocated cheques. A location identifier indicating which account the cheques are to be credited to is displayed to the user. If the location identifier is "U", the user is alerted that the cheque has failed a critical edit during data capture.

Where a customer has only one account, the user is presented with a display 190, as shown in Figure 20. The account allocation table 191 indicates the value of all cheques scanned and sums the value of those cheques. In addition, the location indicator identifies the account to which the cheques have been credited.

Similarly, where a user has multiple accounts, a display 200, as shown in Figure 21, is presented to the user. In this example, an account allocation table 201 displays the values of cheques allocated to various accounts, and sums the value of the cheques allocated to each separate account. Location identifiers are again provided to indicate which account each cheque was allocated to, as well as which cheques failed critical edit during data capture.

Once all items have been allocated to an account, the user is presented with a display 210 inviting them to transmit the document image files and associated document data files to the bank operations centre 4 for subsequent matching to the physical cheques at a later time.

Returning again to Figure 3, it will be appreciated from the foregoing that during the cheque capture process 37 the MICR line is read at step 38, and the MICR line data then augmented by manual entry of the amount of each cheque or other transaction data at step 39. Images of both sides of each cheque are captured at step 40. Moreover, a data control record, including the status of various flags and other control information either entered by the user or generated by the software resident in the computing apparatus in question, is created at step 41.

The process described in relation to steps 30 to 41 results in the creation of a header record for each batch of cheques processed, and an MICR data record, trace line record, and image front and back files for each cheque within the batch. In the example shown in Figure 3, the header record MICR data record, trace line record and image front and back files for a first cheque are referenced 50 to 54 respectively, whereas the MICR data record, trace line record and image front and back files for a second cheque are respectively referenced 55 to 58.

Once the document image files and transaction data files for a cheque batch have been transmitted to the bank operations centre 4, the final processes required to be performed by the user is preparing a physical cheque batch deposit to be dropped off at a branch night safe or mailed to the bank operations centre. A fast deposit or similar envelope, designed for the express purpose of depositing non-cash deposits, may be used. A user may place in the fast deposit envelope the header document, following by all cheques that have been processed by the computing apparatus and associated document reading device at a bank customer premises. The cheques are placed in the envelope in the sequence that they were processed, and oriented with the MICR data line facing forward and in line with the header. The bank receiving server 20 located at the bank operations centre 4 acts as the primary interface between the bank customer system and the conventional bank voucher image processing system 22. During daily cheque processing, the bank operations centre 4 will receive the document image files and associated document data files at the bank receiving server 20. Computing apparatus 11 to 13 initially establish a connection via the telecommunications network 5 to the bank receiving server 20. As part of a connection process, the inbound document reading device and computing apparatus specific information is checked at the bank receiving server to ensure that the transmitting computing apparatus is registered as an authorised user. Upon validation, the information captured by the document reading device and computing apparatus is accepted by the bank receiving server and stored for editing.

Each batch of files is initially processed by an edit program forming part of the software resident on the bank receiving server. Conveniently, this edit program may replicate much of the functionality of the edit program forming part of the voucher image processing system 22. During editing, the bank receiver system editing program reviews specifically data indicators associated with each of the records transmitted by the computing apparatus 11 to 13. Each data record is checked for validation in accordance with the Australian Payments Clearing Association (or its equivalent) rules and/or bank - bank by lateral agreements. Software to enable the performance of this process specifically installed by the bank where the bank receiving server 20 is installed. The processing review establishes the authenticity of the cheques scanned, for example a "no MICR indicator set" would identify a potential fraudulent cheque, and also establishes the accuracy of the value of the cheque by performing both the review of the data indicators, setting internal "high dollar" review levels and random checking. Data that fails to pass any of the above prescribed edits are flagged for further processing by the bank at which the cheque was initially received.

The edit program acts firstly to verify the data captured from the MICR line on each cheque within the batch processed by the computing apparatus. A cheque digit routine is implemented and an exception item file created. This file is presented to proof operators via the image terminals 25. At these terminals, bank operation staff review both the cheque image and associated data that are flagged by the editing process, and take appropriate corrective action. This may include the re-entering of the amount of the cheque, the rekeying of the MICR information, checking and rebalancing the credit, signature checking and denying the transaction. Statistics related to both the data checked, typically information of a critical nature such as potential fraud or continuous misreading of MICR, are collected by the bank receiving server 20 for user feedback. As a result of this first edit, a percentage of cheques will remain as "not for value" items. The balance, known as "for value" or alternatively "dirty paper" items, will have a flag set so that when the physical cheques arrive subsequently from the bank branch 7, they will be out-sorted during subsequent processing for inter-bank exchange. The exception item file is also used with the document image files for MICR line data correction. The edit program also enables bank operation staff to perform random checking of the received document image/data files. For example, a flag may be set in the received data where there has been duel keying of high value cheques. Bank operations staff may decide to view these cheques, and if appropriate verify these amounts.

The document image file may be used as a temporary tool on the bank receiving server prior to image truncation. When the physical cheques arrive for encoding and sorting, the received document image files may be permanently stored for archiving purposes. The received document image files are stored in a temporary data storage on the bank receiving server 20 until all files within a batch have been received. Analysis of flags transmitted as part of the data files to the bank receiving server 20 create exception item processing, which is accomplished using the image terminals 25 of the voucher image processing system 22. Edits performed on the MICR line data will also be performed on the bank receiving server, and any required correction performed in . conjunction with the appropriate document image file.

It will be appreciated that a variety of edit programs may be used in conjunction with the bank receiving server, and that the software resident in the computing apparatus will be required to provide document image files, and associated document data files including pointers to the document image files, in a format suitable for use by the edit program in use on the bank receiving server.

When the batch of physical cheques arrives at the bank operation centre 4, the envelope or other package in which the cheques and header document are transported will be opened, and the contents checked to ensure that the first document is the header document and that all cheques are correctly oriented. This batch of cheques is then forwarded to the bank operations centre transport room for matching with the previously received document image files and associated document data file to enable final processing of the cheques. Alternatively, instead of matching the cheque for encoding after the Bank Receiving Server has performed its described editing functions, the cheque may be reformatted for electronic transmission to facilitate the cheque clearing process. It will be appreciated from the foregoing that the present invention provides an image based electronic deposit system that automates the compilation of customer created cheque image and associated data file without requiring a customer's presence at a bank branch. The automated compilation may also result in files that are directly useable by a customer's accounts receivable system. The cheques are in effect deposited at a bank's operation centre by means of electronic file transfer. Upon receipt of the physical cheques by the bank operation centre, minimal activity is required by bank operations staff in order to finalise processing of the cheques.

Those skilled in the art will appreciate that there may be many variations and modifications of the above described system and method which are within the scope of the present invention.

Claims

CLAIMS:

1. A method for processing financial documents, including the steps of:

(a) receiving a batch of one or more financial documents at a customer premises; (b) processing the financial documents in a customer system to create document images files and associated document data files;

(c) transmitting the document image files and document data files from the customer system to a bank operations system;

(d) forwarding the financial documents to a bank operations centre, and (e) matching the financial documents to the document image files and document data files in the operations system to enable final processing of the financial documents.

2. A method according to claim 1, wherein step (b) may include: capturing document data from a header document; capturing document data contained on financial documents in the batch; entering transaction data indicative of a financial transaction associated with the financial documents; and capturing document images from financial documents in the batch.

3. A method according to claim 1, wherein the header document contains machine-readable indicia.

4. A method according to claim 3, wherein the machine-readable indicia are magnetic ink characters.

5. A method according to either claim 3 or claim 4 wherein the machine-readable indicia on the header document are indicative of the customer.

6. A method according to any one of the preceding claims, wherein the financial documents contains machine-readable indicia.

7. A method according to claim 6, wherein the machine-readable characters on the financial document indicative of a financial transaction.

8. A method according to any one of the preceding claims, wherein step (b) further includes: validating and repairing document data.

9. A method according to any one of the preceding claims, wherein step (b) further includes: validating an authenticating marking on the financial documents.

10. A method according to claim 9, wherein the authenticating marking is a signature.

11. A method according to any one of the preceding claims, wherein step (e) includes: selectively editing the transmitted document data and image files prior to matching and final processing.

12. A method according to any one of the preceding claims, wherein the financial documents include any one or more of cheques, deposit slips or withdrawal slips.

13. A method according to any one of the preceding claims, wherein the operations centre and operations system are associated with a financial institution.

14. A method according to claim 13, wherein the financial institution is a bank.

15. A method according to any one of the preceding claims, wherein the customer premises and customer system are associated with a customer of the financial institution.

16. A method according to any one of the preceding claims, wherein step (d) includes depositing the financial documents to a branch of the financial institution for forwarding to the operations centre.

17. A method according to any one of the preceding claims, wherein the customer system includes a document reading device operatively connected to a computing apparatus.

18. A method according to claim 17, wherein the computing apparatus includes a processing unit and associated memory device storing program instructions for causing the computing apparatus to carry out steps (b) and (c).

19. A method according to any one of the preceding claims, wherein the operations system includes a bank receiving server.

20. A method according to claim 19, wherein the bank receiving server is operatively connected to a voucher image processing system for performing final processing of the financial documents.

21. A method according to claim 20, wherein the bank receiving server includes a processing unit and associated memory device storing program instructions for receiving the document image files and document data files from the customer system and for causing the bank receiving server to carry out step (e).

22. A method for processing financial documents, wherein a batch of one or more financial documents are received at a customer premises, the method including the steps of:

(a) processing the financial documents in a customer system to create document images files and associated document data files, and (b) transmitting the document image files and document data files from the customer system to an operations system for matching with the financial documents.

23. A method for processing financial documents, wherein a batch of one or more financial documents is received at a customer premises, the financial documents are processed in a customer system to create document images files and associated document data files, the document image files and document data files are transmitted from the customer system to an operations system, and the financial documents forwarded to an operations centre, the method including the step of:

24. A system for processing financial documents, the system including: a customer system acting to process financial documents to create document images files and associated document data files, and to transmit the document image files and document data files from the customer system to an operations system, and an operations system acting to match the financial documents to the document image files and document data files to enable final processing of the financial documents.

25. A customer system including a document reading device operatively connected to a computing apparatus, wherein the computing apparatus includes a processing unit and associated memory device storing program instructions for causing the computing apparatus to carry out steps (b) and (c) as defined in any one of claims 1 to 17.

26. A bank receiving server including a processing unit and associated memory device storing program instructions for receiving the document image files and document data files from a customer system and for causing the bank receiving server to carry out step (e) as defined in any one of claims 1 to 17.

27. A computer program including program instructions for causing the computing apparatus of claim 22 to carry out steps (b) and (c) as defined in any one of claims 1 to

17.

28. A computer program including program instructions for causing the bank receiving server of claim 23 to carry out step (3) as defined in any one of claims 1 to 17.