U.S. patent application number 09/851609 was filed with the patent office on 2001-11-01 for check writing point of sale system.
Invention is credited to Hills, Robert R., Nichols, Henry R..
Application Number | 20010037299 09/851609 |
Document ID | / |
Family ID | 25104292 |
Filed Date | 2001-11-01 |
United States Patent
Application |
20010037299 |
Kind Code |
A1 |
Nichols, Henry R. ; et
al. |
November 1, 2001 |
Check writing point of sale system
Abstract
A point of sale system designed to read information from a
consumer's check, credit card, or manual input with a subsequent
debiting of a consumer's account and crediting merchant's account
for the goods or services provided. Point of sale terminals are
designed to accept a form of credit card with a consumer's bank
account information encoded thereon or in the alternative to read
the MICR number from a consumer's check in order to verify that a
consumer has an appropriate balance to conduct the transaction with
a given merchant. Thereafter the transaction of that information is
transmitted to a central computer system which verifies the
consumer's credit worthiness and stores the transaction event
information for subsequent bank reconciliation via the ACH or other
competing network. The invention eliminates the need for paper
checks with all bank reconciliation being accomplished
electronically. The present invention also includes fraud
protection provisions such as velocity controls, social security
checks, and scans. The present invention has the further
flexibility to differentiate between "first time" consumer usage
and those limits otherwise assigned to "known" consumer accounts.
Additionally, there is not need for the present system to retain
the consumer's check after verification.
Inventors: |
Nichols, Henry R.; (McLean,
VA) ; Hills, Robert R.; (St. Augustine, FL) |
Correspondence
Address: |
Roberts Abokhair & Mardula, LLC
Suite 1000
11800 Sunrise Valley Drive
Reston
VA
20191-5302
US
|
Family ID: |
25104292 |
Appl. No.: |
09/851609 |
Filed: |
May 9, 2001 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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09851609 |
May 9, 2001 |
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09562303 |
May 1, 2000 |
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6283366 |
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09562303 |
May 1, 2000 |
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08775400 |
Dec 31, 1996 |
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6164528 |
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Current U.S.
Class: |
705/42 ; 235/379;
235/380; 705/39 |
Current CPC
Class: |
G06Q 20/108 20130101;
G06Q 20/042 20130101; G06Q 20/04 20130101; G06Q 20/26 20130101;
G06Q 20/10 20130101; G07G 1/12 20130101 |
Class at
Publication: |
705/42 ; 705/39;
235/379; 235/380 |
International
Class: |
G06F 017/60; G06K
005/00 |
Claims
What is claimed is:
1. A checkwriting point of sale system comprising: (a) a point of
sale terminal adapted to receive consumer bank account information
from any bank check; (b) the point of sale terminal further adapted
to receive consumer bank account information from a consumer
communicating with the point of sale terminal over the Internet;
(c) a central computer system; (d) first communications means
integral to said point of sale terminal for electronically
communicating with the central computer system; (e) memory means
integral to said point of sale terminal for temporarily storing the
consumer bank account information; (f) the central computer system
having second communication means for receiving information from a
plurality of said point of sale terminals; and (g) the central
computer system second communication means enabling said central
computer system to communicate with external databases for
performing a consumer bank account status search and further
enabling automated clearing house communication for transferring
funds without using the bank check as a negotiable instrument.
2. The checkwriting point of sale system of claim 1 wherein the
point of sale terminal is further adapted to print activity reports
of transaction events occurring at the point of sale terminal.
3. The checkwriting point of sale system of claim 1 wherein the
point of sale terminal is further adapted to annotate the bank
check that is used at the point of sale terminal to provide the
consumer bank account information.
4. The checkwriting point of sale system of claim 1 wherein the
consumer bank account information provided by the consumer over the
Internet originates from network computers (NC's).
5. The checkwriting point of sale system of claim 1 further
comprising means for service subscriber activation.
6. The checkwriting point of sale system of claim 5 wherein the
service subscriber activation means is a personal computer.
7. The checkwriting point of sale system of claim 5 wherein the
service subscriber activation means is an electronic cash
register.
8. The checkwriting point of sale system of claim 1 further
comprising means for biometrically verifying the identify of the
consumer connected to the point of sale terminal.
9. The checkwriting point of sale system of claim 1 further
comprising a smart card reader connected to the point of sale
terminal for input of the consumer's bank account information.
10. A checkwriting point of sale process comprising: (a) presenting
a bank check specimen to a point of sale terminal located at a
merchant or service provider; (b) reading a magnetic ink character
recognition number information on the check for the sole purpose of
obtaining consumer bank account information, without using the
check as a negotiable instrument; (c) storing the consumer bank
account information obtained from the check and verifying that
account numbers were accurately read at the point of sale terminal;
(d) providing transaction event information to the point of sale
terminal; (e) transmitting the transaction event information and
consumer bank account information to a central computer system; (f)
storing the transaction event information and consumer banking
account information; (g) subsequently transmitting the transaction
event information to a bank for subsequent automated clearing house
operations; and (h) returning the bank check specimen to the
consumer.
11. The checkwriting point of sale process of claim 10 further
comprising: annotating the bank check specimen before returning the
bank check specimen to the consumer.
12. The checkwriting point of sale process of claim 10 further
comprising: receiving and retaining a consumer's social security
number
13. The checkwriting point of sale process of claim 12 further
comprising validating the social security number against those
numbers issued to individuals reported as deceased.
14. The checkwriting point of sale process of claim 12 further
comprising cross-searching a known checkwriter database to verify
the status of all of the consumer's banking accounts.
15. The checkwriting point of sale process of claim 14 further
comprising sending an approval message to the point of sale
terminal if the consumer's banking account status is approved for
the transaction.
16. The checkwriting point of sale process of claim 15 further
comprising by-passing the approval process; capturing and logging
the transaction event; and electronically settling the
transaction.
17. The checkwriting point of sale process of claim 14 wherein the
cross-searching further comprises conducting a "velocity check" of
the consumer's expenditure to avoid fraud.
18. The checkwriting point of sale process of claim 10 further
comprising performing a "velocity check" on the merchants sales
activity to avoid fraud.
Description
RELATED PATENTS
[0001] This application is an improvement of U.S. Pat. No.
5,484,988 to Hills et al. entitled "Check Writing Point of Sale
System."
FIELD OF THE INVENTION
[0002] This invention relates to the field of Point-of-Sale systems
and more particularly to the integration and processing of
purchases whereby a check or encoded card is used as the basic
source of identification of the individual and of the individual's
bank and whereby the bank account is debited electronically.
BACKGROUND ART
[0003] Numerous devices exist for processing checks. For example,
U.S. Pat. No. 4,933,536 to Lindemann. et al., describes a check
processing device which is used together with a point-of-Sale
terminal. This particular device involves copying and taking a
picture of an individual whereby a dishonored check could then be
traced to the person who has offered it.
[0004] U.S. Pat. No. 4,810,866 to Lloyd, Jr., describes a check
validation system again located together with a Point-of-Sale
system for imprinting and otherwise physically dealing with a
check.
[0005] Other systems also deal with an apparatus for handling
checks at a point of sale. For example, U.S. Pat. No. 4,743,743 to
Fukatsu describes one such transaction apparatus where a check is
examined by a reader. U.S. Pat. No. 4,672,377 to Murphy, et al.
describes a check authorization system wherein a check is imprinted
with a bar code and information concerning customers which are
stored in a database. U.S. Pat. No. 3,845,470 to Schuller discloses
a vending system using a modified form of a check which is
imprinted with identification codes, when someone attempts to use
the check in purchasing goods and services, a vending operation
will not place the order if information associated with the check
is not valid in a particular database.
[0006] Other check-based financial systems have also been the
subject of invention. U.S. Pat. No. 4,617,457 addresses an ATM or
automatic teller machine form of cashing checks. Such systems
create a picture of the check involved and also involves checking
against a specialized database to insure that the check is a
"valid" one (see also U.S. Pat. No. 4,580,040 to Granzow et
al.).
[0007] Another generic category of financial systems deals with
methods of handling the financial transactions apart from the
physical handling of the check itself. For example. U.S. Pat. No.
3,824,544 to Simijian describes a merchant issued "check" which can
be used in the purchase of goods and services and upon purchase, a
specialized code is evaluated to determine if the check is being
validly utilized.
[0008] U.S. Pat. No. 4,404,649 to Nunley et al. describes a
document processing system which generally discloses a method of
reading checks for processing a wide variety of financial
documents.
[0009] U.S. Pat. No. 4,523,330 to Caine also describes a method for
processing financial documents which systems also includes a
Point-of-Sale terminal for generating image data from checks as
they are being processed. This patent is drawn principally to the
actual terminal itself.
[0010] U.S. Pat. No. 4,673,802 to Ohmae et al. describes a central
processing system having stored data relating to the counts of
users. Users are approved or disapproved at the Point-of-Sale based
upon information in the database.
[0011] U.S. Pat. No. 4,270,042 to Case discloses a point of sale
system that requires a consumer to prepay a sum of money into a
special account that is accessed only by the system. This amount is
inscribed on the card, and when a transaction made using the
system, the amount of the transaction is punched out of a
designated area on the card. This amount along with a signature and
other information, is supplied on a draft negotiable instrument,
which is given to the merchant at the time of the transaction.
Thus, the Case system does away with the use of bank checks in
effecting the transaction, but requires the use of specialized
prepaid draft negotiable instruments that must be surrendered to
the merchant.
[0012] U.S. Pat. No. 4,823,264 to Demino discloses a home banking
system that can be used to transfer funds to different payees in
satisfaction of debts incurred through previous purchases, use of
utilities, etc. The system is consumer driven; that is, it is
contemplated for use by the payor on a home personal computer.
While the Deming system does away with the use of bank checks,
account and other information must be keyed into the system. The
Deming system cannot be used to read account and other information
directly from an ordinary bank check and has no use for bank checks
as instruments other than negotiable paper. Further, the Deming
system cannot be used to transfer funds at the time of purchase and
is not workable at the point of sale; the system can only be used
to pay debts that have been incurred in the past and have
accumulated.
[0013] Finally, U.S. Pat. No. 4,678,896 to Carlson et al. describes
a Point-of-Sale system whereby an apparatus is provided to secure
the processing and imprinting of checks.
[0014] All of these above patents deal with the specific problem of
how to accept a check from a customer for the purchase of goods and
services. They do not in any way address the subsequent processing
of checks nor do they address the process by which checks are
cleared through the normal automatic check handling clearinghouse
operations that exist in the financial world. Thus, the interaction
of these systems with the automated clearing house ("ACH") process
is not addressed in any way. This is particularly important since
if any Point-of-Sale check handling system is to interact with the
ACH mechanism it must adhere to that processing scheme and must
lend itself to use with a processing scheme.
[0015] Further, some of the currently used systems described above
require the use of a bank check as a negotiable instrument which
must be surrendered to a merchant. Some of the systems do away with
the use of a bank checks altogether, but require a debit card or a
specialized draft instrument to be used only with the particular
system. None of these systems completely does away with the need
and use for a negotiable draft instrument while using the
consumer's bank check for identification and verification only.
That is, current technologies such as check truncation, electronic
check presentment and representment all require a consumer's
initial issuance of a "paper" check. It is therefore an objective
of the present invention to provide such a system.
[0016] It is an objective of the present invention to be adaptable
for use with the ACH system and to be smoothly incorporated into
it. In this fashion, the present invention will immediately be
useful for a much wider range of financial transactions above and
beyond those contemplated and disclosed in the background
references discussed above.
SUMMARY OF THE INVENTION
[0017] The present invention comprises a process and apparatus
which may be employed for the purpose of effecting payments for
point-of-sale purchases of goods and services paid from consumer
funds secured in bank checking or depository accounts. Each sale or
"Transaction Event" would be an electronic and "paperless" event
thereby eliminating reliance on accepting and processing commercial
bank drafts (personal or corporate checks) and the physical
handling of those bank drafts thus replacing commercial bank drafts
at the point-of-sale.
[0018] In contrast to known systems, the present invention is a
merchant driven system that can be used to process a transaction at
the point of sale and at the time of purchase. The system is
intended to be made available to subscribing merchants, businesses,
and individuals herein referred to as "system subscribers" wishing
to employ the method and apparatus of the present invention for the
electronic processing and settlement of consumer purchases.
Further, operational parameters of the present invention allow
freedom from customary state or other geographically limiting
criteria typical when accepting and processing "paper" checks. The
system is designed to act with the national authorization networks
and the electronic settlement network known as the ACH system as
regulated by the National Automated Clearing House Association
("NACHA") or other comparable systems including but not limited to
ECCHO, the Cactus Switch, First Tennessee Bank, regional networks,
the VISA network, and others. The present invention contemplates
Transaction Events processed in a manner hereinafter referred to as
"Electronic Checks" or "Electronic Checking."
[0019] The system is designed to perform in a fully automated
manner enabling each Transaction Event to be processed by a system
subscriber as a point-of-sale transaction in the presence of the
consumer. Subsequent to a Transaction Event's being "Approved",
funds are debited from an authorized consumer account for credit to
the system subscriber, and electronic settlement by ACH deposit of
the transaction amount to the subscriber's designated depository
account. Authorized access to consumer accounts and credits to
system subscriber depository accounts are performed as "Off-Line"
transactions by means of Electronic Funds Transfer ("EFT") through
the ACH Network or through the Federal Reserve System. "On-Line"
transactions are also contemplated by the present invention once
national networking and other present and proposed support
mechanisms have become functional.
[0020] The present invention comprises a point-of-sale processing
system having electronic data processing equipment which supports
various individual service selections or transactions types each of
which provide automated, electronic processing from consumer bank
checking or depository accounts in payment of goods or services
incurred at a system subscriber's point-of-sale. It is the
objective of the present invention to automate the point-of-sale
environment for processing consumer purchases of goods and services
would customarily necessitate the more traditional acceptance and
processing of commercial bank drafts (personal and/or corporate
checks). Individual Transaction Events are administered under the
system of the present invention by initiating a terminal
authorization inquiry and continuing through the electronic
settlement of funds representing the Transaction Event. As a result
of the above procedure, approved consumer banking accounts are
debited and system subscribers designated depository accounts are
credited.
[0021] It is a further objective of the present invention to
eliminate the need for "paper" checks as an accepted means of
consumer payment. In the place of personal and business checks,
consumers would be provided greater access to funds secured in bank
accounts to effect purchases initiated from the point-of-sale.
System subscribers electronically communicate with the data center
of the present invention for individual Transaction Event
authorizations which, upon reconciliation of a day's activity,
result in an EFT processed by means of the Automated Clearing House
accommodating an "Off-Line" or "On-Line" debiting of preauthorized
consumer Transaction Events from approved accounts. Thereafter,
each system subscriber is credited with the total of all such daily
authorized Transaction Events to its designated bank depository
account. The present invention also accommodates paper transactions
as requested by the subscribing merchant or consumer. By way of
example, transactions can be supported where the consumer prepared
a "paper" check. The Transaction would proceed in a fully
electronic manner with the consumer retaining the "paper" check as
an additional receipt.
[0022] The present invention comprises logic which allows the
following services each of which, when individually performed or
are combined with other services, establish a wholly unique
processing medium enabling preauthorized access to consumers'
checking account or bank depository reserves in payment of and
settlement for purchases conducted from a system subscriber's
point-of-sale.
[0023] Authorization--This service supports electronic
communication from point-of-sale to the system's central computer.
The data center stores positive and negative files concerning
consumer accounts thereby providing accurate inquiry responses
regarding the current posting status of a consumer's banking
account and signaling the system subscriber that said account may
be reasonably relied upon for consummating a Transaction Event
(i.e., an "Approval") or, here listed as delinquent indicating that
the account may not be so relied upon (i.e., a "Denial"). The
system also contemplates "On-Line" services that would also permit
Fund Verification.
[0024] Check Replacement--This capability operates as an extension
of Authorization enabling the system subscriber the capability of
completing a Transaction Event by electronically logging the sale
whereupon a Transaction Event slip will be printed or manually
prepared for consumer execution at the point-of-sale. By execution
of the Transaction Event Slip, the consumer authorizes the
electronic processing of funds secured in his/her authorized
banking count in lieu of the more traditional method of issuing
personal and business checks. Funding settlement to the system
subscriber would be effectuated by means of Electronic Funds
Transfer via ACH, the Federal Reserve system or other competing
facility as opposed to physically processing and transferring
checks among banks. If preferred or requested by the subscribing
merchant, the present invention would further allow for a
consumer's check to be written and thereafter voided, canceled, and
returned to the consumer, or, in the alternate, submitted to lock
box or similar storage facilities.
[0025] Bank Transaction Card--As part of this invention an
"Off-Line" Debit Card is established on which is stored the
information relating to the banking account from which funds
representing the Transaction Event would be debited for payment to
the system subscriber. This information may be stored on the card
itself in encrypted or unencrypted form or may be stored in the
central computer where access to such information is gained via
special control characters or access codes stored on the card.
Electronic authorization for withdrawal of funds from the
cardholder's account and subsequent electronic settlement
procedures remain essentially identical to processing under the
Check Replacement service described above. Information relating to
the consumer-cardholder and the appropriate banking account to be
debited for a Transaction Event will be encoded upon the Magnetic
stripe portion of the plastic, and terminal-readable, card. The
present invention is also compatible with SMART card
technology.
[0026] Thus, the overall objective of the present invention is to
provide and support an alternate means for consumer payments for
goods and services that operates to replace commercial bank drafts
in the point-of-sale environment. Simultaneously, the present
invention assures consumers greater access to and use of funds in
personal or corporate banking accounts. Further, the system
provides system subscribers a significantly improved prospect of
collecting the underlying monies for Transaction Events, reduced
time for collecting the cash receipts from Transaction Events, and
a pronounced lowering of the present cost of cumbersome procedures
otherwise mandated by the existing mechanisms for accepting and
processing commercial bank drafts.
[0027] A further objective of the present invention is to
significantly reduce the use of checks as negotiable instruments in
effecting the purchases of goods or services and to provide the
system's Electronic Checking Service as an equitable alternative
for the consumers reliance on credit cards or cash.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
[0028] The method of the present invention begins with the
electronic capturing of consumer information at a system
subscriber's location using a point-of-sale terminal and related
equipment. This information is obtained in the presence of the
consumer and occurs prior to any "Approval" for the Transaction
Event or for the ultimate crediting of the System subscriber's
designated depository account.
[0029] A Transaction Event involves a series of events initiating
with a system subscriber's intent to sell goods or services, the
payment for which would be funds secured in a consumer's banking
account. The consumer's banking account status would first be
verified by accessing the central computer files of the present
invention. Verification is performed by use of an encoded, magnetic
stripe card, where presented by the consumer or by input of account
numbers from a consumer's specimen check. The present invention
also contemplates compatibility with "SMART card" technology,
whereby a consumers "ChequeMark Card" information might co-exists
with other consumer data or payment options for alternate
verification purposes. In addition to verifying a consumer's
account, a more traditional identification of the consumer could
also occur including visual examination of driver's license or
similar and acceptable picture "ID", however, this is not
considered part of the present invention.
[0030] For improved identification, security, and fraud purposes,
the system is further capable of receiving input of a consumer's
Social Security Number and retaining the same for use in the
approval and settlement processes. The present invention is also
capable of validating a Social Security Number, screening out those
numbers issued to individuals reported as deceased, and
cross-searching the "known" ("Positive") checkwriter database to
verify the status of all banking accounts. Cross-searching is
seeking a match of the Social Security Number with any over account
on which there is a return, including the account which is the
subject of the current inquiry. If preferred or requested by either
a subscribing merchant or the affected consumer, the consumer's
check could be written and, subsequent to processing through the
system of the present invention, marked as "Voided" or
"Electronically Settled" and returned to the consumer. In the
alternative, the consumer's check may be submitted to a lock box or
other storage facility.
[0031] As an integral portion of each Transaction Event, the system
subscriber's location, date and time, and requested sale amount is
automatically logged into the system when a system subscriber first
accesses the invention. Finally, a Transaction Event Slip ("Sales
Slip") will be produced by a printer integral to the point-of-sale
terminal and will be executed by the consumer in the amount of the
stated purchase with inscribed language defining the Transaction
Event and specifically providing consumer authorization for
electronic access to his/her banking account. The consumer's
specimen check is returned unused or, where written, is returned to
the consumer as a receipt. Thereafter, the consumer account will be
debited and the proceeds credited to the system subscriber's
designated depository account along with all other similar
Transaction Events representing the total of the system
subscriber's daily activity. Debiting of consumer accounts and
settlement deposits to each system subscriber is performed by means
of Off-Line electronic funds transfer through and by the ACH or
Federal Reserve System. Other competing facilities such as, but not
limited to, ECCHO, Cactus Switch, First Tennessee Bank, regional
networks, or the VISA network, could also utilized by the present
system. The system has the further ability to convert settlement
processing to an "On-Line" format which would involve services such
as "Funds Verification" (Authorization) or "Reserving of Available
Funds" or a combination of both.
[0032] Equipment Configuration--The present invention can operate
with nearly every conceivable point-of-sale equipment system. The
central computer system accepts data transmitted from the system
subscriber's existing point-of-sale equipment or that which is
added to augment service performance. The point of sale terminal of
the present invention is implemented in a number of ways, most
preferred, however, being activated under a fully automated format.
Such a fully automated system generally comprises a dual-port
terminal with magnetic stripe reading capabilities interfaced with
a logging printer capable of providing individual Transaction Event
Slips for consumer execution, and a MICR check reader, optical
character recognition ("OCR") equipment, or other device. It is
contemplated that services may also in the future be administered
using the present invention with a singular point-of-sale hardware
device which, as a function of its design, would incorporate all or
most of the service capabilities of an integrated terminal, logging
printer, and MICR Check Reading device. The present invention also
anticipates supporting existing point-of-sale equipment primarily
dedicated to bankcard ("credit card") processing and other
equipment. Therefore, service subscriber activations may be
supported under numerous means of access from the point-of-sale.
For example, personal computers and electronic cash registers in
addition to variations of the more traditional stand alone
transaction processing equipment including alternate POS terminal
processing equipment such as International VeriFACT and Hypercom,
among others, are contemplated for use by the present invention.
Additionally, the present invention can be interfaced with network
computers, commonly referred to as "NC's". NC's are lower end
computers for the limited use of Internet access which are easily
adapted for POS Electronic Checking and other money transfers
anticipated by the present invention.
[0033] Communications links from point-of-sale terminals to the
central computer of the present invention will typically be in the
form of telephonic network communications over a public switched
telephone network ("PSTN") or over other approved networks.
Internet access is also supported by the present system where
access is deployed at a merchant POS for consumer payments.
Internet access may also be utilized to process Electronic Checking
inquiries from points other than the POS to conduct Transaction
Events under the present invention between the merchant and the
consumer as a merchant-initiated payment option. As the use of
personal computers become more prevalent at the POS, utilization of
the Internet to interconnect for approvals and capture for
settlement of Electronic Checking events between a system
subscriber and an affected consumer will become more routine.
Transaction Event verification will occur as a result of
point-of-sale terminal access to the Central computer's positive
and/or negative data files. "Approved" or "Declined" notifications
are returned to the "Point-of-Sale" device over the PSTN. All data
files will be centrally located and maintained on the invention's
central computer databases. Portions of the database include, but
are not limited to, third party data files such as the Shared Check
Authorization Network ("SCAN") (trademark) database.
[0034] Individual transactions or groupings of transactions are
first approved by soliciting an "Authorization" prior to capturing
a Transaction Event for electronic funds transfer. To maintain an
accurate status of file information for authorizations to
subscribing merchants. businesses, and/or individuals, the system
is comprised of three separate but interactive databases, including
a "Merchant," "Checkwriter," and "Transaction" database, which are
continuously maintained. The "Merchant" database stores records of
all service subscribers authorized to initiate Electronic Checking
requests. These records include, amongst others, authorization and
initiation codes, as well as the system subscriber's name and
address. The "Checkwriter" database is a database of "Known" users.
This database stores information that includes, amongst others, a
status field indicating whether the Checkwriter would be "Approved"
or "Declined." Previously unseen Checkwriter MICR strings, when
"Approved", are also added to the "Checkwriter" database for future
inquiries to the system. The "Transaction" database processes
inquiries as well as stores the transaction records of "Approved"
responses for formatting and electronic settlement through the ACH
or similar facility. Current card holder or checkwriting records
are updated daily and instantly available for point-of-sale inquiry
for Transaction Event authorizations.
[0035] System subscribers point-of-sale equipment is interfaced to
the central computer of the present invention by means of a
telephonic network which is able to support communication from a
plurality of point-of-sale terminals. Programming of the
point-of-sale terminal causes an automatic "Dial-Up" to the central
computer and provides an automatic query and response sequence
affirming or denying the Transaction Event. Each Transaction Event
which is "Approved" is captured for electronic settlement within
the transaction database log of the present system. The addition of
local entry hubs may be installed to better facilitate the speed or
economics of communications with the data files. Alternatively, the
use of satellite or cellular communications or enhanced radio
transmissions instead of telephonic networks may also be used.
Similarly, the system's data files and associated Check Replacement
Service are contemplated to be responsive to emerging point-of-sale
devices intended to seek authorizations and/or improved consumer
identification and security by the alternate means of voice pattern
recognition, POS fingerprint identification, retina scan,
geometrics, biometrics, "smart" chips, consumer or check imaging
and/or signature broadcasting. The present system further
contemplates use of imaging technology as an enhancement to
facilitate POS consumer identification and electronic settlement
for "Approved" Transaction Events. Imaging technology comprises
capturing an impression of a consumer's check or a "signature
capture" followed by electronic settlement of the consumer's
account.
[0036] The present system further comprises extensive system
approval and fraud prevention capabilities. The system processes
Transaction Events under a variety of different service types, each
defined at the discretion of the system subscriber. The resulting
flexibility enables the merchant to respond to his/her relative
"comfort level" with a particular Transaction Event or consumer.
Typical service types include (i) "Access Only" wherein the inquiry
bypasses the present system's approval criteria but the Transaction
Event, including all consumer account information, is automatically
captured and logged within the transaction database for an
electronic settlement attempt; (ii) "Check Replacement" which seeks
the systems transaction "approval" and, where "Approved", captures
the Transaction Event for electronic settlement; (iii) "Card
Acceptance" which operates in a manner virtually identical to
"Check Replacement" as mentioned above, but the Transactions Event
is activated through the use of an encoded card (versus a specimen
check): or (iv) "Authorization Only" which seeks the system's
approval providing a system subscriber information regarding the
reliability of a subject consumers account, but does not capture
the Transaction Event for electronic settlement. In the "Access
Only" service type, "Access Only" events bypass the database
records and all other approval and search criteria such as those
explained below, e.g., velocity controls, social security checks,
and scans. It is contemplated that these "Access Only" events
always be "Approved" and passed immediately to a settlement log for
an attempted consumer debit and service subscriber credit.
[0037] The present invention has the additional capability to use a
consumer's Social Security Number to perform a variety of
identification and fraud preventative applications prior to issuing
an "Approved" message for the Transaction Event. These include
searches employing Social Security Number first to validate the
consumer's Social Security Number as a genuinely issued number.
Second, the system cross searches the system's "Dead File" to
screen out Social Security Numbers which, while validly issued,
were issued to individuals now reported as deceased. To a greater
extent, verification and "Dead File" searches deter access by
consumers attempting to use false identification. Lastly, the
present system utilizes Social Security Numbers to cross search all
"Known" checkwriter banking account records for negative
information before issuing an "Approved" message for the subject
Transaction Event. This capability more fully insulates the system
and its system subscribers from abuse and susceptibility to repeat
abusers who would commonly seek to process Transaction Events from
a multiplicity of banking accounts.
[0038] Entry of a consumer's Social Security Number is performed by
input of the number from the keypad of a POS terminal used to
process Transaction Events. Alternately, the system also supports
the use of a pinpad or similar device, interfaced with the POS
terminal, for consumer entry of a Social Security Number. This
capability supports a consumer's preference for complete privacy as
to the entry of pertinent information. Consumers accessing the
system by means of a previously issued encoded card will have
already logged their Social Security Numbers onto the system's
database, and, therefore, would not be required to re-enter their
Social Security Numbers or other pertinent information.
[0039] The present invention is also equipped with velocity
controls which regulate approvals within prescribed purchase limits
imposed upon either the system subscriber or a consumer. The
present invention has the further flexibility to differentiate
between "first time" consumer usage and those limits otherwise
assigned to "known" consumer accounts. Merchant variations in
velocity limits can also be imposed depending upon the type,
nature, and consumer purchasing statistics for a particular
merchant category or location.
[0040] Inquiries seeking an "Approved" response for a Transaction
Event which meets all other criteria of the system's approval
process, including velocity controls, and when involving previously
unknown banking accounts but carrying verified Social Security
Numbers which have revealed no negative information following a
cross search of the database and where the numbers are also not
entries in the "Dead File", are "Approved". Consequently, each
consumer's banking account and Social Security Number, along with
other information, is automatically logged into the "Known"
checkwriter database of the present invention at the time the
"Approved" response is transmitted to the inquiring POS terminal.
In addition to other identification and fraud preventative
measures, the system's access to Social Security Numbers
significantly improves settlement features relating to matters of
proper authority when "Approved" and captured Transaction Events
are transmitted to the consumer's financial institution for
settlement in the form of electronic debit and credit
notations.
[0041] The system further contemplates other fraud and enhanced
identification capabilities. These include, but are not limited to,
reliance upon such evolving technologies as fingerprint capture and
analysis, signature capture and verification, imaging technology,
retina scan, biometrics, and other forms or manners of improved
identification practices as such either currently exist or as such
may, upon further development, be readily integrated in to the
system of the present invention.
BRIEF DESCRIPTION OF THE DRAWINGS
[0042] FIG. 1--System overview of the present invention
[0043] FIG. 2--The point-of-sale equipment
[0044] FIG. 3--The Central Computer System
[0045] FIGS. 4-7--The process Data Flow
[0046] FIG. 8--transaction Event Sales Slip
[0047] FIG. 9--manual Transaction Event Sales Slip
DEFINITIONS
[0048] For purposes of the description and claims relative to the
system of the present invention, the following terms shall have the
meanings set forth below. The following definitions are applied
throughout this application.
[0049] Card Acceptance: A service sponsored by the present
invention which enables an encoded card to be utilized to access
the central computer and thereby denote the subject consumer
banking account to be electronically debited in a point-of-sale
Transaction Event.
[0050] Authorization Only: A service made available under the
present invention as a convenience to its service subscribers where
the subscriber can verify the current status of the subject
consumer's account. In the preferred embodiment, these events are
not captured for electronic settlement.
[0051] Check Replacement Service: This is a service sponsored by
the present invention which enables a consumer's specimen ("paper")
check to be utilized to access the central computer of the present
system thereby denoting the consumer banking account to be
electronically captured and settled by presenting a debit notation
through the facilities of the ACH, or other competing service, for
a purchase conducted from a system subscriber's point-of-sale.
[0052] Access Only: This is a service sponsored by the present
invention which enables a consumer's specimen ("paper") check to be
utilized to access the central computer of the system thereby
denoting the consumer banking account to be electronically captured
and settled by presenting a debit notation through the facilities
of the ACH, or other competing service, for a purchase conducted
from a system subscriber's point-of-sale.
[0053] Electronic Checking: This is a service sponsored by the
present invention which collectively enables a system subscriber to
electronically debit funds from the consumer's bank account and
credit to those funds to the system subscriber's account utilizing
various transaction methods and banking rules as envisioned
above.
DESCRIPTION OF THE PRESENT INVENTION
[0054] Referring to FIG. 1 an overall schematic of the present
invention is described. Point-of-sale terminals 300 communicate
over normal PSTN telephone lines with a central computer system 302
which in turn communicates with a Banking institution 304 for
purposes of debiting consumer accounts and crediting system
subscriber accounts. The banking institution performs its function
via normal automated clearing house ("ACH") transactions 306 or
other competing facility as mentioned above. Alternatively, the
system can automatically generate preauthorized drafts to debit
consumer checking accounts where more expeditious in settling a
particular Transaction_Event. This manner of settlement
particularly addresses the "first-time" consumer whose account
might otherwise require pre-notification preceding the processing
of a "live" debit event. Pre-notification is to become volitional
in 1996 which, when effective, will minimize the present system's
reliance upon or use of drafts as a mechanism for settling consumer
payment requests.
[0055] Referring to FIG. 2 the point-of-sale equipment is
described. The point-of-sale terminal comprises several different
entry means. A key board 310 can be used to input consumer
information manually, including both bank routing and consumer
account information. The key board 310 allows the system subscriber
to input information such as (i) electronic checking requests, (ii)
a void procedure for incorrect, returned, or canceled events, (iii)
a preauthorization inquiry for the status of consumer accounts, and
(iv) accessing system subscriber's daily activity reports.
Alternatively a card reader 312 can be used whereby the magnetic
strip on the card is read by the point-of-sale terminal to obtain
account information and finally a check reader 314 may alternately
be included to read the MICR encoded bank and account numbers which
appear on a consumer's specimen check as a substitute for either a
specific card or key board input. These various input means provide
information to a microprocessor 316 which comprises logic means
318, memory means 320, and communication means 322. The logic means
318 comprises logic which allows the information received from the
various input means to be processed and stored in the memory 320.
The logic means further drives a display 324 which provides a
visual output of the bank and account numbers of the consumer for
verification. The communication means 322 allows the subscriber
terminal to communicate with the central computer 302 for purposes
of processing the consumer's purchase. The communications means 322
is compatible with ECR and PC systems.
[0056] Referring to FIG. 3 the central computer system 329 is
described. The central computer system receives input from a
plurality of point-of-sale terminals which provide transaction
information from a system subscriber and a consumer desiring to
purchase goods or services. The central computer system comprises a
system subscriber 330 file which is a file of those merchants who
have elected to use the present invention for processing purchases.
The system subscriber 330 comprises the "Merchant" database which,
as previously stated, stores records of all service subscribers
authorized to initiate Electronic Checking requests, including
authorization and initiation codes, and the system subscriber's
name and address. The central system also comprises known consumer
file 332 which stores the account information and names of those
consumers who have already been approved for purchases to take
place through various input means. The consumer file 332 comprises
"Checkwriter" database. Additional databases are relied upon by the
system which assist in approving consumer Transaction Events
including, but not limited to, the SCAN (Trademark) database.
MOD-10 verification. Social Security Number database, and other
proprietary screening criteria which serve to approve, decline, or
reject, the latter serving to cancel those inquiries which are
inaccurate, incomplete, or contain fraudulent data received by the
central computer. The "Transaction" database is another such
database provided by the system.
[0057] The system of the present invention further comprises a
third database defined as a transaction database which stores all
activity that is conducted between the plurality of terminals and
the central terminals. Those inquiries captured for a settlement
attempt are converted by the system for ACH file for preparation
and settlement. Inquiries either "DECLINED" or for various reasons
rejected are similarly retained by the transaction database. The
"DECLINED" or other rejected inquiries are withheld from transfer
for settlement.
[0058] The computer system also comprises a communications means
334. The communication means is capable of communicating with other
external, third party databases to allow the system access to
review additional negative records regarding the consumers' banking
account prior to issuing an "Approved" response. Once an "Approved"
response is given for a Transaction Event involving a consumer
banking account previously unknown to the system, the newly
"Approved" consumer record is automatically added to the system's
checkwriter database. This new record allows for the entry of the
consumer's new address and phone number information.
[0059] As presently configured the central computer 329 already
houses the third party database known as the SCAN (trademark)
database 333 resident on the central computer. Thus credit
worthiness can be checked using all current database criteria
searches, and further benefit by immediate access to the records
from the SCAN (trademark) database. All databases, including
proprietary databases and SCAN (trademark) databases, are updated
daily.
[0060] The communication means 334 also transmits ACH files which
are created by the system and communicated with a banking
institution 338, including instructions for the bank to debit the
account of the consumer and credit the account of the system
subscriber (merchant), with the amount of the purchase. These
transactions are then settled via the "Off-Line" ACH transaction
process. The system of the present invention also contemplates the
at use of "On-Line" settlements.
[0061] Referring to FIG. 4 the process begins by a consumer
presenting an encoded card or a specimen or "blank" check complete
with MICR number to the system subscriber (the merchant) 100. The
subscriber begins the process by first pressing the appropriate key
on a terminal to select a particular service prior to accessing the
host computer 108. Thereafter the point of sale terminal prompts
the system subscriber to enter the appropriate MICR number 110. The
system subscriber then enters the appropriate MICR number either
manually or by passing the card through a magnetic stripe reader on
the terminal or the specimen check through a check reader which
determines the consumer's bank and account numbers 112.
[0062] Referring to FIG. 6 the subscriber would verify that the
numbers appearing on the terminal's display screen match the
numbers on the encoded card or the MICR numbers on a consumer's
check 114. If the numbers do not compare with that of the terminal
the system subscriber clears the terminal and begins the
transaction process again 118. If the process is to be reinitiated,
the subscriber enters the MICR or card number(s) into the point of
sale terminal 130. Thereafter the system subscriber compares the
numbers as before 132. If the numbers compare to the system display
134 the process proceeds. If the numbers do not compare 136 the
check or card is returned to the consumer and the process
terminates 137.
[0063] Upon a successful reading of a consumer's specimen check,
the check is number embedded thereon id also captured and, once
communicated to the System Central Computer, retained for future
reference purposes or security matters, such as consumer inquiries
or verification of proper authority. Access to the check number
proves critical when performing a sequence review to resolve such
matters.
[0064] Referring to FIG. 5, if the verification process proceeds,
the terminal next prompts the system subscriber to enter the amount
of the sale 122 and other security or identification information
required. The subscriber enters the amount of the sale along with
requested information 124 and the terminal thereafter transmits an
inquiry to the host database for verification 126.
[0065] The check or card approval process next takes place 128. If
the inquiry is not approved by the central computer the terminal
displays a message declining or rejecting the transaction 140.
Thereafter, printer record of the declined or rejected transaction
is made for purposes of the system subscriber 142 to comply with
the Fair Credit Reporting Act and Regulation of the Board of
Governors of the Federal Reserve System.
[0066] If the card or check is approved, the terminal displays a
message noting the approval 138 and the specimen card or check is
returned to the consumer. The printer further makes a paper record
of the transaction 142 and the consumer places any required
information on the paper receipt and signs the receipt expressly
authorizing the transaction 144. At the election of the system
subscriber, or at the request of the consumer, the consumer may
write the check which would then be stamped "Void" or
"Electronically Settled" and thereafter returned to the consumer or
submitted to lock box or other storage facilities. This procedure
is used for security measures or where fraud and/or database
searches (which rely on the cancellation of a specimen check) are
contemplated.
[0067] Referring to FIG. 7, the process description continues. Once
the transaction is "Approved", the central computer makes a record
of the MICR information and other data captured at the
point-of-sale, including the sale amount, permanently storing all
the information 146. Upon closeout of a terminal's batch of daily
Transaction Events by a system subscriber, the system's central
computer reformats the captured activity within its transaction
database to ACH format and thereafter, at regular intervals,
transmits all of the daily batch activity for every system
subscriber into the ACH network as debit and credit notations. The
central computer subsequently generates a batch message regarding
all Transaction Events for the prior period and transmits all the
Transaction Event information for the day into the ACH network
148.
[0068] During the ACH process each Checkwriter's account is debited
for the exact purchase amount 150. Thereafter, collected funds
representing the total of a day's activity, being the aggregate of
all Transaction Events processed for consumers by the system
subscriber, are deposited into a subscriber's designated account
152. The transaction is then complete 154.
How to Use
[0069] The present invention will require the establishment and
maintenance of three interconnected but separate data files for the
purpose of performing, access searches. The system embodied by the
present invention, and the interactive databases comprising the
system, are accessible by dial-up communication procedures from
point-of-sale ("POS") terminal devices, electronic cash registers,
and/or personal computers similar to the equipment utilized in the
processing of automated bankcard ("credit card") receipts. The
terminal prompts an operator/user to process one of four optional
inquiry types. Any one or all of four primary functions are capable
of being performed at a single point-of-sale terminal within the
control of the system subscriber. The inquiry types and database
responses for "Approved" Transaction Events are as follows:
[0070] Card Acceptance--Having depressed the assigned key and
thereafter being prompted, the system subscriber "slides" an
encoded magnetic stripped transaction card through the
point-of-sale terminal and enters the "Sale Amount" requested for
authorization. Thereupon, the terminal's dial-up capabilities
direct the inquiry to the central computer for authorization
against "KNOWN" (Positive and Negative" file of current
cardholders). Inquiries where a "POSITIVE" "Match" are found and
where the cardholders' status fields are listed in "good standing"
cause an "Approved" return message from the data file to the
inquiring POS terminal. In order to accomplish this the present
invention's database captures each new MICR string for future
reference. Embedded within the data record is a notation
identifying the "Status" for that account. In this manner, if a
certain signal is generated, for instance a "Y", then the account
would be "Approved" for future access to the system. Conversely, a
"No-Match" to inquiry or a "Match" where the cardholder's status
field were listed in "bad standing" would result in a "Declined"
notice to the POS terminal. Daily input to the system for the
present invention causes automatic updating of status fields for
all cardholder files including the activation of new cardholder
accounts, the placement of corrective status entries ("Positive" or
"Negative") into the status of existing cardholder files, deletion
of terminated accounts or to change other file status in existing
accounts. In the case of a "No-Match" the system of the present
invention would generate a different signal such as a "No" and the
"Account would be "Declined" upon an attempt to access the
system.
[0071] Authorization Only--Having depressed the assigned key and
thereafter being prompted, the system, subscriber manually enters
account numbers from a personal or business check or, where fully
automated, enters a specimen check through a MICR Check Reader
device interfaced with the terminal, whereupon the terminal's
screen would display the check's bank and account numbers for
verification. Thereafter, the operator would enter the "Sale
Amount" and other security or identification information requested
for authorization. The terminal's dial-up capabilities then direct
the inquiry to the computer data file center for authorization
first against the "Known" file of checkwriting records whereupon
the current status field is verified. A successful "Match" to an
inquiry, where the current status field lists the checkwriter
record as in "good standing", would result in an "Approved" notice
from the central computer to the inquiring terminal. Conversely, a
successful "Match" to an inquiry, where the current status field
lists the checkwriter record as not in "good standing", would
result in a "Declined" notice from the central computer ti the
inquiring POS terminal. Each inquiry preliminarily resulting in a
"No-Match" (first time user) when processed against the system's
"Known" checkwriter's database would then be passed through any and
all available third party databases which reside on or are
available to the system by external link preceding any return
notice to the inquiring terminal. This third file is anticipated to
be the Shared Check Authorization Network ("SCAN") a negative
database currently maintained in the system computer data file
center or other databases.
[0072] Check Replacement Service--Inquiries initiated as Checked
Replacement inquiries are first processed through the system's
"Known" checkwriter database and, as necessary, thereafter proceed
to the SCAN database, or other database files, prior to the
issuance of an "Approved", "Declined", or a rejection message to
the inquiring POS terminal. A "Match" in the system's checkwriter
database records indicates a consumer account which is "Known" to
the system. If a "Match" is found and where the checkwriter's
status field within the database is listed in "good standing", an
"Approved" response results. Conversely, a "Match" where the
checkwriter's status field were listed in "bad standing" would
result in a "Declined" notice. Reliance upon account information
available from SCAN or any other positive or negative databases
minimizes the risk associated with the system's approval of
Transaction Events involving consumer accounts which are previously
"Unknown" to the invention's proprietary "Known" checkwriter
database. A Match" in the SCAN "NEGATIVE" file would result in a
"Declined" response to the inquiring terminal. Where a "No Match"
should occur, and subject to the receipt of no other negative
information received from the system criteria searches or from
alternate databases, the event would be "Approved" as a
"first-time" consumer user. Negative information received from SCAN
or the rejection of the Transaction Event for other reasons would
result in a "Declined" or one of various reject responses to the
POS terminal. Daily input to the system of the present invention
causes automatic updating of all checkwriter records and the
placement of corrective entries ("Positive" or "Negative") into the
status fields of existing checkwriter files. Each newly captured,
but previously "Unknown" accounts, would, subsequent to an
"Approved" notice, be automatically entered into the system's
"Known" checkwriter file. Check Replacement Transaction Events are
captured by the system and logged within its transaction database.
The total of daily, "Approved" Transaction Events are "paperless"
sales whereby the service subscribing merchant has submitted
requests for electronic debit via the ACH network, or other
competing facilities for each such authorized consumer purchase.
Commercial bank drafts ("paper" checks) are not accepted or
processed by the service subscriber. For each "Approved"
Transaction Event, a "Sales Receipt" is manually prepared or is
automatically printed at the point-of-sale. The consumer provides
express authorization for an electronic debit by signing individual
sales receipts.
[0073] Access Only--Access Only Transaction Events are processed in
essentially the same manner as Check Replacement events with one
significant variance. Access Only events bypass the authorization
criteria within the system's central computers established for
approving Check Replacement events and are automatically captured
within the system's transaction database for a settlement attempt.
All other functionality aspects of an Access Only and a Check
Replacement Transaction Event remain identical.
[0074] All terminal programming and all prompt strings for MICR
Check Reader interfacing are stored in the POS terminal and the
computer center of the present invention controls interactions
between the plurality of terminals and the central system. The
following modules are present.
[0075] Programming for POS Equipment Interface--system subscriber
locations to be activated with the present invention must possess
or acquire a Tranz (trademark) 330 or higher grade terminal or
alternate terminals, personal computers, or approved electronic
cash registers supporting interface capabilities with a MICR check
reader.
[0076] The MICR check reader interface results in the reading and
transmitting to a terminal, in accepted format, of the consumer's
entire ABA/Transit, checking account, and specific check number
information which when combined with other data keyed directly into
the terminal results in a query to the system's central computers.
Subsequent to a terminals receipt of the banking account numbers,
the terminal's will display the numbers on its screen allowing the
operator to verify the accuracy of the captured "read" prior to
proceeding. If the consumer's account numbers are correct, the
Transaction Event may proceed, or, where incorrect, the operator
can "clear" the event and resubmit the consumer's specimen check
through the check reader. Alternately, the consumer's bank and
account numbers and other requested information may be manually
entered directly into the terminal with all other financial and
operational advantages of the present invention remaining in
effect.
[0077] The computer data file center receives and processes
Transaction Event authorization requests utilizing the entire MICR
string for accurate, error-free identification of both the consumer
bank and a specific checking or depository account to participate
in a sale. ACH settlement criteria mandate exact recall for the
bank and checking account numbers to properly complete any debit
request. This invention conforms to each and every requirement of
the ACH transaction regulations including all pending guidelines
and/or proposals and rules changes regarding processing
requirements or new classification or submittal types.
[0078] The present invention assigns a unique identifier(s) for
purposes of accurately identifying individual MICR accounts and
Transaction Events. To this end, each new event captured on the
"Checkwriter" database is consecutively assigned a unique 15
character account number, checkwriter. This unique same checkwriter
identifier is thereafter printed on future receipts for subsequent
transactions processed.
[0079] Additionally, upon entry of media information from one
receipt, an additional code, such as a sixteenth character, is
automatically assigned by the present invention. The sixteenth
character indicates that the subject MICR account is "known" and
"registered" on the system, thereby alleviating the need to supply
a Checkwriter's name, address, and phone number on subsequent
transaction receipts.
[0080] A second unique identifier is assigned to distinguish an
individual Transaction Event approved by the system. For purposes
of settlement, or other inquiries, this numerical identifier may be
employed to recover all salient information pertaining to the
Transaction Event, Checkwriter, and the service subscriber. It is
also contemplated that under certain circumstances, the check
number can be used in lieu of a unique identifier to effect
settlement and credit of the Transaction Event. Both identifiers
(i.e., Checkwriter and event) are retained by the system and
printed on the customer's transaction receipt. Moreover, the unique
identifiers' satisfy the requirements for the preparation and
submittal of electronic debit and credit notations through the ACH
in conformance with Federal regulations.
[0081] Each Transaction Event is completed with the logging printer
generation of a Transaction Event ("Sales") Slip for each
"Approved" authorization inquiry processed (FIG. 8). Alternatively,
a manually created Transaction Event slip can also be prepared
(FIG. 9). Each such Transaction Event Slip must be exacting in its
retention of account numbers and the sale amount enabling both the
consumer and system subscriber to be provided "hard copy" receipts
of the event. Also included would be a clear printing of the
transaction type; "Card Acceptance," "Authorization Only" (as
appropriate), "Check Replacement," or "Access Only". Authorization
language is printed immediately preceding the consumer's signature
line specifically authorizing electronic access in payment of the
requested transaction sale amount.
[0082] Instances will arise where previously "Approved" Transaction
Events will require the operational equivalent of a "Void" or
"Credit" procedure. The system of the present invention enables
communication by a service subscriber with the central computers to
effect such corrective adjustments to prior events. By way of
example, a "Void" may be initiated by depressing the assigned key
on a service subscriber's POS terminal and, once complying with
security prompts, the POS terminal will thereafter communicate with
the system's central computers and make such requested corrections.
In the event of a "Voided" Transaction Event, a separate "Voided"
slip will be automatically printed as a permanent record.
[0083] In addition to the primary functions for POS equipment
programing, each POS terminal/MICR interface processing location is
capable of generating printed activity reports. Activity reports
can be printed in either summary or detail formats identifying all
"Approved" Transaction Events by service type, approval number, and
amount. Reports further provide the total number of events
"Approved" and the total captured amount of consumer payments
contained within the activity report. Events which were previously
recorded on the system's central computers as "Approved" but which
have been subsequently "Voided" are also identified, including
detail of the originally "Approved" events, with the amount of such
"Voided" events deleted from the activity report's total for the
captured amount for all Transaction Events.
Summary
[0084] A flexible, transaction processing system is described which
permits point-of-sale electronic checking events to be conducted in
a "paperless" manner thereby eliminating the necessity of a service
subscriber accepting or processing commercial bank drafts ("paper"
checks) otherwise presented by consumer's in payment for goods or
services. Individual Transaction Events are submitted to the
system's database for approval in an automated manner and, where
"Approved", captured for electronic settlement. Thus, consumer
payments initiated from a service subscriber's point-of-sale are
electronically debited against the banking account of the consumer
and credited to the designated depository account of the service
subscriber. Among the numerous advantages of the current invention,
consumers are provided access to their banking account funds, but
service subscribers are no longer required to accept or process
commercial bank drafts ("paper" checks). Transaction Events
captured by the system are settled electronically by the submission
of credit and debit notations through the facilities of the ACH
network or any competing network. Departures from the proposed
system, especially with respect to modifications to the system's
service types or the point-of-sale equipment employed, will be
apparent to those skilled in the art without departing from the
spirit of the invention as described. For example, variances in
service type such as "ECK," "RCK." "Check Truncations," and
"Electronic Check Presentment" which enables Electronic Checking
events to be processed from a merchant's point-of-sale system are
also contemplated by the present invention.
* * * * *