U.S. patent application number 14/155577 was filed with the patent office on 2014-06-05 for e-check and e-commerce.
This patent application is currently assigned to TOSHIBA GLOBAL COMMERCE SOLUTIONS HOLDINGS CORPORATION. The applicant listed for this patent is TOSHIBA GLOBAL COMMERCE SOLUTIONS HOLDINGS CORPORATION. Invention is credited to Herman Rodriguez, Newton J. Smith, JR., Clifford J. Spinac.
Application Number | 20140156429 14/155577 |
Document ID | / |
Family ID | 34653211 |
Filed Date | 2014-06-05 |
United States Patent
Application |
20140156429 |
Kind Code |
A1 |
Rodriguez; Herman ; et
al. |
June 5, 2014 |
E-Check and E-Commerce
Abstract
Methods, systems, and media for processing and clearing a check
are disclosed. Embodiments include hardware and/or software for
generating an e-check in response to receipt of a paper check, by
which a merchant performs the manual data entry for the merchant,
the merchant's bank, the Federal Reserve Bank, and the purchaser's
bank clearing procedures. The paper check is electronically scanned
at the point of sale (POS) terminal to create a check object (the
`e-check`) that contains the binary data of the check information,
a scanned image of the paper check, and identification data from
the purchaser. Then, the check object is submitted to the check
writer's, or purchaser's bank, for automated clearing without
having to process the physical document any further.
Inventors: |
Rodriguez; Herman; (Austin,
TX) ; Smith, JR.; Newton J.; (Austin, TX) ;
Spinac; Clifford J.; (Austin, TX) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
TOSHIBA GLOBAL COMMERCE SOLUTIONS HOLDINGS CORPORATION |
Tokyo |
|
JP |
|
|
Assignee: |
TOSHIBA GLOBAL COMMERCE SOLUTIONS
HOLDINGS CORPORATION
Tokyo
JP
|
Family ID: |
34653211 |
Appl. No.: |
14/155577 |
Filed: |
January 15, 2014 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
10733837 |
Dec 11, 2003 |
8645241 |
|
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14155577 |
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Current U.S.
Class: |
705/17 |
Current CPC
Class: |
G06Q 40/02 20130101;
G06Q 20/0425 20130101; G06Q 20/042 20130101; G06Q 20/108 20130101;
G06Q 40/12 20131203; G06Q 20/04 20130101; G06Q 20/204 20130101;
G06Q 40/00 20130101 |
Class at
Publication: |
705/17 |
International
Class: |
G06Q 20/04 20060101
G06Q020/04; G06Q 20/20 20060101 G06Q020/20 |
Claims
1. A method for generating an e-check, the method comprising:
scanning a check to create an image of the check in response to
receiving a check as payment for a transaction; entering an amount
of currency represented by the check into a point of sale terminal;
identifying check information that describes a bank and a bank
account, wherein the check comprises the check information; and
generating a negotiable instrument, wherein the negotiable
instrument comprises a check object based upon the image, the
amount, and the check information, wherein further the check object
includes the image.
2. The method of claim 1, further comprising printing the amount on
the check.
3. The method of claim 1, wherein scanning the check comprises
scanning the check at the point of sale terminal.
4. The method of claim 1, wherein entering the amount comprises
communicating the amount represented by the check to the point of
sale terminal.
5. The method of claim 1, wherein identifying the check information
comprises determining a routing number, an account number, and a
check number.
6. The method of claim 5, wherein generating the check object
comprises creating the check object with at least the image, the
routing number, the account number, and the amount.
7. The method of claim 1, wherein generating the check object
comprises creating the check object with data, wherein the data is
to verify an identification of a check writer.
8. The method of claim 1, wherein identifying the check information
comprises implementing magnetic ink character recognition to read
the check information from the check.
9. A method for transacting with an e-check, the method comprising:
generating the e-check based upon an image of a check, to
substitute for a check as payment for a transaction wherein the
e-check includes the image; transmitting the e-check to a bank,
wherein the back is identified by a routing number on the check;
and receiving a response to transmission of the e-check from the
bank, the response to clear the check when sufficient funds are
available for the transaction from an account associated with the
e-check.
10. The method of claim 9, wherein generating the e-check comprises
generating the e-cheek at the point of sale terminal.
11. The method of claim 9, wherein transmitting the e-check
comprises identifying an electronic address using the routing
number.
12. The method of claim 11, wherein the electronic address is an
Internet protocol address.
13. The method of claim 12, wherein the electronic address contains
a port number.
14. The method of claim 9, wherein transmitting the e-check
comprises transmitting a request to transfer an amount associated
with the e-check to an account associated with a merchant.
15. The method of claim 14, wherein receiving the response
comprises receiving an indication that the amount is credited to
the account associated with the merchant.
16. The method of claim 14, wherein receiving the response
comprises receiving a denial for the request to transfer the
amount.
17. An apparatus for generating an e-check, the apparatus
comprising: an image scanner to create an image of a check in
response to receiving the check as payment for a transaction; an
input device to input an amount of currency represented by the
check; a character scanner to scan the check to identify check
information that describes a bank and a bank account; and an
e-check generator to generate a negotiable instrument, wherein the
negotiable instrument a check object based upon the image, the
amount, and the check information wherein further the check object
includes the image.
18. The apparatus of claim 17, further comprising a printer to
print the amount on the check as a receipt for the customer.
19. The apparatus of claim 17, wherein the image scanner s adapted
to scan the check at a point of sale.
20. The apparatus of claim 17, wire the input device comprises a
keypad to type the amount represented by the check.
21. The apparatus of claim 17, wherein the character scanner
comprises magnetic ink character recognition to determine a routing
number associated with the bank, an account number associated with
the bank account, and a check number associated with the check.
22. The apparatus of claim 17, wherein the e-check generator is
adapted to create the check object with at least the image, the
routing number, the account number, and the amount.
23. A machine-accessible medium containing instructions, which when
executed by a machine, cause said machine to perform operations,
comprising: scanning a check to create an image of the check in
response to receiving a check as payment for a transaction;
entering an amount of currency represented by the check into a
point of sale terminal; identifying check information that
describes a bank and a bank account, wherein the check comprises
the check information; and generating a negotiable instrument,
wherein the negotiable instrument comprises a check object based
upon the image, the amount, and the check information, wherein the
check object includes the image.
24. The machine-accessible medium of claim 23 wherein the
operations further comprise printing the amount on the check.
25. The machine-accessible medium of claim 23, wherein scanning the
check comprises scanning the check at a point of sale terminal.
26. The machine-accessible medium of claim 23, wherein entering the
amount on the check comprises communicating the amount represented
by the check to the point of sale terminal.
27. The machine-accessible medium of claim 23, wherein identifying
the check information comprises determining a routing number, an
account number, and a check number.
28. The machine-accessible medium of claim 27, wherein generating
the check object comprises creating the check object with at least
the image, the routing number, the account number, and the
amount.
29. The machine-accessible medium of claim 23, wherein identifying
the check information comprises implementing magnetic ink character
recognition to read the check information.
30. The method of claim 1, further comprising receiving, via the
point of sale terminal, a personal identification number (PIN) and
a driver license number; wherein the scanning comprises scanning at
the point of sale terminal; wherein further the image of the check
is in a Joint Photographic Experts Group (JPEG) format; wherein
further the identifying check information comprises reading, via a
magnetic ink character recognition (MICR) system, a routing number,
the bank account, and a check number; wherein the check object that
includes the routing number, the account number, the check number,
and an e-check identification number; wherein further the e-check
identification number is to distinguish the e-check from other
e-checks.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is related to U.S. patent application Ser.
No. ______, entitled "E-COMMERCE BY CHECK", attorney docket number
AUS920030905US1, filed on the same day, the disclosure of which is
incorporated herein in its entirety for all purposes.
[0002] This application is related to U.S. patent application Ser.
No. ______, entitled "E-COMMERCE TRANSACTION AGGREGATION AND
PROCESSING", attorney docket number AUS920030904US1, filed on the
same day, the disclosure of which is incorporated herein in its
entirety for all purposes.
FIELD OF INVENTION
[0003] The present invention is in the field of e-commerce. More
particularly, the present invention relates to methods, systems,
and media to process and clear checks via a check object, referred
to as an "e-check", generated at a point of sale (POS)
terminal.
BACKGROUND
[0004] Current business processes for Point of Sale (POS) accept
various forms of payment for merchandise such as checks, credit
cards, debit cards, or cash. For example, a customer may purchase a
product with a credit card from a merchant at the merchant's store
or electronically via the merchant's web site. The merchant will
process the credit card payment, electronically communicating with
the credit card company to verify that the credit card company is
willing to pay the amount of currency described by the merchant for
the transaction. Once the transaction is authorized, an approval
code is provided to the merchant and the merchant completes the
transaction by providing the customer with a receipt that includes
the product and some description to identify the form of payment
like the credit card utilized for payment.
[0005] Unlike credit card, debit card, and cash transactions,
however, transactions in which the purchaser pays for merchandise
by check involve an additional delay in processing, which is
referred to as a `float` period. The delay is disadvantageous for
both the merchant and the merchant's bank and involves duplicative
efforts by the parties. More specifically, processing and clearing
a check currently takes about 36-72 hours from the time a check is
written until it is actually paid out of the purchaser's account.
One of the reasons for the delay is that the paper cheeks must be
sent to a check clearinghouse like the Federal Reserve
Rank/Clearinghouse where the amount of the check is manually
entered and printed on the bottom right edge of the check. Then,
the check is sent to the bank of the purchaser where the check is
sorted, scanned, recorded for the monthly statement, and the money
is finally deducted from the account. Thus, the purchaser gets the
advantage of the 36-72 hour `float` period because the purchaser
receives goods, services, cash, etc., while the actual money
represented by the cheek remains in the purchaser's checking
account, drawing interest.
[0006] The merchant's bank is disadvantaged because the merchant's
bank will show the balance of the check in the merchant's bank
account for the `float` period. Further, the merchant is
disadvantaged because the merchant will not know during the delay,
possibly for several days, whether the check is actually good,
i.e., whether the purchaser actually has sufficient funds available
for the transaction, and, even if the purchaser does have the funds
available, the funds that show in the merchant's account may be
placed on hold by the merchant's bank until they are actually
received or for some standard number of days to make sure that the
funds are received before being available to the merchant.
[0007] Merchants who accept payment by check at the point of sale
usually run the check through the point-of-sale (POS) terminal in
order to request service from the check clearinghouse and to print
certain merchant information on the back of the check. In the case
where the check is accepted by the merchant, the current technology
requires substantially manual data entry of the purchase amount
into the POS terminal by the cashier; the purchaser's
identification, such as a driver's license number and sometimes
telephone number by the cashier; and the merchant's account
information for depositing the check in the merchant's account.
[0008] Once the check is accepted, the merchant collects the checks
received throughout a given period, usually a day, and deposits
these checks at the merchant's bank. Then, the bank and the check
clearinghouse will process the check information as one of the
steps in clearing the check. This is typically a manual process
involving keying in and printing on the check (using Magnetic Ink
Character Recognition `MICR` such as an E-13B font with 14
characters), the amount of the check, duplicating the efforts of
the cashier.
[0009] After the merchant, merchant's bank, check clearinghouse,
and purchaser's bank process the check, the purchaser finally
receives the cancelled check or a scanned image of the check. In
situations wherein the purchaser's bank supplies the purchaser with
a scanned image of the check, the purchaser's bank generally
provides the scanned image to the purchaser as hardcopy or on the
Internet.
SUMMARY OF THE INVENTION
[0010] The problems identified above are in large part addressed by
methods, systems, and media to process and clear a check. One
embodiment provides a method for generating an check. The method
generally includes scanning a cheek to create an image of the check
in response to receiving a check as payment for a transaction;
entering an amount of currency represented by the cheek into a
point of sale terminal; identifying check information that
describes a bank and a bank account, wherein the check comprises
the check information; and generating a check object based upon the
image, the amount, and the check information.
[0011] Another embodiment provides a method for transacting with an
e-check. The method generally includes generating the e-check based
upon a check, to substitute for a check as payment for a
transaction; transmitting the e-check to a bank, wherein the bank
is identified by a routing number on the check; and receiving a
response to transmission of the e-check from the bank, the response
to clear the check when sufficient funds are available for the
transaction from an account associated with the e-check.
[0012] Some embodiments provide an apparatus for generating an
e-check. The apparatus contemplates an image scanner to create an
image of a check in response to receiving the check as payment for
a transaction; an input device to input an amount of currency
represented by the check; a character scanner to scan the check to
identify cheek information that describes a bank and a bank
account; and an e-check generator to generate a check object based
upon the image, the amount, and the check information.
[0013] A further embodiment provides a machine-accessible medium
containing instructions, which when executed by a machine, cause
said machine to perform operations. The operations can involve
scanning a check to create an image of the check in response to
receiving a cheek as payment for a transaction; entering an amount
of currency represented by the check into a point of sale terminal;
identifying cheek information that describes a bank and a bank
account, wherein the check comprises the check information; and
generating a check object based upon the image, the amount, and the
check information.
BRIEF DESCRIPTION Of THE DRAWINGS
[0014] Other objects and advantages of the invention will become
apparent upon reading the following detailed description and upon
reference to the accompanying drawings in which like references may
indicate similar elements;
[0015] FIG. 1 depicts an embodiment of a system including a client
computer system, email servers, and recipients coupled via a LAN
and/or WAN to process and clear a check;
[0016] FIG. 2 depicts an embodiment of an e-check, or electronic
check object;
[0017] FIG. 3 depicts an embodiment of a point of service (POS)
terminal to generate and process an e-check; and
[0018] FIG. 4 depicts an example of a flow chart to process and
clear a check.
DETAILED DESCRIPTION OF EMBODIMENTS
[0019] The following is a detailed description of example
embodiments of the invention depicted in the accompanying drawings.
The example embodiments are in such detail as to clearly
communicate the invention. However, the amount of detail offered is
not intended to limit the anticipated variations of embodiments,
but on the contrary, the intention is to cover all modifications,
equivalents, and alternatives falling within the spirit and scope
of the present invention as defined by the appended claims. The
detailed descriptions below are designed to make such embodiments
obvious to a person of ordinary skill in the art.
[0020] Generally speaking, methods, systems, and media for
processing and clearing a check are contemplated. Embodiments
include hardware and/or software for generating an e-check in
response to receipt of a paper check, by which a merchant performs
the manual data entry for the merchant, the merchant's bank, the
Federal Reserve Bank, and the purchaser's bank clearing procedures.
The paper check is electronically scanned at the point of sale
(POS) terminal to create a check object (the `e-check`) that
contains the binary data of the check information and a scanned
image of the paper check. Then, the e-check is submitted to the
check writer's, or purchaser's bank, for automated clearing without
having to process the physical document any further.
[0021] More specifically, the cashier simply verifies that the
check is for the correct amount and enters the check amount as is
customarily done. The cashier utilizes the POS terminal to scan the
check to create an electronic image, and creates a binary check
object that includes, the processing information (bank name,
routing info, check amount, check number, data, payee, the scanned
check image, etc.). Thereafter, the e-check essentially takes the
place of the paper check as the negotiable instrument. The e-check
is sent directly to the purchaser's bank for clearing; the amount
of the check is immediately deducted from the purchaser's account
(or not, if there are insufficient funds), thereby eliminating the
re-entry of the check information by the merchant's bank,
clearinghouse, and purchaser's bank.
[0022] If the check clears, then the merchant's account is
credited, and an acknowledgement is returned to the merchant by the
merchant's bank. If the cheek is refused, the purchaser's bank
notifies the merchant that the check has been refused. Thus, the
merchant can tell immediately or almost immediately whether a cheek
is good, and the funds have been deposited in the merchant's
account, before releasing the goods, services, or cash.
[0023] In several embodiments, the paper check is returned to the
purchaser by the cashier at the POS and is imprinted with a
"cleared" indication, allowing the paper check to serve as a legal
document to verify proof of payment, in other embodiments, the
check may be forwarded to the purchaser's bank. Further embodiments
are contemplated in which the user generates an e-check for
purchasing merchandise or services from a merchant's web site on
the Internet.
[0024] Turning now to the drawings, FIG. 1 depicts an embodiment of
a system 100 to process and clear a check. More specifically,
system 100 may include a purchaser 110, a merchant 120, a local
area network and/or wide area network (LAN/WAN) 160, a Purchaser's
bank 140, and a merchant's bank 150. For example, purchaser 110 may
include a customer that purchases a product(s) 125 from merchant
120 with a check 115. In other embodiments, purchaser 110 may
include a customer and a computer that the customer use to purchase
a product from merchant 120. In such embodiments, purchaser 110 may
transact with merchant 120 over the Internet, purchasing a product
from the merchant via the merchant's web site and using, an e-check
instead of a paper check for payment.
[0025] Merchant 120 may include a seller and the seller's
storefront. Merchant 120 may include the product(s) 125 and a point
of sale (POS) terminal 130 such as a cash register. POS terminal
130 may be operated by a cashier and may include a check scanner
132, a keypad 134, an e-check generator 136, and an e-check
transmitter 138. For instance, purchaser 110 may find the
product(s) 125 in the store and bring the product(s) 125 to the
cashier to check out. The cashier may operate the POS terminal to
process the product(s) 125 and to process payment for the
product(s) 125. Purchaser 110 may offer cheek 115 to the cashier as
payment as well as identification so the cashier can verify the
identity of purchaser 110. The cashier uses keypad 134 to enter the
amount from check 115 into POS terminal 130. In further
embodiments, POS terminal may include optical character recognition
logic coupled with check scanner 132 to determine the amount
written on check 115.
[0026] After the amount from check 115 is entered into POS terminal
130, check scanner 132 scans check 115 to generate a check image
and read the routing number, account number and check number off
check 115. For example, check scanner 132 may include an optical
imaging system to generate a digital image from check 115 and a
magnetic ink character recognition (MICR) system to read characters
on checks inscribed with magnetic inks. In particular, paper checks
are typically printed with magnetic inks to facilitate automated
recording of the routing number, account number, and check number.
If, for some reason, the check number, for instance, is not printed
with a magnetic ink, the cashier may recognize the problem and
enter the check number via keypad 134, or POS terminal 130 may
utilize an optical character recognition system to read the numbers
from check 115.
[0027] E-check generator 136 couples with check scanner 132 and
keypad 134 to generate a check object, the e-check, based upon the
information gathered from the check and information about the
merchant's bank 150. For instance, POS terminal 130 may maintain or
have access to data such as the routing number and account number
for a merchant's account 152 associated with merchant 120 at
merchant's bank 150. In some embodiments, the cashier may also have
the ability to enter the merchant's banking information into POS
terminal 130, e.g., via keypad 134 or another input device.
[0028] Considering FIG. 2 in conjunction with FIG. 1, there is
shown an example e-check 200. E-check 200 may include a digital
file that includes the same or similar data as data included on a
paper check. E-check 200 may include, e.g., payer 210 and payee
230. Payer 210 includes a routing number 212 that identifies the
purchaser's bank 140, an account number 214 that identifies the
purchaser's account 144 at the purchaser's bank 140 from which
funds in an amount 248 may be withdrawn, a check number 216, the
amount 218, and a check image 220. Routing number 212 may include
an electronic address, like an IP address 240 and a port number
242, determined from, e.g., a routing number table, to describe the
electronic address for the purchaser's bank that is utilized for
clearing checks. Further, check image 220 may include an image in
as standard digital format such as Joint Photographic Experts Group
(JPEG), Graphics Interchange Format (GIF), Tagged Image File Format
(TIFF), Portable Network Graphics (PNG), or other graphics format.
Thus, upon receipt and processing of e-check 200, purchaser's bank
140 may link check image 220 to a transaction described in an
e-statement available for purchaser's account 144.
[0029] In further embodiments, payer 210 may include additional
information like payer identification 222 to identify purchaser 110
for security such as the state and driver's license number of
purchaser 110, the name of purchaser 110, and/or other identifying
information. For instance, when purchaser 110 offers check 115 to
the cashier, the cashier may request purchaser's driver license.
Upon receiving the driver s license, the cashier may swipe a
magnetic strip of the driver's license through a magnetic stripe
reader, possibly built into POS terminal 130, to include the
information in e-check 200. In some of these embodiments, the
information can then be used to verify e-check transactions by
purchaser's bank 140. In still further embodiments, purchaser 110
may provide a password or personal identification number (PIN).
[0030] Payee 230 may include information to identify the account to
receive funds transferred from purchaser's account 140, or, in
other words, merchant's account 152 from FIG. 1. Payee 230 may
include data such as the merchant's routing number 232 and account
number 234, as well as a description of list of goods or services
236 that are being exchanged for the funds represented by amount
218 from check 115. Similarly to payer 210, routing number 232 may
include IP address 250 and port number 252 to identify the
electronics address associated with merchant's bank 150 that is
designed for receiving funds electronically. Merchant's bank 150
may even receive a copy of check image 220 for a transaction record
for merchant's bank 150 and/or merchant 120. In other embodiments,
e-check 200 may only include the name of the payee 230, like a
paper check.
[0031] E-check transmitter 138 may transmit the e-check to
purchaser's bank 140 to request payment. In many embodiments, POS
terminal 130 may transmit the e-cheek directly to purchaser's bank
140 for payment via LAN/WAN 160 and purchaser's bank 140 may
transmit, e.g., by electronic funds transfer (EFT), the funds to
merchant's account 152 via LAN/WAN 160. In further embodiments, POS
terminal 130 may transmit the e-check to merchant's bank 150 and
merchant's bank 150 may submit the e-check to purchaser's bank 140
for payment. For example, upon generation at an e-check for check
115, e-check transmitter 138 may associate an electronic address
such as an Internet Protocol (IP) address with the e-check. In
particular, e-check transmitter 138 may identify an IP address fur
purchaser's bank 140 based upon a payer's routing number such as
routing number 212 and transmit the c-check to purchaser's bank 140
via LAN/WAN 160.
[0032] LAN/WAN 160 is a network connection to couple merchant 120
with purchaser's bank 140 to request payment of an e-check to
merchant's bank 150 and to couple purchaser's bank 140 with
merchant's bank 150 to transmit the payment based upon the e-check.
In some embodiments, LAN/WAN 160 may include a network within a
store or within a bank coupled via Ethernet, optical media like
OptiConnect, or the like. In several embodiments, LAN/WAN 160 also
couples with the Internet via a cable modem, a digital subscriber
line (DSL), a T1 line, a T3 line, or the like. In further
embodiments, LAN/WAN 160 may include a network of temporary
connections such as connections via a telephone system.
[0033] Purchaser's bank 140 may include a bank or a computer system
for a bank to process debits from purchaser's account 144. In
particular, purchaser's bank 140 may include e-check clearer 142
and purchaser's account 144. Upon receiving an e-check from
merchant 120 based upon to transaction involving check 115, e-cheek
clearer 142 may verify the account number of purchaser's account
144 and compare the amount 218 to the balance of purchaser's
account 144 to determine whether the transaction should be
approved. In further embodiments, the check number may be compared
with the check number of previously processed checks to verify that
the same check 115 is not being processed again. In one embodiment,
when additional information such as purchaser's driver license
number, name, PIN and/or other identifying information is included
in the e-check 200, e-check clearer 142 may compare that
information with information associated with purchaser's account
144 to confirm authorization to access funds in the account.
[0034] Once e-check clearer 142 determines that the finds are
available in purchaser's account 144, e-check clearer 142 may
transmit a confirmation to POS terminal 130 and transfer the funds
to merchant's account 152 via LAN/WAN 160. In other embodiments,
purchaser's bank 140 may transfer the funds to merchant's account
152 and merchant's bank 150 may confirm the receipt of the funds
with POS terminal 130.
[0035] FIG. 3 depicts an embodiment of a POS terminal 300 to
generate and process an e-check transaction. POS terminal 300
includes hardware and software adapted to generate the e-check
based upon receipt of a cheek 305 and to transmit the e-check to a
bank for payment based upon the muting number inscribed on check
305. POS terminal 300 may be any type of processor-based device
like a desktop computer, a laptop, a PDA, or the like that can be
adapted to generate and transmit an e-check. For example, POS
terminal 300 may comprise a processor-based cash register at a
department store. The cashier that operates the cash register may
receive check 305 as payment for some merchandise and insert check
305 into POS terminal 300. Upon generating an e-check, POS terminal
300 may locate an IP address associated with the routing number of
the purchaser's account and interact with the purchaser's bank via
bank Application Program Interface (API) 364 to clear check 305. In
other embodiments, POS terminal may interface with a second
computer system that will facilitate clearance of check 305 by
utilizing the corresponding e-check.
[0036] POS terminal 300 may include an image scanner 310, a
character scanner 320, an input device 330, a check printer 340, an
e-check generator 350, and a transmitter/receiver 360. Image
scanner 310 may include optical sensors to create an electronic
representation from check 305 that included in an e-cheek. The
electronic representation may include an image file and may be
transmitted to e-check generator 350.
[0037] Character scantier 320 may determine the rowing number,
account number and, possibly, the check number on check 305. More
specifically, character scanner 320 may include magnetic sensors
coupled with a MICR 322 to read magnetic ink used to print the
routing number, account number, and check number on the check 305.
In some embodiments, character scanner 320 may include logic that
couples with the optical sensors of image scanner 310 such as
optical character recognition 324 to determine the, outing number,
account number, and check number on the check 305. In such
embodiments, optical character recognition 324 may also read the
numbers from the check to determine the amount of currency
represented by check 305.
[0038] Input device 330 may include a keypad and/or voice
recognition logic to allow the cashier to enter the amount of
currency check 305 represents and, in some embodiments, the check
number, driver's license number, and/or other data. In further
embodiments, input device 330 may include a private keypad that an
be operated by the purchaser to privately enter a PIN and/or
password to facilitate identification of the purchaser by the
purchaser's bank.
[0039] Check printer 340 may be integral to a system including
image scanner 310 and character scanner 320 to deface the check 305
or print a record of the transaction on the check 305. For example,
upon recording the data from the check, as well as the check image
in an e-check, POS terminal 300 may deface check 305 so check 305
is no longer negotiable. The e-check then effectively or actually
becomes the negotiable instrument, taking over the role from check
305.
[0040] E-check generator 350 may aggregate information from check
305 and the merchant to create a check object. In many embodiments,
the check object may be assigned a unique identification number or
code, which is similar to a check number in that it is used to
distinguish between e-checks. The unique number or code may be
substantially unalterable without corrupting the content of the
check object and may be accessible by the purchaser's bank to
determine whether the bank receives the e-check more than once. In
such embodiments, the purchaser's bank may deny a transaction
subsequently received with the same identification number or code.
For example, the identification code may be based upon information
contained within the e-check, a number associated with the date of
the transaction.
[0041] Transmitter/receiver 60 may determine an electronic address
to which to send the e-check based upon the routing number
associated with the e-check and, in one embodiment, to interact
with the purchaser's bank to process the transaction and determine
whether the e-check is cleared. For instance, after the e-check is
generated, transmitter/receiver 360 may look up the electronic
address with which to communicate with the purchaser's bank via
routing number table 362. Then, bank API 364 may be employed to
interact with the bank. Bank API 364 may, for example, include one
or more interfaces or rules for interfacing with a bank's computer
system. Once establishing communication with the purchaser's bank,
bank API can transmit the e-check to the bank and await clearance
or denial of the transaction. In other embodiments, bank API 364
may transmit it request to clear the e-check along with the e-check
to the purchaser's bank. Bank API 364 may then await a response to
the request. In one embodiment, fur example, bank API 364 transmits
a request to transfer funds based upon the e-check to the
purchaser's bank and assigns a unique identification to the
transaction. The purchaser's bank clears the e-check and transfers
the funds to the merchant's bank. The merchant's bank then
transmits a receipt of funds confirmation associated with the
unique transaction identification to POS terminal 300, confirming
completion of the transaction to bank API 364. If the e-check did
not clear, on the other hand, the purchaser's bank may transmit a
reply to the funds transfer request back to bank API 364 possibly
via the merchant's bank.
[0042] Referring not to FIG. 4, there is shown an example of a flow
chart 400 for processing and clearing a check. Flow chart 400
begins upon receipt of a paper check (element 410) for payment for
a transaction between a purchaser and a merchant, such as purchaser
110 and merchant 120 in FIG. 1. In particular, the purchaser may
write out a check from a checkbook, sign the check and hand the
check to a cashier as payment for services, goods, and/or cash. The
cashier may operate a POS terminal and enter the amount that the
check is written out for into the POS terminal (element 415).
[0043] Once the cashier receives payment by check and verifies that
the amount is correct, i.e. is consistent with the amount shown on
the POS terminal, the check is scanned and a check object (e-check)
is created electronically at the POS terminal. The POS terminal may
be enhanced to allow scanning an image of the check in addition to
reading the encoded (MICR) information on the check, identifying
the check in (element 420). The POS terminal software is also
enhanced to generate an electronic check object, or e-check
(element 425), that contains as an attachment the true image copy
of the check, and the data entered by the cashier. Thus, the
physical check document does not need to be further processed by
other parties and may be defaced and returned to the purchaser or
forwarded to the purchaser's bank.
[0044] In some embodiments, the physical check may be held the
merchant for a predetermined period of time, or may be sent to the
merchant's bank for routing to the purchaser's bank. If the check
is to be returned to the purchaser, the amount of the check can be
retrieved from the e-check and minted on, the check. The ink
utilized to the print the amount on the check, wouldn't have to be
MICR at this point because the amount is only printed on the paper
check to let the purchaser compare the handwritten amount with the
amount actually debited from the purchaser's account. Optionally,
the amount of the check in the check object may be added to the
scanned cheek image so that a hard copy of the image can be used as
proof of payment.
[0045] The e-cheek, including the image attachment, can be
submitted for instant clearing, or may be accumulated with the
merchant's bank deposits for the day and transmitted to the
purchaser's bank (element 430) at an appropriate time. In
particular, the e-check is sent electronically, immediately to the
purchaser's bank, using the bank's routing number scanned from the
paper check and included in the e-check. The e-check may contain
the complete transaction information such as the payee, amount,
date, the purpose of the check such as a list or description of
goods and/or services, etc. This information is obtained
automatically, by the POS terminal. The purchaser's information is
also included in the e-check by reading the information encoded on
the check such as the name, address, check number, purchaser's bank
routing information, etc.
[0046] After the e-check is transmitted to the purchaser's bank,
the purchaser's bank either clears the check or denies payment
(element 435) for reasons such as insufficient funds (NSF), stopped
payment, etc. This information is routed back to the merchant if
NSF or other denial, causing the cashier to request another form of
payment from the purchaser or to refuse the transaction (element
445). On the other hand, the information is routed to the
merchant's bank for credit to the merchant's account if the e-check
is cleared (element 437).
[0047] The merchants bank acknowledges the credit to the merchant's
account by notifying the cashier at the POS terminal and the
cashier completes the transaction (element 440) by providing the
merchandise, services, and/or cash to the purchaser. The
purchaser's account may then be immediately debited and merchant's
account is immediately credited. Thus, the merchant may know
immediately whether the check is good, cleared, and the funds have
been deposited in the merchant's account, before releasing the
merchandise, services or cash. In one embodiment, when a paper
check is not returned to the purchaser upon clearance, the merchant
later sends the paper check along with other paper checks to the
merchant's bank where the cheeks are sorted and sent to the proper
banks.
[0048] One embodiment of the invention is implemented as a program
product for use with a computer system such as, for example, the
system 100 shown in FIG. 1. The program(s) of the program product
defines functions of the embodiment (including the methods
described herein) and can be contained on a variety of
signal-hewing media. Illustrative signal-bearing media include, but
are not limited to: (i) information permanently stored on
non-writable storage media (e.g., read-only memory devices within a
computer such as CD-ROM disks readable by a CD-ROM drive); (ii)
alterable information stored on writable storage media (e.g.,
hard-disk drive or floppy disk within a diskette drive); and (iii)
information conveyed to a computer by a communications medium, such
as through a computer or telephone network, including wireless
communications. The latter embodiment specifically includes
information downloaded from the Internet and other networks. Such
signal-bearing media, when carrying computer-readable instructions
that direct the functions of the present invention, represent
embodiments of the present invention.
[0049] In general, the routines executed to implement the
embodiments of the invention, may be part of an operating system or
a specific application, component, program, module, object, or
sequence of instructions. The computer program of the present
invention typically is comprised of a multitude of instructions
that will be translated by the native computer into a
machine-readable format and hence executable instructions. Also,
programs are comprised of variables and data structures that either
reside locally to the program or are found in memory or on storage
devices. In addition, various programs described hereinafter may be
identified based upon the application for which they are
implemented in a specific embodiment of the invention. However, it
should be appreciated that any particular program nomenclature that
follows is used merely for convenience, and thus the invention
should not be limited to use solely in any specific application
identified and or implied by such nomenclature.
[0050] It will be as parent to those skilled in the art having the
benefit of this disclosure that the present invention contemplates
methods, systems, and media to process and clear a cheek. It is
understood that the form of the invention shown and described in
the detailed description and the drawings are to be taken merely as
examples. It is intended that the following, claims be interpreted
broadly to embrace all the variations of the example embodiments
disclosed.
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