U.S. patent application number 15/450471 was filed with the patent office on 2017-08-24 for system and method for compositing items and authorizing transactions.
The applicant listed for this patent is Deluxe Small Business Sales, Inc.. Invention is credited to Paul F. Doyle, Dean Tribble.
Application Number | 20170243174 15/450471 |
Document ID | / |
Family ID | 46491515 |
Filed Date | 2017-08-24 |
United States Patent
Application |
20170243174 |
Kind Code |
A1 |
Doyle; Paul F. ; et
al. |
August 24, 2017 |
SYSTEM AND METHOD FOR COMPOSITING ITEMS AND AUTHORIZING
TRANSACTIONS
Abstract
A method of executing an electronic financial transaction
involving two parties providing information for generating a
transaction document and authorizing the document to execute the
transaction. The method contemplates the maker electronically
transmitting a data record representative of the financial
transaction directly to a payee, such as by email. The payee can
then convert the data record into a transaction acceptable to a
bank of first deposit, such as by printing or imaging the data
record into a form acceptable to the bank, such as a standard paper
check.
Inventors: |
Doyle; Paul F.; (Ada,
MI) ; Tribble; Dean; (Bellevue, WA) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Deluxe Small Business Sales, Inc. |
Shoreview |
MN |
US |
|
|
Family ID: |
46491515 |
Appl. No.: |
15/450471 |
Filed: |
March 6, 2017 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13351919 |
Jan 17, 2012 |
9613343 |
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15450471 |
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61432995 |
Jan 14, 2011 |
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Current U.S.
Class: |
1/1 |
Current CPC
Class: |
G06Q 20/042 20130101;
G06Q 20/4014 20130101; G06Q 20/108 20130101; G06Q 40/00 20130101;
G06Q 20/3255 20130101 |
International
Class: |
G06Q 20/04 20060101
G06Q020/04; G06Q 20/32 20060101 G06Q020/32; G06Q 20/10 20060101
G06Q020/10; G06Q 20/40 20060101 G06Q020/40 |
Claims
1. A method for compositing information and authorizing a financial
transaction, comprising the steps of: forming, by a maker, a data
record representative of a financial transaction with a payee;
electronically transmitting the data record representative of the
financial transaction directly to the payee, wherein the electronic
transmission includes an authorization by the maker to the payee to
deposit the financial transaction; wherein the payee can continue
the processing of the financial transaction by presenting the
transaction to a bank of first deposit.
2. The method of claim 1 wherein the step of transmitting the data
record comprises sending an email to the payee.
3. The method of claim 2 wherein the step of transmitting the data
record includes attachment of a file to the email which includes a
printable representation of a check representative of the financial
transaction.
4. The method of claim 2 wherein the step of transmitting the data
record includes the step of emailing a data file which contains
data that can be constructed into at least one of a physical check
and an electronic image of a check compliant with Check21
standards.
5. The method of claim 1 and further comprising the step of
registering data representative of the financial transaction
between the maker and the payee with a third party service, whereby
a processing bank can verify the accuracy of the data
representative of the financial transaction.
6. The method of claim 1 and further comprising the step of sending
a portion of the data record representative of the financial
transaction to the payee with an identifier of where the remainder
of the critical data to construct the data can be retrieved and
submitted to the bank of first deposit as a complete
transaction.
7. The method of claim 6 and further comprising the step of
retrieving missing critical data constituting the financial
transaction prior to or at the time of presentment to a bank of
first deposit.
8. The method of claim 1 and further comprising the step of
electronically signing a graphical representation of the check at
the time of making of the data record representative of the
financial transaction, and the step of electronically transmitting
the transaction includes the step of transmitting the graphical
representation of the check to the payee.
9. The method of claim 8 and further comprising the step of the
payee physically printing the graphical representation of the check
prior to presentment to a bank of first deposit.
10. The method of claim 1 and further comprising an interface
located on a global computer network for performing at least one
of: (a) receiving physical address information regarding at least
one maker; (b) receiving bank account information regarding at
least one maker; (c) receiving information regarding at least one
payee for the at least one maker; (d) receiving payment information
regarding a payee and an amount, wherein the payment information
can be entered into an interface reflecting a standard paper check
layout
11. The method of claim 10 and wherein the step of creating the
data record representative of the financial transaction includes
the step of constructing the data record from stored information
entered into the interface.
12. The method of claim 1 wherein, upon receiving the transmission,
the payee performs at least one of the following to present the
payment transmission to a bank of first deposit: (a) printing the
payment transmission into a form representative of a traditional
paper check; and (b) transmitting a graphical representation of the
payment transmission to the bank of first deposit.
13. The method of claim 1 and further comprising the step of
providing a cryptographic or trusted timestamp associated with the
transaction to prevent tampering with, or multiple presentment of,
the financial transaction to multiple banks of first deposit.
14. The method of claim 1 and further comprising the step of the
payee selecting the form of the transaction for presentment to the
bank of first deposit.
15. The method of claim 1 and further comprising the maker
providing a plurality of payment settlement modalities to the
payee, and the payee selecting from at least one of the provided
plurality of payment settlement modalities for presentment to at
least one of a bank of first deposit and another settlement
representative based on the selected settlement mode to settle the
transaction received from the maker.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application claims the benefit of U.S. Provisional
Patent Application No. 61/432,995, filed Jan. 14, 2011, which is
incorporated herein by reference in its entirety.
BACKGROUND OF THE INVENTION
[0002] The ability to pass value and payments remotely, quickly,
efficiently, economically, and securely enables many conveniences
of modern life including internet sales, and electronic
peer-to-peer transactions, such as over eBay.RTM.. Physical
payments, such as by mailing a check or cash, can be slow,
expensive, and insecure. Additionally, users/check writers may make
mistakes when writing checks, such as mistyping the payee's name.
Carrying cash can be problematic from the standpoint of
pickpocketing and other forms of theft that can present a personal
security threat to an individual (i.e. armed robbery or
muggings).
[0003] As a result, financial transactions are commonly made by way
of electronic communications networks to purchase a variety of
goods and services. Such transactions may be processed in a variety
of methods using a variety of processors including, for example,
credit card companies, debit card companies, automated clearing
house (ACH) transactions, and other third party processors such as
PayPal.RTM..
[0004] Credit cards and debit cards operate on closed proprietary
networks to which a payee has to subscribe, such as by having a
merchant account. Furthermore, a merchant may be required to have
specialized equipment to carry out transactions using credit cards
and debit cards. Often times, credit card and debit card
transactions can be very expensive (up to 3% of the transaction),
due to fees charged by the credit card companies and the credit
card processors. Due to the transaction fees, the risk of
transaction reversals resulting from disputes, and other risks and
inconveniences, some merchants are unwilling to accept credit cards
and debit cards for transacting.
[0005] FIGS. 1 and 2 illustrate examples of conventional
transactions between a maker 100 and a payee 110 in which a paper
check 70 is physically sent to the payee 110 by the maker 100. The
paper check 70 is presented to a bank of first deposit 120 and the
paper check continues through the clearance process as a paper
check (FIG. 1) or an image 80 of the paper check 70 (FIG. 2) until
it reaches the maker's 100 paying bank 130.
BRIEF DESCRIPTION OF THE INVENTION
[0006] A method of executing an electronic financial transaction
involving at least two parties providing information for generating
a transaction document and authorizing the document to execute the
transaction. The method contemplates the maker electronically
transmitting a data record representative of the financial
transaction directly to a payee, such as by email or SMS. The payee
can then convert the data record into a transaction acceptable to a
bank of first deposit, such as by printing or imaging the data
record into a form acceptable to the bank, such as a standard paper
check.
[0007] In one aspect, the invention comprises a method of executing
a financial transaction between a first and second party by the
generation of an authorized transaction record comprising the steps
of the first party providing a first set of information required
for generating the transaction record, the second party providing a
second set of information required for generating the transaction
record, combining the first and second set of information to
generate the transaction record, upon verification of both the
first and second set of information, the first party authorizing
the transaction record to generate an authenticated transaction
record, and the second party providing access to the authorized
transaction record to a third party to execute the financial
transaction.
[0008] As a further aspect, the invention comprises a system for
generating a transaction record comprising a first device running a
first application software and a second device running a second
application software, wherein the first device providing a first
set of information required for generating the transaction record,
the second device providing a second set of information required
for generating transaction record, combining the first and second
set of information to generate a transaction record, and upon
verification of both the first and second set of information, the
first device authorizing the transaction record to generate an
authenticated transaction record.
[0009] In multiple aspects of the invention, the transaction record
can be a physical document or check, or an electronic transaction
record. Various embodiments of the invention are contemplated. In
one aspect, a method for compositing information and authorizing a
financial transaction can comprise the steps of: forming, by a
maker, a data record representative of a financial transaction with
a payee; electronically transmitting the data record representative
of the financial transaction directly to the payee, wherein the
electronic transmission includes an authorization by the maker to
the payee to deposit or cash (negotiate) the financial transaction;
wherein the payee can continue the processing of the financial
transaction by presenting the transaction to a bank of first
deposit.
[0010] In other aspects of the invention, the step of transmitting
the data record can comprise sending an email to the payee. The
step of transmitting the data record can include attachment of a
file to the email which includes a printable representation of a
check representative of the financial transaction. The step of
transmitting the data record can include the step of emailing a
data file which contains data that can be constructed into at least
one of a physical check and an electronic image of a check
compliant with Check21 standards. The method can further comprise
the step of registering data representative of the financial
transaction between the maker and the payee with a third party
service, whereby a processing bank can verify the accuracy of the
data representative of the financial transaction. The method can
also include the step of sending a portion of the data record
representative of the financial transaction to the payee with an
identifier of where the remainder of the critical data to construct
the data can be retrieved and submitted to the bank of first
deposit as a complete transaction.
[0011] The method can also include the step of retrieving missing
critical data constituting the financial transaction prior to or at
the time of presentment to a bank of first deposit. The method can
also include the step of electronically signing a graphical
representation of the check at the time of making of the data
record representative of the financial transaction, and the step of
electronically transmitting the transaction includes the step of
transmitting the graphical representation of the check to the
payee. The method can also include the step of the payee physically
printing the graphical representation of the check prior to
presentment to a bank of first deposit.
[0012] The method can also include an interface located on a global
computer network for performing at least one of: (a) receiving
physical address information regarding at least one maker; (b)
receiving bank account information regarding at least one maker;
(c) receiving information regarding at least one payee for the at
least one maker; (d) receiving payment information regarding a
payee and an amount, wherein the payment information can be entered
into an interface reflecting a standard paper check layout. The
step of creating the data record representative of the financial
transaction can also include the step of constructing the data
record from stored information entered into the interface.
[0013] The method of creating a single data record can also
comprise uploading a batch of data records and creating multiple
transactions to at least one payee in a batch format. The upload
file can comprise a well-known data format including, but not
limited to, a Positive Pay file format.
[0014] Upon receiving the transmission, the payee can perform at
least one of the following to present the payment transmission to a
bank of first deposit: (a) printing the payment transmission into a
form representative of a traditional paper check; and (b)
transmitting a graphical representation of the payment transmission
to the bank of first deposit. The method can further comprise the
step of providing a cryptographic or trusted time stamp associated
with the transaction to prevent tampering with, or multiple
presentment of, the financial transaction to multiple banks of
first deposit. The method can also include the step of the payee
selecting the form of the transaction for presentment to the bank
of first deposit. The method can also include the step of the maker
providing a plurality of payment settlement modalities to the
payee, and the payee can select from at least one of the provided
plurality of payment settlement modalities for presentment to a
bank of first deposit or other settlement representative based on
the selected settlement mode to settle the transaction received
from the maker.
BRIEF DESCRIPTION OF THE DRAWINGS
[0015] In the drawings:
[0016] FIG. 1 is a flow chart illustrating a prior art method of
submitting a paper check through a financial clearance process.
[0017] FIG. 2 is a flow chart illustrating another prior art method
of submitting a paper check through a financial clearance process,
in which a depositing bank images the paper check after presentment
to a bank of first deposit.
[0018] FIG. 3 is a flow chart showing an exemplary system and
method according to the invention of compositing transaction
information and authorizing a transaction.
[0019] FIG. 3A is an example of the web interface contemplated for
the invention including an initial screen.
[0020] FIG. 3B is an example of the web interface containing a
login form according to the invention.
[0021] FIG. 3C is a completed login form for the web interface.
[0022] FIG. 3D is a dashboard for the web interface showing various
information for a logged-in user.
[0023] FIG. 3E is a bank account overview for the web interface
showing the status of various checks drafted on a selected
account.
[0024] FIG. 3F is an initial form for the web interface for
creating an electronic check transaction.
[0025] FIG. 3G is a completed form for creating a data record
representative of a physical check in the web interface.
[0026] FIGS. 3H is a graphical representative of a check
incorporating financial data entered by the maker in the web
interface.
[0027] FIG. 3I is a message provided to a login user on the
interface for the step of authorizing the check data record.
[0028] FIG. 3J is a message indicating that the check data was
authorized and registered in the web interface.
[0029] FIG. 3K is a web interface prompting the logged-in user for
recipient e-mail information for sending the authorized check
transaction to a payee.
[0030] FIG. 3L is a confirmation message provided to the logged-in
user that the check transaction was e-mailed to the indicated
payee.
[0031] FIG. 3M is a sample login interface for a web-based e-mail
provider for a payee which has received the e-mail check
transaction from the maker from the web interface.
[0032] FIG. 3N is a sample e-mail inbox indicating that the e-mail
check transaction has been received by the payee's e-mail
account.
[0033] FIG. 3O is a sample of the content of the e-mail sent to the
payees e-mail account by the web interface login user.
[0034] FIG. 3P is the contents of an e-mail attachment containing a
graphical representation of a paper check received by the payees
e-mail account.
[0035] FIG. 4 is a flow chart showing the exemplary system and
method of FIG. 3 according to the invention of compositing
transaction information and authorizing a transaction in which the
payee retransmits payment data and maker's authority to a bank of
first deposit, wherein the bank of first deposit converts the
payment data into a paper check.
[0036] FIG. 5 is a flow chart showing the exemplary system and
method of FIG. 3 according to the invention of compositing
transaction information and authorizing a transaction in which the
payee has forwarded the maker's payment data and authority to the
bank of first deposit and the bank of first deposit has printed the
payment data as a paper check or converted the paper check to a
check image and continued processing of the financial
transaction.
[0037] FIG. 6 is an exemplary flowchart in which the payee and the
bank of first deposit have both forwarded the payment data and
maker's authority of the financial transaction generated by the
maker to continue processing the financial transaction according to
the invention.
[0038] FIG. 7 is an exemplary schematic showing a transaction/data
record containing value transmitted from a maker to a payee.
[0039] FIG. 8 is an exemplary schematic of payment data and maker's
conditional authority being transmitted from a maker to a payee in
which the payment data and maker's conditional authority can
include items such as a maker's identification credential, an
amount, the payee, a transaction reference, settlement information,
authorization, and maker's consent to print the payment data or
convert to a settlement mode of the payees choice.
[0040] FIG. 9 is an exemplary schematic according to the invention
of a maker composing and fully authorizing a data record
representative of a financial transaction, indicating that the data
record is payment data and the maker's conditional authority,
transmitting the payment data and maker's conditional authority to
a payee which includes maker's identification credential, an
amount, a payee, a transaction reference, a settlement
authorization, information, and authorization, and maker's consent
to print the payment data or to convert to a settlement mode of the
payees choice, to the payee.
[0041] FIG. 10 is an exemplary schematic similar to that shown in
FIG. 9 in which the payment data and maker's conditional authority
are transmitted from the maker to the payee and then transmitted by
the payee to the bank of first deposit when indicating the
settlement mode of choice by the payee, and then the bank of first
deposit requests settlement information from the maker who
re-constitutes the complete transaction and sends the payment data
and maker's conditional authority to answer the request for
settlement information by the bank of first deposit.
[0042] FIG. 11 illustrates another example of the invention of
FIGS. 1-10 in which the maker transmits a partially complete set of
payment data to the payee, who then adds additional information to
the payment record and thus transmits the complete payment record
back to the maker who may then set conditions and authorize the
transaction, and then the maker retransmits a complete set of
payment data in the maker's conditional authority to the payee.
[0043] FIG. 12 represents the maker composing a partially complete
set of financial transaction information and transmitting the
partially-complete set of payment data including the maker's
identity credential, the payee, and a transaction reference, to the
payee who then adds completing data to create a more-complete set
of payment data the maker, wherein the payee retransmits the
partially complete set payment data including an amount criterion
(or other additional information) back to the maker who sets
conditions, authorizes the transaction, and retransmits the payment
data and maker's conditional authority to the payee.
[0044] FIG. 13 indicates another example of the partially-complete
payment information component of the invention in which the payee
adds completing data to a partially complete payment record
transmitted from the maker and that the maker pay or adds
additional authorization and conditions upon the payment and
retransmits a more complete set payment data conditional authority
to the payee.
[0045] FIG. 14 indicates another example of the system and method
according to the invention, in which the maker can set a range of
payment settlement types, which can thereafter be elected by the
payee.
[0046] FIG. 15 shows an alternative example of the method shown in
FIG. 14 in which the maker can send a partially-complete
transaction record to a payee who can thereafter select from a
number of payment settlement options.
[0047] FIG. 16 is an example screenshot for the web interface of
FIGS. 3A-3P showing a selection area for the payment settlement
types set forth in FIGS. 14-15.
DETAILED DESCRIPTION OF THE INVENTION
[0048] In one embodiment, the invention is related to legally
enforceable transactions, payments, agreements, instructions,
contracts, stock certificates, bonds, prescriptions, laws,
judgments, etc. Although the primary field of use of the invention
is for financial transactions, the invention can be used for a
variety of other transactions, such as for certifying a variety of
other documents and contracts, or for iteratively filling a
contractual agreement.
[0049] To be able to pass value, such as monitory value, to be sent
to another party. The party to which value is sent (payee) may be
located remotely from the party sending payment (payer). The value
is passed and transacted between two or more parties using any
communications network, including public and non-proprietary
networks such as the internet. The invention, in effect, modernizes
the well-established legal form of payment of the check.
[0050] The invention further allows parties to pass between
themselves independent writings or information with memorialization
or evidence of a transaction or contract.
[0051] For parties that are not remotely located from each other,
the methods disclosed herein provide an economical, secure, user
friendly, and easy to use method of executing transactions. As a
result the parties need not carry cash, checks, or credit cards to
make a financial transaction.
[0052] Referring now to FIG. 3, the method 10 of completing a
financial transaction according to the invention is disclosed. The
method 10 creates an electronic check by composition of information
from at least one of a maker 100 and a payee 110. Additional
information for the assembly of the check can be provided by one or
more of a deposit bank 120, a paying bank 130, and a third party
service 140. The method 10 to carry out the transaction may be
carried out over a communications network such as the internet.
[0053] The maker 100 of the check 70 can send the critical data
elements 20, such as bank routing number, account number, check
number, dollar amount, payee, date, memo, and an instance of the
maker's signature 22 or an electronic signature or a
proxy/reference value derived from some or all the other data
elements (i.e. a hash value or a cryptographic/trusted time stamp)
(this can include the addition of data, such as a secret value,
added to enhance the security or cryptographic properties by
increasing numeric complexity) as a text and numerical objects over
the communications network. From this information, a partially
completed check 30 is generated along with a check form 40 and sent
as an object or image of the partially completed check 50 to the
payee 110 who can then composite it at their location for printing
or imaging or they can send it on to their bank 130 who can
composite it and either print or image it. Incremental check
information and check form 40 along with the image of the partially
completed check are used to form the complete and authorized check
70 after the maker is given an opportunity to review all associated
information and then authorize the check. After authorizing the
transaction and generating a complete check, the image 80 thereof
may be printed or stored by the payee 110, the payee's bank 130,
the maker's bank 130, or the maker 100.
[0054] As an alternative, the maker 100 may make the electronic
check payable to himself or to cash, in which case there is no
separate entity designated as the payee 110 (Le. the maker 100 is
also the payee 110) and therefore the maker 100 provides all of the
information required to complete and authorize the check 70.
[0055] As a further alternative, the maker 100 and the payee may
use a third party service 140 to aid in the transaction process, by
for example, speeding up the process or by providing an additional
level of security or verification of the information used to
generate the check 70.
[0056] The maker 100 of the check need not be the party that causes
the check 70, the partially completed check 30, or the partial
image 50 thereof to be printed. The payee 110 or any other party
involved in the completion of the check can print or store the
image of the check 80, including, but not limited to the deposit
bank 120, the paying bank 130, and the third party service 140.
[0057] Alternatively, the maker of the check completes the check in
full via a computer and then skips the step of printing it onto
paper to be conveyed physically to the payee who would then take it
to their bank or image it and transmit it to their bank . The maker
can generate an image directly from the computer application used
to composite the check and then the maker can forward the check
image to the payee who can then print it and deliver it to their
bank or forward the image on to their bank. In either event, it
will be understood that the invention contemplates presentment of
the transaction record to a processing institution, such as a bank,
in either tangible (e.g., a physical, printed document) or
electronic form.
[0058] The maker may after completing the compositing of the check,
send the some but not all the data elements together with a unique
reference value designating a location where the omitted elements
are stored thereby allowing the maker or a third party service to
reconstitute the check exactly as it had existed at the time of its
original authorization.
[0059] The maker 100 of the check composes the check by inputting
into a computer all the information needed of an ordinary check,
adding a signature (a recorded instance of the regular wet
signature, or a signature generated by a signature pad, or an
electronic signature (per ESIGN & UETA) or digital signature
(per PKI)). The check information can be a set of data objects and
the check form can be a graphic object, set of graphic object
instructions or image and the two arc sent together such that the
informational elements map to specific (and appropriate) designated
areas (locations) on the check form object.
[0060] The two elements (information and check-form) can be sent as
a bundle. The information can be sent by itself with the intention
that the receiving party (the payee) associate it with an
appropriate check-form and create a composite item which they then
print, or image or forward on to their bank/financial institution
to deposit.
[0061] Alternatively, the maker of the check could create the
composite item and cause it to be imaged (i.e., Check21 or RDC
guidelines) and then forward this on to the payee. The intended
payee can initiate the process by sending check information--the
payee, and/or amount, and/or any other relevant information (i.e.,
date, memo, etc.) to the maker for the maker to complete by adding
the bank routing number, account number, and/or check number, and
optionally the date and/or memo (or any other missing information)
and then the maker authorizes the check and evidences same by any
of the herein mentioned methods of adding a signature. The maker
and the payee can work back and forth as needed in any combination
of who adds what information or edits the information until the
point that the maker is satisfied and authorizes the check.
[0062] Another example to transfer the payment authority and data
would be an interaction between mobile devices. For example, a pair
of handheld devices could be loaded with cooperating applications
so that a maker 100 could construct a payment and a payee 110 could
receive the payment on their handheld device by cellular network,
wireless or local proximity interaction, such as Bluetooth
protocol.
[0063] Alternatively, the maker could do all of the requisite steps
disclosed above and leave the payee blank such that it could be
completed later by the payee or it could be left blank and the item
traded as if it were a form of currency with the ability for any
legitimate holder to add a name as the payee and then cash it or
deposit it or use it to acquire goods in trade (similar in nature
to how a gift card or a traveler's check works), the difference
being that the funds would not leave the maker's account until it
is converted to cash, goods or deposited with a bank/financial
institution.
[0064] An example website for performing all steps relating to
creating, authorizing, completing, and transmitting the data record
representative of the financial transaction by the maker 100 to the
payee 110 is illustrated by example in FIGS. 3A-3P. It will be
understood that these figures arc illustrative, and should not be
interpreted as limiting the steps and elements of the appended
claims in any way. The examples set out in FIGS. 3A-3P assume that
the maker has an account created on the example website, shown
generally in FIGS. 3A-3P by reference numeral 200 and higher.
[0065] FIG. 3A shows an example of the web interface 200
contemplated for the invention including an initial screen 202,
prompting a client to either login or sign up. FIG. 3B shows a
login form 204 for the web interface 200, and FIG. 3C shows a login
form 204 completed by a maker 100 on the web interface 200.
[0066] FIG. 3D shows a dashboard 206 for the web interface 200
showing various information for a logged-in maker 100. FIG. 3D
shows that the example maker 100 has data representative of three
bank accounts 208, 210, 212 stored in the interface 200, wherein
two of the accounts have one or more checks in various stages of
processing.
[0067] FIG. 3E shows a bank account overview for one of the example
bank accounts 208 for the web interface 200 showing the status of
various checks drafted on the selected account, and a balance of
that bank account. The account overview includes several menu items
216 for issuing a check, exporting checks, importing checks, and
searching checks.
[0068] FIG. 3F shows an initial check creation form 218 for the web
interface 200 for creating an electronic check transaction when the
"issue a check" menu option is clicked by the maker 100 in FIG. 3E.
The check creation form 218 includes a graphical representation of
a conventional check form document with various fields laid out on
the form in a manner consistent with a typical physical check form:
maker's name/address 220, payee name 222, amount 224, written-out
word representation 226 of the amount 224 (auto completed by the
form 218), optional memo field 228, account routing number 230
(auto-completed by the form 218 when the maker 100 selects a bank
account), account number 232 (auto-completed by the form 218 when
the maker 100 selects a bank account), and a representation of the
maker's 100 signature 234 (which can be an accurate representation
of the maker's signature by the maker 100 uploading an image file
containing a graphical representation of the maker's signature. The
maker's signature 234 can also be a electronic signature, including
any number of well-known electronic signature methods.
[0069] FIG. 3G shows a completed form 218 for creating a data
record representative of a physical check in the web interface 200.
The data shows a sample payment of $1,019.27 (US dollars) from John
Doe's (maker 100) bank account 230/232 (account ending in x899) to
Acme Widgets, Inc. (payee 110). It will be understood that, in
accordance with the invention, not all of the fields shown in web
form 218 need to be completed in order to transmit the initial data
record representative of the financial transaction to the payee
110. Rather, the form could only have 1-2 fields completed (such as
the payee and bank account), and the partially-completed
transaction could be sent to the payee for completion, whereby the
transaction, after completion by the payee 110, would be re-routed
back to the maker 100 for authorization and indication of authority
to deposit the transaction (see FIGS. 7-13 for more examples of
these types of partially-complete transactions).
[0070] FIG. 3H shows a graphical representative of a confirmation
copy check 218 incorporating financial data entered by the maker in
the web interface 200. The interface 200 has assigned a check
number 236 (in the example shown in FIG. 3H, check #VV007) to the
proposed transaction created by the maker 100. The maker 100 can
then click the "Authorize check" menu item 238, whereby the maker
100 is prompted with the confirmation message 240 in FIG. 3I.
Turning to FIG. 3J, once the maker 100 clicks "OK", the maker 100
is presented with additional transmission options 242, which allow
the maker 100 to transmit the check in the form 218 to the payee
specified in field 222 via physical check ("Print check"), email
("Send via email"), and text messaging ("Send via SMS"). There are
also options to view the activities relating to the check in the
form 218 and to void the check in processing ("Void check"). The
maker 100 is also presented with a confirmation message 244 that
the check in the form 218 "was authorized and registered." Data
regarding the check in the form 218 can now be accessed with
properly authenticated service calls to a service 140 contemplated
by the invention. For example, a bank of first deposit 120 could
call the service 140 and obtain verification or validation
information on the accuracy of data being presented to the bank of
first deposit 120, such as to confirm that the bank account
information 230, 232 or the amount 224, or payee's name 220 is
accurate with what is being presented to the bank 120.
[0071] Once the data record representative of the check transaction
218 has been authorized, processing moves to FIG. 3K in which the
maker 100 is prompted for transmission information for the payee
110 (in whatever mode of transmission the maker 100 has selected).
In this example, the maker 100 is prompted for email information
relating to the payee 110 in email form 246. Once the payee's
recipient email is entered into the email form 246, the maker 110
can press the "send" button to transmit data representative of the
financial transaction in the form 218 to the payee 110. A
confirmation message 248 that the transmission has been sent to the
payee 110 is set forth in FIG. 3L.
[0072] The receipt of the transmission by the payee 110 will now be
described with respect to FIGS. 3M-3P. FIG. 3M shows a sample email
interface 250 for a web-based e-mail provider for a payee 110 which
has received the e-mail check transaction from the maker 100 from
the web interface 200. FIG. 3N shows the email interface 250 with a
sample e-mail inbox 252 indicating that the e-mail check
transaction 254 has been received by the payee's e-mail account
250. FIG. 3O shows content 256 (and an attachment 258) of the
e-mail 254 sent to the payees e-mail account 250 by the maker 100.
FIG. 3P shows the attachment 258 and its contents (including
instructions for presentment and a link to the service 140 for
verification of the check's data) containing a graphical
representation of a paper check 260 received by the payees e-mail
account 250. The payee 110 can elect now to print the graphical
representation of the paper check 260 and present the printed copy
to a bank of first deposit 120 or transmit an image of the
graphical representation of the paper check 260 to the payee's bank
120.
[0073] Alternatively, the maker 100 could do all the requisite
steps disclosed above and provide a designated paying bank with a
set of the transaction data and evidence of the authorization such
that the paying bank could confirm the presence of funds on deposit
sufficient to clear the item at time of presentment, potentially
providing attestation to the presence of sufficient funds, and
reserving an amount from funds being held on deposit sufficient to
pay the item when it is eventually presented for
payment/settlement, thereby creating a "good funds"
transaction.
[0074] The above could be implemented with a limited range of
approved payees (i.e. a list of individuals or businesses, etc.
from which only one of the list may be added at later time. All of
the steps described can be executed using a telephone-based,
voice-based service, including but not limited to a cellular/mobile
network.
[0075] There are several examples of how this method 10 could work
to transmit a transaction of value between a maker 100 and a payee
110. Illustrative, but not limiting, examples are shown in FIGS.
4-13 (in addition to the example shown in FIG. 3).
[0076] FIG. 4 is a flow chart showing the method 10 according to
the invention of compositing transaction information and
authorizing a transaction in which the maker 100 transmits payment
data 20 (as shown by example in the web interface check creation
form 218) and maker's authority 22 (a digital signature, imaged
signature, text evidencing the authority, etc.) to the payee 110.
The payee 110 retransmits the payment data and maker's authority
20, 22 to a bank of first deposit 120, wherein the bank of first
deposit 120 converts the payment data 20, 22 into a paper check
120. Processing continues with the payment data 22 converted to a
paper check 70 to the paying bank 130.
[0077] FIG. 5 shows a flow chart showing the method 10 (having many
of the same steps as FIG. 4) in which the bank of first deposit 120
converts the maker's payment data and authorization 20, 22 to a
paper check 70 and then images the paper check 70 into a check
image 80. Processing continues with the payment data 22 converted
to a check image 80 to the paying bank 130.
[0078] FIG. 6 shows another example of the method 10 in which the
payee 110 forwards the maker's 100 payment data and authorization
20, 22 to the bank of first deposit 120. Processing continues with
the payment data and authorization 20, 22 to the paying bank
130.
[0079] FIG. 7 shows an example schematic showing a transaction/data
record containing value 20, 22 transmitted from a maker 100 to a
payee 110. FIG. 8 shows an example schematic of payment data and
maker's conditional authority 20, 22 being transmitted from a maker
100 to a payee 110 in which the payment data and maker's
conditional authority 20, 22 can include items such as a maker's
identification credential, an amount, the payee, a transaction
reference, settlement information, authorization, and maker's
consent to print the payment data or convert to a settlement mode
of the payee's choice.
[0080] FIG. 9 shows another example according to the method 10 of a
maker 100 composing and fully authorizing a data record
representative of a financial transaction, indicating that the data
record contains payment data 20 and the maker's conditional
authority 22, transmitting the payment data and maker's conditional
authority 20, 22 to a payee 110. The payment data and maker's
conditional authority 20, 22 can include maker's identification
credential, an amount, a payee, a transaction reference, settlement
information, authorization, and maker's consent to print the
payment data or to convert to a settlement mode of the payee's
choice, to the payee 110.
[0081] FIG. 10 illustrates a continuation of the example shown in
FIG. 9 in which the payment data and authority 20, 22 of the maker
100 are transmitted by the payee 110 to a bank of first deposit
120. In this example, the bank of first deposit 120 contacts the
maker 100 and re-routes a request for verification or authorization
of the transaction data 20, 22 to the maker 100. Once maker 100 has
provided the proper indication to the bank of first deposit 120,
processing of the transaction (payment to payee 110) will continue
to the paying bank 130 as has been previously described.
[0082] FIGS. 11-13 show examples of the maker 100 transmitting a
partially-complete transaction data record 50 to the payee. In each
of FIGS. 11-13, the payee 110, upon receipt of the
partially-complete transaction 50, provides some completion
information 54. In the various embodiments, the completed
information 54 is transmitted back to the maker 100. In the example
of FIG. 11, the missing information provided by the payee 110 is
the payee name and the amount. In the example of FIG. 12, the
missing information 54 provided by the payee 110 is the amount of
the transaction. In the example of FIG. 13, the missing information
54 provided by the payee 110 is the payee. In any event, the
transaction data 20 with the missing information 54 is re-routed
back to the maker 100 so that the maker 100 can set optional
conditions on, and authorize, the transaction. The maker 100 can
then re-transmit the completed payment record and authority 20, 22
back to the payee 110, and processing continues as illustrated with
respect to any of the previous examples in FIGS. 3-10.
[0083] FIGS. 14-16 show another feature of the invention by which
the maker 100 can set a number of payment settlement types for the
payee 110. Then, after receipt of the transaction, the payee 110
can select from the number of payment settlement types to determine
how the transaction will be cleared. For example, turning to FIG.
14, the method 10 is shown where the maker 100 creates a payment
data record and authorization 20, 22 and transmits them to the
payee 110. Then payee then is presented with a choice 60 among of a
number of payment settlement types 62 selected by the maker 100.
The payee 110 can then control the form of payment settlement,
i.e., including but not limited to a credit card network
transaction, a check transaction, an automated clearinghouse (ACH)
transaction, a wire transfer, or a another payment system. FIG. 15
shows an alternative embodiment whereby the maker 100 transmits a
partially complete transaction 50 to the payee 110 which includes,
for example, an amount, a payee, a transaction reference, an
authorization, a maker's consent to select the final payment
modality from a number of modalities 62 presented in the
partially-complete transaction. The payee 110 then makes the final
payment modality selection 60 from the various options determined
by the maker 110 (or provided as a number of default selections).
FIG. 16 shows an additional portion of the interface 200 shown in
FIGS. 3A-3P wherein the payment settlement modality selections 62
arc set out in a list 262 for the user.
[0084] The system and method 10 will allow the maker 100 of a
payment or transaction to designate a payee 110 and all or a
portion of the criteria needed to finally settle the transaction.
For example, an amount and a payee could be provided (or only the
amount of the transaction and a subsequent holder of the
transaction could later determine the payee 110) with a range of
settlement options (check, ACH, card network whether credit or
debt, federal wire transfer, or some other settlement system) such
that the payee 110 or a subsequent holder decides which of the
clearing and settlement methods 62, 262 they would prefer to use.
The maker 100 sets the value and can thereafter become indifferent
as to which method the payee 110 selects, provided the payment is
presented for clearing and settlement only once. The payee 110 can
determine the settlement that they prefer, based on price or other
criteria. The payee 110 could cause the settlement to be bid for by
the various final settlement options.
[0085] The method 10, as described with respect to any of the
examples in FIGS. 3-10, includes an instance where the maker 100
identifies themselves (e.g. a customer loyalty card/token) to a
payee 110 (e.g. retail merchant) and the merchant assembles the
bulk of the information with the final step being the maker 100
approving the check (transaction/payment) at the point of sale.
Either the maker 100 or the payee 110 could send a
communication/message to the other (including via an email address
or text message) indicating that they want to perform a payment
(give or receive) whereby the two parties could exchange the
elements via the initial or an alternate communication channel or
they could meet at a third-party service to work to complete all
the steps which is not final and official until the maker 100
signifies approval and evidences same via a signature.
[0086] The service could be performed via multiple communication
channels. The payee or maker could for example initiate via a web
or email interface that causes the other party to be contacted via
another channel such as receiving a telephone call on their POTS,
IP or cellular phone and the process completed by means of
oral/verbal interaction with the other party directly or through a
3rd party service 140. A business or individual wishing to pay
another party (pay a bill or invoice) sends the other party a check
via this method. A business or individual wishing to be paid for
requests a payment via this method.
[0087] A first example is that a business wants to pay a bill or
invoice to another party, vendor, employee, etc. and performs all
the steps of compositing a check as a digital item/object and sends
this to the other party via the communication network, thereby
avoiding the costly, inefficient steps of printing a physical
document, putting it in an envelope, supplying postage, depositing
it with a courier or the US Mail, etc. Another example is a private
party to private party transaction: it is often the case in youth
athletics that team members have to pay for things like
tournaments, or uniforms, etc. and they may have to pay an
intermediary like the team manager. This method would allow for the
manager to collect payments via checks either remotely or in person
and could forward them on to the final party such as the tournament
director or uniform vendor.
[0088] Yet another example is a private party to merchant
transaction where a shopper in a retail grocery store could proceed
to checkout with their selected items, and identify themselves to
the store via the method of choice (including their customer
loyalty card) and their purchase could be processed as a check for
payment without using the credit network but with all the
conveniences of credit/debit cards.
[0089] A further example is a private party through an intermediary
(their child) to a business/merchant transaction. Parents of
college age children are often asked for money by their kids for
emergencies or for supplies. By this method, the parent could
authorize a purchase being made by their child, remotely, in
real-time (at the book store or the auto repair shop, etc.) without
needing to give their kids a credit card or cash.
[0090] Yet another example is a private party to private party
where often organizations run fund-raisers (boy scouts and popcorn,
girl scouts and cookies, etc.) and they go door to door. When they
make these sales they often arc given cash (which is dangerous and
hard to manage for some) or physical checks. This method could
allow the orders to be taken remotely (via email or phone) and the
payments collected electronically without the need for credit/debit
card capabilities. In another example, a consumer or business to
business via the web where individuals and businesses that shop and
make purchases via a website could pay via a check where they would
otherwise ordinarily only have the option to pay via a credit
card.
[0091] As a final example, parents are often asked to pay for
miscellaneous items/activities for their children (field trips,
supplies, special events, etc.) and they could pay via this method
without risking giving their child a payment to deliver to school
that may be lost in-route.
[0092] As highlighted in the examples of usage above, there are
several advantages to the disclosed method 10, in that it does not
require a piece of paper (a physical paper check) be generated at
all but it can be converted (printed) into paper if desired by a
party in the process. Therefore, it relieves the maker of the check
from the costs and burdens of generating a physical artifact and
the burden and costs of conveying a physical item to the payee.
Additionally, it can be sent via a communications network to the
payee and uses a very well established and legal form of payment in
the form of a check. However, it does not suffer from the
deficiencies of a conventional check which would need to be fully
composited, printed and signed by the maker.
[0093] An advantage of the disclosed system and method is that it
is fast, efficient, and economical. Furthermore, the transaction
can be executed in a highly reliable and secure manner when used in
conjunction with other fraud prevention services. The payee can
assemble the item (draft check . . . payee, amount, memo, date,
etc.) and present it to the maker for them to complete (with their
bank routing number, account information check number and evidence
of authorization (signature), etc.) and, therefore, presents the
advantage of being able to come to agreement, compile information,
and complete the transaction in an iterative manner between two
parties. As a further advantage, the transaction can be conducted
via a 3rd party service which either or both parties use to
facilitate and allow for additional efficiencies, accuracy,
convenience and speed.
[0094] One aspect of the invention is that the maker starts with a
need to make a disbursement (payment) and to do so, the maker needs
to know the identity of the entity to which they arc disbursing and
the amount to be disbursed. In current prior art transactions, the
disbursing party must determine the final mode by which the payee
will receive the payment, including on which set of transactional
or institutional rails the transaction will run (i.e., check, ACH,
debit card, and the like). In the method contemplated by the
invention herein, the maker can allow the disburser to set key
elements of the disbursement (most importantly, the payee and
amount) and they can allow the final modality of payment to be
determined by the payee.
[0095] Reasonable variation and modification are possible within
the forgoing disclosure and drawings without departing from the
spirit of the invention that is defined in the appended claims.
* * * * *