Check guarantee, verification, processing, credit reports and collection system and method awarding purchase points for usage of checks

• US 20020040344A1
• Filed: 09/19/2001
• Published: 04/04/2002
• Est. Priority Date: 10/04/2000
• Status: Abandoned Application

• Current Assignee: Kevin J. Murphy, Randall F. Preiser
• Original Assignee: Kevin J. Murphy, Randall F. Preiser
• Inventors: Murphy, Kevin, Preiser, Randall F.
• Application Number:
  US09/956,321
• Publication Number:
  US 20020040344A1
• Time in Patent Office: Days
• US Class Current: 705/42
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising

Abstract

In response to a buyer submitting a check as payment for a transaction with a seller, a check guarantee service determines whether to guarantee the check as payment for the transaction, and offers a membership in the guarantee service to the buyer. Members are issued a user identification number to the buyer and are prompted to select a personal identification number. In subsequent transactions, the member provides his/her user identifier number to the seller for the automatic guaranteeing by the guaranteeing service of the check as payment for the transaction. Members can be awarded points each time the member uses the guaranteeing service to guarantee a check. The points can be converted into digital currency usable for purchasing goods and services.

Claims

1. A method of guaranteeing a check presented as payment for a transaction involving a buyer purchasing goods or services from a seller, said method comprising the steps of:

verifying by a check guarantee service a buyer'"'"'s bank transit number and bank account number of the check presented;

determining by the check guarantee service if a negative file exists for the buyer;

calculating a transaction risk score that is a measure of a risk involved with the transaction;

determining whether the transaction risk score represents an acceptable risk for the seller with respect to the transaction;

guaranteeing the check as payment for the transaction in the event the risk is acceptable to the seller;

offering to the buyer an option to be a customer member in the check guarantee service;

issuing a user identification number to the customer member in response to the buyer accepting a membership in the check guarantee service; and

offering the customer member a membership in a loyalty program of the check guarantee service.

2. The method of claim 1, further comprising the step of allowing the customer member to change the user identification number.

3. The method of claim 2, further comprising the steps of prompting the customer member to select a personal identification number, and

in response to the prompt, the customer member selecting the personal identification number.

4. The method of claim 3, further comprising the step of issuing the customer member a card encoded with the customer member'"'"'s name, user identification number and personal identification number, wherein the customer member'"'"'s name and identification can be provided to the seller by reading information encoded in the card.

5. The method of claim 4, wherein the customer member'"'"'s name, user identification number and personal identification number are encoded in a magnetic strip on the card.

6. The method of claim 4, wherein the customer member'"'"'s name, user identification number and personal identification number are encoded in an optically readable barcode on the card.

7. The method of claim 1, wherein the step of calculating a transaction risk score includes evaluating a transaction amount, a guarantee limit for the seller, a velocity risk, a dollar volume risk, the seller'"'"'s claim history, the goods or services being purchased, the seller'"'"'s location, and the buyer'"'"'s bank location.

8. The method of claim 1, further comprising the step of, in response to determining the transaction risk score to represent an unacceptable risk to the seller, obtaining additional information from the buyer, including the buyer'"'"'s full 10 digit telephone number, and further comprising the steps of:

dialing the buyer'"'"'s telephone number to confirm that it is in service and not disconnected;

re-calculating the transaction risk score based on additional factors including the buyer'"'"'s area code, the seller'"'"'s area code, and whether the buyer'"'"'s telephone is in service; and

re-evaluating whether the transaction risk score represents an acceptable risk to the seller with respect to the transaction.

9. The method of claim 8, further comprising the step of verifying the buyer'"'"'s bank account by depositing a small sum into said buyer bank account.

10. The method of claim 1, further comprising the steps of the check guarantee service using an electronic transfer to debit the buyer'"'"'s bank account for the amount of the check, and to credit the seller'"'"'s account for the amount of the check.

11. The method of claim 1, further comprising the step of, for a customer member who is a member of the loyalty program, awarding points to the member each time the customer member uses the check guarantee service to guarantee a check presented as payment for a commercial transaction, wherein the points can be converted into digital currency redeemable for purchasing goods and services.

12. The method of claim 11, further comprising the step of suspending the members points if a member'"'"'s check is returned unpaid, said suspension to be in effect until the debt to the check guaranteeing service is paid.

13. The method of claim 1, wherein the seller maintains a web site and the transaction occurs over the world wide web.

14. The method of claim 1, wherein the transaction occurs at a point-of-sale terminal.

15. The method of claim 1, wherein the transaction occurs during a telephone call.

17. The method of claim 16, further comprising the step of the customer member providing a personal identification number to the seller.

18. The method of claim 17, wherein the user identification number and personal identification number provided to the seller are encoded on a card issued to the customer member by the check guaranteeing service.

19. The method of claim 18, wherein the user identification number and personal identification number are encoded in a magnetic strip on the card.

20. The method of claim 18, wherein the user identification number and personal identification number are encoded in an optically readable barcode on the card.

21. The method of claim 16, further comprising the steps of the check guarantee service using an electronic transfer to debit the buyer'"'"'s bank account for the amount of the check, and to credit the seller'"'"'s account for the amount of the check.

22. The method of claim 16, further comprising the step of, for a customer member who is a member of the loyalty program, awarding points to the member each time the customer member uses the check guarantee service to guarantee a check presented as payment for a commercial transaction, wherein the points can be converted into digital currency redeemable for purchasing goods and services.

23. The method of claim 22, further comprising the step of suspending the members points if a member'"'"'s check is returned unpaid, said suspension to be in effect until the debt to the check guaranteeing service is paid.

24. The method of claim 16, wherein the seller maintains a web site and the transaction occurs over the world wide web.

25. The method of claim 16, wherein the transaction occurs at a point-of-sale terminal.

26. The method of claim 16, wherein the transaction occurs during a telephone call.

28. The system of claim 27, further comprising means for allowing the customer member to change the user identification number.

29. The system of claim 28, further comprising means for prompting the customer member to select a personal identification number, and

means for the customer member to select the personal identification number, in response to the prompt.

30. The system of claim 29, further comprising means for issuing the customer member a card encoded with the customer member'"'"'s name, user identification number and personal identification number, wherein the customer member'"'"'s name and identification can be provided to the seller by reading information encoded in the card.

31. The system of claim 30, wherein the customer member'"'"'s name, user identification number and personal identification number are encoded in a magnetic strip on the card.

32. The system of claim 30, wherein the customer member'"'"'s name, user identification number and personal identification number are encoded in an optically readable barcode on the card.

33. The system of claim 27, wherein the means for calculating a transaction risk score includes means for evaluating a transaction amount, a guarantee limit for the seller, a velocity risk, a dollar volume risk, the seller'"'"'s claim history, the goods or services being purchased, the seller'"'"'s location, the buyer'"'"'s bank location, and a maximum acceptable risk for said seller.

34. The system of claim 27, further comprising means for obtaining, in response to determining the transaction risk score to represent an unacceptable risk to the seller, additional information from the buyer, including the buyer'"'"'s full 10 digit telephone number, and further comprising:

means for dialing the buyer'"'"'s telephone number to confirm that it is in service and not disconnected;

means for re-calculating the transaction risk score based on additional factors including the buyer'"'"'s area code, the seller'"'"'s area code, and whether the buyer'"'"'s telephone is in service; and

means for re-evaluating whether the transaction risk score represents an acceptable risk to the seller with respect to the transaction.

35. The system of claim 34, further comprising means for depositing a small sum into said buyer bank account, in order to verify the buyer'"'"'s bank account.

36. The system of claim 27, further comprising means for the check guarantee service use an electronic funds transfer to debit the buyer'"'"'s bank account for the amount of the check, and to credit the seller'"'"'s bank account for the amount of the check.

37. The system of claim 1, further comprising for awarding points to the customer member who is a member of the loyalty program, each time the customer member uses the check guarantee service to guarantee a check presented as payment for a commercial transaction, wherein the points can be converted into digital currency redeemable for purchasing goods and services.

38. The system of claim 37, further comprising means for suspending the customer member'"'"'s points if the customer member'"'"'s check is returned unpaid, said suspension to be in effect until the debt to the check guaranteeing service is paid.

39. The system of claim 27, wherein the seller maintains a web site and the transaction occurs over the world wide web.

40. The system of claim 27, wherein the transaction occurs at a point-of-sale terminal.

41. The system of claim 27, wherein the transaction occurs during a telephone call.

16. A method of guaranteeing a check presented as payment for a transaction involving a buyer purchasing goods or services from a seller, said buyer being a customer member of a check guaranteeing service, said method comprising the steps of:

the customer member providing a user identification number to the seller; and

the seller providing the user identification number to the check guarantee service for the guaranteeing of the check presented as payment for the transaction.

27. A system of guaranteeing a check presented as payment for a transaction involving a buyer purchasing goods or services from a seller, said system comprising:

means for a check guarantee service to verify a buyer'"'"'s bank transit number and bank account number of the check presented;

means for the check guarantee service to determine if a negative file exists for the buyer;

means for calculating a transaction risk score that is a measure of the risk involved with the transaction;

means for determining whether the transaction risk score represents an acceptable risk to the seller with respect to the transaction;

means for guaranteeing the check as payment for the transaction in the event of acceptable risk to the seller;

means for offering the buyer the option to be a customer member the check guarantee service;

means for issuing a user identification number to the customer member, in response to the buyer accepting a membership in the guarantee service; and

means for offering the customer member a membership in a loyalty program of the check guaranteeing service.

42. A system for guaranteeing a check presented as payment for a transaction involving a buyer purchasing goods or services from a seller, said buyer being a customer member of a check guaranteeing service, said system comprising:

means for the customer member to provide a user identification number to the seller; and

means for the seller to provide the user identification number to the check guaranteeing service for guaranteeing the check presented as payment for the transaction.

43. The system of claim 42, further comprising means for the customer member to provide a personal identification number to the seller.

44. The system of claim 43, wherein the user identification number and personal identification number provided to the seller are encoded on a card issued to the customer member by the check guaranteeing service.

45. The system of claim 44, wherein the user identification number and personal identification number are encoded in a magnetic strip on the card.

46. The system of claim 45, wherein the user identification number and personal identification number are encoded in an optically readable barcode on the card.

47. The system of claim 42, further comprising means for the check guarantee service to use an electronic funds transfer to debit the buyer'"'"'s bank account for the amount of the check, and to credit the seller'"'"'s account for the amount of the check.

48. The system of claim 42, further comprising means, for a customer member who is a member of the loyalty program, for awarding points to the customer member each time the customer member uses the check guarantee service to guarantee a check presented as payment for a commercial transaction, wherein the points can be converted into digital currency redeemable for purchasing goods and services.

49. The system of claim 48, further comprising means for suspending the customer member'"'"'s points if a customer member'"'"'s check is returned unpaid, said suspension to be in effect until the debt to the check guaranteeing service is paid.

50. The system of claim 42, wherein the seller maintains a web site and the transaction occurs over the world wide web.

51. The system of claim 42, wherein the transaction occurs at a point-of-sale terminal.

52. The system of claim 42, wherein the transaction occurs during a telephone call.