METHOD AND APPARATUS FOR DEPOSITING ORDINARY CHECKS FROM HOME OR OFFICE

• US 20020084321A1
• Filed: 11/21/2001
• Published: 07/04/2002
• Est. Priority Date: 11/24/2000
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: International Business Machines Corporation
• Inventors: Von Gutfeld, Robert J., Wu, Chai W., Tresser, Charles P., Martens, Marco
• Granted Patent: US 6,450,403 B1
• Time in Patent Office: Days
• US Class Current: 235/379
• CPC Class Codes: G06K 7/10861 sensing of data fields affixed to objects or articles, e.g. coded labels postal sorting B07C3/14, conveying articles B65G47/48
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque

Abstract

An apparatus and method allow to deposit ordinary checks from home or office. A special scanner is used to scan an endorsed check for deposit. The check may have printed thereon encryptions in at least selected locations. Scanning the endorsed check with the scanner to generates a digitized version of the check. The scanner virtually partitions the digitized version of the check into a plurality of regions. These regions may be stripes or zones. Each region is successively examined to extract from the digitized version of the check information from that region. The information extracted from a region is encrypted and transmitted to a bank. Upon acknowledgment from the bank, at least some of the regions of the plurality of regions voided by a form of indelible but non-invasive (e.g. allowing reading after voiding) marking such as punched holes, burned areas, overprinting of a pattern. The processing by the scanner continues until all regions have been processed. This progressively voiding scheme is an important security feature of the invention. The scanner is preferably contained in a secure housing with an encryption processor and the housing preferably includes an arrangement for detecting tampering and preventing normal operation if tampering is detected.

Claims

1. A method of depositing paper checks from a location remote from a bank or Automatic Teller Machine (ATM) comprising the steps of:

endorsing a check;

scanning the endorsed check with a scanner to generate a digitized version of the check;

virtually partitioning the digitized version of the check into a plurality of regions;

successively extracting from the digitized version of the check information from the plurality of regions;

encrypting information extracted from a region and transmitting the encrypted information to a bank; and

upon acknowledgment from the bank, progressively voiding at least some of the regions of the plurality of regions until all regions have been processed.

2. The method of depositing paper checks recited in claim 1, further comprising the step of stopping the depositing process if acknowledgment is not received from the bank, requiring deposit of the paper check.

3. The method of depositing paper checks recited in claim 2, further comprising the step of stopping the depositing process if a region is not voided, requiring deposit of the paper check.

4. The method of depositing paper checks recited in claim 1, wherein the step of scanning is performed by a secure reader which captures concatenated information X=:

branch#;

account#;

check#.

5. The method of depositing paper checks recited in claim 4, further comprising the step of acquiring time T from the bank.

6. The method of depositing paper checks recited in claim 5, further comprising the steps of:

computing by the bank a cryptographic function F_(X,T) which determines the virtual partitioning of the check and an order in which the zones will be processed; and

transmitting by the bank the cryptographic function F_(X,T) to the reader.

7. The method of depositing paper checks recited in claim 6, further comprising the step of stopping the depositing process by the bank if too much time has elapsed since T, requiring deposit of the paper check.

8. The method of depositing checks recited in claim 1, the step of scanning includes data acquisition of counterfeiting protection of the check.

9. The method of depositing checks recited in claim 1, wherein the step of progressively voiding does not prevent authenticating the paper check and all data printed or written on it.

10. The method as recited in claim 1, wherein said check has encryption indicia printed thereon in at least a selected location and said endorsing step obscures some of said encryption indicia.

11. The method as recited in claim 1, wherein said zones are in parallel strips.

12. The method as recited in claim 1, wherein said zones are rectangules.

13. The method as recited in claim 1, wherein said zones correspond to areas printed on a check where meaningful data is to be written.

14. The method as recited in claim 1, wherein said endorsing step is performed on a side of said check including said plurality of regions.

16. The secure check reader as recited in claim 15, further including a secure housing.

17. The secure check reader as recited in claim 16, wherein said secure housing includes

means for detecting tampering with said secure housing, and

means for preventing normal functioning of said secure check reader responsive to said means for detecting tampering.

18. The secure check reader as recited in claim 15, in combination with an automated teller machine.

19. The secure check reader as recited in claim 15, wherein said means for indelibly marking includes at least one of a hole punch, means for burning a mark on said document and means for printing indicia.

20. The secure check reader as recited in claim 16, wherein said secure housing encloses said document during operation of said optical sensor and said means for indelibly marking.

15. A secure check reader including

an optical sensor for reading a portion of a document,

an encryption processor for encrypting an output of said optical sensor,

means for communicating an encrypted output of said optical sensor to a remote processor and receiving an return signal, and.

means for indelibly marking a selected area of said document responsive to said return signal.