Method and system for funding a financial account

• US 20030078883A1
• Filed: 09/26/2002
• Published: 04/24/2003
• Est. Priority Date: 12/01/1999
• Status: Active Grant

• Current Assignee: Fidelity Information Services, LLC (Fidelity National Information Services Incorporated)
• Original Assignee: Efunds Corporation (Fidelity National Information Services Incorporated)
• Inventors: Koep, Connie, Hill, Robert Lawrence, Stewart, Whitney Hilton
• Granted Patent: US 8,204,812 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06K 7/084 sensing magnetic material by relative movement detecting flux changes without altering its magnetised state
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G07F 19/20 Automatic teller machines [ATMs]
• CPC Class Codes: G07F 19/203 Dispensing operations within ATMs dispensing in general G07D11/00

Abstract

A system and method of electronically funding a financial account is disclosed. The method includes the acts of providing an electronic funding application, electronically transmitting the electronic funding application to a customer-operated client, and entering financial data into the funding application of the customer-operated client. The financial data includes a magnetic ink character recognition (MICR) line, a currency amount, and an account identifier. The method further includes the acts of electronically transmitting the financial data to a server (30), validating that at least a portion of the entered financial data corresponds to the demand deposit account, converting the MICR line to an item compatible with the Automated Clearing House network, submitting the item and the currency to this network and electronically transfering the currency from the demand deposit account to the financial account.

Claims

1. A method of electronically funding a financial account from a demand deposit account, the method comprising:

providing an electronic funding application;

electronically transmitting the electronic funding application to a customer-operated client;

entering financial data into the funding application at the customer-operated client, the financial data including a magnetic ink character recognition (MICR) line, a currency amount, and an account identifier;

electronically transmitting the financial data to a server;

validating that at least a portion of the entered financial data corresponds to the demand deposit account;

converting the MICR line to an item compatible with an automated clearing house (ACH) network;

submitting the item and the currency amount to the ACH network; and

electronically transferring the currency amount from the demand deposit account to the financial account.

2. A method as set forth in claim 1, wherein the act of electronically transmitting the funding application to a customer operated client is done via the Internet.

3. A method as set forth in claim 2, wherein the funding application is an Internet based Web site.

4. A method as set forth in claim 1, wherein the customer-operated client is a personal computer.

5. A method as set forth in claim 1, wherein the customer-operated client is an Internet appliance.

6. A method as set forth in claim 1, wherein the customer-operated client is a wireless device.

7. A method as set forth in claim 1, wherein the account identifier is an account name.

8. A method as set forth in claim 1, wherein the account identifier is an account address.

9. A method as set forth in claim 1, wherein the account identifier is an account phone number.

10. A method as set forth in claim 1, wherein the act of electronically transmitting the financial data to a server is done via the Internet.

11. A method as set forth in claim 1, wherein the demand deposit account is a checking account.

12. A method as set forth in claim 1, wherein the act of validating the entered financial data further comprises the acts of:

providing a database including a plurality of records, each record having at least a portion of a stored MICR line; and

searching the database with at least a portion of the entered MICR line.

13. A method as set forth in claim 12, wherein the stored MICR lines correspond to MICR lines of checks in circulation.

14. A method as set forth in claim 12, wherein the stored MICR lines correspond to MICR lines of accounts closed for non-sufficient funds.

15. A method as set forth in claim 12, wherein the stored MICR lines correspond to MICR lines issued from automated clearing house networks.

16. A method as set forth in claim 12, wherein the stored MICR lines correspond to MICR lines of previously dishonored checks.

17. A method as set forth in claim 12, wherein the stored MICR lines correspond to permanently protected MICR lines.

18. A method as set forth in claim 1, wherein the act of validating the entered financial data comprises:

providing a database including a plurality of records, each record having a stored account identifier, respectively; and

searching the database with the entered account identifier.

19. A method as set forth in claim 18, wherein the stored account identifiers correspond to account identifiers of checks in circulation.

20. A method as set forth in claim 1, and further comprising the act of assessing the entered financial data for accuracy.

21. A method as set forth in claim 20, wherein the act of assessing the entered financial data further comprises the act of applying the entered financial data to a maximum authorization limit filter.

22. A method as set forth in claim 20, wherein the act of assessing the entered financial data further comprises the acts of

providing a database including a plurality of records, each record having at least a portion of a stored MICR line;

and

searching the database with at least a portion of the entered MICR line.

23. A method as set forth in claim 20, wherein the act of assessing the entered financial data further comprises the acts of:

providing a database including a plurality of records, each record having a stored account identifier, respectively; and

searching the database with the entered account identifier.

24. A method as set forth in claim 1, wherein the act of converting the MICR line further comprises the act of:

applying the MICR line to a conversion rule.

25. A method as set forth in claim 24, and further comprising the acts of:

receiving a denial upon submitting the item and the currency amount to the ACH network;

determining the cause of the denial;

converting the MICR line to a second item compatible with the ACH network;

submitting the second item and the currency amount to the ACH network; and

creating a new conversion rule based upon the determination of the denial.

26. A system for electronically transferring a currency amount from a demand deposit account at a first financial institution to a financial account at a second financial institution, comprising:

a customer-operated client including a communications port operable to receive a funding application and to transmit financial data, an input operable to receive the financial data from a customer, the financial data including a magnetic ink character recognition (MICR) line, a currency amount, and an account identifier; and

a server including a communications port operable to receive the financial data, a memory unit containing at least one database having a plurality or records, and a processor operable to implement at least one software module to validate that at least a portion of the received financial data corresponds to data relating to the demand deposit account, to convert the MICR line to an item compatible with an automated clearing house (ACH) network, and to initiate an ACH process of transferring the currency amount from the demand deposit account to the financial account.

27. A system as set forth in claim 26, wherein the client receives the funding application from a second server.

28. A system as set forth in claim 26, wherein the funding application is received via the Internet.

29. A system as set forth in claim 26, wherein the funding application is a Web site.

30. A system as set forth in claim 26, wherein the client is a personal computer.

31. A system as set forth in claim 26, wherein the client is a wireless computer.

32. A system as set forth in claim 26, wherein the client is an Internet appliance.

33. A system as set forth in claim 26, wherein the account identifier is an account name.

34. A system as set forth in claim 26, wherein the account identifier is an account address.

35. A system as set forth in claim 26, wherein the account identifier is an account phone number.

36. A system as set forth in claim 26, wherein the demand deposit account is a checking account.

37. A system as set forth in claim 26, wherein the processor further implements the at least one software module to assess the entered financial data thereby determining the likelihood of completing the transfer.

38. A system as set forth in claim 26, wherein the memory unit includes a check circulation database including a plurality of records having a stored MICR line, respectively.

39. A system as set forth in claim 38, wherein each record further includes an account identifier.

40. A system as set forth in claim 26, wherein the memory unit includes a database having a plurality of records including at least a portion of a stored MICR line, respectively.

41. A system as set forth in claim 40, wherein the stored MICR lines correspond to MICR lines of checks in circulation.

42. A system as set forth in claim 40, wherein the stored MICR lines correspond to MICR lines of accounts closed for insufficient funds.

43. A system as set forth in claim 40, wherein the stored MICR lines correspond to MICR lines issued from automated clearing house networks.

44. A system as set forth in claim 40, wherein the stored MICR lines correspond to MICR lines of previously dishonored checks.

45. A system as set forth in claim 40, wherein the stored MICR lines correspond to permanently protected MICR lines.

46. A system as set forth in claim 26, wherein the memory unit contains a conversion database having at least one MICR to ACH format conversion rule.

47. A system as set forth in claim 26, wherein the processor further implements at least one software module to convert the MICR line to an item compatible with the ACH network.

48. A software program including at least one software module stored in a computer readable medium, and for electronically funding a financial account with funds from a demand deposit account, the software modules funding the financial account by:

electronically transmitting the funding application to a customer-operated client;

receiving financial data from the customer-operated client, the financial data including a magnetic ink character recognition (MICR) line, a currency amount, and an account identifier;

validating at least a portion of the entered financial data corresponds to the demand deposit account;

converting the MICR line to an item compatible with an automated clearing house (ACH) network; and

transmitting the item and the currency amount to the ACH network to initiate the transferring of the currency amount from the demand deposit account to the financial account.

49. A software program as set forth in claim 48, the software modules further funding the financial account by:

searching a database having a plurality of records each including at least a portion of a stored MICR line, the act of searching including searching the database with at least a portion of the entered MICR line.

50. A software program as set forth in claim 49, wherein the stored MICR lines correspond to MICR lines of checks in circulation.

51. A software program as set forth in claim 49, wherein the stored MICR lines correspond to MICR lines of accounts closed for insufficient funds.

52. A software program as set forth in claim 49, wherein the stored MICR lines correspond to MICR lines issued from automated clearing house networks.

53. A software program as set forth in claim 49, wherein the stored MICR lines correspond to MICR lines of previously dishonored checks.

54. A software program as set forth in claim 49, wherein the stored MICR lines correspond to permanently protected MICR lines.

55. A software program as set forth in claim 48, the software modules further funding the financial account by:

searching a database having a plurality of records each including a stored account identifier, respectively, the act of searching including searching the database for the entered account identifier.

56. A software program as set forth in claim 55, wherein the stored account identifiers correspond to account identifiers of checks in circulation.

57. A software program as set forth in claim 48, the software modules further funding the financial account by assessing the entered financial data.

58. A software program as set forth in claim 57, wherein the act of assessing the entered financial data further comprises the act of applying the entered financial data to a maximum authorization limit filter.

59. A software program as set forth in claim 57, wherein the act of assessing the entered financial data further comprises the acts of:

providing a database including a plurality of records, each record having at least a portion of a stored MICR line, respectively; and

searching the database with at least a portion of the entered MICR line.

60. A software program as set forth in claim 57, wherein the act of assessing the entered financial data further comprises the acts of:

providing a database including a plurality of records, each record having a stored account identifier, respectively; and

searching the database with the entered account identifier.

61. A software program as set forth in claim 48, wherein the act of converting the MICR line further comprises the act of:

applying the MICR line to a conversion rule.

62. A software program as set forth in claim 61, the software modules further funding the financial account by:

receiving a denial upon submitting the item and the currency amount to the ACH network;

converting the MICR line to a second item compatible with the ACH network; and

submitting the second item and the currency amount to the ACH network.

63. A software program as set forth in claim 48, wherein the software module of receiving financial data from the customer-operated client is resident at a first server.

64. A software program as set forth in claim 63, wherein the software module of validating at least a portion of the entered financial data corresponds to the demand deposit account is resident at a first server.

65. A software program as set forth in claim 63, wherein the software module of converting the MICR line to an item compatible with an automated clearing house (ACH) network is resident at the first server.

66. A software program as set forth in claim 61, wherein the software module of electronically transmitting the funding application to a customer-operated client is resident at a second server.

67. A software program as set forth in claim 64, wherein the software module of transmitting the item and the currency amount to the ACH network is resident at a third server.

68. A method of electronically funding a financial account from a demand deposit account, the method comprising:

providing an electronic funding application;

electronically transmitting the electronic funding application to a customer-operated client via the Internet;

entering financial data into the funding application at the customer-operated client, the financial data including a magnetic ink character recognition (MICR) line, a currency amount, and an account identifier;

electronically transmitting the financial data to a server via the Internet;

providing a first database including a plurality of records, each record having at least a portion of a stored MICR line;

searching the first database with at least a portion of the entered MICR line;

providing a second database including a plurality of records, each record having a stored account identifier, respectively;

searching the second database with the entered account identifier;

assessing the entered financial data for accuracy;

applying the entered financial data to a maximum authorization limit filter;

converting the MICR line to an item compatible with an automated clearing house (ACH) network;

submitting the item and the currency amount to the ACH network; and

electronically transferring the currency amount from the demand deposit account to the financial account.

69. A method as set forth in claim 68, and further comprising the acts of:

receiving a denial upon submitting the item and the currency amount to the ACH network;

determining the cause of the denial;

converting the MICR line to a second item compatible with the ACH network; and

submitting the second item and the currency amount to the ACH network.

70. A method as set forth in claim 68, wherein the funding application is an Internet based Web site.

71. A method as set forth in claim 68, wherein the customer-operated client is a personal computer.

72. A method as set forth in claim 68, wherein the customer-operated client is an Internet appliance.

73. A method as set forth in claim 68, wherein the customer-operated client is a wireless device.

74. A method as set forth in claim 68, wherein the account identifier is an account name.

75. A method as set forth in claim 68, wherein the account identifier is an account address.

76. A method as set forth in claim 68, wherein the account identifier is an account phone number.

77. A method as set forth in claim 68, wherein the demand deposit account is a checking account.

78. A method as set forth in claim 68, wherein the stored MICR lines correspond to MICR lines of checks in circulation.

79. A method as set forth in claim 68, wherein the stored MICR lines correspond to MICR lines of accounts closed for non-sufficient funds.

80. A method as set forth in claim 68, wherein the stored MICR lines correspond to MICR lines issued from automated clearing house networks.

81. A method as set forth in claim 68, wherein the stored MICR lines correspond to MICR lines of previously dishonored checks.

82. A method as set forth in claim 68, wherein the stored MICR lines correspond to permanently protected MICR lines.

83. A method as set forth in claim 68, wherein the stored account identifiers correspond to account identifiers of checks in circulation.

84. A system for electronically transferring a currency amount from a demand deposit account at a first financial institution to a financial account at a second financial institution, comprising:

a customer-operated client including a communications port operable to receive a funding application and to transmit financial data via the Internet, an input operable to receive the financial data from a customer, the financial data including a magnetic ink character recognition (MICR) line, a currency amount, and an account identifier; and

a server including a communications port operable to receive the financial data, a memory unit containing at least one database having a plurality or records, and a processor operable to implement at least one software module to validate that at least a portion of the received financial data corresponds to data relating to the demand deposit account, to convert the MICR line to an item compatible with an automated clearing house (ACH) network, to assess the entered financial data thereby determining the likelihood of completing the transfer, to convert the MICR line to an item compatible with the ACH network and to initiate an ACH process of transferring the currency amount from the demand deposit account to the financial account.

85. A system as set forth in claim 84, wherein the funding application is a Web site.

86. A system as set forth in claim 84, wherein the client is a personal computer.

87. A system as set forth in claim 84, wherein the client is a wireless computer.

88. A system as set forth in claim 84, wherein the client is an Internet appliance.

89. A system as set forth in claim 84, wherein each record further includes at least a portion of a stored MICR and an account identifier.

90. A system as set forth in claim 89, wherein the account identifier is an account name.

91. A system as set forth in claim 89, wherein the account identifier is an account address.

92. A system as set forth in claim 89, wherein the account identifier is an account phone number.

93. A system as set forth in claim 89, wherein the stored MICR lines corresponds to MICR lines of checks in circulation.

94. A system as set forth in claim 89, wherein the stored MICR lines correspond to MICR lines of accounts closed for insufficient funds.

95. A system as set forth in claim 89, wherein the stored MICR lines correspond to MICR lines issued from automated clearing house networks.

96. A system as set forth in claim 89, wherein the stored MICR lines correspond to MICR lines of previously dishonored checks.

97. A system as set forth in claim 89, wherein the stored MICR lines correspond to permanently protected MICR lines.

98. A system as set forth in claim 84, wherein the demand deposit account is a checking account.