Alternative payment devices using electronic check processing as a payment mechanism

• US 20030183689A1
• Filed: 06/26/2002
• Published: 10/02/2003
• Est. Priority Date: 03/26/2002
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Inventors: Mollett, Cassandra, Swift, Amy, Tidwell, Lisa
• Granted Patent: US 7,131,571 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• 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 20/0425 the cheque being electronic only
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G07F 7/04 by paper currency

Abstract

The present invention includes a merchant system that recognizes virtually any payment device or technology that uses electronic check processing as a payment mechanism. For example, the merchant system associates presentation of the payment device with information used to electronically debit a checking account, such as MICR data, and submits the same to a transaction processor capable of settling electronic debit transactions.

Claims

1. A merchant system configured to accept as payment for goods or services the presentation by a payor of a payment device other than a paper check, a credit card or a debit card, the merchant system comprising:

a payment device other than a paper check, a credit card or a debit card, where presentation of the payment device for goods or services indicates that funds are to be drawn on a checking account of a payor to pay for the goods or services;

a point of sale device which receives from the payment device, identification information useable to uniquely identify the payment device; and

one or more computing devices which use the identification information to determine appropriate MICR data indicative of the checking account to include in one or more transaction requests designed to provide a transaction processing system with sufficient information to transfer through a clearinghouse system at least a portion of the funds from the checking account as payment for the goods or services.

2. The merchant system of claim 1, wherein the payment device comprises a transponder.

3. The merchant system of claim 1, wherein the payment device comprises one or more loyalty cards.

4. The merchant system of claim 1, wherein the payment device comprises one or more smart cards.

5. The merchant system of claim 1, wherein the payment device comprises a computing device.

6. The merchant system of claim 5, wherein the payment device comprises a personal digital assistant.

7. The merchant system of claim 1, wherein the payment device comprises a mobile telephone.

8. The merchant system of claim 1, wherein the payment device comprises one or more biometric elements.

9. The merchant system of claim 1, wherein the payment device comprises one or more devices storing or using biometric data.

10. The merchant system of claim 1, wherein the point of sale device comprises a wireless receiver.

11. The merchant system of claim 1, wherein the point of sale device comprises a magnetic strip reader.

12. The merchant system of claim 1, wherein the one or more computing devices include gateway computing devices which allow secondary merchants to accept presentation of the payment device for goods and services.

13. The merchant system of claim 1, wherein the transaction request includes an enrollment transaction designed to determine whether the payor meets predetermined criteria set by the merchant system.

14. The merchant system of claim 1, wherein the one or more computing devices receive results from the transaction processing system.

15. The merchant system of claim 14, wherein the results include an authorization to accept the presentation of the payment device as payment for the goods or services.

16. The merchant system of claim 14, wherein the results include an authorization to enroll the payor with the merchant system by providing the payor with the payment device.

17. A merchant computing system which accepts payment for goods or services from a user payment device, the merchant computing system comprising:

a server system including a merchant receiver configured to recognize a user payment device presented by a user as payment for goods or services; and

one or more databases storing MICR data used to identify a checking account, wherein the server system associates the MICR data with the user payment device.

18. The merchant computing system of claim 17, wherein the user payment device comprises a transponder.

19. The merchant computing system of claim 17, wherein the user payment device comprises one or more loyalty cards.

20. The merchant computing system of claim 17, wherein the user payment device comprises one or more smart cards.

21. The merchant computing system of claim 17, wherein the user payment device comprises a computing device.

22. The merchant computing system of claim 17, wherein the user payment device comprises a personal digital assistant.

23. The merchant computing system of claim 17, wherein the user payment device comprises a mobile telephone.

24. The merchant computing system of claim 17, wherein the user payment device comprises one or more biometric elements.

25. The merchant computing system of claim 17, wherein the user payment device comprises one or more devices using biometric data.

26. A method of accepting a payment device as payment for goods or services, the method comprising:

receiving information from a payment device presented by a user for payment of goods or services, wherein the payment device is not a paper check, a credit card, or a debit card;

determining MICR data associated with payment device from the received information;

initiating an electronic transaction using the MICR data;

obtaining an assessment of a risk of the electronic transaction; and

accepting or declining the payment device as payment for the goods or services.

27. The method of claim 26, further comprising enrolling the user by issuing the payment device and obtaining the MICR data.

28. The method of claim 27, further comprising obtaining an assessment of a risk of enrolling the user.

29. A merchant system comprising:

means for identifying a payment device other than a paper check, a credit card, or a debit card, wherein the payment device is presented by a payor as payment for goods or services; and

means for associating an identified payment device with MICR data corresponding to a checking account of the payor, for receiving an assessment of a risk of the electronic transaction with the payor, and for accepting or declining the payment device as payment for the goods or services.

30. The merchant system of claim 29, further comprising the payment device.

31. The merchant system of claim 29, further comprising means for enrolling the payor with the merchant system.

32. The merchant system of claim 29, wherein the means for associating, receiving, and accepting or declining, further include means for receiving reports of settlement.