Payment validation network

• US 20040089711A1
• Filed: 08/01/2003
• Published: 05/13/2004
• Est. Priority Date: 08/02/2002
• Status: Active Grant

• Current Assignee: Advanced Software Design Corporation (Advanced Software Design|Calin A. Sandru)
• Original Assignee: Calin A. Sandru
• Inventors: Sandru, Calin A.
• Granted Patent: US 7,004,382 B2
• Time in Patent Office: Days
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• 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 20/40 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A payment validation network having network of payment validation cells, each of which includes: one or more local qualifier systems for assessing the risk of loss in accepting a check; a service finder for identifying the scope of coverage provided by each of the local qualifier systems and for identifying the scope of coverage provided by other cells; and one or more input/output (I/O) sources for obtaining transaction data associated with a check at a point of presentment. The request servicer interfaces with the I/O sources, service finder and the qualifier systems in order to (i) receive transaction data from an I/O source in connection with the check, including the routing/transit number, (ii) maintain a user profile for the I/O source, (iii) consult the service finder to identify which local qualifier systems cover the routing/transit (R/T) number associated with the check, (iv) transmit a payment validation request to the identified local qualifier systems and at least one other remote request servicer in accordance with the user profile, (v) receive one or more validation results from local qualifier systems or remote request servicers, and (vi) process said results to provide a homogeneous validation assessment to the requesting I/O source.

Claims

1. A check validation system, comprising:

a network of validation cells, each said cell being associated with at least one local qualifier system for assessing risk of loss in accepting a check; and

an input/output (I/O) source operatively connected to at least one cell for obtaining transaction data associated with a check at a point of presentment;

wherein a given validation cell that is operatively connected to a requesting I/O source receives transaction data therefrom in connection with a given check and forwards a payment validation request to at least one other cell for obtaining at least one validation result from at least one remote qualifier system associated with the at least one other cell, and wherein the given cell transmits at least one validation assessment back to the requested I/O source based on the at least one validation result.

2. A system according to claim 1, wherein the given cell formats the payment validation request according to a common network protocol based on said transaction data, prior to sending the payment validation request to the at least one other cell.

3. A system according to claim 2, wherein:

a plurality of the qualifier systems employ disparate methods for assessing the risk of loss in accepting a check; and

the given cell receives validation results from a plurality of disparate qualifier systems and processes said results to provide a homogeneous validation assessment to the requesting I/O source.

4. A system according to claim 3, wherein validation results forwarded to other cells are formatted according to a common network protocol.

5. A system according to claim 3, wherein the homogeneous validation assessment is expressed as:

(i) the likelihood that the check is properly issued and (ii) the likelihood of the check clearing.

6. A system according to claim 1, wherein a given validation cell forwards a payment validation request to its local qualifier systems based on routing/transit (RIT) information included in the transaction data.

7. A system according to claim 5, wherein the given cell maintains user profiles for determining if a payment validation request received from the requesting I/O device should be forwarded to other cells for obtaining validation results therefrom.

8. A system according to claim 7, wherein said user profile includes a quality of service indicator, and the given cell forwards a payment validation request associated with a specified user to at least one other cell if the local qualifier systems do not provide the quality of service indicated for the specified user.

9. A system according to claim 7, wherein the given cell advertises the payment validation request and the associated quality of service required so that the qualifier systems can bid for the right to provide validation results.

10. A system according to claim 1, wherein the given cell forwards the payment validation request to other cells in the event the local qualifier systems do not cover the RFT number of the check.

11. A system according to claim 1, wherein the requesting I/O source formats the payment validation request according to a common network protocol based on said transaction data, prior to sending the payment validation request to the corresponding cell.

12. A system according to claim 11, wherein:

a plurality of the qualifier systems employ disparate methods for assessing the risk of loss in accepting a check and each of said plurality provides a homogeneous validation assessment.

13. A system according to claim 11, wherein each of the qualifier systems format validation results according to a common network protocol for distribution to other cells.

14. A check validation system, comprising:

a network of validation cells, each said cell being associated with at least one local qualifier system for assessing risk of loss in accepting a check; and

an input/output (I/O) source operatively connected to at least one cell for obtaining transaction data associated with a check at a point of presentment;

wherein each validation cell is enabled to receive a payment validation request from an I/O source or an originating cell and forward said request to at least one other cell for obtaining at least one validation result from at least one remote qualifier system and thereafter transmit at least one validation result back to the I/O source or originating cell.

15. A check validation system, comprising:

a network of validation cells, each said cell having at least one qualifier system for assessing at least one of (i) the proper issuance of checks and (ii) the likelihood of checks clearing;

an input/output (I/O) source connected to at least one cell for obtaining transaction data associated with the check at a point of presentment, including transit/routing information; and

service finder means, accessible by each cell, for associating transit/routing codes with one or more qualifier systems capable of assessing the proper issuance or likelihood of clearance of checks bearing the transit/routing codes;

wherein a given validation cell is programmed to receive transit/routing information associated with a given check from a requesting I/O source and in response consult the service finder means, format a payment validation request according to a common network protocol based on the transaction data, and forward said request to one or more other validation cells for processing based on the transit/routing number;

the given cell receiving one or more assessments of proper issuance or clearance from the other cells and reporting a homogenous validation assessment to the requesting I/O source.

16. A check validation system, comprising:

a network of validation cells, each said cell having at least one qualifier system for assessing at least one of;

(i) the proper issuance of checks and (ii) the likelihood of checks clearing;

an input/output (I/O) source connected to at least one cell for obtaining transaction data associated with the check at a point of presentment, including transit/routing information; and

service finder means, accessible by each cell, for associating each transit/routing code in the system with at least one cell having a qualifier system covering the code;

wherein a given validation cell receives transit/routing information associated with a given check from a requesting I/O source and, in the event the given validation cell has no qualifier systems able to process the proper issuance and clearance of the given check, consults the service finder means and forwards the transaction data associated with the given check to one or more other validation cells for processing, the given cell receiving one or more assessments of proper issuance or clearance from the other cells and reporting the assessments to the requesting I/O source.

17. A check validation system, comprising:

a plurality of qualifier systems which employ disparate methods for assessing the risk of loss in accepting a check; and

a request servicer for communicating with at least one input/output (I/O) source and obtaining transaction data associated with the check at a point of presentment and for communicating a check payment validation request from the at least one I/O source to at least two of the disparate qualifier systems, wherein either said at least one I/O source or the service requester formats the check payment request according to a common network protocol; and

wherein the service requester is programmed to receive a validation result from each of the disparate qualifier systems and process said results to provide a combined validation result to the requesting I/O source.

18. A system according to claim 17, wherein the combined validation result is a homogeneous validation assessment is expressed in two dimensions as:

(i) the likelihood that the check is properly issued, and (ii) the likelihood of the check clearing.

19. A system according to claim 18, wherein each said dimension is expressed as a probability.

20. A system according to claim 18, wherein at least one of the qualifier systems is a deterministic system and at least one of the qualifiers is a non-deterministic system.

21. A check validation cell, comprising:

a plurality of qualifier systems for assessing the risk of loss in accepting a check;

a service finder for identifying the scope of coverage provided by each of the qualifier systems;

a plurality of input/output (I/O) sources for obtaining transaction data associated with a check at a point of presentment;

a request servicer interfacing with the I/O sources, service finder and the qualifier systems in order to (i) receive transaction data from an I/O source in connection with the check, including the routing/transit number, (ii) consult the service finder to identify which qualifier system covers the check, (iii) transmit a payment validation request to the identified qualifier systems, (iv) receive one or more validation results from identified qualifier systems, and (v) process said results to provide a homogeneous validation assessment to the requesting I/O source.

22. A cell according to claim 21, wherein the qualifier systems employ disparate methods, including determinate and non-determinative methods, for assessing the risk of loss.

23. A network of check validation cells, each said cell comprising:

a plurality of local qualifier systems for assessing the risk of loss in accepting a check;

a service finder for identifying the scope of coverage provided by each of the local qualifier systems and for identifying at least some other cells;

a plurality of input/output (I/O) sources for obtaining transaction data associated with a check at a point of presentment;

a request servicer interfacing with the I/O sources, service finder and the qualifier systems in order to (i) receive transaction data from an I/O source in connection with the check, including the routing/transit number, (ii) maintain a user profile for the I/O source, (iii) consult the service finder to identify which local qualifier systems cover the R/T number associated with the check, (iv) transmit a payment validation request to the identified local qualifier systems and at least one other remote request servicer in accordance with the user profile, (v) receive one or more validation results from local qualifier systems or remote request servicers, and (vi) process said results to provide a homogeneous validation assessment to the requesting I/O source.

24. A system according to claim 23, wherein said request servicer formats the payment validation request according to a common network protocol based on said transaction data, prior to sending the payment validation request to remote request servicers.

25. A system according to claim 24, wherein a plurality of the qualifier systems employ disparate methods for assessing the risk of loss in accepting a check and said request servicer receives validation results from a plurality of disparate qualifier systems.

26. A system according to claim 25, wherein validation results forwarded to other cells are formatted according to a common network protocol.

27. A system according to claim 26, wherein the homogeneous validation assessment is expressed as:

(i) the likelihood that the check is properly issued and (ii) the likelihood of the check clearing.