Systems and methods for processing promissory transactions as debit transactions

• US 20060136329A1
• Filed: 12/21/2004
• Published: 06/22/2006
• Est. Priority Date: 12/21/2004
• Status: Abandoned Application

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Ahles, Daniel
• Application Number:
  US11/018,159
• Publication Number:
  US 20060136329A1
• Time in Patent Office: Days
• US Class Current: 705/38
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Systems and methods are provided for determining when to convert promissory transactions, such as checking transactions, into direct debit transactions. A set of rules evaluates the risk associated with a check transaction. When the check transaction has a predetermined level of risk, a debit determination system evaluates the transaction to determine when to convert the check transaction into the debit transaction.

Claims

1. A method for determining when to convert a check transaction into a direct debit transaction, the method comprising:

receiving from a merchant point of sale device check transaction data associated with a check transaction by a consumer for a purchase of goods or services;

evaluating the check transaction data to determine a projected risk associated with the check transaction;

generating a risk score that quantifies the projected risk associated with the check transaction;

if the risk score indicates that the check transaction has an undesired level of risk, indicating on the merchant point of sale device that the check transaction will be converted into a direct debit transaction; and

converting the check transaction into the direct debit transaction.

2. The method of claim 1 further comprising receiving from a merchant a request to evaluate the projected risk associated with the check transaction.

3. The method of claim 1 further comprising obtaining authorization from the consumer to convert the check transaction into the direct debit transaction.

4. The method of claim 1 wherein the check transaction data comprises at least one of a demand deposit account (DDA) number, a driver'"'"'s license number, a check amount, a check number, and a merchant number.

5. The method of claim 1 further comprising selectively utilizing, based at least in part on a risk evaluation, a debit determination process.

6. The method of claim 5 wherein utilizing the debit determination process comprises:

invoking a set of rules which use the check transaction data; and

initiating a conversion of the check transaction into the direct debit transaction, based at least in part on an outcome from the set of rules.

7. The method of claim 5 wherein utilizing the debit determination process comprises:

invoking a debit determination scoring module to produce a score based at least in part on the check transaction data; and

initiating a conversion of the check transaction into the direct debit transaction, based at least in part on the score.

8. The method of claim 1 wherein the direct debit transaction is an electronic direct debit transaction.

9. The method of claim 1 wherein converting the check transaction into the direct debit transaction comprises requesting demand deposit account (DDA) information from a service that provides fund transfers.

10. The method of claim 1 wherein generating the risk score comprises invoking a scoring model.

11. A method for determining when to convert a promissory transaction into a direct debit transaction, the method comprising:

receiving a request to evaluate a risk associated with a promissory transaction;

receiving data associated with the promissory transaction;

evaluating the risk of the promissory transaction using the data associated with the promissory transaction to produce a risk evaluation; and

initiating a direct debit transaction based at least in part on the risk evaluation, wherein the promissory transaction is converted into the direct debit transaction.

12. The method of claim 11 wherein the request to evaluate the risk is received from a merchant.

13. The method of claim 11 further comprising obtaining authorization to convert the promissory transaction into the direct debit transaction.

14. The method of claim 11 wherein the data associated with the promissory transaction comprises at least one of a demand deposit account (DDA) number, a driver'"'"'s license number, a check amount, a check number, and a merchant number.

15. The method of claim 11 further comprising selectively utilizing, based at least in part on a risk evaluation, a debit determination process.

16. The method of claim 15 wherein utilizing the debit determination process comprises:

invoking a set of rules which use the data associated with the promissory transaction; and

initiating a conversion of the promissory transaction into the direct debit transaction, based at least in part on an outcome from the set of rules.

17. The method of claim 15 wherein utilizing the debit determination process comprises:

invoking a debit determination scoring module to produce a score based at least in part on the data associated with the promissory transaction; and

initiating a conversion of the promissory transaction into the direct debit transaction, based at least in part on the score.

18. The method of claim 11 wherein the direct debit transaction is an electronic direct debit transaction.

19. The method of claim 11 wherein initiating the direct debit transaction comprises requesting demand deposit account (DDA) information from a service that provides fund transfers.

20. The method of claim 11 wherein evaluating the risk comprises invoking a scoring model and the risk evaluation comprises a score.

21. A method of determining when to convert a promissory transaction to a direct debit transaction, the method comprising:

initiating a direct debit transaction wherein a promissory transaction is converted into the direct debit transaction; and

performing a risk analysis of the promissory transaction when the direct debit transaction fails.

22. The method of claim 21 further comprising receiving a request from a merchant to evaluate a risk associated with the promissory transaction.

23. The method of claim 21 further comprising obtaining authorization to convert the promissory transaction into the direct debit transaction.

24. The method of claim 21 wherein the direct debit transaction is an electronic direct debit transaction.

25. The method of claim 21 wherein initiating the direct debit transaction comprises requesting demand deposit account (DDA) information from a service that provides fund transfers.

26. The method of claim 21 wherein performing the risk analysis comprises invoking a scoring model.

27. A method of determining when to convert a promissory transaction to a direct debit transaction, the method comprising:

performing a risk analysis of a promissory transaction to produce a level of risk; and

initiating a direct debit transaction when the level of risk is unacceptable, wherein the promissory transaction is converted into the direct debit transaction.

28. The method of claim 27 further comprising receiving a request from a merchant to evaluate a risk associated with the promissory transaction.

29. The method of claim 27 further comprising obtaining authorization to convert the promissory transaction into the direct debit transaction.

30. The method of claim 27 wherein the direct debit transaction is an electronic direct debit transaction.

31. The method of claim 27 wherein initiating the direct debit transaction comprises requesting demand deposit account (DDA) information from a service that provides fund transfers.

32. The method of claim 27 wherein performing the risk analysis comprises invoking a scoring model and the level of risk comprises a score.

33. An apparatus for processing promissory transactions as direct debit transactions comprising:

a promissory transaction request associated with a promissory transaction;

a risk analysis process that is configured to determine a level of risk associated with the promissory transaction;

a debit determination process to determine a method of acquiring demand deposit account information, wherein the debit determination process is invoked based at least in part on the level of risk; and

a direct debit transaction based at least in part on a result of the debit determination process, wherein the promissory transaction is converted into the direct debit transaction.

34. The apparatus of claim 33 further comprising an authorization to convert of the promissory transaction into the direct debit transaction.

35. The apparatus of claim 33 wherein the promissory transaction request is received from a merchant.

36. The apparatus of claim 33 wherein the debit determination process comprises:

a set of rules; and

a conversion of the promissory transaction into the direct debit transaction, based at least in part on an outcome from the set of rules.

37. The apparatus of claim 36 wherein the set of rules uses at least one of a demand deposit account (DDA) number, a driver'"'"'s license number, a check amount, a check number, and a merchant number.

38. The apparatus of claim 33 wherein the debit determination process comprises:

a debit determination scoring module to produce a score; and

a conversion of the promissory transaction into the direct debit transaction, based at least in part on the score.

39. The apparatus of claim 38 wherein the debit determination scoring module uses at least one of a demand deposit account (DDA) number, a driver'"'"'s license number, a check amount, a check number, and a merchant number.

40. The apparatus of claim 33 wherein the direct debit transaction is an electronic direct debit transaction.

41. The apparatus of claim 33 wherein a service that provides fund transfers associated with a demand deposit account (DDA) initiates the direct debit transaction.

42. The apparatus of claim 33 wherein the risk analysis process comprises a scoring model and the level of risk comprises a score.

43. An apparatus for converting a promissory transaction into a direct debit transaction comprising:

a means for receiving a promissory transaction request associated with a promissory transaction;

a means for evaluating a risk associated with the promissory transaction, wherein the means for evaluating the risk produces a level of risk for the promissory transaction; and

a means for initiating a direct debit transaction based at least in part on the level of risk, wherein the promissory transaction is converted into the direct debit transaction.

44. The apparatus of claim 43 wherein the promissory transaction request is received from a merchant.

45. The apparatus of claim 43 wherein the promissory transaction request comprises at least one transaction detail.

46. The apparatus of claim 45 wherein transaction details comprise at least one of a demand deposit account (DDA) number, a driver'"'"'s license number, a check amount, a check number, and a merchant number.

47. The apparatus of claim 43 further comprising a means for obtaining authorization to convert the promissory transaction into the direct debit transaction.

48. The apparatus of claim 43 further comprising selectively utilizing, based at least in part on the level of risk, a debit determination process.

49. The apparatus of claim 48 wherein the debit determination process comprises:

a set of rules using at least one of a demand deposit account (DDA) number, a driver'"'"'s license number, a check amount, a check number, and a merchant number; and

a conversion of the promissory transaction into the direct debit transaction, based at least in part on an outcome from the set of rules.

50. The apparatus of claim 48 wherein the debit determination process comprises:

a debit determination scoring module to produce a score based at least in part on at least one of a demand deposit account (DDA) number, a driver'"'"'s license number, a check amount, a check number, and a merchant number; and

a conversion of the promissory transaction into the direct debit transaction, based at least in part on the score.

51. The apparatus of claim 43 wherein the direct debit transaction is an electronic direct debit transaction.

52. The apparatus of claim 43 wherein a service that provides fund transfers associated with a demand deposit account (DDA) initiates the direct debit transaction.

53. The apparatus of claim 43 wherein the means for evaluating the risk comprises a scoring model and the level of risk comprises a score.