Financial account that reduces paper check usage

• US 20060229986A1
• Filed: 10/06/2005
• Published: 10/12/2006
• Est. Priority Date: 04/12/2005
• Status: Abandoned Application

• Current Assignee: Michael R. Corder
• Original Assignee: Michael R. Corder
• Inventors: Corder, Michael R.
• Application Number:
  US11/245,814
• Publication Number:
  US 20060229986A1
• Time in Patent Office: Days
• US Class Current: 705/45
• 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 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A business method that will eliminate many of the paper check transactions that are currently required in today'"'"'s financial environment. This method works by the creation of a deposit only financial account that is transparently linked to one (or more) normal financial account(s). Money deposited into the deposit only account immediately flows to the linked financial account(s) whose account numbers remain hidden. The method is simple to implement, is easily understood by the average user, eliminates the need for third party payment handing firms and will result in the saving of millions of dollars per day.

Claims

1. A method of eliminating the need for paper checks comprising:

2. The creation of a deposit only financial account that is linked to a regular financial account in a manner known only to the account holder and the financial institution. Said deposit only account is identified by an account number which can be freely given out to third parties since said deposit only account never contains any funds but merely serves as a depository for funds which immediately flow into said regular financial account.

3. Proceeds of a deposit into said deposit only account may optionally be dispersed into more than one said regular financial accounts according to predefined sorting rules. Examples of possible sorting rules are:

4. A fixed percentage of said proceeds going into the first said regular financial account and the remainder of said proceeds going into another said regular financial account. This rule could be applied in a recursive manner if desired.

5. Said proceeds could be dispersed according to a sorting rule whereby the entire amount of said proceeds would flow into one of two or more said regular financial accounts based on the total amount of said proceeds.

6. Optional notification of the said account holder of the receipt of said proceeds by means of phone, email, regular mail, instant messaging, text messaging or other such means.

7. Said notification may be encrypted if desired.