POINT OF SALE DEVICES FOR CONVERTING PROMISSORY TRANSACTIONS INTO DEBIT TRANSACTIONS

• US 20070210151A1
• Filed: 05/11/2007
• Published: 09/13/2007
• Est. Priority Date: 12/21/2004
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Ahles, Daniel, Redmon, Lara
• Granted Patent: US 7,611,046 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 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

Systems and methods are provided for using a point of sale device to obtain authorization from a customer to convert the customer'"'"'s promissory transaction to a direct debit transaction. In an embodiment, the point-of-sale device prints an authorization form for the customer'"'"'s signature.

Claims

1. A method of using a point of sale device to convert a promissory transaction into a direct debit transaction, the method comprising:

transmitting with a point of sale device data associated with a promissory transaction to a check acceptance service; and

displaying with the point of sale device an indication of a decision received from the check acceptance service to obtain an authorization from a check writer associated with the promissory transaction to convert the promissory transaction to a direct debit transaction, wherein the decision is based at least in part on whether a deposit demand account associated with the promissory transaction has at least an amount associated with the promissory transaction.

2. The method of claim 1, wherein the decision is based at least in part on whether the deposit demand account associated with the promissory transaction has at least the amount associated with the promissory transaction at the time the promissory transaction is presented.

3. The method of claim 1, further comprising reading with the point of sale device magnetic ink character recognition (MICR) characters associated with the promissory transaction.

4. The method of claim 1, further comprising entering with the point of sale device the data associated with the promissory transaction.

5. The method of claim 1, wherein the data associated with the promissory transaction comprises MICR characters, at least one transaction detail, and a promissory transaction request.

6. The method of claim 5, wherein the 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.

7. The method of claim 1, further comprising scanning with the point of sale device the promissory transaction.

8. The method of claim 1, further comprising printing with the point of sale device an authorization form for obtaining the authorization.

9. The method of claim 7, further comprising transmitting with the point of sale device verification of the authorization to the check acceptance service.

10. A point of sale device for converting check transactions into direct debit transactions comprising:

an interface for transmitting MICR characters, an amount, and a check authorization transaction request associated with a check transaction to a check acceptance service;

a display for displaying an indication of a decision received from the check acceptance service to convert the check transaction to a direct debit transaction, wherein the decision is based at least in part on whether a deposit demand account associated with the promissory transaction has at least an amount associated with the promissory transaction; and

an authorization authorizing conversion of the check transaction into the direct debit transaction.

11. The device of claim 10, wherein the decision is based at least in part on whether the deposit demand account associated with the promissory transaction has at least the amount associated with the promissory transaction at the time the promissory transaction is presented.

12. The device of claim 10, further comprising a scanner for scanning the check transaction.

13. The device of claim 10, further comprising a magnetic stripe reader for reading magnetic stripe data associated with the check transaction.

14. The device of claim 10, further comprising a magnetic ink character recognition (MICR) reader for reading MICR characters associated with the check transaction.

15. The device of claim 10, further comprising a keypad for entering the data associated with the check transaction.

16. The device of claim 10, further comprising a printer for printing an authorization form for obtaining the authorization.

17. A method of converting a promissory transaction into a direct debit transaction, the method comprising:

receiving at a check acceptance service data associated with a promissory transaction from a point of sale device, the data comprising at least an amount of the promissory transaction;

determining a risk associated with the promissory transaction, the risk based at least in part on the data and not on information about a demand deposit account associated with the promissory transaction;

deciding to acquire the information when the risk is unacceptable, wherein the information comprises whether the demand deposit account has at least the amount of the promissory transaction; and

requesting authorization from a check writer associated with the promissory transaction to convert the promissory transaction to a direct debit transaction when the demand deposit account has at least the amount of the promissory transaction at the time the promissory transaction is presented.

18. The method of claim 17, wherein the information comprises whether the demand deposit account has at least the amount of the promissory transaction at the time the promissory transaction is presented.

19. The device of claim 17, wherein the interface transmits verification of the authorization to the check acceptance service.

20. The device of claim 17, wherein the data associated with the check transaction comprises MICR characters, at least one transaction detail, and a promissory transaction request, and wherein the 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.