ENHANCED CHECK 21 FINANCIAL PAYMENT SYSTEMS AND METHODS

• US 20080086420A1
• Filed: 10/08/2007
• Published: 04/10/2008
• Est. Priority Date: 10/10/2006
• Status: Active Grant

• Current Assignee: Global Standard Financial Incorporated
• Original Assignee: Global Standard Financial Incorporated
• Inventors: Lalonde, Michael, Gilder, Clark
• Granted Patent: US 7,702,588 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• 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 20/0425 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 20/108 Remote banking, e.g. home banking
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

The present invention provides a digitally originated check (DOC) through an electronic payment system (EPS) which captures payor metadata instructions regarding the intended payment to a payee. The metadata is stored in a database or the like for further processing instead of printing a paper check. The DOC can be cleared either electronically or through a paper substitute check through Check 21 clearing methods. The present invention further provides a true check card operable to provide DOCs at point-of-sale terminals.

Claims

1. A digitally originated check method, comprising:

receiving a payment instruction, wherein the payment instruction comprises a set of warranties and indemnities applicable to banks of first deposit and clearing banks;

capturing metadata associated with a digitally originated check, wherein the digitally originated check is created without an original paper check, and wherein the metadata comprises the payment instruction, a globally unique identifier, tracking information, and security information;

storing the metadata;

performing one or more of immediately notifying a payee of the metadata and notifying the payee at a later time;

authenticating the payee; and

clearing the digitally originated check through one of paper and electronic clearing methods associated with existing Check 21 clearing systems;

wherein the tracking information is operable to provide an audit history of the digitally originated check.

2. The digitally originated check method of claim 1, wherein clearing the digitally originated check comprises one of performing one of electronically forwarding the metadata to a bank of first deposit as an electronic Cash Letter File compliant to X9.180 and printing a substitute check compliant to X9.140 from the metadata.

3. The digitally originated check method of claim 2, wherein the security information is operable to prevent tampering with the payment instructions and the substitute check.

4. The digitally originated check method of claim 2, further comprising electronically endorsing the digitally originated check.

5. The digitally originated check method of claim 1, wherein the payment instructions comprise any of payee name, payee contact information, value amount, issue date, checking account number, American Bankers Association bank routing number, conditions, limitations, restrictions, memo field description details, conditional acknowledgements comprising business rules governing how and when the payment should be made, and combinations thereof.

6. The digitally originated check method of claim 1, wherein the full set of warranties and indemnities applicable to banks of first deposit and clearing banks enables electronic presentment from payor to payee under the Uniform Commercial Code and extends existing Check 21 regulations between payor to payee and through associated banks of first deposit and clearing banks.

7. A true check card method, comprising:

providing a check card comprising a magnetic stripe, wherein the magnetic strip comprises payor metadata and is operable to be read by a point-of-sale terminal;

receiving the check card in the point-of-sale terminal to satisfy a payment obligation;

reading the metadata on the check card;

creating a digitally originated check with the metadata and payment instructions, wherein the payment instructions are derived from the payment obligation and the point-of-sale terminal, wherein the digitally originated check is created without an original paper check, and wherein the metadata comprises the payment instruction, a globally unique identifier, tracking information, and security information;

wherein the tracking information is operable to provide an audit history of the digitally originated check; and

wherein an output from the metadata is interoperable with both paper and electronic clearing methods associated with existing Check 21 clearing systems.

8. The true check card method of claim 7, further comprising the steps of:

sending the metadata to a bank of first deposit as an image and cash letter file; and

receiving payment in satisfaction of the payment obligation.

9. The true check card method of claim 7, further comprising the step of:

verifying an account associated with the metadata through a verification system prior to authorizing a sale.

10. The true check card method of claim 7, wherein the check card comprises a full set of warranties and indemnities applicable to banks of first deposit and clearing banks which enable electronic presentment from payor to payee under the Uniform Commercial Code and extends existing Check 21 regulations between payor to payee and through associated banks of first deposit and clearing banks.

11. The true check card method of claim 7, wherein the check card further comprises one of a credit card, automatic teller machine card, and a combination thereof.

12. A digitally originated check, comprising:

a metadata file associated with the digitally originated check, wherein the digitally originated check is created without an original paper check, wherein the metadata file comprises a payment instruction, a globally unique identifier, tracking information, and security information, and wherein the metadata file is stored, accessed, and modified electronically in a data storage device;

means for creating the metadata file associated with the digitally originated check;

means for distributing the metadata file associated with the digitally originated check;

means for tracking the metadata file associated with the digitally originated check;

means for clearing the metadata file associated with the digitally originated check, wherein the means for clearing are compliant with existing Check 21 clearing methods;

means for securing the metadata file associated with the digitally originated check; and

means for generating a secure image from the metadata file;

wherein the digitally originated check comprises a full set of warranties and indemnities applicable to banks of first deposit and clearing banks enables electronic presentment from payor to payee under the Uniform Commercial Code and extends existing Check 21 regulations between payor to payee and through associated banks of first deposit and clearing banks.

13. The digitally originated check of claim 12, further comprising means for creating a front and back image of the digitally originated check.

14. The digitally originated check of claim 13, further comprising means for creating an image replacement document comprising the front and back image.