System and method for verifying the authenticity of a check and authorizing payment thereof

• US 20080091603A1
• Filed: 10/31/2007
• Published: 04/17/2008
• Est. Priority Date: 12/10/1999
• Status: Active Grant

• Current Assignee: Terri Page
• Original Assignee: Terri Page
• Inventors: Page, Terri
• Granted Patent: US 7,708,201 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• 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 20/24 Credit schemes, i.e. "pay after"
• 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: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/12 Card verification
• CPC Class Codes: G07F 7/122 Online card verification

Abstract

A system and method for verifying the authenticity and payment of a bank check at any of a plurality of banks or check cashing sites, wherein a payor or issuing site determines a first set of data including account and individualized payee data, which is communicated to a processing center for temporary storage and eventual comparison. Upon presentation of the check for redemption, the cashing site will establish a second set of data at least including the pre-printed account data and, depending on the embodiment, the individualized payee data that appears on the face of the check when presented. The second set of data is communicated to the processing center where the first and second sets of data are compared. Subsequent to comparison, authenticating data will be communicated to the cashing site, which is indicative of redemption authorization or refusal. Additional embodiments include assuring payment for and delivery of merchandise associated with an Internet commercial transaction.

Claims

1. A method of assuring payment for and receipt of merchandise involved in a commercial transaction between a customer and a vendor, said method comprising:

the customer communicating an intent to purchase predetermined merchandise and a payment medium to the vendor,

the vendor communicating to a verification center and intended arrival date of the merchandise to the customer,

the vendor communicating the purchase price of the merchandise to the verification center,

the verification center isolating a monetary amount corresponding to the purchase price from the payment medium,

establishing a predetermined time period for accepting or rejecting the merchandise by the customer,

releasing the isolated monetary amount to the vendor if the customer either accepts or fails to reject the merchandise within the predetermined time period, and

returning the isolated monetary amount to the customer, if the customer rejects the merchandise within the predetermined time period.

2. A method as recited in claim 1 further comprising the vendor communicating the intended arrival date to the customer.

3. A method as recited in claim 2 comprising defining the predetermined time period as at least a plurality of consecutive days from the intended arrival date.

4. A method as recited in claim 1 comprising the customer communicating the accepting or the rejecting of the merchandise to the verification center.

5. A method as recited in claim 4 comprising the verification center releasing the isolated monetary amount to the vendor upon the customer accepting or not rejecting the merchandise within the predetermined time period.

6. A method as recited in claim 4 comprising the customer returning the merchandise to the vendor upon rejecting the merchandise within the predetermined time period.

7. A method as recited in claim 6 comprising the verification center returning the isolated monetary amount to the customer subsequent to return of the merchandise to the vendor.

8. A method as recited in claim 1 comprising the customer communicating the intent to purchase the merchandise to the vendor through a third entity.

9. A method as recited in claim 8 further comprising defining the third entity as a merchandising company.

10. A method as recited in claim 9 further comprising at least the customer communicating with the merchandising company over the Internet.

11. A method as recited in claim 10 further comprising at least the vendor communicating with the merchandising company over the Internet.

12. A method as recited in claim 10 comprising defining the payment medium as a credit instrument.

13. A method as recited in claim 1 comprising defining the payment medium as a credit instrument.

14. A method as recited in claim 13 further comprising isolating the monetary amount by the verification center by interactively cooperating with a payment processing entity.

15. A method as recited in claim 1 further comprising facilitating communicating with the verification center by assigning an identifying code to at least the customer.

16. A method as recited in claim 15 comprising the identifying code as identifying data of the customer and the merchandise being purchased.

17. A method as recited in claim 16 further comprising defining the identifying code to include the purchase price of the merchandise.

18. A method of assuring payment for and receipt of merchandise involved in a commercial transaction between a customer and a vendor, said method comprising:

the customer communicating an intent to purchase merchandise from a vendor and communicating a payment medium to a merchandising company over a predetermined communication network,

communicating an intended arrival date and purchase price of the merchandise to a verification center,

establishing interactive cooperation between the verification center and a payment processing entity, the verification center isolating a monetary amount corresponding to the purchase price from the payment medium,

establishing a predetermined time period from the date of arrival for the customer to accept or reject the merchandise,

releasing the isolated monetary amount to the vendor if the customer either accepts or fails to reject the merchandise through the interactive cooperation of the verification center and the payment processing entity, and

returning the isolated funds to the customer if the customer rejects the merchandise within the predetermined time period.

19. A method as recited in claim 18 comprising defining the communication network as the Internet.

20. A method as recited in claim 18 comprising the customer communicating the accepting or rejecting of the merchandise to the verification center.

21. A method as recited in claim 20 comprising the verification center releasing the isolated monetary amount to the vendor upon the customer accepting or not rejecting the merchandise within the predetermined time period.

22. A method as recited in claim 21 comprising the customer returning the merchandise to the vendor upon rejecting the merchandise within the predetermined time period.

23. A method as recited in claim 22 comprising the verification center returning the isolated monetary amount to the customer subsequent to return of the merchandise to the vendor.

24. A system for assuring payment for and receipt of merchandise involved in a commercial transaction between a customer and a vendor, said system comprising:

a merchandising company structured to establish communication with the customer and the vendor and advertise merchandise for sale over a predetermined communication network,

a verification center including at least a central data system and structured for communication with the customer and the vendor,

a payment processing entity structured to process a payment medium presented by the customer as payment for merchandise being purchased,

said verification center and said payment processing entity cooperatively interactive to isolate a monetary amount corresponding to the payment for the merchandise,

said verification center structured to release the isolated monetary amount to the vendor upon the customer either accepting or failing to reject the merchandise within a predetermined time period, and

said verification center structured to return the isolated monetary amount to the customer upon the customer rejecting the merchandise within the predetermined time period.

25. A system as recited in claim 24 wherein the verification center further comprises a processing center, said processing center structured for communication with said central data system.

26. A system as recited in claim 25 wherein said processing center is structured for communication with at least the customer.

27. A system as recited in claim 26 wherein said processing center is structured for communication with the vendor.

28. A system as recited in claim 26 wherein said data processing system is structured for communication with said payment processing entity for isolation of the monetary amount.

29. A system as recited in claim 28 wherein said data processing system is structured for release of said isolated monetary amount to the vendor.

30. A system as recited in claim 29 wherein said data processing system is structured for return of said isolated monetary amount to the customer.

31. A system as recited in claim 24 wherein said data processing system is structured for communication with said payment processing entity for isolation of the monetary amount.

32. A system as recited in claim 31 wherein said data processing system is structured for release of said isolated monetary amount to the vendor.

33. A system as recited in claim 32 wherein said data processing system is structured for return of said isolated monetary amount to the customer.