System and method for processing duplicative electronic check reversal files

• US 20080162319A1
• Filed: 11/06/2007
• Published: 07/03/2008
• Est. Priority Date: 11/07/2006
• Status: Active Grant

• Current Assignee: Federal Reserve Bank of Kansas City (Federal Reserve System)
• Original Assignee: Federal Reserve Bank of Kansas City (Federal Reserve System)
• Inventors: Mueller, Randall Lee, Nori, V. Srinivas, Breeden, Benjamin T., Martin, Steven D., Rachek, Timothy
• Granted Patent: US 8,296,223 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

Processing duplicate items in image cash letter (“ICL”) reversal files for efficient handling. A duplicate item processing module can receive ICL reversal files comprising items representing duplicate electronic checks. The duplicate item processing module can determine whether the processing entity erroneously presented the item more than once. The duplicate item processing module can also determine whether the depositing institution erroneously deposited the item more than once for processing. Based on the determination of the source of the error, the duplicate item processing module can make a correction in its own records and/or forward the ICL reversal file with the duplicate item to the receiving institution.

Claims

1. A computer-implemented method for processing duplicate electronic checks, comprising the steps of:

receiving a reversal ICL file comprising a reversal item at a processing entity;

comparing the reversal item to a record of previously deposited items;

if the reversal item has not been deposited more than once, forwarding the reversal item to a receiving institution; and

if the reversal item has been deposited more than once, determining whether the reversal item has been previously identified at the processing entity as a duplicate.

2. The computer-implemented method of claim 1, further comprising the steps of:

in response to determining whether the reversal item has been previously identified as a duplicate,

if the reversal item has been previously identified as a duplicate, terminating the reversal item; and

if the reversal item has not been previously identified as a duplicate, forwarding the reversal item to the receiving institution.

3. The computer-implemented method of claim 1, further comprising the steps of:

in response to determining that the reversal item has been deposited more than once, comparing the reversal item to a record of previously presented items.

4. The computer-implemented method of claim 3, further comprising the steps of:

if the reversal item has been presented more than once, forwarding the reversal item to the receiving institution; and

if the reversal item has not been presented more than once, terminating the reversal item.

5. The computer-implemented method of claim 1, wherein the reversal ICL file includes a designation indicating that it comprises at least one reversal item.

6. The computer-implemented method of claim 1, wherein the reversal ICL file is received from a depositing institution.

7. The computer-implemented method of claim 6, further comprising the step of notifying the depositing institution of the disposition of the reversal item.

8. A computer-implemented method for processing duplicate electronic checks comprising the steps of:

receiving at a processing entity a reversal file comprising a reversal item from a depositing institution;

comparing the reversal file to a record of deposited files;

if the reversal file has not been deposited more than once, forwarding the reversal file to a receiving institution; and

if the reversal file has been deposited more than once, determining whether the reversal file has been previously identified at the processing entity as a duplicate.

9. The computer-implemented method of claim 8, further comprising the steps of:

in response to determining whether the reversal file has been previously identified as a duplicate,

if the reversal file has been previously identified as a duplicate, terminating the reversal file; and

if the reversal file has not been previously identified as a duplicate, forwarding the reversal file to the receiving institution.

10. The computer-implemented method of claim 8, further comprising the steps of:

in response to determining that the reversal file has been deposited more than once, comparing the reversal file to a record of previously presented files.

11. The computer-implemented method of claim 10, further comprising the steps of:

if the reversal file has been presented more than once, forwarding the reversal file to the receiving institution; and

if the reversal file has not been presented more than once, terminating the reversal file.

12. The computer-implemented method of claim 8, wherein the reversal file includes a designation indicating that it is a reversal file.

13. The computer-implemented method of claim 8, further comprising the step of notifying the depositing institution of the disposition of the reversal file.

14. A computer-implemented method for processing duplicate electronic checks, comprising the steps of:

receiving a reversal ICL file comprising a reversal item as a processing entity;

comparing the reversal item to a record of previously presented items;

if the reversal item was previously presented more than once, forwarding the reversal item to a receiving institution; and

if the reversal item has not been previously presented more than once, suspending the reversal item for examination.

15. The computer-implemented method of claim 14, wherein the step of suspending the reversal item for examination comprises the steps of:

if the processing entity has previously determined that the reversal item is a duplicate, terminating the reversal item; and

if the processing entity has not previously determined that the reversal item is a duplicate, suspending a duplicate item associated with the reversal item and terminating the reversal item.

16. The computer-implemented method of claim 14, further comprising the step of comparing the reversal item to a record of previously deposited items.

17. The computer-implemented method of claim 16, further comprising the steps of:

if the reversal item has not been deposited more than once, forwarding the reversal item to a receiving institution; and

if the reversal item has been deposited more than once, determining whether the reversal item has been previously identified at the processing entity as a duplicate.

18. The computer-implemented method of claim 17, further comprising the steps of:

in response to determining whether the reversal item has been previously identified as a duplicate,

if the reversal item has been previously identified as a duplicate, terminating the reversal file; and

if the reversal item has not been previously identified as a duplicate, forwarding the reversal item to the receiving institution.

19. The computer-implemented method of claim 14, wherein the reversal ICL file is received from a depositing institution.

20. The computer-implemented method of claim 19, further comprising the step of notifying the depositing institution of the disposition of the reversal item.

21. A computer-implemented system for processing duplicate electronic checks, comprising:

a check processing system operable for processing items in an ICL file for payment or presentment to a receiving institution, the check processing system comprising a first database of records of items previously presented to the receiving institution and a second database of records of items previously deposited with the check processing system for processing;

a duplicate item processing module operable for receiving from a depositing institution computer a reversal ICL file comprising a reversal item and for comparing the reversal item to the first database of records of items previously presented and the second database of records of items previously deposited with the check processing system for processing.

22. The computer-implemented system of claim 21 wherein the items in the second database of records of items previously deposited with the check processing system for processing were received from a depositing institution computer.

23. The computer-implemented system of claim 21, wherein the duplicate item processing module is further operable for transmitting the reversal ICL file comprising the reversal item to a receiving institution computer when the reversal item matches more than one item in the first database of records of items previously presented to the receiving institution.