Automated return item re-clear

• US 20080162322A1
• Filed: 11/06/2007
• Published: 07/03/2008
• Est. Priority Date: 11/07/2006
• Status: Abandoned Application

• Current Assignee: Federal Reserve Bank of Richmond (Federal Reserve System)
• Original Assignee: Federal Reserve Bank of Richmond (Federal Reserve System)
• Inventors: Breeden, Benjamin T.
• Application Number:
  US11/983,034
• Publication Number:
  US 20080162322A1
• 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

Automatically, electronically re-clearing returned checks for payment and presentment. A check processing entity includes a check processing system. A re-clear module of the check processing system receives electronic information regarding a check returned by a receiving institution. The re-clear module automatically determines whether the check is eligible for re-clearing, i.e., whether the check is eligible for reprocessing for payment and/or presentment. For example, the re-clear module can determine whether the check is eligible based on: (a) whether a depositing institution associated with the check has subscribed to a re-clearing service of the processing entity, (b) whether a value of the check is less than a threshold amount, (c) whether the check has been previously re-cleared, and/or (d) whether a reason why the receiving institution returned the check renders re-clearing undesirable. The check processing system can re-clear each returned check determined to be eligible for re-clearing.

Claims

1. A computer-implemented method for automatically resubmitting a returned check for payment, comprising the steps of:

receiving at a check processing system of a check processing entity electronic information regarding a check returned by a receiving institution;

automatically determining, by the check processing system, whether the check is eligible to be reprocessed for at least one of payment and presentment; and

reprocessing the check for at least one of payment and presentment in response to determining that the check is eligible to be reprocessed.

2. The method of claim 1, wherein the step of automatically determining whether the check is eligible to be reprocessed comprises the steps of:

determining whether a depositing institution associated with the check has subscribed to a service of the check processing entity; and

determining that the check is not eligible to be reprocessed in response to determining that the depositing institution has not subscribed to the service of the check processing entity.

3. The method of claim 1, wherein the step of automatically determining whether the check is eligible to be reprocessed comprises the steps of:

determining whether a value of the check is less than a threshold value; and

determining that the check is eligible to be reprocessed in response to determining that the value of the check is less than the threshold value.

4. The method of claim 1, wherein the step of automatically determining whether the check is eligible to be reprocessed comprises the steps of:

determining whether the check has previously been reprocessed for at least one of payment and presentment; and

determining that the check is eligible to be reprocessed in response to determining that the check has not been previously reprocessed for at least one of payment and presentment.

5. The method of claim 1, wherein the step of automatically determining whether the check is eligible to be reprocessed comprises the steps of:

determining whether the check has previously been reprocessed for at least one of payment and presentment more than a predetermined number of times; and

determining that the check is eligible to be reprocessed in response to determining that the check has not been previously reprocessed for at least one of payment and presentment more than the predetermined number of times.

6. The method of claim 1, wherein the step of automatically determining whether the check is eligible to be reprocessed comprises the steps of:

identifying a reason why the check was returned by the receiving institution based on the electronic information regarding the check;

determining whether the identified reason renders reprocessing of the check undesirable; and

determining that the check is eligible to be reprocessed in response to determining that the identified reason does not render reprocessing of the check undesirable.

7. The method of claim 1, further comprising the step of notifying a depositing institution associated with the check that the check is not eligible for reprocessing in response to determining that the check is not eligible to be reprocessed for payment.

8. The method of claim 1, further comprising the step of transmitting the check to a depositing institution associated with the check in response to determining that the check is not eligible to be reprocessed.

9. The method of claim 1, wherein the step of reprocessing the check comprises the steps of:

creating an ICL file comprising information regarding the check; and

transmitting the ICL file to the receiving institution.

10. The system of claim 1, wherein the receiving institution is a third party agent that provides a processing service to a bank associated with the check.

11. A computer-implemented method for automatically determining whether to re-clear a returned check, comprising the steps of:

receiving at a check processing system of a check processing entity electronic information regarding a check returned by a receiving institution;

automatically determining, by the check processing system, whether the check is eligible to be reprocessed for at least one of payment and presentment based on a reason why the check was returned by the receiving institution; and

determining to reprocess the check for at least one of payment and presentment in response to determining that the check is eligible to be reprocessed.

12. The method of claim 11, wherein the step of automatically determining whether the check is eligible to be reprocessed comprises the steps of:

identifying the reason why the check was returned by the receiving institution;

determining whether the identified reason renders reprocessing of the check undesirable; and

determining that the check is eligible to be reprocessed in response to determining that the identified reason does not render reprocessing of the check undesirable.

13. The method of claim 11, further comprising the step of notifying a depositing institution associated with the check that the check is not eligible for reprocessing in response to determining that the check is not eligible to be reprocessed.

14. The method of claim 11, further comprising the step of transmitting the check to a depositing institution associated with the check in response to determining that the check is not eligible to be reprocessed.

15. The method of claim 11, wherein the step of reprocessing the check comprises the steps of:

creating an ICL file comprising information regarding the check; and

transmitting the ICL file to the receiving institution.

16. The system of claim 11, wherein the receiving institution is a third party agent that provides a processing service to a bank associated with the check.

17. A computer-implemented method for automatically reprocessing a returned check, comprising the steps of:

receiving at a check processing system of a check processing entity electronic information regarding a check returned by a receiving institution;

automatically determining, by the check processing system, whether the check is eligible to be reprocessed for at least one of payment and presentment based on at least one of;

(a) whether a depositing institution associated with the check has subscribed to a re-clearing service of the check processing entity, (b) whether a value of the check is less than a threshold value, (c) whether the check has been previously reprocessed for at least one of payment and presentment, and (d) a reason why the receiving institution returned the check; and

reprocessing the check for at least one of payment and presentment in response to determining that the check is eligible to be reprocessed.

18. The method of claim 17, further comprising the step of notifying the depositing institution associated with the check that the check is not eligible for reprocessing in response to determining that the check is not eligible to be reprocessed.

19. The method of claim 17, further comprising the step of transmitting the check to the depositing institution associated with the check in response to determining that the check is not eligible to be reprocessed.

20. The method of claim 17, wherein the step of reprocessing the check comprises the steps of:

creating an ICL file comprising information regarding the check; and

transmitting the ICL file to the receiving institution.

21. The system of claim 17, wherein the receiving institution is a third party agent that provides a processing service to a bank associated with the check.

22. A computer-implemented system for automatically re-clearing an item, comprising:

a check processing module configured to process checks for payment and presentment to a receiving institution; and

a re-clear module configured to automatically determine whether a check returned by the receiving institution is eligible for reprocessing based on at least one of;

(a) whether a value of the check is less than a threshold value, (b) whether the returned check has been previously reprocessed for at least one of payment and presentment, and (c) a reason why the receiving institution returned the check,

wherein the check processing module is further configured to reprocess the check for at least one of payment and presentment in response to the re-clear module determining that the check is eligible for reprocessing.

23. The system of claim 22, wherein the re-clear module is further configured to notify a depositing institution associated with the check that the check is not eligible for reprocessing in response to determining that the check is not eligible for reprocessing.

24. The system of claim 22, wherein the check processing module is further configured to reprocess the check by creating an ICL file comprising information regarding the check and transmitting the ICL file to the receiving institution.

25. The system of claim 22, wherein the receiving institution is a third party agent that provides a processing service to a bank associated with the check.