REAL-TIME DETERMINATION OF FUNDS AVAILABILITY FOR CHECKS AND ACH ITEMS

• US 20160283918A1
• Filed: 03/23/2015
• Published: 09/29/2016
• Est. Priority Date: 03/23/2015
• Status: Active Grant

• Current Assignee: Early Warning Services, LLC (Bank of America Corp.)
• Original Assignee: Early Warning Services, LLC (Bank of America Corp.)
• Inventors: Weinflash, Laura E.
• Granted Patent: US 10,878,387 B2
• Time in Patent Office: Days
• US Class Current: 1/1
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules

Abstract

A method including: providing a processing mechanism in data communication through a network with a first entity and a plurality of depository financial institutions; receiving a first inquiry at the processing mechanism through the network from the first entity; storing the first inquiry received from the first entity; sending a second inquiry from the processing mechanism through the network to the second entity in real time after receiving the first inquiry; receiving a first response at the processing mechanism through the network from the second entity; storing the first response received from the second entity; and sending a second response from the processing mechanism through the network to the first entity in real time after receiving the first response. Other embodiments are provided.

Claims

1. A method to facilitate determining an availability of funds for a payment item, the method comprising:

providing a processing mechanism in data communication through a network with a first entity and a plurality of depository financial institutions, the plurality of depository financial institutions comprising a second entity;

receiving a first inquiry at the processing mechanism through the network from the first entity, the first inquiry being received from the first entity in real time after the first entity receives the payment item;

storing the first inquiry received from the first entity;

sending a second inquiry from the processing mechanism through the network to the second entity in real time after receiving the first inquiry, the second inquiry being based at least in part on the first inquiry;

receiving a first response at the processing mechanism through the network from the second entity, the first response being sent by the second entity in real time in response to receiving the second inquiry;

storing the first response received from the second entity; and

sending a second response from the processing mechanism through the network to the first entity in real time after receiving the first response, the second response being based at least in part on the first response,

wherein;

the second entity is specified by the payment item as being responsible for paying the payment item;

the first entity is different from the second entity; and

the first and second responses each comprise a payment likelihood indicator provided by the second entity that indicates a likelihood of the second entity to pay the payment item, the payment likelihood indicator being based at least in part on a current status and a current available balance of an account maintained by the second entity that is specified by the payment item for payment of the payment item.

2. The method of claim 1, wherein:

the payment item comprises a check; and

the first entity is a depository financial institution receiving the check for deposit; and

the second entity is a depository financial institution against which the check has been drawn.

3. The method of claim 1, wherein:

the payment item comprises an ACH item;

the first entity is an originating depository financial institution for the ACH item; and

the second entity is a receiving depository financial institution for the ACH item.

4. The method of claim 1, wherein:

the first entity is at least one of a payment processor or a third party acting on behalf of an originating depository financial institution; and

the second entity is a financial institution.

5. The method of claim 1, wherein:

the first inquiry comprises an identifier linked to the account maintained by the second entity that is specified by the payment item.

6. The method of claim 1, wherein the second inquiry comprises:

a routing number of the second entity that is specified by the payment item;

an account number of the account maintained by the second entity that is specified by the payment item;

a payment amount that is specified by the payment item;

an identifier of the first entity;

a transaction channel identifier that indicates the channel through which a transacting entity presented the payment item to the first entity;

a payment distribution method identifier that indicates how the transacting entity requested to be paid for the payment item by the first entity;

an account number of the first entity associated with the transacting entity; and

if the payment item is a check, a serial number of the check.

7. The method of claim 1, wherein the payment likelihood indicator in the first and second responses comprises an indication of whether or not the second entity guarantees payment of the payment item.

8. The method of claim 1, wherein the payment likelihood indicator in the first and second responses comprises a score.

9. The method of claim 1, wherein the first and second responses each further comprise one or more reason indicators to explain the payment likelihood indicator provided by the second entity.

10. The method of claim 1, wherein:

the payment item is one of a check or an ACH item;

the second response is sent within 30 seconds of receiving the first inquiry;

storing the first inquiry comprises storing the first inquiry along with a first timestamp that indicates when the first inquiry was received from the first entity; and

storing the first response comprises storing the first response along with a second timestamp that indicates when the first response was received from the second entity.

11. A system to facilitate determining an availability of funds for a payment item, the system comprising:

one or more processing modules in data communication through a network with a first entity and a plurality of depository financial institutions, the plurality of depository financial institutions comprising a second entity; and

one or more non-transitory memory storage modules storing computing instructions configured to run on the one or more processing modules and perform the acts of;

receiving a first inquiry through the network from the first entity, the first inquiry being received from the first entity in real time after the first entity receives the payment item;

storing the first inquiry received from the first entity;

sending a second inquiry through the network to the second entity in real time after receiving the first inquiry, the second inquiry being based at least in part on the first inquiry;

receiving a first response through the network from the second entity, the first response being sent by the second entity in real time in response to receiving the second inquiry;

storing the first response received from the second entity; and

sending a second response through the network to the first entity in real time after receiving the first response, the second response being based at least in part on the first response,

wherein;

the second entity is specified by the payment item as being responsible for paying the payment item;

the first entity is different from the second entity; and

the first and second responses each comprise a payment likelihood indicator provided by the second entity that indicates a likelihood of the second entity to pay the payment item, the payment likelihood indicator being based at least in part on a current status and a current available balance of an account maintained by the second entity that is specified by the payment item for payment of the payment item.

12. The system of claim 11, wherein:

the payment item comprises a check; and

the first entity is a depository financial institution receiving the check for deposit; and

the second entity is a depository financial institution against which the check has been drawn.

13. The system of claim 11, wherein:

the payment item comprises an ACH item;

the first entity is an originating depository financial institution for the ACH item; and

the second entity is a receiving depository financial institution for the ACH item.

14. The system of claim 11, wherein:

the first entity is at least one of a payment processor or a third party acting on behalf of an originating depository financial institution; and

the second entity is a financial institution.

15. The system of claim 11, wherein:

the first inquiry comprises an identifier for the account maintained by the second entity that is specified by the payment item.

16. The system of claim 11, wherein the first and second inquiries comprise:

a routing number of the second entity that is specified by the payment item;

an account number of the account maintained by the second entity that is specified by the payment item;

a payment amount that is specified by the payment item;

an identifier of the first entity;

a transaction channel identifier that indicates the channel through which a transacting entity presented the payment item to the first entity;

a payment distribution method identifier that indicates how the transacting entity requested to be paid for the payment item by the first entity;

an account number of the first entity associated with the transacting entity; and

if the payment item is a check, a serial number of the check.

17. The system of claim 11, wherein the payment likelihood indicator in the first and second responses comprises an indication of whether or not the second entity guarantees payment of the payment item.

18. The system of claim 11, wherein the payment likelihood indicator in the first and second responses comprises a score.

19. The system of claim 11, wherein the first and second responses each further comprise one or more reason indicators to explain the payment likelihood indicator provided by the second entity.

20. The system of claim 11, wherein:

the payment item is one of a check or an ACH item;

the second response is sent within 30 seconds of receiving the first inquiry;

storing the first inquiry comprises storing the first inquiry along with a first timestamp that indicates when the first inquiry was received from the first entity; and

storing the first response comprises storing the first response along with a second timestamp that indicates when the first response was received from the second entity.

21. A method to facilitate determining an availability of funds for a payment item, the method being implemented via execution of computer instructions configured to run at one or more processing modules and configured to be stored at one or more non-transitory memory storage modules, the method comprising:

receiving a first inquiry through a network from a first entity, wherein the first inquiry is received from the first entity in real time after the first entity receives the payment item;

determining a routing decision of whether or not to route the first inquiry to a second entity, wherein the second entity is a depository financial institution that is specified by the payment item as responsible for paying the payment item, and the routing decision is based at least in part on a risk of non-payment of the payment item by the second entity;

if the routing decision is to not route the first inquiry to the second entity;

sending a first response through the network to the first entity in real time after receiving the first inquiry; and

if the routing decision is to route the first inquiry to the second entity;

sending a second inquiry through the network to the second entity in real time after receiving the first inquiry, the second inquiry being based at least in part on the first inquiry;

receiving a second response through the network from the second entity, the second response being sent by the second entity in real time in response to receiving the second inquiry;

storing the second response received from the second entity; and

sending a third response through the network to the first entity in real time after receiving the second response, the third response being based at least in part on the second response,

wherein;

the first entity is different from the second entity.

22. The method of claim 21, wherein:

determining the routing decision comprises determining the routing decision based at least in part on account data received from a plurality of financial institutions for accounts maintained by the financial institutions;

the account data is received before receiving the first inquiry;

the plurality of financial institutions comprise the second entity;

the payment item specifies payment from a first account of the accounts;

the first account is maintained by the second entity; and

the account data comprise first account data for the first account.

23. The method of claim 22, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when it is determined, based on the first account data, that the first account is not valid.

24. The method of claim 22, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when it is determined, based on the first account data, that the first account has been closed for at least a predetermined amount of time.

25. The method of claim 22, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when the payment item comprises an ACH item and when it is determined, based on the first account data, that the first account has a post no debits status.

26. The method of claim 22, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when the payment item comprises a check and when it is determined, based on the first account data, that the first account has a stop payment on the check.

27. The method of claim 22, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when the payment item comprises a check and when it is determined, based on the first account data, that the first account uses positive pay verification.

28. The method of claim 22, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when it is determined, based on the first account data, the payment item is likely a duplicate.

29. The method of claim 22, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when, based on the first account data, a payment amount of the payment item is determined to be below a predetermined threshold amount.

30. The method of claim 21, wherein:

the payment item comprises a check; and

the first entity is a depository financial institution receiving the check for deposit; and

the second entity is a depository financial institution against which the check has been drawn.

31. The method of claim 21, wherein:

the payment item comprises an ACH item;

the first entity is an originating depository financial institution; and

the second entity is a receiving depository financial institution.

32. The method of claim 21, wherein the first and second inquiries comprise:

a routing number of the second entity that is specified by the payment item;

an account number of the second entity that is specified by the payment item;

a payment amount that is specified by the payment item;

an identifier of the first entity;

a transaction channel identifier that indicates the channel through which a transacting entity presented the payment item to the first entity;

a payment distribution method identifier that indicates how the transacting entity requested to be paid for the payment item by the first entity;

an account number of the first entity associated with the transacting entity; and

if the payment item is a check, a serial number of the check.

33. The method of claim 21, wherein the second and third responses comprise a payment likelihood indicator provided by the second entity that indicates a likelihood of the second entity to pay the payment item, the payment likelihood indicator being based at least in part on a current status and a current available balance of an account maintained by the second entity that is specified by the payment item for payment of the payment item.

34. The method of claim 33, wherein:

the one or more processing modules are in data communication through the network with a plurality of financial institutions that each have agreed to apply common standards for determining the payment likelihood indicator; and

the second entity is any one of the plurality of financial institutions, as specified by the payment item.

35. The method of claim 33, wherein the payment likelihood indicator in the second and third responses comprises an indication of whether or not the second entity guarantees payment of the payment item.

36. The method of claim 33, wherein the payment likelihood indicator in the second and third responses comprises a score.

37. The method of claim 33, wherein the second and third responses each further comprise one or more reason indicators to explain the payment likelihood indicator provided by the second entity.

38. The method of claim 21, wherein:

the payment item is one of a check or an ACH item;

one of the first response or the third response is sent within 30 seconds of receiving the first inquiry; and

storing the second response comprises storing the second response along with a timestamp that indicates when the second response was received from the second entity.

39. The method of claim 21 further comprising, after sending one of the first response or third response to the first entity:

receiving a first payment decision message through the network from the first entity that indicates whether the first entity paid the payment item; and

sending a second payment decision message through the network to the second entity, the second payment decision message being based at least in part on the first payment decision message.

40. The method of claim 39, wherein:

sending the second payment decision message to the second entity comprises sending the second payment message such that the second payment message further comprises information derived from determining the routing decision.

41. The method of claim 21, wherein at least one of:

sending the first response to the first entity comprises sending the first response such that the first response comprises information derived from determining the routing decision;

or

sending the third response to the first entity comprises sending the third response such that the third response further comprises information derived from determining the routing decision.

42. The method of claim 21, wherein:

sending the second inquiry to the second entity comprises sending the second inquiry such that the second inquiry further comprises information derived from determining the routing decision.

43. The method of claim 21 further comprising:

after sending one of the first response or the third response to the first entity, sending an informational message through the network to the second entity comprising information derived from determining the routing decision.

44. The method of claim 21 further comprising, after sending the second inquiry to the second entity and before receiving the second response from the second entity:

receiving a request for additional information through the network from the second entity; and

sending an informational message through the network to the second entity in real time after receiving the request for additional information, the informational message comprising information derived from determining the routing decision.

45. The method of claim 21 further comprising, after determining the routing decision and before sending the second inquiry to the second entity:

sending an informational message through the network to the second entity in real time after receiving the first inquiry, the informational message comprising information derived from determining the routing decision.

46. A system to facilitate determining an availability of funds for a payment item, the system comprising:

one or more processing modules in data communication through a network with a first entity and a second entity; and

one or more non-transitory memory storage modules storing computing instructions configured to run on the one or more processing modules and perform the acts of;

receiving a first inquiry through the network from the first entity, wherein the first inquiry is received from the first entity in real time after the first entity receives the payment item;

determining a routing decision of whether or not to route the first inquiry to the second entity, wherein the second entity is a depository financial institution that is specified by the payment item as responsible for paying the payment item, and the routing decision is based at least in part on a risk of non-payment of the payment item by the second entity;

if the routing decision is to not route the first inquiry to the second entity;

sending a first response through the network to the first entity in real time after receiving the first inquiry; and

if the routing decision is to route the first inquiry to the second entity;

sending a second inquiry through the network to the second entity in real time after receiving the first inquiry, the second inquiry being based at least in part on the first inquiry;

receiving a second response through the network from the second entity, the second response being sent by the second entity in real time in response to receiving the second inquiry;

storing the second response received from the second entity; and

sending a third response through the network to the first entity in real time after receiving the second response, the third response being based at least in part on the second response,

wherein;

the first entity is different from the second entity.

47. The system of claim 46, wherein:

determining the routing decision comprises determining the routing decision based at least in part on account data received from a plurality of financial institutions for accounts maintained by the financial institutions;

the account data is received before receiving the first inquiry;

the plurality of financial institutions comprise the second entity;

the payment item specifies payment from a first account of the accounts;

the first account is maintained by the second entity; and

the account data comprise first account data for the first account.

48. The system of claim 47, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when it is determined, based on the first account data, that the first account is not valid.

49. The system of claim 47, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when it is determined, based on the first account data, that the first account has been closed for at least a predetermined amount of time.

50. The system of claim 47, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when the payment item comprises an ACH item and when it is determined, based on the first account data, that the first account has a post no debits status.

51. The system of claim 47, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when the payment item comprises a check and when it is determined, based on the first account data, that the first account has a stop payment on the check.

52. The system of claim 47, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when the payment item comprises a check and when it is determined, based on the first account data, that the first account uses positive pay verification.

53. The system of claim 47, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when it is determined, based on the first account data, the payment item is likely a duplicate.

54. The system of claim 47, wherein:

determining the routing decision further comprises determining the routing decision such that the routing decision is to not route the first inquiry to the second entity when, based on the first account data, a payment amount of the payment item is determined to be below a predetermined threshold amount.

55. The system of claim 46, wherein:

the payment item comprises a check; and

the first entity is a depository financial institution receiving the check for deposit; and

the second entity is a depository financial institution against which the check has been drawn.

56. The system of claim 46, wherein:

the payment item comprises an ACH item;

the first entity is an originating depository financial institution; and

the second entity is a receiving depository financial institution.

57. The system of claim 46, wherein the first and second inquiries comprise:

a routing number of the second entity that is specified by the payment item;

an account number of the second entity that is specified by the payment item;

a payment amount that is specified by the payment item;

an identifier of the first entity;

a transaction channel identifier that indicates the channel through which a transacting entity presented the payment item to the first entity;

a payment distribution method identifier that indicates how the transacting entity requested to be paid for the payment item by the first entity;

an account number of the first entity associated with the transacting entity; and

if the payment item is a check, a serial number of the check.

58. The system of claim 46, wherein the second and third responses comprise a payment likelihood indicator provided by the second entity that indicates a likelihood of the second entity to pay the payment item, the payment likelihood indicator being based at least in part on a current status and a current available balance of an account maintained by the second entity that is specified by the payment item for payment of the payment item.

59. The system of claim 58, wherein:

the one or more processing modules are in data communication through the network with a plurality of financial institutions that each have agreed to apply common standards for determining the payment likelihood indicator; and

the second entity is any one of the plurality of financial institutions, as specified by the payment item.

60. The system of claim 58, wherein the payment likelihood indicator in the second and third responses comprises an indication of whether or not the second entity guarantees payment of the payment item.

61. The system of claim 58, wherein the payment likelihood indicator in the second and third responses comprises a score.

62. The system of claim 58, wherein the second and third responses each further comprise one or more reason indicators to explain the payment likelihood indicator provided by the second entity.

63. The system of claim 46, wherein:

the payment item is one of a check or an ACH item;

one of the first response or the third response is sent within 30 seconds of receiving the first inquiry; and

storing the second response comprises storing the second response along with a timestamp that indicates when the second response was received from the second entity.

64. The system of claim 46, wherein the computing instructions are further configured to perform the acts of, after sending one of the first response or third response to the first entity:

receiving a first payment decision message through the network from the first entity that indicates whether the first entity paid the payment item; and

sending a second payment decision message through the network to the second entity, the second payment decision message being based at least in part on the first payment decision message.

65. The system of claim 64, wherein:

sending the second payment decision message to the second entity comprises sending the second payment message such that the second payment message further comprises information derived from determining the routing decision.

66. The system of claim 46, wherein at least one of:

sending the first response to the first entity comprises sending the first response such that the first response comprises information derived from determining the routing decision;

or

sending the third response to the first entity comprises sending the third response such that the third response further comprises information derived from determining the routing decision.

67. The system of claim 46, wherein:

sending the second inquiry to the second entity comprises sending the second inquiry such that the second inquiry further comprises information derived from determining the routing decision.

68. The system of claim 46, wherein the computing instructions are further configured to perform the acts of:

after sending one of the first response or the third response to the first entity, sending an informational message through the network to the second entity comprising information derived from determining the routing decision.

69. The system of claim 46, wherein the computing instructions are further configured to perform the acts of, after sending the second inquiry to the second entity and before receiving the second response from the second entity:

receiving a request for additional information through the network from the second entity; and

sending an informational message through the network to the second entity in real time after receiving the request for additional information, the informational message comprising information derived from determining the routing decision.

70. The system of claim 46, wherein the computing instructions are further configured to perform the acts of, after determining the routing decision and before sending the second inquiry to the second entity:

sending an informational message through the network to the second entity in real time after receiving the first inquiry, the informational message comprising information derived from determining the routing decision.