Apparatus for verifying checks presented for acceptance

• US 4,109,238 A
• Filed: 10/06/1975
• Issued: 08/22/1978
• Est. Priority Date: 10/06/1975
• Status: Expired due to Term

• Current Assignee: Telecredit Incorporated (Equifax, Inc.)
• Original Assignee: 1ST NATL Bank of Atlanta
• Inventors: Creekmore, Robert V.
• Primary Examiner(s): Pitts, Harold I.
• Application Number:
  US05/619,663
• Time in Patent Office: 1,051 Days
• Field of Search: 340/149 A, 340/149 R, 235/61.7 B, 179/2 DP, 179/2 CA
• US Class Current: 340/5.8
• 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 20/4037 Remote solvency checks
• 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

Abstract

A check verification system for providing customer-operated verification of checks at point-of-sale locations. The present system enables a customer to verify several possible kinds of checking functions, including verification of payroll or government checks as well as certain types of personal checks for cash, and sets limits on the number of times each checking function will be verified in a period of time. The system utilizes a number of local point-of-use terminals which are operated by the customer, and which communicate with a remotely-located transaction processor including a positive file of customers who are entitled to verify checks with the present system. The positive check verification files do not require the current bank balance of the customer, and the present system is designed to include persons who are merely the payees of checks and have no checking account or other established relationship with any bank. The present check verification system includes an identification card containing a unique number for each customer; a personal customer code, which is not on the card, is also provided for manual entry into the input terminal by the customer. Check verification is given a positive acknowledgment within the input terminal by printing information including a verification number on the back of the specific check being verified. The printed verification number on the customer-supplied check enables such checks to be factored or purchased for the benefit of the merchant who accepts checks verified by the present system.

Claims

1. System for verifying the check presentation history of a number of persons who may present various types of checks for acceptance, irrespective of their current checking account status or availability of such persons, comprising:

at least one input terminal disposed at a location where checks may be presented for acceptance by customers;

said input terminal having means operative to accept and read any of a plurality of customer identification cards each of which contains machine-readable information corresponding to an individual customer and also operative to produce a customer identification signal in the input terminal;

said input terminal having variable data entry means operable by the customer to provide a code input signal corresponding to a predetermined personal code whic has been previously selected by the customer;

said input terminal having form handling means operative to receive a customer-supplied form suitable for imprinting;

said input terminal having means operative to print authorization indicia on said customer-supplied form in response to an authorization signal supplied to said input terminal;

said input terminal having function selection means operable by the customer to provide check category signals corresponding to certain predetermined categories of checks which may be presented for acceptance;

data transmission means operative to supply information signals including said customer identification signal, said code input signal, and said category signal from said input terminal to a remote location;

transaction processing means disposed at said remote location and connected to receive information signals from said data transmission means;

said transaction processing means including information storage means operative to provide stored signals corresponding to the predetermined personal code previously selected by each customer, corresponding to certain previously authorized categories of checks which will be approved for acceptance if presented by a particular customer, and corresponding to a predetermined maximum number of times each such authorized category may be approved for acceptance for particular customers within a certain period of time;

said transaction processing means including signal processing means responsive to said stored signals and to said information signals received along said data transmission means from an input terminal to compare the personal code input signal from the input terminal with the stored predetermined personal code signal for that customer, said transaction processing means being operative in response to a comparison showing nonidentity of said input and stored personal code signals to provide a code error signal for transmission along said data transmission means to that input terminal; and

said transaction processing means including means operative in response to a comparison showing identity of said input and stored personal code signals to compare a received desired check category signal with said stored signals in said information storage means to provide an authorization control signal indicating whether or not said desired category is authorized for that customer and whether the present request for acceptance will exceed said predetermined maximum utilization of such category; and

means operative to transmit said authorization control signal to said input terminal.

2. System as in claim 1, wherein:

said input terminal includes a code error indicator means responsive to said code error transaction from said signal processing means to alert the customer that the personal code entered by him on said data entry means is nonidentical to the predetermined personal code in said information storage means.

3. System as in claim 1, wherein:

said transaction processing means is operative to provide a customer assistance signal in response to an authorization control signal indicating that the desired category of check is not authorized, or in response to an authorization control signal indicating that the request for a desired category of check exceeds the maximum authorized number of times the customer may obtain approval of that category; and

said input terminal includes a customer assistance indicator means responsive to said customer assistance signal to provide advisory information to the customer using the input terminal.

4. System as in claim 1, wherein:

said printing means in said input terminal comprise first printing means operative to print selectively variable information symbols on said customer-supplied form, in response to information contained in said authorization control signal from said transaction processing means; and

second printing means operative in response to said authorization control signal to print information which is not contained in said authorization control signal.

5. System as in claim 4, wherein:

said second printing means is operative to move said identification card and said customer-supplied form into relative juxtaposition so that information is raised indicia on said card is applied in printing relation to said customer-supplied form.

6. System as in claim 4, wherein said transaction processing means is operative to provide said authorization control signal which includes signals corresponding to said predetermined categories of check;

and

said first printing means is responsive to said check category signals in said authorization signal to print check category identification indicia on said customer-supplied form.

7. System as in claim 4, wherein:

said transaction processing means is responsive to the time of day to provide said authorization control signal which includes signals determined by the time of day when said authorization control signal is provided; and

said first printing means is responsive to said authorization control signal to print time indicia on said customer-supplied form.