Check system and method including prioritizing checks for transmission to banks for processing
First Claim
1. A method for processing a check written on an account provided by a financial institution comprising the steps of:
- receiving from a customer a check as a method of payment;
creating an electronic data record containing information pertaining to said check; and
electronically transmitting said data record to said financial institution to obtain payment of said check by said financial institution, said step of transmitting said electronic record to said bank comprising the steps of;
determining if said electronic record meets a test indicating said electronic record should be transmitted to said bank in real time;
if said test is met, transmitting said electronic record to said bank in real time; and
if said test is not met, adding said electronic record to a file including other electronic records pertaining to other checks, and transmitting said file to said bank in a batch mode.
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Accused Products
Abstract
A method and structure are provided for processing checks in an extremely timely and cost-effective manner. A check recipient, such as a merchant, utility billing department, and the like, utilize hardware and software for quickly gathering data from checks received in order to allow prompt processing of those checks. Such hardware preferably includes a reader for reading the MICR account information printed on the check, and means for associating that data with information pertaining to the transaction at hand, including for example, the dollar amount of the transaction. This information is combined in a data record which is stored for future batch data transmission to a clearing house or the issuing bank itself. In an alternative embodiment, this data is communicated in real time to the clearing house or issuing bank. In another embodiment, one or more selection criteria are used to determine which checks will be processed in real time, with the remaining checks being processed in the batch mode. For example, checks written above a threshold dollar amount, out of state checks, or any other high risk checks are processed in real time in order to minimize losses due to fraudulent check use.
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Citations
19 Claims
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1. A method for processing a check written on an account provided by a financial institution comprising the steps of:
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receiving from a customer a check as a method of payment; creating an electronic data record containing information pertaining to said check; and electronically transmitting said data record to said financial institution to obtain payment of said check by said financial institution, said step of transmitting said electronic record to said bank comprising the steps of; determining if said electronic record meets a test indicating said electronic record should be transmitted to said bank in real time; if said test is met, transmitting said electronic record to said bank in real time; and if said test is not met, adding said electronic record to a file including other electronic records pertaining to other checks, and transmitting said file to said bank in a batch mode. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19)
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Specification