Method and system for payment and payment verification

• US 5,491,325 A
• Filed: 11/15/1994
• Issued: 02/13/1996
• Est. Priority Date: 08/25/1992
• Status: Expired due to Fees

• Current Assignee: Dorge O. Huang, Peterson, Robert B.
• Original Assignee: Dorge O. Huang, Peterson, Robert B.
• Inventors: Peterson, Robert B., Huang, Dorge O.
• Primary Examiner(s): EVANS, FANNIE L
• Application Number:
  US08/339,917
• Time in Patent Office: 455 Days
• Field of Search: 235/379, 235/380, 340/825.34, 364/408
• US Class Current: 705/45
• 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A payment verification method and system includes the imprinting of code indicia, such as a bar code, on the face of a payment document, such as a stock certificate, check, or note. The bar code and a corresponding data file, is generated by an automated computerized process. The code indicia serves as an index to a corresponding data file in a database which can be communicated to a drawee banking institution serving as broker for the funds as identified in the check so that the institution has prior knowledge of information relating to the check. Such knowledge is used to verify the authenticity of the check and amount of funds committed. After the check has been honored by the brokering institution and returned to the issuer or drawer, a computerized system scans the bar code and records the receipt of the authorized instrument by updating the corresponding data file.

Claims

1. A system of payment verification for a payment document from a payor to a payee comprising:

an index code generator, for determining an index code, which uniquely identifies the payment document and serves as an index corresponding to an original data file;

a computer of the payor, operatively coupled to said index code generator, for generating said original data file using at least a payment value associated with the payment document;

a first memory, operatively coupled to said index code generator and computer, for storing said original data file;

a printer, operatively coupled to said index code generator, for imprinting said index code on the payment document;

a modem, operatively coupled to said computer of the payor, for communicating said original data file to a verification means within a computer system of a payment agent of the payor;

a second memory, operatively coupled to said verification means, for storing said communicated original data file as a verification data file;

a character reader, of the payor'"'"'s agent, operatively coupled to said verification means, for reading said index code from the payment document using a code reader which is operatively coupled to said second memory; and

said verifying means adapted to verify the authenticity of the payment document by accessing said verification data file from said second memory and determining whether said read index code correctly identifies the payment document as an authorized payment document.

2. The system of claim 1 further comprising:

means, operatively coupled to said verification means, for subtracting a payment amount, based upon said payment information, from an account when said index code correctly identifies the payment document as an authorized payment document;

means, operatively coupled to said first memory means, for reading said index code from the payment document after the payment document has been verified by said verification means; and

means, operatively coupled to said computer of the payor, for modifying said original data file to indicate receipt of said authorized payment document in response to said read index code.

3. The system of claim 1 wherein said printer further includes means for applying a bar code to a face of the payment document.

4. The system of claim 1 wherein said original data file further includes a name of a payee and an issuing date of the payment document.

5. The system of claim 3 wherein said character reader includes a bar code scanning device.

6. A method of payment verification for a payment document bearing indicia authorizing payment from a payor to a payee comprising the steps of:

generating and storing an original data file within a storage means of a computer of the payor using at least a payment value associated with the payment document;

establishing an index code by the payor which uniquely identifies the payment document and serves as an index corresponding to the original data file;

imprinting said index code on the payment document;

transferring said original data file from the computer of the payor to a computer of the payor'"'"'s agent;

reading said index code from the payment document by the payor'"'"'s agent using a code reading means operatively coupled to the computer of said payor'"'"'s agent; and

accessing said original data file by the payor'"'"'s agent within the computer of the payor'"'"'s agent via the index code to verify the authenticity of the payment document by verifying that information in the original data file is the same as corresponding information on the payment document.

7. The method of claim 6 further comprising the step of:

subtracting a payment amount, based upon said payment information in said verification data file, from an account when said index code correctly identifies the payment document as an authorized payment document.

8. The method as in claim 6 wherein imprinting said index code further comprises applying a bar code to a face of the payment document.

9. The method as in claim 6 wherein said information further comprises a name of a payee and an issuing date of the payment document.

10. The method as in claim 6 wherein said code reading means further comprises a bar code scanning device.