Mechanism for expediting the deposit, transport and submission of checks into the payment system

• US 5,583,759 A
• Filed: 07/27/1995
• Issued: 12/10/1996
• Est. Priority Date: 11/22/1993
• Status: Expired due to Term

• Current Assignee: DataTreasury Corporation
• Original Assignee: Huntington Bancshares Incorporated
• Inventors: Geer, Terry L.
• Primary Examiner(s): Hayes, Gail O.
• Assistant Examiner(s): Yount, Steven R.
• Application Number:
  US08/507,856
• Time in Patent Office: 502 Days
• Field of Search: 364/401, 364/406, 364/408
• US Class Current: 705/45
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A mechanism and process for effecting the expedited deposit, settlement and submission into the payment system for collection of funds represented by tangible financial instruments that are received by a payee at a location remote from the payee'"'"'s collecting and clearing bank in which the instruments are sorted at a first location where indorsements on behalf of the payee and the collecting and clearing bank are applied, cash letters are prepared according to predetermined criteria, the sorted instruments and the cash letters are delivered into the check payment system and the checks'"'"' deposit with the collecting and clearing bank is coordinated with the timing of a settlement of accounts in the check payment system.

Claims

1. A system for effecting the deposit, settlement and submission into a payment system for collection of funds represented by financial instruments drawn on different institutions that are received by a payee at a first location, said first location determined by the payee remote from the payee'"'"'s collecting and clearing bank, comprising:

a sorter at said first location established by the payee (1) for receiving the financial instruments and (2) for sorting the instruments according to predetermined sort pattern categories determined by the collecting and clearing bank;

a printer at said first location for applying to the instruments at a time before, during or after sorting of the instruments, a separate indorsement on behalf of each of the payee and the collecting and clearing bank with respect to each instrument received;

the sorter further assembling the sorted instruments with the applied indorsements into discrete groups with respect to the predetermined sort pattern categories;

a means at the first location for preparing one or more cash letters associated with each assembled group of instruments;

a communication link between the first location and the collecting and clearing bank for reporting to the bank information in the cash letters in anticipation of a deposit of funds in the payee'"'"'s account at the payee'"'"'s collecting and clearing bank corresponding to the value of the one or more cash letters;

transport means for delivering the groups of instruments and the one or more cash letters from the first location to a second location for receipt into the payment system according to parameters determined by the payee'"'"'s collecting and clearing bank; and

a central processing unit and communication link providing a coordination between the payee and the payee'"'"'s collecting and clearing bank which predetermines the timing and monitors the transport of the sorted instruments and the cash letters associated therewith and coordinates the recordation of the deposit of the funds represented by the instruments with the collecting and clearing bank in a sequence coordinated with the timing of a settlement of accounts in the check payment system.

2. The system of claim 1 in which the instrument is a check having an MICR line, and including a printer for further applying information representing the check amount to the MICR line.

3. The system of claim 1 in which the collecting and clearing bank is the bank of first deposit for the payee.

4. The system of claim 2 in which the collecting and clearing bank is the bank of first deposit for the payee.

9. The system of claim 1 including a means for verifying the information in the cash letters prior to the settlement of accounts.

5. A process for effecting the deposit, settlement and submission into a payment system for collection of funds represented by financial instruments drawn on different institutions and payable to a same payee that are received at a first location remote from the payee'"'"'s collecting and clearing bank, comprising

receiving the financial instruments at said first location;

sorting the instruments according to predetermined sort pattern categories determined by the payee'"'"'s collecting and clearing bank;

applying to the instruments at said first location separate indorsements on behalf of each of the payee and the collecting and clearing bank with respect to each instrument received;

assembling at said first location the sorted instruments into discrete groups with respect to the predetermined sort pattern categories corresponding to cash letter specifications determined by the payee'"'"'s collecting and clearing bank;

preparing at said first location one or more cash letters associated with each assembled group of instruments;

reporting to the collecting and clearing bank information contained in the cash letters in anticipation of a deposit in the payee'"'"'s account at the collecting and clearing bank corresponding to the value of the cash letter;

delivering the assembled groups of instruments and the one or more cash letters associated therewith from the first location to a second location where they are submitted into the check payment system according to timing and location parameters determined by the collecting and clearing bank; and

coordinating the recordation of the deposit of funds represented by the instruments with the collecting and clearing bank in a sequence coordinated with the timing of a settlement of the collecting and clearing bank'"'"'s account in the check payment system.

6. The process of claim 5 in which the instrument is a check having an MICR line, and including applying information representing the check amount to the MICR line.

7. The process of claim 5 in which the collecting and clearing bank is the bank of first deposit for the payee.

8. The process of claim 6 in which the collecting and clearing bank is the bank of first deposit for the payee.

10. The process of claim 5 including verifying information in the cash letters prior to the settlement of accounts.

11. A system for effecting the deposit, settlement and submission into a payment system for collection of funds represented by financial instruments drawn on different institutions that are received by different payees and submitted to a bank of first deposit for submission into a check payment system on behalf of a bank of subsequent deposit comprising:

a sorter at a first location (1) for receiving the financial instruments from one or more banks of first deposit and payees and (2) for sorting the instruments according to predetermined sort pattern categories determined by the bank of subsequent deposit for collecting and clearing;

a means at said first location for applying separate indorsements to the instruments on behalf of each of the one or more banks of first deposit and payees, and the bank of subsequent deposit with respect to each instrument received;

the sorter further assembling the sorted instruments into discrete groups with respect to the predetermined sort pattern categories;

a means for preparing one or more cash letters associated with each assembled group of sorted instruments;

a communication link between the first location and the one or more banks of first deposit and the payee, and the bank of subsequent deposit for reporting to the respective banks and payee information in the cash letters in anticipation of a deposit in the bank of first deposit and payee'"'"'s account at the bank of subsequent deposit corresponding to the value of the cash letter;

transport means for delivering the groups of instruments and the one or more cash letters from the first location to a second location for introduction into the payment system according to parameters determined by the bank of subsequent deposit; and

a control unit interconnecting the banks and predetermining the timing and monitoring the transport of the sorted instruments so as to coordinate the recordation of the deposit of the funds represented by the instruments in the account with the collecting and clearing bank in a sequence coordinated with the timing of settlement in the check payment system.

12. The system of claim 11 in which the instrument is a check having an MICR line, and including a printer for further applying information representing the check amount to the MICR line.

13. The system of claim 11 including a means for verifying the information in the cash letters prior to the settlement of accounts.

14. A process for effecting the deposit, settlement and submission into a payment system for collection of funds represented by financial instruments drawn on different institutions that are received by different payees and submitted to a bank of first deposit for submission into a check payment system on behalf of a bank of subsequent deposit comprising:

receiving the financial instruments at a first location;

sorting the instruments at said first location according to predetermined sort pattern categories determined by the bank of subsequent deposit for collecting and clearing bank;

applying separate indorsements to the instruments at said first location on behalf of each of the bank of first deposit and the bank of subsequent deposit with respect to each instrument received;

assembling the sorted instruments into discrete groups with respect to the predetermined sort pattern categories;

preparing one or more cash letters associated with each assembled group of instruments;

reporting to the respective banks information in the cash letters in anticipation of a deposit of funds in the payee'"'"'s account at the bank of subsequent deposit corresponding to the value of the cash letters;

delivering the groups of instruments and the one or more cash letters from the first location into the payment system according to parameters determined by the bank of subsequent deposit; and

coordinating the deposit of funds represented by the instruments with the accounts of the respective banks and payees at the collecting and clearing bank in a sequence coordinated with the timing of a settlement in the check payment system.

15. The process of claim 14 in which the instrument is a check having an MICR line, and including a printer for further applying information representing the check amount to the MICR line.

16. The process of claim 14 including verifying information in the cash letters prior to the settlement of accounts.