Electronic check presentment system having a non-ECP exceptions notification system incorporated therein

• US 5,691,524 A
• Filed: 05/15/1996
• Issued: 11/25/1997
• Est. Priority Date: 07/17/1991
• Status: Expired due to Term

• Current Assignee: Carreker Corp. (Fiserv Incorporated)
• Original Assignee: JD Carreker and Associates Incorporated
• Inventors: Josephson, Stanley M.
• Primary Examiner(s): Hajec, Donald T.
• Assistant Examiner(s): Rodriguez, Douglas X.
• Application Number:
  US08/648,482
• Time in Patent Office: 559 Days
• Field of Search: 235/379, 364/401, 364/406, 364/408
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0425 the cheque being electronic only
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: H04L 69/329 in the application layer [OSI layer 7]
• CPC Class Codes: H04L 9/40 Network security protocols

Abstract

Disclosed are an improved electronic check presentment ("ECP") system having a non-ECP exceptions notification system incorporated therein and a method of electronically communicating data pertaining to non-ECP exceptions. The method, for use by a presenting bank and a payor bank having check presentment systems between which data related to checks may be electronically transmitted, comprises the steps of: (1) electronically transmitting, from the presenting bank to the payor bank, predetermined presentment information relating to the checks and permitting a determination by the payor bank as to which of the checks are properly payable by the payor bank, (2) comparing records of an exceptions file with records of a receive control file, the exceptions file capable of containing records subject to both ECP and non-ECP exceptions to thereby produce an electronic file of the which of the checks are properly payable by the payor bank and (3) electronically transmitting the electronic file to the presenting bank to thereby provide advance electronic return notification of both ECP and non-ECP exceptions to checks presented by the presenting bank to the payor bank.

Claims

1. For use by a presenting bank and a payor bank having check presentment systems between which data related to checks may be electronically transmitted, a method of electronically communicating data pertaining to non-ECP exceptions, comprising the steps of:

electronically transmitting, from said presenting bank to said payor bank, predetermined presentment information relating to said checks and permitting a determination by said payor bank as to which of said checks are properly payable by said payor bank;

comparing records of an exceptions file with records of a receive control file, said exceptions file capable of containing records subject to both ECP and non-ECP exceptions to thereby produce an electronic file of said which of said checks are properly payable by said payor bank; and

electronically transmitting said electronic file to said presenting bank to thereby provide advance electronic return notification of both ECP and non-ECP exceptions to checks presented by said presenting bank to said payor bank.

2. The method as recited in claim 1 further comprising the step of producing a control totals and unmatched exceptions report by said step of comparing.

3. The method as recited in claim 1 further comprising the step of appending to said electronically transmitted presentment information a return notification eligibility flag to indicate whether a particular check, information about which forms a part of said presentment information, is eligible for a return notification, said appending step being carried out prior to said transmitting step.

4. The method as recited in claim 3 wherein said eligibility flag comprises an indication that a particular check is not eligible for a return notification.

5. The method as recited in claim 3 wherein said eligibility flag comprises an indication that a particular check requires at least one preliminary return notification and a final return notification.

6. The method as recited in claim 3 wherein said eligibility flag comprises an indication that a particular check requires only a final return notification.

7. The method as recited in claim 1 wherein said return notification comprises both a preliminary return notification and a final return notification.

8. The method as recited in claim 1 wherein said return notification comprises only a final return notification that is transmitted by said payor bank to said presenting bank after a final pay/no pay decision has been made by said payor bank.

9. The method as recited in claim 1 further comprising the step of providing an indication of stop payment suspect checks to said presenting bank.

10. The method as recited in claim 1 further comprising the step of providing an issue exceptions report to said presenting bank.

11. For use by a presenting bank and a payor bank having check presentment systems between which data related to checks may be electronically transmitted, a system for electronically communicating data pertaining to non-ECP exceptions, comprising:

means for electronically transmitting, from said presenting bank to said payor bank, predetermined presentment information relating to said checks and permitting a determination by said payor bank as to which of said checks are properly payable by said payor bank;

means for comparing records of an exceptions file with records of a receive control file, said exceptions file capable of containing records subject to both ECP and non-ECP exceptions to thereby produce an electronic file of said which of said checks are properly payable by said payor bank; and

means for electronically transmitting said electronic file to said presenting bank to thereby provide advance electronic return notification of both ECP and non-ECP exceptions to checks presented by said presenting bank to said payor bank.

12. The system as recited in claim 11 further comprising the step of producing a control totals and unmatched exceptions report by said step of comparing.

13. The system as recited in claim 11 wherein said electronic return notification comprises a preliminary notification of a potential return item that was generated following a DDA process performed by said payor bank but before a final pay/no pay decision by said payor bank.

14. The system as recited in claim 11 wherein said electronic return notification comprises a final return notification generated by said payor bank following said payor bank making a pay/no pay decision.

15. The system as recited in claim 11 wherein said electronic return notification comprises a confirmation notice that a particular check has been paid.

16. The system as recited in claim 11 further comprising means for electronically returning a final return notification to said presenting bank, responsive to a final pay/no pay decision by a payor bank officer, said decision being made subsequent to said detection of checks that may be potential return items and subsequent to an examination of said potential return items by said bank officer.

17. The system as recited in claim 11 further comprising means for providing an indication of stop payment suspect checks to said presenting bank.

18. The system as recited in claim 11 further comprising means for providing an issue exceptions report to said presenting bank.

19. For use by a presenting bank and a payor bank having check presentment systems between which data related to checks may be electronically transmitted, a method of electronically communicating data pertaining to non-ECP items, comprising the steps of:

electronically transmitting, from said presenting bank to said payor bank, predetermined presentment information relating to said checks and permitting a determination by said payor bank as to which of said checks are properly payable by said payor bank;

comparing records of an exceptions file with records of a receive control file, said exceptions file containing records subject to both ECP and non-ECP exceptions to thereby produce an electronic notification file of said which of said checks are subject to exception by said payor bank;

electronically transmitting said electronic notification file to said presenting bank to thereby provide advance electronic return notification of both ECP and non-ECP exceptions to checks presented by said presenting bank to said payor bank;

producing a control totals and unmatched exceptions report by said step of comparing; and

employing said control totals and unmatched exceptions report to reconcile a cash letter to physical checks sent from said presenting back to said payor bank.

20. The method as recited in claim 19 further comprising the step of appending to said electronically transmitted presentment information a return notification eligibility flag to indicate whether a particular check, information about which forms a part of said presentment information, is eligible for a return notification, said appending step being carried out prior to said transmitting step.

21. The method as recited in claim 20 wherein said eligibility flag comprises an indication that a particular check is not eligible for a return notification.

22. The method as recited in claim 20 wherein said eligibility flag comprises an indication that a particular check requires at least one preliminary return notification and a final return notification.

23. The method as recited in claim 20 wherein said eligibility flag comprises an indication that a particular check requires only a final return notification.

24. The method as recited in claim 20 wherein said return notification comprises both a preliminary return notification and a final return notification.

25. The method as recited in claim 20 wherein said return notification comprises only a final return notification that is transmitted by said payor bank to said presenting bank after a final pay/no pay decision has been made by said payor bank.

26. The method as recited in claim 19 further comprising the step of providing an indication of stop payment suspect checks to said presenting bank.

27. The method as recited in claim 19 further comprising the step of providing an issue exceptions report to said presenting bank.