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Automated check verification and tracking system

  • US 5,925,865 A
  • Filed: 05/27/1997
  • Issued: 07/20/1999
  • Est. Priority Date: 07/11/1994
  • Status: Expired due to Term
First Claim
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1. An apparatus for automatically accessing and verifying with an underwriting institution the status of an account underlying one of a plurality of negotiable instruments held by a purchaser and the authority of the purchaser to issue said one negotiable instrument against said account when said one negotiable instrument is presented to a merchant based on account information and encrypted security information contained in a bar code visibly printed on each of the negotiable instruments for establishing that the purchaser is recognized by the one underwriting institution as an authorized issuer of said negotiable instrument against said account, comprising:

  • a terminal for use by the merchant at a point of sale;

    a bar code scanner electrically coupled to said terminal for reading the bar code printed on the one negotiable instrument;

    means for automatically determining an underwriting institution code and an account number from the bar code, said means for determining located in said terminal;

    means for automatically deriving a security code from the encrypted security information contained in the bar code, said means located in said terminal;

    means, on said terminal, for receiving a security code from the purchaser;

    a modem electrically coupled to said terminal in transmitting and receiving electrical communication therewith;

    a bi-directional underwriting institution switch electrically coupled to said modem and capable of automatically establishing electrical communication with the underwriting institution based on the underwriting institution code contained in the bar code for verification of the account number and the security code of said purchaser; and

    a display screen attached to said terminal for displaying transaction information to the merchant.

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