Security system and method for business transactions with customers

• US 6,105,011 A
• Filed: 03/19/1998
• Issued: 08/15/2000
• Est. Priority Date: 03/19/1998
• Status: Expired due to Term

• Current Assignee: Wells Fargo Bank NA (Wells Fargo & Company)
• Original Assignee: First Union Corp. (Wells Fargo & Company)
• Inventors: Morrison, William T. Jr.
• Primary Examiner(s): Cosimano, Edward R.
• Assistant Examiner(s): McCarty, William R.
• Application Number:
  US09/044,503
• Time in Patent Office: 880 Days
• Field of Search: 705/41, 705/45, 705/44, 382/137, 382/138
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• 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 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07F 7/1016 Devices or methods for securing the PIN and other transaction-data, e.g. by encryption arrangements for secret communication, see H04L9/00
• CPC Class Codes: G07F 7/1025 Identification of user by a PIN code
• CPC Class Codes: G07F 7/122 Online card verification

Abstract

A security system and method by which customers may be readily identified prior to cashing of checks, other cash-out transactions, or other business transactions, wherein each customer is issued an individualized customer identification card having at least a personalized multidigit customer identification number encoded thereon and, optionally, also encoded with additional personal data identifying the customer. To cash a check or conduct another form of business transaction, whether at an attended customer service station or at an automated machine, the encoded data on the identification card is read and the customer is required to input the personalized identification number assigned to the card. The transaction is not approved unless the customer correctly inputs the assigned identification number. In contemplated embodiments, the encoded data along with data regarding the transaction requested by the customer, e.g., obtained by optical scanning of a check or other item presented by the customer, is transmitted to a central computer system for execution of an approval-disapproval analysis or algorithm.

Claims

1. A security system for use by a business for establishing customer identification in, and determining approval for, acceptance from customers of bank checks drawn by third parties, comprising:

(a) means for issuing to each customer an individualized customer identification card having means encoded with a personalized multidigit customer identification number for subsequent identification of the customer;

(b) means for establishing for each customer predetermined criteria for determining approval of third-party checks presented by the customer; and

(c) a transaction station for receiving third-party checks from customers, the transaction station including;

(i) means for reading the encoded means of each customer identification card upon presentation thereof by each customer;

(ii) means for customer input of the personalized customer identification number of the customer;

(iii) means for determining whether the customer correctly inputs the personalized customer identification number; and

(iv) means for determining whether a third-party check presented by the customer satisfies the predetermined approval criteria established for the customer.

2. A security system according to claim 1, wherein the transaction station is an automated machine.

3. A security system according to claim 1, wherein the transaction station is operated by a representative of the business.

4. A security system according to claim 1, wherein the encoded means of the individualized customer identification card comprises an electronic data storage medium.

5. A security system according to claim 1, wherein the card reading means comprises a card receiving slot for customer insertion of the identification card and the customer input means comprises a numeric keypad.

6. A security system according to claim 1, wherein the transaction station includes means for reading data from a third-party check presented by the customer.

7. A security system according to claim 1, further comprising a centralized data storage and processing means for storing predetermined data on each customer and the transaction station comprises means for communicating with the centralized data storage and processing means.

8. A security system according to claim 7, wherein the centralized data storage and processing means comprises means for determining approval of third-party checks presented by each customer according to the predetermined criteria established for the customer.

9. A security system according to claim 8, wherein the centralized data storage and processing means includes means for compiling for each customer historical data on third-party checks presented by the customer.

10. A security system according to claim 1, wherein at least one of the customer identification card and the centralized data storage and processing means stores the predetermined criteria to be established for third-party checks presented by the customer.

11. A banking security system for establishing customer identification in, and determining approval for, cashing for customers of bank checks drawn by third parties, comprising:

(a) a centralized data storage and processing means for storing predetermined data on each customer, the data storage and processing means including means for determining approval of third party checks presented by customers according to predetermined criteria;

(b) means for issuing to each customer an individualized customer identification card wherein predetermined personal information regarding the customer and any individualized predetermined criteria to be established for cashing of third-party checks for the customer are obtained and input into the data storage and processing means and wherein the card has means encoded with at least some of the predetermined personal information regarding the customer and with a personalized multidigit customer identification number collectively sufficient for identification of the customer; and

(c) a transaction station for cashing third-party checks, the transaction station including;

(i) means for reading the encoded means for each customer identification card upon presentation thereof by each customer;

(ii) means for customer input of the personalized customer identification number of the customer;

(iii) means for determining whether the customer inputs the personalized customer identification number; and

(iv) means for communicating with the centralized data storage and processing means for actuating the approval determination means thereof to determine an approval or disapproval for cashing a third-party check presented by the customer according to the predetermined criteria established in the data storage and processing means, including any individualized predetermined criteria established for the customer individually.

12. A banking security system according to claim 11, wherein the card issuing means and the transaction station are located within a bank location remote from the centralized data storage and processing means.

13. A banking security system according to claim 11, wherein the transaction station is an automated teller machine.

14. A banking security system according to claim 11, wherein the transaction station is operated by a bank representative.

15. A banking security system according to claim 14, wherein the transaction station includes means for displaying to the bank representative the determination of whether the customer correctly inputs the personalized customer identification number.

16. A banking security system according to claim 15, wherein the transaction station includes means for displaying to the bank representative the encoded personal information regarding the customer as read by the card reading means from the customer identification card.

17. A banking security system according to claim 15 or 16, wherein the displaying means comprises a visual display monitor.

18. A banking security system according to claim 11, wherein the encoded means of the individualized customer identification card comprises an electronic data storage medium.

19. A banking security system according to claim 11, wherein the card reading means comprises a card receiving slot for customer insertion of the identification card and the customer input means comprises a numeric keypad.

20. A banking security system according to claim 11, wherein the transaction station includes means for reading data from a third-party check presented by the customer for cashing.

21. A banking security system according to claim 20, wherein the check reading means comprises a microreader device.

22. A banking security system according to claim 11, wherein the approval determining means comprises a computer processor for executing an approval-disapproval algorithm upon each presentation by the customer of a third-party check for cashing.

23. A banking security system according to claim 11, wherein the centralized data storage and processing means includes means for continuously compiling and updating for each customer historical data on third-party checks cashed by the customer.

24. A banking security system according to claim 23, wherein the approval determining means comprises a computer processor for executing upon each presentation of a third-party check by the customer an approval-disapproval algorithm based on the historical data on the customer.

25. A security method for use by a business for establishing customer identification in, and determining approval for, acceptance from customers of bank checks drawn by third parties, comprising:

(a) issuing to each customer an individualized customer identification card storing in an encoded form a personalized multidigit customer identification number for subsequent identification of the customer;

(b) establishing for each customer predetermined criteria for determining approval of third-party checks presented by the customer; and

(c) upon each presentment of a third-party check by each customer;

(i) requiring the customer to present the identification card;

(ii) reading the encoded identification number by means of a card reading device to identify the customer;

(iii) requiring the customer to input into the card reading device the personalized identification number assigned to the customer; and

(iv) determining approval or disapproval of the third-party check according to the predetermined criteria established for the respective customer.

26. A security method according to claim 25, wherein the presentment of the third-party check is made to a representative of the business.

27. A security method according to claim 25, wherein the presentment of the third-party check is made to an automated machine.

28. A security method according to claim 25, wherein the issuing of each identification card includes electronically encoding the customer identification number onto the card.

29. A security method according to claim 25, wherein the presentment of the third-party check is conducted at a transaction station at which is located the card reading device and a keypad associated therewith for input by the customer of the personalized customer identification number.

30. A security method according to claim 25, wherein the presentment of the third-party check comprises reading data from the third-party check presented by the customer for processing by means of another reading device.

31. A banking security method according to claim 25, further comprising providing a centralized data storage and processing means for storing predetermined data on each customer and the presentment of the third-party check comprises communicating with the centralized data storage and processing means.

32. A security method according to claim 31, wherein the determining of approval or disapproval of the third-party check is performed according to the predetermined criteria by means of the centralized data storage and processing means.

33. A security method according to claim 32, and further comprising continuously compiling in the centralized data storage and processing means historical data on third-party checks presented by each customer.

34. A security method according to claim 25, further comprising storing up predetermined criteria for each customer by at least one of the customer identification cards and a centralized data storage and processing means.

35. A banking security method for establishing customer identification in, and determining approval for, cashing for customers of bank checks drawn by third parties, comprising:

(a) providing a centralized data storage and processing means including means for determining approval or disapproval of third-party checks presented by customers according to predetermined criteria;

(b) for each customer, obtaining and storing in the centralized data storage and processing means predetermined personal information regarding the customer and any individualized predetermined criteria to be established for cashing of third-party checks for the customer;

(c) issuing to each customer an individualized customer identification card storing in an encoded form at least some of the predetermined personal information regarding the customer and a personalized multidigit customer identification number collectively sufficient for subsequent identification of the customer; and

(d) cashing each third-party check by each customer by;

(i) requiring the customer to present the identification card upon each presentment of a third-party check;

(ii) reading the encoded personal information and identification number by means of a card reading device to identify the customer;

(iii) requiring the customer to input into the card reading device the personalized identification number assigned to the customer; and

(iv) communicating with the centralized data storage and processing means for initiating execution thereby of a determination of approval or disapproval of the third-party check presented by the customer according to the predetermined criteria established for the customer individually.

36. A banking security method according to claim 35, wherein the obtaining of the predetermined personal information regarding the customer, the issuing of the identification card to each customer, and the cashing of third-party checks are performed within a bank location remote from the centralized data storage and processing means.

37. A banking security method according to claim 35, wherein the cashing of third-party checks is performed by an automated teller machine.

38. A banking security method according to claim 35, wherein the cashing of third-party checks is performed by a bank representative.

39. A banking security method according to claim 38, further comprising displaying to the bank representative the determination of whether the customer correctly inputs the personalized identification number.

40. A banking security method according to claim 39, further comprising displaying to the bank representative the encoded personal information regarding the customer as read by the card reading means from the customer identification card.

41. A banking security method according to claim 35, wherein the issuing of each identification card includes electronically encoding the at least some predetermined personal information regarding the customer and the customer identification number onto the card.

42. A banking security method according to claim 35, wherein the cashing of third-party checks is conducted at a transaction station at which is located the card reading device, a keypad associated therewith for input by the customer of the personalized customer identification number, and means for communicating with the centralized data storage and processing means.

43. A banking security method according to claim 42, wherein the cashing of third-party checks comprises reading data from the third-party check presented by the customer for cashing by means of a check reading device.

44. A banking security method according to claim 35, wherein the execution by the centralized data storage and processing means of a determination of approval or disapproval of the third-party check comprises executing an approval-disapproval algorithm.

45. A banking security method according to claim 35, and further comprising continuously compiling and updating in the centralized data storage and processing means historical data on third-party checks cashed by each customer.

46. A banking security method according to claim 45, wherein the execution of the determination of approval or disapproval of each third-party check comprises executing an approval-disapproval algorithm based on the historical data on the customer.