Demand deposit account data processing system

• US 6,189,785 B1
• Filed: 04/14/1998
• Issued: 02/20/2001
• Est. Priority Date: 04/14/1998
• Status: Expired due to Fees

• Current Assignee: International Check Services
• Original Assignee: International Check Services
• Inventors: Lowery, Michael P.
• Primary Examiner(s): Le, Thien M.
• Assistant Examiner(s): St. Cyr, Daniel
• Application Number:
  US09/059,773
• Time in Patent Office: 1,043 Days
• Field of Search: 235/379, 235/380, 235/385, 235/437, 235/470, 705/42, 705/45
• US Class Current: 235/379
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems

Abstract

A demand deposit account data processing system is provided that allows merchants to settle transactions on line and in real time and that automatically processes transactions in a number of exception conditions. The system comprises demand deposit account data that originate from a data source, at least one point of sale terminal adapted to receive that data to initiate a transaction, a central computer system, first communication means integrated with the point of sale terminal for communicating with the central computer system, data storage means integrated with the point of sale terminal for storing the data, and second communication means integrated with the central computer system for receiving the data from the point of sale terminal and communicating with the data source. This configuration permits the central computer system to communicate with the data source to settle the transaction on line or through traditional automated clearing house channels. The system of the present invention preferably incorporates a number of authorization databases that can be used to verify a transaction even if it cannot be settled on line. The system also preferably automatically updates all of its databases with pertinent transaction information once a transaction result is obtained. Preferred embodiments of the present invention comprise a software program adapted to recognize and repair errors in the demand deposit account data before submission to the data source. Similarly, the present invention contemplates use of a software program adapted to submit demand deposit account data to a data source multiple times until the transaction is settled electronically. In this way, the cumbersome physical processing, temporal risk, and lack of flexibility to handle procedural variations at the point of sale associated with traditional check presentment systems can be avoided or eliminated.

Claims

1. A demand deposit account data processing system comprising:

demand deposit account data having a data source, said data source being one selected from the group consisting of at least one network bank database and at least one non-network bank database;

at least one point of sale terminal adapted to receive said demand deposit account data to initiate a transaction;

a central computer system;

first communication means integrated with said at least one point of sale terminal for electronically communicating with said central computer system;

data storage means integrated with said point of sale terminal for storing said demand deposit account data;

second communication means integrated with said central computer system for receiving said demand deposit account data from said at least one point of sale terminal and communicating with said network bank database and said non-network bank database;

whereby

said central computer system identifies said data source and, in the case of demand deposit account data for said at least one network bank database, communicates with said at least one network bank database to settle said transaction on line, and in the case of demand deposit account data for said at least one non-network bank database, communicates with said at least one non-network bank database to settle said transaction off line.

2. The demand deposit account data processing system of claim 1, wherein

said at least one point of sale terminal further includes a scanner adapted to read magnetic ink character recognition numbers and field information appearing on a check for transmission to and storage in said data storage means.

3. The demand deposit account data processing system of claim 1, wherein

said central computer system includes a plurality of databases, said plurality of databases including a financial institution conversion table database.

4. The demand deposit account data processing system of claim 3, wherein said plurality of databases further includes at least:

a positive database;

a negative database;

a velocity/risk database;

a closed account database; and

an exception database.

5. The demand deposit account data processing system of claim 1, wherein

said at least one point of sale terminal further includes a software program, said software program being adapted to prompt for, transmit on line, and record customer information.

6. The demand deposit account data processing system of claim 1, wherein said central computer system further includes database software adapted to automatically log and summarize transaction information from said at least one point of sale terminal, said transaction information including at least said demand deposit account information, said demand deposit account information including at least customer information, check sequence number, American Banking Association routing number, and checking account number;

sale data, said sale data including at least one point of sale terminal location information, date, time, and sales amount information;

transaction identification number;

transaction status information; and

settlement cutoff time.

7. The demand deposit account data processing system of claim 6, wherein

said database software is further adapted to recognize and repair errors in said demand deposit account data and communicate said demand deposit account data to said data source at least once.

8. The demand deposit account data processing system of claim 6, wherein

said database software is further adapted to communicate said demand deposit account data to said data source at least once until said transaction is settled on line.

9. The demand deposit account data processing system of claim 7, wherein

said database software is further adapted to submit said demand deposit account data to said data source at least once until said transaction is settled on line.

10. The demand deposit account data processing system of claim 1, wherein

said at least one point of sale terminal further includes a printer.

11. The demand deposit account data processing system of claim 1, wherein

said at least one point of sale terminal further includes a keyboard.

12. The demand deposit account data processing system of claim 1, wherein

said at least one point of sale terminal further includes a display monitor.

13. The demand deposit account data processing system of claim 1, wherein

said at least one non-network bank database is one selected from the group consisting of an automated clearing house, a federal reserve bank, and wire transfer.

14. The demand deposit account data processing system of claim 1, wherein

said database software is further to recognize and repair errors in said demand deposit account data and communicate said demand deposit account data to said data source at least once.

15. The demand deposit account data processing system of claim 1, wherein

said database software is further adapted to communicate said demand deposit account data to said data source at least once until said transaction is settled on line.

16. A demand deposit account data processing system comprising:

demand deposit data having a data source, said data source being one selected from the group consisting of at least one network bank database and at least one non-network bank database;

at least one point of sale terminal adapted to receive said demand deposit account data to initiate a transaction;

a central computer system;

first communication means integrated with said at least one point of sale terminal for electronically communicating with said central computer system;

data storage means integrated with said point of sale terminal for storing said demand deposit account data;

second communication means integrated with said central computer system for receiving said demand deposit account data from said at least one point of sale terminal and communicating with said network bank database and said non-network bank database;

whereby

said central computer system identifies said data source and, in the case of demand deposit account data for said at least one network bank database, communicates with said at least one network bank database to verify said transaction on line, and in the case of demand deposit account data for said at least one non-network bank database, communicates with said at least one non-network bank database to verify said transaction off line.

17. A point of sale demand deposit account settlement process comprising the steps of:

(a) providing demand deposit account data having a data source, said data source being selected from the group consisting of at least one network bank database and at least one non-network bank database;

(b) providing sale data;

(c) providing a central computer system having first communication means for communicating with said data source;

(d) providing at least one point of sale terminal adapted to receive said demand deposit account data and said sale data and having data storage means for recording said demand deposit account data, said point of sale terminal further having a printer and second communication means for communicating with said first communication means;

(e) initiating a transaction by capturing said demand deposit account data and said sale data with said at least one point of sale terminal;

(f) storing said demand deposit account data in said data storage means;

(g) communicating said demand deposit account data and said sale data to said central computer system;

(h) identifying said data source for said demand deposit account data;

(i) communicating said demand deposit account data and said sale data to said data source;

(j) correlating said sale data and said demand deposit account data with said data source to obtain a transaction result; and

(k) communicating said transaction result to said central computer system and said at least one point of sale terminal;

wherein step (j) further includes the substeps of;

(i) debiting on line a demand deposit account identified by said demand deposit account data if said demand deposit account has said at least one network bank database as its data source; and

(ii) transferring funds through said at least one non-network bank database if said demand deposit account has said at least one non-network bank database as its data source, said at least one non-network bank database being selected from the group consisting of an automated clearing house, a federal reserve bank, and wire transfer.

18. The point of sale demand deposit account settlement process of claim 17, wherein

said demand deposit account data includes magnetically readable data and non-magnetically readable data, said magnetically readable data identifying said data source and a demand deposit account; and wherein

said communicating step includes communicating said magnetically readable data to said central computer system; and

further wherein

said identifying step includes mapping said data source from said magnetically readable data.

19. The point of sale demand deposit account settlement process of claim 18, wherein step (j) further comprises the substeps of:

(i) verifying a status of said demand deposit account; and

(ii) comparing the status of said demand deposit account to said sale information to thereby obtain said transaction result.

20. The point of sale demand deposit account settlement process of claim 19, wherein step (j) further comprises the substeps of:

(iii) verifying said data source for said demand deposit account data;

(iv) generating a negative transaction result if said data source verification step fails;

(v) generating a negative transaction result if substep (ii) yields at least one transaction result selected from the group consisting of insufficient funds, uncollected funds, closed account, negative velocity/risk comparison; and

(vi) generating a positive transaction result if substep (ii) yields at least one transaction result selected from the group consisting of sufficient funds, positive velocity/risk comparison, merchant override.

21. The point of sale demand deposit account settlement process of claim 20, wherein substep (vi) further includes the sub-substeps of:

(a) debiting said demand deposit account if said demand deposit account has said at least one network bank database as its data source; and

(b) transferring funds through said at least one non-network bank database if said demand deposit account has said at least one non-network bank database as its data source, said at least one non-network bank database being selected from the group consisting of an automated clearing house, a federal reserve bank, and wire transfer.

22. The point of sale demand deposit account settlement process of claim 19, wherein step (j) further includes the substeps of:

(iii) voiding said transaction at said at least one point of sale terminal;

(iv) crediting said demand deposit account having said at least one network bank database as its data source in an amount equal to an amount debited in substep (i); and

(v) issuing a credit to said demand deposit account having said at least one non-network bank database as its data source in an amount equal to an amount of said funds transferred in substep (ii).

23. The point of sale demand deposit account settlement process of claim 22, and further comprising the step of:

(l) printing said transaction result if said transaction was authorized by said data source, if said transaction was voided, if said demand deposit account was credited, or if said demand deposit account was issued a credit, said transaction result including at least an authorization number, said demand deposit account data, and said sale data, said sale data including at least point of sale terminal location information, date, time, and sales amount information.

24. The point of sale demand deposit account settlement process of claim 17, and further comprising the steps of:

(l) overriding said transaction result if said transaction result was negative; and

(m) forcing a settlement of said transaction.

25. The point of sale demand deposit account settlement process of claim 24, and further comprising the step of:

(n) printing said transaction result if said transaction was authorized by said data source or if said transaction was overridden, said transaction result including at least an authorization number, said demand deposit account data, and said sale data, said sale data including at least point of sale terminal location information, data, time, and sales amount information.

26. The point of sale demand deposit account settlement process of claim 17, wherein said transaction may be voided at any step in said process.

27. The point of sale demand account settlement process of claim 17, and further comprising the step of:

(l) printing said transaction result if said transaction was authorized said data source, said transaction result including at least an authorization number, said demand deposit account data, and said data, said sale data including at least point of sale terminal location information, data, time, and sales amount information.

28. The point of sale demand deposit account settlement process of claim 17, wherein

said central computer system further includes a plurality of databases, said plurality of databases including a financial institution conversion table database;

and wherein step (h) further comprises the substeps of;

(i) mapping said demand deposit account data to a demand deposit account number posted through said data source, wherein said financial institution conversion table database is adapted to accomplish said mapping step; and

(ii) verifying said transaction using authorization algorithms and said plurality of databases.

29. The point of sale demand deposit account settlement process of claim 28, wherein said plurality of databases further includes at least:

a positive database;

a negative database;

a velocity/risk database;

a closed account database; and

an exception database.

30. The point of sale demand deposit account settlement process of claim 17, wherein said central computer system further includes a plurality of databases;

and wherein said settlement process further comprises the step of;

(l) updating automatically said plurality of databases with information from said transaction result.

31. The point of sale demand deposit account settlement process of claim 17, wherein

said transaction result is selected from the group consisting of at least a settled transaction result, an insufficient funds transaction result, and an erroneous demand deposit account data transaction result;

and wherein said settlement process further comprises the step of;

(l) repairing said demand deposit account data and recommunicating said demand deposit account data and said sale data at least once to said data source for correlation if said erroneous demand deposit account data transaction result is communicated.

32. The point of sale demand deposit account settlement process of claim 17, wherein

said transaction result is selected from the group consisting of at least a settled transaction result, an insufficient funds transaction result, and an erroneous demand deposit account data transaction result;

and wherein said settlement process further comprises the step of;

(l) recommunicating said demand deposit account data and said sale data at least once to said data source for correlation if said insufficient funds transaction result is communicated.

33. The point of sale demand deposit account settlement process of claim 17, wherein

said central computer system further includes a plurality of databases;

and wherein

said transaction result is selected from the group consisting of at least a settled transaction result, an insufficient funds transaction result, and an erroneous demand deposit account data transaction result; and

wherein said settlement process further comprises the steps of;

(l) updating automatically said plurality of databases with information from said transaction result;

(m) repairing said demand deposit account data and recommunicating said demand deposit account data and said sale data at least once to said data source for correlation if said erroneous demand deposit account data transaction result is communicated; and

(n) recommunicating said demand deposit account data and said sale data at least once to said data source for correlation if said insufficient funds transaction result is communicated.