Check writing point of sale system
DCFirst Claim
1. A checkwriting point of sale system comprising:
- a point of sale terminal adapted to receive payer bank account information from any bank check;
a central computer system;
first communications means integral to said point of sale terminal for electronically communicating with the central computer system;
memory means integral to said point of sale terminal for temporarily storing the payer bank account information;
the central computer system having second communication means for receiving information from a plurality of said point of sale terminals; and
the central computer system second communication means enabling said central computer system to communicate with external databases for performing a payer bank account status search and further enabling communication with an electronic funds transfer system for transferring funds without using the bank check as a negotiable instrument.
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Accused Products
Abstract
A point of sale system designed to read information from a consumer'"'"'s check, credit card, or manual input with a subsequent debiting of a consumer'"'"'s account and crediting merchant'"'"'s account for the goods or services provided. Point of sale terminals are designed to accept a form of credit card with a consumer'"'"'s bank account information encoded thereon or in the alternative to read the MICR number from a consumer'"'"'s check in order to verify that a consumer has an appropriate balance to conduct the transaction with a given merchant. Thereafter the transaction of that information is transmitted to a central computer system which verifies the consumer'"'"'s credit worthiness and stores the transaction event information for subsequent bank reconciliation via the ACH or other competing network. The invention eliminates the need for paper checks with all bank reconciliation being accomplished electronically. The present invention also includes fraud protection provisions such as velocity controls, social security checks, and scans. The present invention has the further flexibility to differentiate between “first time” consumer usage and those limits otherwise assigned to “known” consumer accounts. Additionally, there is not need for the present system to retain the consumer'"'"'s check after verification.
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Citations
28 Claims
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1. A checkwriting point of sale system comprising:
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a point of sale terminal adapted to receive payer bank account information from any bank check;
a central computer system;
first communications means integral to said point of sale terminal for electronically communicating with the central computer system;
memory means integral to said point of sale terminal for temporarily storing the payer bank account information;
the central computer system having second communication means for receiving information from a plurality of said point of sale terminals; and
the central computer system second communication means enabling said central computer system to communicate with external databases for performing a payer bank account status search and further enabling communication with an electronic funds transfer system for transferring funds without using the bank check as a negotiable instrument. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 19, 20, 21)
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10. A checkwriting point of sale process comprising:
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presenting a check to a point of sale terminal located at a merchant or service provider;
reading a magnetic ink character recognition number information on the check for the sole purpose of obtaining consumer bank account information, without using the check as a negotiable instrument;
storing payer bank account information obtained from the check providing transaction event information to the point of sale terminal;
transmitting the transaction event information and payer bank account information to a central computer system;
storing the transaction event information and payer banking account information; and
transmitting the transaction event information to a bank for electronic funds transfer from the payer bank account of funds sufficient for the transaction event. - View Dependent Claims (11, 12, 13, 14, 15, 16, 17, 18, 22, 23)
capturing and logging the transaction event; and
electronically settling the transaction.
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17. The checkwriting point of sale process of claim 14 wherein the cross-searching further comprises conducting a “
- velocity check”
of the payer'"'"'s expenditure to avoid fraud.
- velocity check”
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18. The checkwriting point of sale process of claim 10 further comprising performing a “
- velocity check”
on the merchant'"'"'s or service provider'"'"'s sales activity to avoid fraud.
- velocity check”
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22. The checkwriting point of sale process of claim 10, wherein the electronic fund transfer occurs online or offline.
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23. The checkwriting point of sale system of claim 22, wherein the electronic fund transfer is by ACH or Federal Reserve system.
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24. A checkwriting point of sale process comprising:
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a payer completing a check for a transaction with a merchant or service provider;
using a point of sale terminal associated with said merchant or service provider to read MICR information on the check to obtain payer bank account information;
inputting transaction information, including at least a transaction amount, into the point of sale terminal;
printing an authorization to debit the payer bank account by the transaction amount for the payer to sign;
the payer signing the authorization;
returning a copy of the signed authorization and the check to the payer; and
electronically debiting said payer bank account by said transaction amount based on the signed authorization, without using the check as a negotiable instrument. - View Dependent Claims (25, 26, 27, 28)
proceeding with the transaction only upon an approval.
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28. The checkwriting point of sale process of claim 24, wherein the electronic debiting is performed by an electronic fund transfer accomplish by ACH or Federal Reserve system.
Specification