Check writing point of sale system

• US 6,354,491 B2
• Filed: 05/09/2001
• Issued: 03/12/2002
• Est. Priority Date: 12/31/1996
• Status: Expired due to Fees

• Current Assignee: LML Patent Corporation (Danube Private Holdings II, LLC)
• Original Assignee: LML Patent Corporation (Danube Private Holdings II, LLC)
• Inventors: Nichols, Henry R., Hills, Robert R.
• Primary Examiner(s): Pitts, Harold I.
• Application Number:
  US09/851,609
• Publication Number:
  US 20010037299A1
• Time in Patent Office: 307 Days
• Field of Search: 235/379, 235/380, 705/26
• 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 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G07G 1/12 electronically operated digital data processing aspects G06Q20/00

Abstract

A point of sale system designed to accept payer account number input with a subsequent debiting of a payer account and crediting merchant'"'"'s account for the goods or services provided. Point of sale terminals are designed to accept bank account information by manually keying, MICR reading of a payer check, OCR reading of a payer check, magnetic stripe reading of a payer debit card, or electronic reading of a payer smart card. Thereafter, the transaction information is transmitted to a central computer system which 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. Additionally, there is no need for the present system to retain the check after verification.

Claims

1. A method of authorizing the debit of funds from a bank account without negotiating a check, comprising:

inputting payer bank account information into a point of sale terminal;

inputting a transaction amount into said point of sale terminal;

printing an authorization to debit payer'"'"'s bank account by an amount equal to the transaction amount for the payer'"'"'s signature; and

debiting said payer bank account by an amount equal to the transaction amount by electronic fund transfer.

2. The method of authorizing the debit of funds from a bank account without negotiating a check of claim 1, wherein the payer bank account information is input into the point of sale terminal by a method selected from the group consisting of:

manually keying the information, MICR reading of a payer check, OCR reading of a payer check, magnetic stripe reading of a payer debit card, and electronic reading of a payer smart card.

3. The method of authorizing the debit of funds from a bank account without negotiating a check of claim 1, further comprising checking payer information on a database to determine whether to continue a transaction prior to printing the authorization.

4. The method of authorizing the debit of funds from a bank account without negotiating a check of claim 1, wherein the payer is selected from the group consisting of consumers and businesses.

5. The method of authorizing the debit of funds from a bank account without negotiating a check of claim 1, wherein said electronic fund transfer is performed offline by one of the group consisting of ACH and Federal Reserve system.

6. The method of authorizing the debit of funds from a bank account without negotiating a check of claim 1, wherein said electronic fund transfer is performed online by one of the group consisting of ACH and Federal Reserve system.

7. The method of authorizing the debit of funds from a bank account without negotiating a check of claim 1, wherein payer bank account information is supplied by a payer check and disposition of the check is by one of the group consisting of:

returning a blank check to the payer, returning an incomplete check to the payer, returning a completed and voided check to the payer, retaining an incomplete and voided check, and retaining a completed and voided check.