System and method for biometric authorization for check cashing

• US 6,957,770 B1
• Filed: 05/10/2002
• Issued: 10/25/2005
• Est. Priority Date: 05/10/2002
• Status: Expired due to Term

• Current Assignee: Valsoft Corp., Inc. (Valsef Group)
• Original Assignee: BioPay LLC (Valsef Group)
• Inventors: Robinson, Timothy
• Primary Examiner(s): Kim, Ahshik
• Application Number:
  US10/142,687
• Time in Patent Office: 1,264 Days
• Field of Search: 235/379, 235/380, 235/375, 235/382, 235/383, 235/381, 705/10, 705/14, 705/44
• US Class Current: 235/382
• 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 20/40 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

Abstract

A system for authorizing a check cashing transaction between a consumer and a merchant using identity verification based on biometric information. A system comprises a central biometric information database containing biometric and personal identity-verifying data registered therein by a consumer and containing merchant identity-verifying data registered therein by a merchant. The system further comprises a merchant local device having a biometric reader and linked via a network to the central biometric information database. Using the biometric reader, a consumer desiring to cash a check presents biometric data to the central biometric information database via the biometric reader. The central biometric information database provides an electronic comparison of the present biometric data with the biometric data registered by the consumer. If the presented data and the registered data match, an approval signal is transmitted to the merchant local device.

Claims

1. A method for enrolling an individual in a biometric check cashing system, comprising:

receiving identification information from an individual for enrollment in the check cashing system;

transmitting said received identification information to a central database to determine whether a portion of said identification information already exists in an account in said central database, each of said accounts including registered biometric data;

receiving, from the central database, additional enrollment information from an existing account in said central database, and an account status of said existing account;

enrolling said individual in a local database using said additional enrollment information; and

declining an enrollment request if said existing account does have a negative status associated therewith.

2. The method of claim 1, wherein said biometric data is a fingerprint scan.

3. The method of claim 1, wherein said biometric data is a voiceprint.

4. The method of claim 1, wherein said biometric data is an iris scan.

5. The method of claim 1, wherein said received identification information includes a biometric scan.

6. The method of claim 1, wherein said received identification information includes a personal identifier.

7. The method of claim 1, wherein said personal identifier is a unique number.

8. The method of claim 1, wherein said personal identifier is a reasonably unique number.

9. The method of claim 1, wherein said personal identifier is a non-unique number.

10. The method of claim 1, wherein said received identification information includes an identification number.

11. The method of claim 1, wherein said received identification information includes a social security number.

12. The method of claim 1, wherein said received identification information includes a phone number.

13. A method for enrolling an individual in a biometric check cashing system, comprising:

receiving identification information from an individual for enrollment in the check cashing system;

transmitting said received identification information to a central database to determine whether a portion of said identification information already exists in an account in said central database, each of said accounts including registered biometric data;

receiving, from the central database, additional enrollment information from an existing account in said central database, and an account status of said existing account; and

enrolling said individual in a local database using said additional enrollment information,

wherein said enrolling comprises enrolling said individual in a local database using said additional enrollment information if said existing account does not have a negative status associated therewith.

14. The method of claim 13, wherein said biometric data is a fingerprint scan.

15. The method of claim 13, wherein said biometric data is a voiceprint.

16. The method of claim 13, wherein said biometric data is an iris scan.

17. The method of claim 13, wherein said received identification information includes a biometric scan.

18. The method of claim 13, wherein said received identification information includes a personal identifier.

19. The method of claim 13, wherein said personal identifier is a unique number.

20. The method of claim 13, wherein said personal identifier is a reasonably unique number.

21. The method of claim 13, wherein said personal identifier is a non-unique number.

22. The method of claim 13, wherein said received identification information includes an identification number.

23. The method of claim 13, wherein said received identification information includes a social security number.

24. The method of claim 13, wherein said received identification information includes a phone number.

25. A system for enrolling an individual in a biometric check cashing system, comprising:

a central database that stores account information for individuals that are enrolled in the biometric check cashing system, each of said accounts including registered biometric data; and

a local enrollment system at a local merchant site, said local enrollment system having a local database that stores account information for individuals registered for check cashing at said local merchant site, said local enrollment system being configured to receive identification information from an individual for enrollment, transmit said received identification information to said central database to determine whether a portion of said identification information already exists in an account in said central database, and receive, from said central database, additional enrollment information from an existing account in said central database and an account status of said existing account, wherein said local enrollment system enrolls said individual in said local database using said additional enrollment information.

26. The system of claim 25, wherein said biometric data is a fingerprint scan.

27. The system of claim 25, wherein said biometric data is a voiceprint.

28. The system of claim 25, wherein said biometric data is an iris scan.

29. The system of claim 25, wherein said received identification information includes a biometric scan.

30. The system of claim 25, wherein said received identification information includes a personal identifier.

31. The system of claim 30, wherein said personal identifier is a unique number.

32. The system of claim 30, wherein said personal identifier is a reasonably unique number.

33. The system of claim 30, wherein said personal identifier is a non-unique number.

34. The system of claim 25, wherein said local enrollment system declines an enrollment request if said existing account does have a negative status associated therewith.

35. The system of claim 25, wherein said local enrollment system enrolls said individual in said local database using said additional enrollment information if said existing account does not have a negative status associated therewith.

36. The system of claim 25, wherein said received identification information includes an identification number.

37. The system of claim 25, wherein said received identification information includes a social security number.

38. The system of claim 25, wherein said received identification information includes a phone number.

39. The system of claim 25, further comprising a storage system that stores an identifier of an entity associated with the biometric check cashing system.

40. The method of claim 25, wherein additional data is automatically added to any enrollment of an individual, the additional data being selected from one of a processing terminal identification number, merchant data, and transaction data.

41. The system of claim 25, wherein the individual is authorized to cash a check if it is determined that the individual has a credit score above a threshold value.

42. The system of claim 25, wherein said local enrollment system verifies an age of an individual.

43. The system of claim 25, wherein said registered biometric data includes two biometric scans of a same biometric type.

44. The system of claim 25, wherein said registered biometric data includes biometric scans of two different biometric types.

45. A method for a merchant to authorize a check cashing transaction, comprising:

receiving, from a first entity, information regarding a check that is endorsed by a second entity;

receiving, at a local device, a biometric scan of said first entity that is presenting said check for cashing;

comparing said biometric scan of said first entity with registered biometric information, said comparison being used to determine whether said first entity is authorized to cash said check; and

if said comparison indicates that said first entity is authorized to cash said check, then determining a fee for the check cashing transaction, wherein said determining includes accessing a system profile that has been predefined by the merchant and identifying based on said system profile which of a plurality of fees would apply to the check cashing transaction.

46. The method of claim 45, wherein said fees are one of flat fees, percentage fees and a combination of flat and percentage fees.

47. The method of claim 45, wherein said identifying is based on a value of said check.

48. The method of claim 45, further comprising determining whether to authorize the check cashing transaction based on velocity terms.

49. The method of claim 48, wherein said velocity terms include one or more of a transaction dollar amount, transaction frequency, change of employers, dollar amount of checks presented in a certain time period, number of checks presented in a certain time period, second entity'"'"'s total dollar amount in a certain time period, and specific check series numbers.

50. The method of claim 45, wherein said accessing includes accessing one of a plurality of system profiles that are stored in a database, said plurality of system profiles being individually defined for a respective plurality of merchants that are served by a check cashing authorization service.

51. The method of claim 50, wherein said one of a plurality of system profiles is identified based on a merchant ID.

52. The method of claim 45, wherein said system profile is stored in a central database.

53. The method of claim 45, wherein said system profile is stored in a local database.

54. The method of claim 45, wherein said comparing comprises comparing at a central database.

55. The method of claim 45, wherein said comparing comprises comparing at a local database.

56. The method of claim 45, wherein said comparing comprises comparing at a local device.

57. The method of claim 45, wherein said biometric data is a fingerprint scan.

58. The method of claim 45, wherein said biometric data is a voiceprint.

59. The method of claim 45, wherein said biometric data is an iris scan.

60. The method of claim 45, further comprising receiving a personal identifier of said first entity that is presenting said check for cashing.

61. The method of claim 60, wherein said personal identifier is a unique number.

62. The method of claim 60, wherein said personal identifier is a reasonably unique number.

63. The method of claim 60, wherein said personal identifier is a non-unique number.

64. The method of claim 45, wherein said identifying comprises identifying which of a plurality of fees would apply to the check cashing transaction based on one or parameters that have been predefined by the merchant.

65. The method of claim 45, wherein said check information includes an amount of said check.

66. The method of claim 45, wherein said check information includes an image of said check.

67. The method of claim 45, further comprising storing an identifier of an entity associated with the biometric check cashing system.

68. The method of claim 45, further comprising accepting or declining said check based on parameters set by the merchant.

69. The method of claim 45, further comprising providing the merchant with a guarantee that reimburses the merchant if said check is returned.

70. The method of claim 45, further comprising determining whether said first entity or an account number for said check have a history of fraudulent or suspicious activity.

71. The method of claim 45, further comprising determining whether said first entity has a credit score above a threshold value.

72. The method of claim 45, wherein the check cashing transaction is part of a financial transaction.

73. The method of claim 45, wherein the merchant can disregard a warning of a potential fraudulent account.

74. The method of claim 45, further comprising verifying an age of said first entity.

75. The method of claim 45, further comprising generating for a merchant an activity report concerning the first entity'"'"'s system activity.

76. The method of claim 45, further comprising issuing a warning to the merchant if the account on which the check is drawn has been flagged as a potential target of fraudulent activity.

77. The method of claim 45, further comprising issuing a warning to the merchant if said first entity'"'"'s record indicates that said first entity has come under suspicion of fraudulent activity.

78. The method of claim 45, wherein said receiving at a local device comprises receiving two biometric scans of a same biometric type.

79. The method of claim 45, wherein said receiving at a local device comprises receiving biometric scans of two different biometric types.

80. The method of claim 45, wherein said comparing comprises comparing said biometric scan of said first entity with registered biometric information of said first entity.

81. The method of claim 45, wherein said comparing comprises comparing said biometric scan of said first entity with registered biometric information of a group of individuals.

82. The method of claim 81, wherein said comparing comprises comparing said biometric scan of said first entity with registered biometric information of all individuals in a database.

83. The method of claim 81, wherein said comparing comprises comparing said biometric scan of said first entity with registered biometric information of individuals in a negative database.

84. The method of claim 45, further comprising:

communicating with a third party database to obtain additional financial information concerning said first entity; and

accepting or rejecting the check cashing transaction based, at least in part, on the additional financial information.

85. The method of claim 84, wherein the third party database is one of said first entity'"'"'s bank, said second entity'"'"'s bank, and a financial database.