System and method for verifying, setting, printing and guaranteeing checks at a remote location

• US 7,124,113 B1
• Filed: 11/21/2000
• Issued: 10/17/2006
• Est. Priority Date: 11/21/2000
• Status: Expired due to Fees

• Current Assignee: TROY Group, Inc.
• Original Assignee: TROY Group, Inc.
• Inventors: Blake, Robert, Fairclough, John F., Calkins, Richard, Hyman, Karen R., Kownacki, Suavek, Galarraga, Murray, Dragowski, Tadeusz J., Inostroza, Oscar, Gutierrez, Esteban, Saberi, Kamyar
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Winter, John M.
• Application Number:
  US09/717,576
• Time in Patent Office: 2,156 Days
• Field of Search: 705/1, 705/50, 705/40, 705/35, 705/39, 705/53, 380/229
• US Class Current: 705/50
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 30/018 Certifying business or products
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07F 17/42 for ticket printing or like apparatus , e.g. apparatus for dispensing of printed paper tickets or payment cards

Abstract

The present invention relates generally to a system and method for verifying, settling, guaranteeing and printing checks at a remote location, preferably an electronic retailer'"'"'s facilities, via a network, preferably the Internet. The preferred method for verifying, settling, guaranteeing and printing checks over a network at a remote location comprises the following steps. A client computer is connected to a merchant server at a location remote from the client computer. An order is transmitted from the client computer to the merchant server. Payment by check is selected. The client computer is connected to a check server. Customer data is input to the client computer. The customer data is transmitted from the client computer to the check server. The customer data is transmitted from the check server to a check verification server. The check verification server transmits an approval, preferably comprising the customer data and a guarantee of payment to a merchant, to the client computer and the check server. The merchant server confirms the client computer'"'"'s order by electronic mail message to both the client computer and the check server. The approval from the check verification server is stored in a merchant file in the check server. The merchant file is downloaded from the check server to a check printing station at the location remote from the client computer. A secure printer, preferably a magnetic ink character recognition-enabled printer, connected to the check printing station prints a check. The merchant can then cash the check as a standard bank draft.

Claims

1. A method for printing and verifying checks over a network comprising the steps:

connecting a client computer to a merchant server at a location remote from the client computer;

transmitting an order from the client computer to the merchant server;

using the client computer to select payment by check;

connecting the client computer to a check server;

inputting customer data at the client computer;

transmitting customer data from the client computer to the check server;

transmitting customer data from the check server to a check verification server;

confirming the order or payment by a message from the merchant server to the client computer and the check server by sending an electronic mail message to the client computer and the check server, where receipt of the confirming electronic message by the check server determines whether printing of the check is permitted;

transmitting an approval from the check verification server to the check server;

storing the approval from the check verification server in a merchant file in the check server;

transmitting an approval from the check verification server to the client computer;

downloading the merchant file from the check server to a check printing station; and

printing a check including data from the check server as a negotiable instrument at the remote location.

2. The method of claim 1 where the check is printed by a secure printer connected to a check printing station at the remote location.

3. The method of claim 1 where the check is printed using a secure printer connected to the check printing station and the secure printer is a magnetic ink character recognition-enabled printer.

4. The method of claim 1 where the network is the Internet.

5. The method of claim 1 where the approval comprises the customer data transmitted from the client computer to the check server.

6. The method of claim 1 where the approval comprises a guarantee of payment to a merchant.

7. A system for settling and verifying checks over a network comprising:

a client computer connected via a network to a merchant server at a location remote from the client computer;

a merchant server connected to a check printing station, a printer and a check server via a network, the check printing station, the printer, and the check server being at a location remote from the client computer;

the check server connected via a network to a check verification server at a location remote from the client computer, the merchant server, the check server, the printing station, and the printer;

the check server comprising a merchant file, the merchant file comprising an approval transmitted from the check verification server, information identifying an order transmitted from the client computer to the merchant server, and customer data inputted into the client computer and transmitted from the client computer to the check server;

the check printing station comprising a copy of the merchant file downloaded from the check server such that the check printing station can use the downloaded merchant file to print a check using the printer; and

the merchant server comprising a mechanism for confirming the order or payment to the client computer and the client verification server.

8. The system of claim 7 where the network is the ACH network.

9. The system of claim 7 where the network is the Internet.

10. The system of claim 7 where the printer is a magnetic ink character recognition-enabled printer.

11. A method for printing and verifying checks over a network for a customer to remotely purchase goods or services from a merchant using a check printed by the merchant, the method comprising;

A customer utilizing a web browser to make a purchase selection, preview the check before it is printed and authorize printing of the check,

a merchant downloading a merchant file from a check server accessed via the Internet and utilizing the merchant file to print a check including magnetic ink characters that identify a customer'"'"'s checking account in a first location as payment for a customer'"'"'s selection, from a second location remote from the first location, of goods and/or services offered by the merchant;

where the check being a negotiable instrument when printed by the merchant.

12. The method of claim 11 wherein the customer utilizes a web browser to make the selections, to preview the check before it is printed, and to authorize the merchant to print the check.

13. The method of claim 11 wherein the merchant prints the check by downloading a merchant file from a check server accessed via the Internet and utilizing the merchant file at a check printing station to print the check.

14. The method of claim 11 further comprising:

connecting by a customer computer to a merchant web server at a location remote from the customer computer, viewing a merchant web site located on the merchant server and comprising hypertext markup language (HTML) source code and a merchant database, selecting goods or services from the web site, and selecting payment by check for the selected goods and services, where payment selection is accomplished by means allowed by the HTML source code of the merchant web site;

then using the HTML source code of the merchant web site to cause the web browser to connect to a check web server that is not the merchant web server or the client computer, where the web server includes a check server database, transmit customer data stored in the merchant database to the check server, transmit transaction data to the check server, the transaction data including an indicator of whether to print a check immediately or at a later time;

then using the web browser on the client computer to display a request from the check server for customer data with fields, filled in by customer data in the merchant database;

passing a unique number generated by the check server and used to associate a proper record in the check server database with the customer to the merchant web server, the merchant web server using the unique number to associate a proper record in the merchant server database with the customer, transmitting magnetic ink character recognition (MICR) line information including a routing number to the check web server, the check web server verifying the validity of the routing number and causing the web browser to prompt the customer for a correct routing number if the routing number is invalid, obtaining an approval from a check verification web server of a check verification service provided, the approval indicating a guarantee of payment by the check verification service provided, and to storing the obtained approval in a merchant file.