Method and system for processing financial instrument deposits physically remote from a financial institution

• US 7,181,430 B1
• Filed: 04/28/2000
• Issued: 02/20/2007
• Est. Priority Date: 04/28/2000
• Status: Expired due to Term

• Current Assignee: PPS Data LLC (Zions Bancorporation, N.A.)
• Original Assignee: Netdeposit LLC (Zions Bancorporation, N.A.)
• Inventors: Titus, William Ronald, Buchanan, Danne L.
• Primary Examiner(s): NGUYEN, NGA B
• Application Number:
  US09/560,779
• Time in Patent Office: 2,489 Days
• Field of Search: 705/40, 705/42, 705/43, 705/44, 705/45, 705/16, 705/17, 705/18, 235/379, 235/380, 235/381
• US Class Current: 705/45
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/0425 the cheque being electronic only
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07F 19/20 Automatic teller machines [ATMs]
• CPC Class Codes: G07F 19/202 Depositing operations within ATMs depositing in general G07D11/00

Abstract

A system that includes computer hardware, computer software, apparatus, and methodology that enables individuals, businesses, and all types of organizations (both for profit and non-profit) to capture and securely transmit check images (including, but not limited to, personal checks, business checks, travelers checks, money orders, merchant coupons, food coupons, line of credit checks, etc.), deposit information, and other information from remote locations (i.e., locations that could include the financial institution'"'"'s remote locations, other financial institution'"'"'s locations, businesses, private residences, etc.), for the purpose of having those checks credited to the depositing individual'"'"'s or organization'"'"'s bank account(s) and having the check images (and/or physical checks) entered into the bank check clearing channels for ultimate delivery to the maker bank for payment out of the maker'"'"'s account.

Claims

1. A method for deposit processing at a central system a plurality of checks deposited at a remote site with accompanying deposit information, comprising:

the central system receiving deposit information for a plurality of different deposit transactions, with the deposit information including for each of the different deposit transactions a deposit account designation, electronic check data and check image data for at least one check to be deposited, wherein the central system is separate from MICR capture, deposit accounting, cash management, and float processing systems for a bank of first deposit and wherein the deposit account designation for each of at least a subset of the plurality of the deposit transactions is to a different bank of first deposit;

the central system transmitting the electronic deposit data and optionally the check image data for each different deposit transaction of the subset of the plurality of the deposit transactions to a respective different one of the banks of first deposit;

the central system performing at least one of sorting the received deposit information and error checking the received deposit information before transmission to any of the MICR capture, deposit accounting, cash management, and float processing systems of each of the different banks of first deposit designated in the respective deposit account designations in the deposit information; and

the central system transmitting electronic check data and the check image data directly or indirectly to a maker bank or a Federal Reserve Bank or a correspondent bank in a transmission having a transmission path that bypasses the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction.

2. The method as defined in claim 1, further comprising at the remote site:

reading said check image data to create image information data; and

comparing the image information data to the electronic check data.

3. The method as defined in claim 1, further comprising the step of storing at least one of the check image data and endorsed and/or voided check image data on a server accessible from the Internet.

4. The method as defined in claim 1, further comprising the steps of:

the central system determining if the maker bank requires a hard copy of the check; and

if it does, sending check image data to the Federal Reserve Bank for printing a hard copy of the check and sending the hard copy of the check directly or indirectly to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction; and

if it does not, sending the check image data directly or indirectly to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction.

5. The method as defined in claim 1, further comprising the steps of:

the central system determining if the maker bank requires a hard copy of the check;

if it does, printing a copy of the check from the check image data and forwarding directly or indirectly the printed check to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction; and

if not, sending the check image data directly or indirectly to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction.

6. The method as defined in claim 1, wherein if the check image data is inaccurate or unreadable, then the central system sending an instruction to the remote site to correct without first storing at the central system the check image data having the error;

and

receiving corrected check image data.

7. The method as defined in claim 1, further comprising sending an electronic notification to the remote site that a deposit is complete.

8. The method as defined in claim 1, further comprising formatting the electronic check data and the check image data for processing in an accounting system of the bank of first deposit.

9. The method as defined in claim 1, further comprising

the central system receiving return check image data for a return check coupled with a reference key for an original deposit transaction.

10. The method as defined in claim 9, further comprising

the central system sending the return check image data with the reference key directly or indirectly to the maker bank for re-presentment.

11. The method as defined in claim 10, further comprising

the central system determining if a re-presentment of the returned check requires a duplicate hard copy of the return check or if the check data image is acceptable for the re-presentment;

and

if the check image is acceptable, obtaining the reference key associated with the original deposit transaction; and

sending directly or indirectly the check image data and the reference key to the maker bank.

12. The method as defined in claim 1, further comprising a system with a plurality of different remote sites, the following steps being performed at each of the plurality of remote sites:

the remote site obtaining electronic deposit data for the one or more checks;

the remote site converting data for each of the one or more checks into electronic check data;

the remote site creating an image of the one or more checks to obtain original check image data;

the remote site endorsing and/or voiding the one or more checks with a bank endorsement to obtain endorsed and/or voided checks;

the remote site creating an image of each of a plurality of the endorsed and/or voided checks to obtain endorsed and/or voided check image data;

the remote site electronically associating the electronic deposit data, the electronic check data and the original check image data and the endorsed and/or voided check image data; and

the remote site transmitting the electronically associated electronic check data and the original check image data and/or the endorsed and/or voided check image to the central system.

13. The method as defined in claim 12, wherein the transmitting to the central system step comprises transmitting both the original check image data and the endorsed and/or voided check image data.

14. The method as defined in claim 12, further comprising:

determining if endorsement information at one of the remote sites for printing on the check is up-to-date; and

if the endorsement information at the remote site is not up-to-date, then downloading updated endorsement information from the central system.

15. The method as defined in claim 12, further comprising the step of comparing an amount of a deposit or an amount of one or more checks against a deposit maximum, and providing a notice if the deposit exceeds the deposit maximum.

16. The method as defined in claim 12, further comprising receiving return check image data for a return check coupled with a reference key for an original deposit transaction and a return reason.

17. The method as defined in claim 1, further comprising the central system sending endorsement information to the remote site to be used to add an endorsement.

18. The method as defined in claim 1, further comprising receiving the endorsed and/or voided check image data from the remote site.

19. A computer-readable medium comprising a program product for deposit processing at a central system a plurality of checks deposited at a remote site with accompanying deposit information, comprising:

at least one computer readable medium having computer readable program code embodied therein to be executed by a computer, the computer readable program code, when executed, causing a machine to perform the following method steps

the central system receiving deposit information for a plurality of different deposit transactions, with the deposit information including for each of the different deposit transactions a deposit account designation, electronic check data and check image data for at least one check to be deposited, wherein the central system is separate from MICR capture, deposit accounting, cash management, and float processing systems for a bank of first deposit and wherein the deposit account designation for each of at least a subset of the plurality of the deposit transactions is to a different bank of first deposit;

the central system transmitting the electronic deposit data and optionally the check image data for each different deposit transaction of the subset of the plurality of the deposit transactions to a respective different one of the banks of first deposit;

the central system performing at least one of sorting the received deposit information and error checking the received deposit information before transmission to any of the MICR capture, deposit accounting, cash management, and float processing systems of each of the different banks of first deposit designated in the respective deposit account designations in the deposit information; and

the central system transmitting electronic check data and the check image data directly or indirectly to a maker bank or a Federal Reserve Bank or a correspondent bank in a transmission having a transmission path that bypasses the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction.

20. The computer-readable medium as defined in claim 19, further comprising program code for causing the following method steps at the remote site:

reading said check image data to create image information data; and

comparing the image information data to the electronic check data.

21. The computer-readable medium as defined in claim 19, further comprising program code for causing the step of storing at least one of the check image data and endorsed and/or voided check image data on a server accessible from the Internet.

22. The computer-readable medium as defined in claim 19, further comprising program code for causing the steps of:

determining if the maker bank requires a hard copy of the check; and

if it does, sending check image data for printing a hard copy of the check and sending the hard copy of the check directly or indirectly to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction; and

if it does not, sending the check image data directly or indirectly to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction.

23. The computer-readable medium as defined in claim 19, further comprising program code for causing the steps of:

determining if the maker bank requires a hard copy of the check;

if it does, printing a copy of the check from check image data and forwarding directly or indirectly the printed check to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction; and

if not, sending the check image data directly or indirectly to the maker bank or the Federal Reserve Bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction.

24. The computer-readable medium as defined in claim 19, wherein if the check image is inaccurate or unreadable, then sending an instruction to the remote site to correct without first storing at the central system the check image data having the error;

and

receiving corrected check image data.

25. The computer-readable medium as defined in claim 19, further comprising program code for causing the step of sending an electronic notification to the remote site that a deposit is complete.

26. The computer-readable medium as defined in claim 19, further comprising program code for causing the step of formatting the electronic check data and the check image data for processing in an accounting system of the bank of first deposit.

27. The computer-readable medium as defined in claim 19, further comprising program code for causing the step of

receiving return check image data for a return check coupled with a reference key for an deposit transaction.

28. The computer-readable medium as defined in claim 27, further comprising program code for causing the step of

sending the return check image data with the reference key directly or indirectly to the maker bank for re-presentment.

29. The computer-readable medium as defined in claim 28, further comprising program code for causing the machine to perform the step of

determining if a re-presentment of the returned check requires a duplicate hard copy of the return check or if the check data image is acceptable for the re-presentment;

and

if the check image is acceptable, obtaining a reference key associated with an deposit transaction; and

sending directly or indirectly the check image data and the reference key to the maker bank.

30. The computer-readable medium as defined in claim 19, comprising program code at a plurality of different remote sites for causing when executed a machine at the respective remote site to perform the following method steps:

the remote site obtaining electronic deposit data for the one or more checks;

the remote site converting data for each of the one or more checks into electronic check data;

the remote site creating an image of the one or more check to obtain original check image data;

the remote site endorsing and/or voiding the one or more checks with a bank endorsement to obtain endorsed and/or voided checks;

the remote site creating an image of each of a plurality of the endorsed and/or voided checks to obtain endorsed and/or voided check image data;

the remote site electronically associating the electronic deposit data, the electronic check data and the original check image data and the endorsed and/or voided check image data; and

the remote site transmitting the electronically associated electronic check data and the original check image data and/or the endorsed and/or voided check image to the central system.

31. The computer-readable medium as defined in claim 30, wherein the transmitting to the central system step comprises transmitting both the original check image data and the endorsed and/or voided check image data.

32. The computer-readable medium as defined in claim 30, further comprising program code to cause the machine to perform the following method steps:

determining if endorsement information at one of the remote sites for printing on the check is up-to-date; and

if the endorsement information at the one of the remote sites is not up-to-date, then sending updated endorsement information to that remote site.

33. The computer-readable medium as defined in claim 30, further comprising program code for causing a machine to perform the following step of comparing an amount of a deposit or an amount of one or more checks against a deposit maximum, and providing a notice if the deposit exceeds the deposit maximum.

34. The computer-readable medium as defined in claim 30, further comprising program code for causing the machine to perform the following method step of receiving return check image data for a return check coupled with a reference key for an original deposit transaction and a return reason.

35. The computer-readable medium as defined in claim 19, further comprising program code for the central system sending endorsement information to the remote site to be used to add an endorsement.

36. The computer-readable medium as defined in claim 19, further comprising program code for receiving the endorsed and/or voided check image data from the remote site.

37. A system for deposit processing at a central system a plurality of checks deposited at a remote site with accompanying deposit information, comprising:

an electronic storage; and

a set of processors that use the electronic storage, wherein a set is one or more, and wherein the set of processors include among them the following components

a component at the central system for receiving deposit information for a plurality of different deposit transactions, with the deposit information including for each of the different deposit transactions a deposit account designation, electronic check data and check image data for at least one check to be deposited, wherein the central system is separate from MICR capture, deposit accounting, cash management, and float processing systems for a bank of first deposit and wherein the deposit account designation for each of at least a subset of the plurality of the deposit transactions is to a different bank of first deposit;

a component at the central system for transmitting the electronic deposit data and optionally the check image data for each different deposit transaction of the subset of the plurality of the deposit transactions to a respective different one of the banks of first deposit;

a component at the central system performing at least one of sorting the received deposit information and error checking the received deposit information before transmission to any of the MICR capture, deposit accounting, cash management, and float processing systems of each of the different banks of first deposit designated in the respective deposit account designations in the deposit information; and

a component at the central system for transmitting electronic check data and the check image data directly or indirectly to a maker bank or a Federal Reserve Bank or a correspondent bank in a transmission having a transmission path that bypasses the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction.

38. The system as defined in claim 37, further comprising a component for sending the check image data to a bank of first deposit.

39. The system as defined in claim 37, further comprising:

a component for reading said check image data to create image information data; and

a component for comparing the image information data to the electronic check data.

40. The system as defined in claim 37, further comprising a component for storing at least one of the check image data and endorsed and/or voided check image data on a server accessible from the Internet.

41. The system as defined in claim 37, further comprising:

a component for determining if the maker bank requires a hard copy of the check, and, if it does, sending the check image data for printing a hard copy of the check and sending the hard copy of the check directly or indirectly to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction, and if it does not, sending the check image data directly or indirectly to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction.

42. The system as defined in claim 37, further comprising:

a component for the central system determining if the maker bank requires a hard copy of the check, if it does, printing a copy of the check from the check image data and forwarding directly or indirectly the printed check to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction, and if not, sending the check image data directly or indirectly to the maker bank, but not through the MICR capture, deposit accounting, cash management, and float processing systems of the bank of first deposit for that deposit transaction.

43. The system as defined in claim 37, wherein if the check image data is inaccurate or unreadable, then sending an instruction to the remote site to correct without first storing at the central system the check image data having the error;

and

a component for receiving corrected check image data.

44. The system as defined in claim 37, further comprising a component for sending an electronic notification to the remote site that a deposit is complete.

45. The system as defined in claim 37, further comprising a component for formatting the electronic check data and the check image data for processing in an accounting system of the bank of first deposit.

46. The system as defined in claim 37, further comprising

a component at the central system for receiving return check image data for a return check coupled with a reference key for an original deposit transaction.

47. The system as defined in claim 46, further comprising

a component at the central system for sending the return check image data with the reference key directly or indirectly to the maker bank for re-presentment.

48. The system as defined in claim 47, further comprising

a component for determining if a re-presentment of the returned check requires a duplicate hard copy of the return check or if the check data image is acceptable for the re-presentment;

and if the check image is acceptable, obtaining the reference key associated with the deposit transaction and sending directly or indirectly the check image data and the reference key to the maker bank.

49. The system as defined in claim 37, further comprising a subsystem at a plurality of different remote sites, with the subsystem at each of the plurality of remote sites comprising:

a component for obtaining electronic deposit data for the one or more checks;

a component for converting data for each of the one or more checks into electronic check data;

a component for creating an image of each of the one or more checks to obtain original check image data;

a component for endorsing and/or voiding the one or more checks with a bank endorsement to obtain endorsed and/or voided checks;

a component for creating an image of each of a plurality of the endorsed and/or voided checks to obtain endorsed and/or voided check image data;

a component for electronically associating the electronic deposit data, the electronic check data and the original check image data and the endorsed and/or voided check image data; and

a transmitter for transmitting the electronically associated electronic check data and the original check image data and/or the endorsed and/or voided check image data to the central system.

50. The system as defined in claim 49, wherein the transmitter for transmitting to the central system is programmed to transmit both the original check image data and the endorsed and/or voided check image data.

51. The system as defined in claim 49, further comprising:

a component for determining if endorsement information at one of the remote sites for printing on the check is up-to-date; and

a component for, if the endorsement information at the one of the remote sites is not up-to-date, then downloading updated endorsement information from the central system.

52. The system as defined in claim 49, further comprising a component for comparing an amount of a deposit or an amount of one or more checks against a deposit maximum, and providing a notice if the deposit exceeds the deposit maximum.

53. The system as defined in claim 49, further comprising a component for receiving return check image data for a return check coupled with a reference key for an original deposit transaction and a return reason.

54. The system as defined in claim 37, further comprising a component for the central system sending endorsement information to the remote site to be used to add an endorsement.

55. The system as defined in claim 37, further comprising a component for receiving the endorsed and/or voided check image data from the remote site.