Check cashing systems and methods

• US 7,257,246 B1
• Filed: 05/07/2003
• Issued: 08/14/2007
• Est. Priority Date: 05/07/2002
• Status: Active Grant

• Current Assignee: Fidelity Information Services, LLC (Fidelity National Information Services Incorporated)
• Original Assignee: Certegy Check Transaction Service Incorporated
• Inventors: Kuzio, Stephen M., Brodie, Alan S., Cwik, Thomas R., Fisher, Alan V.
• Primary Examiner(s): Mancuso; Joseph
• Assistant Examiner(s): Bitar; Nancy
• Application Number:
  US10/431,156
• Time in Patent Office: 1,560 Days
• Field of Search: 382/137, 382/119, 705/35, 705/42, 705/39, 902 4- 6
• US Class Current: 382/137
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06V 20/80 Recognising image objects characterised by unique random patterns

Abstract

A system for facilitating a check-cashing transaction in accordance with the present invention comprises a check-cashing apparatus and a host system in communication with the check-cashing apparatus. The check-cashing apparatus has input devices for receiving check data and identification data from a user. The host system includes one or more processors configured to receive check data, identification data, check image and membership data input by the user at the check-cashing apparatus. The host system can authenticate the identification data by applying a validation algorithm to the identification data or by cross-referencing the data against one or more databases containing validated identification data. If the check cashing apparatus includes a device for capturing biometric information, the identification data can also be authenticated by comparing the biometric information captured at the time of the transaction with stored biometric information relating to the user. The host system can authenticate the check data by: converting one or more of the data fields of the check image into a format capable of being processed. The converted data is then compared to the check data input by the user. The host system can calculate a score for each data field based on a probability that the converted data from the check image matches the check data input by the user. The processor determines automatically whether to approve the check by applying a risk assessment guidelines.

Claims

1. A system for facilitating a check-cashing transaction, the system comprising:

a. a check-cashing apparatus comprising;

i. one or more input devices for receiving check data and identification data from a user;

ii. a check scanner for capturing an image of a check presented by the user, the image comprising one or more data fields;

b. a host system remotely-located from and in communication with the check-cashing apparatus, the host system comprising one or more processors configured to;

i. receive the check data, identification data, and check image;

ii. authenticate the check data by;

1. converting one or more of the data fields of the check image into a format capable of being processed; and

2. comparing the converted data fields to the check data input by the user;

iii. determine automatically whether to approve the check by applying one or more risk assessment guidelines using the identification data and check data; and

iv. upon approval of the check, provide a signal to the check-cashing apparatus to dispense cash.

2. The system of claim 1, wherein the process for authenticating the check data further comprises the step of calculating a score for each data field based on a probability that the converted data from the check image matches the check data input by the user.

3. The system of claim 2, wherein the process for authenticating the check data further comprises the step of applying an image filter to the transaction based upon one or more of the data field scores, the filter comprising criteria for determining if the check data is valid.

4. The system of claim 3, wherein one of the one or more data fields of the check image is a courtesy amount and the image filter criteria comprises a threshold probability that the courtesy amount of the check image matches check data input by the user.

5. The system of claim 3, wherein the one or more processors are further configured to transfer the transaction for manual review if the transaction fails the image filter.

6. The system of claim 1, wherein the data fields of the check image comprise data items selected from the group consisting of:

legal amount, courtesy amount, payee, signature, endorsement, date and check type.

7. The system of claim 1, wherein the one or more input devices comprise a keyboard, an identification card reader, and a check reader.

8. The system of claim 1, wherein the one or more processors are further configured to authenticate the identification data by applying one or more validation algorithms to the identification data.

9. The system of claim 8, wherein the identification data comprises a driver'"'"'s license number and wherein the one or more algorithms is based on coding of name or date of birth information into the driver'"'"'s license number.

10. The system of claim 1, wherein the one or more processors are further configured authenticate the identification data by cross-referencing the data against one or more databases containing validated identification information.

11. The system of claim 1, wherein the application of each risk assessment guideline produces a factor score, and the one or more processors are further configured to approve the check by:

a. calculating a cumulative score which is a function of the amalgamation of each of the factor scores; and

b. determining whether to approve check based upon the cumulative score.

12. The system of claim 1, wherein the check-cashing apparatus further comprises a device for capturing biometric information of the user, and wherein the one or more processors are further configured to authenticate the identification data by comparing biometric information captured at the time of the transaction with stored biometric information relating to the user.

13. A system for facilitating a check-cashing transaction, the system comprising:

a. a check-cashing apparatus comprising one or more input devices for receiving check data and identification data from a user;

b. a host system remotely-located from and in communication with the check-cashing apparatus, the host system comprising one or more processors configured to;

i. receive the check data and identification data;

ii. authenticate the identification data by applying one or more validation algorithms to the identification data;

iii. determine automatically whether to approve the check by applying one or more risk assessment guidelines using the identification data and check data; and

iv. upon approval of the check, provide a signal to the check-cashing apparatus to dispense cash.

14. The system of claim 13, wherein the identification data comprises a driver'"'"'s license number and wherein the one or more algorithms is based on coding of name or date of birth information into the driver'"'"'s license number.

15. The system of claim 13, wherein the one or more input devices comprise a keyboard, an identification card reader, and a check reader.

16. The system of claim 13, wherein the one or more processors are further configured to authenticate the identification data by cross-referencing the data against one or more databases containing validated identification information.

17. The system of claim 13, wherein:

a. the check-cashing apparatus further comprises a check scanner for capturing an image of the check, the image comprising one or more data fields; and

b. the one or more processors are further configured to;

i. receive the check image; and

ii. authenticate the check data by;

1. converting one or more of the data fields of the check image into a format capable of being processed; and

2. comparing the converted data fields to the check data input by the user.

18. The system of claim 13, wherein the application of each risk assessment guideline produces a factor score, and the one or more processors are further configured to approve the check by:

a. calculating a cumulative score which is a function of the amalgamation of the factor scores; and

b. determining whether to approve check based upon the cumulative score.

19. The system of claim 13, wherein the check-cashing apparatus further comprises a device for capturing biometric information of the user, and wherein the one or more processors are further configured to authenticate the identification data by comparing biometric information captured at the time of the transaction with stored biometric information relating to the user.

20. A system for facilitating a check-cashing transaction, the system comprising:

a. a check-cashing apparatus comprising one or more input devices for receiving check data and identification data from a user;

b. a host system remotely-located from and in communication with the check-cashing apparatus, the host system comprising one or more processors configured to;

i. receive the check data and identification data;

ii. determine automatically whether to approve the check by;

1. applying a plurality of risk assessment guidelines, wherein the application of each guidelines produces a factor score;

2. calculating a cumulative score which is a function of the amalgamation the factor scores; and

3. determining whether to approve check based upon the cumulative score; and

iii. upon approval of the check, provide a signal to the check-cashing apparatus to dispense cash.

21. The system of claim 20, wherein the one or more input devices comprise a keyboard, an identification card reader, and a check reader.

22. The system of claim 20, wherein the one or more processors are further configured to authenticate the identification data by applying one or more validation algorithms to the identification data.

23. The system of claim 22, wherein the identification data comprises a driver'"'"'s license number and wherein the one or more algorithms is based on coding of name or date of birth information into the driver'"'"'s license number.

24. The system of claim 20, wherein the one or more processors are configured authenticate the identification data by cross-referencing the data against one or more databases containing validated identification information.

25. The system of claim 20, wherein:

a. the check-cashing apparatus further comprises a check scanner for capturing an image of the check, the image comprising one or more data fields; and

b. the one or more processors are further configured to;

i. receive the check image; and

ii. authenticate the check data by;

1. converting one or more of the data fields of the check image into a format capable of being processed; and

2. comparing the converted data fields to the check data input by the user.

26. The system of claim 20, wherein the check-cashing apparatus further comprises a device for capturing biometric information of the user, and wherein the one or more processors are further configured to authenticate the identification data by comparing biometric information captured at the time of the transaction with stored biometric information relating to the user.

27. A system for facilitating a check-cashing transaction, the system comprising:

a. a check-cashing apparatus comprising;

i. one or more input devices for receiving check data and identification data from a user, wherein the identification data comprises a driver'"'"'s license number; and

ii. a check scanner for capturing an image of a check presented by the user, the image comprising one or more data fields;

b. a host system remotely-located from and in communication with the check-cashing apparatus, the host system comprising one or more processors configured to;

i. receive the check data, identification data, and check image;

ii. authenticate the identification data by applying a validation algorithm to the identification data based on coding of name or date of birth information into the driver'"'"'s license number;

iii. authenticate the check data by;

1. converting one or more of the data fields of the check image into a format capable of being processed;

2. comparing the converted data fields to the check data input by the user;

3. calculating a score for each data field based on a probability that the converted data from the check image matches the check data input by the user; and

4. applying an image filter to the transaction based upon one or more of the data field scores, the filter comprising criteria for determining if the check data is valid;

iv. if the transaction fails the image filter, transfer the transaction for manual review;

v. if the transaction passes the image filter, determine automatically whether to approve the check by;

1. applying a plurality of risk assessment guidelines, wherein the application of each guidelines produces a factor score;

2. calculating a cumulative score which is a function of the amalgamation of the factor scores; and

3. determining whether to approve check based upon the cumulative score; and

vi. upon approval of the check, provide a signal to the check-cashing apparatus to dispense cash.

28. A system for facilitating a check-cashing transaction, the system comprising:

a. a check-cashing apparatus comprising one or more input devices for receiving check data, identification data, and membership data from a user;

b. a host system remotely-located from and in communication with the check-cashing apparatus, the host system comprising a membership database and one or more processors configured to;

i. receive the check data and identification data;

ii. determine if the user is an existing member by cross-referencing the identification data against the membership database;

iii. initiate a membership application process if the user is not an existing member, the membership application process comprising;

1. prompting the check-cashing apparatus to query the user for membership data;

2. receiving the membership data input by the user, wherein the membership data comprises demographic data relating to the user;

3. authenticating the demographic data by cross-referencing the demographic data against one or more databases containing validated demographic information; and

4. upon authentication of the demographic data, establishing a membership for the user and storing the membership data in the membership database;

iv. if the user is an existing member or has established membership, determine automatically whether to approve the check by applying one or more risk assessment guidelines using the identification data and check data; and

v. upon approval of the check, provide a signal to the check-cashing apparatus to dispense cash.

29. The system of claim 28, wherein the check-cashing apparatus further comprises a device for capturing biometric information of the user, and wherein the membership data further comprises biometric data captured by the biometric data capture device.

30. The system of claim 29, wherein the one or more processors are further configured to authenticate the identification data by comparing biometric information captured at the time of the transaction with stored biometric information relating to the user.

31. The system of claim 28, wherein the one or more input devices comprises a card reader.

32. The system of claim 31, wherein the demographic data is extracted from a driver'"'"'s license or identification card inserted by the user into the card reader.

33. A method for facilitating an automated check-cashing transaction, the method comprising:

a. receiving check data and identification data from a user;

b. capturing an image of a check presented by the user, the image comprising one or more data fields;

c. authenticating the check data by;

i. converting one or more of the data fields of the check image into a format capable of being processed; and

ii. comparing the converted data fields to the check data input by the user;

d. upon authentication of the check data, automatically determining whether to approve the check by applying one or more risk assessment guidelines using the identification data and check data; and

e. upon approval of the check, dispensing cash to the user.

34. The method of claim 33, wherein the process for authenticating the check data further comprises calculating a score for each data field based on a probability that the converted data from the check image matches the check data input by the user.

35. The method of claim 34, wherein the process for authenticating the check data further comprises applying an image filter to the transaction based upon one or more of the data field scores, the filter comprising criteria for determining if the check data is valid.

36. The method of claim 35, wherein one of the one or more data fields of the check image is a courtesy amount and the image filter criteria comprises a threshold probability that the courtesy amount of the check image matches check data input by the user.

37. The method of claim 35, further comprising the step of transferring the transaction for manual review if the transaction fails the image filter.

38. The method of claim 33, wherein the data fields of the check image comprise data items selected from the group consisting of:

legal amount, courtesy amount, payee, signature, endorsement, date and check type.

39. The method of claim 33, further comprising the step of authenticating the identification data by applying one or more validation algorithms to the identification data.

40. The method of claim 39, wherein the identification data comprises a driver'"'"'s license number and wherein the one or more algorithms is based on coding of name or date of birth information into the driver'"'"'s license number.

41. The method of claim 33, further comprising the step of authenticating the identification data by cross-referencing the data against one or more databases containing validated identification information.

42. The method of claim 33, wherein the application of each risk assessment guideline produces a factor score, and the step of determining whether to approve the check comprises:

a. calculating a cumulative score which is a function of the amalgamation of each of the factor scores; and

b. determining whether to approve check based upon the cumulative score.

43. The method of claim 33, further comprising:

a. capturing biometric information of the user at the time of the transaction;

b. authenticating the identification data by comparing the biometric information captured at the time of the transaction with stored biometric information relating to the user.

44. A method for facilitating an automated check-cashing transaction, the method comprising:

a. receiving check data and identification data from a user;

b. authenticating the identification data by applying one or more validation algorithms to the identification data;

c. upon authentication of the identification data, determining automatically whether to approve the check by applying one or more risk assessment guidelines using the identification data and check data; and

d. upon approval of the check, dispensing cash to the user.

45. The method of claim 44, wherein the identification data comprises a driver'"'"'s license number and wherein the one or more algorithms is based on coding of name or date of birth information into the driver'"'"'s license number.

46. The method of claim 44, further comprising authenticating the identification data by cross-referencing the data against one or more databases containing validated identification information.

47. The method of claim 44, further comprising:

a. capturing an image of the check, the image comprising one or more data fields; and

b. authenticating the check data by;

i. converting one or more of the data fields of the check image into a format capable of being processed; and

ii. comparing the converted data fields to the check data input by the user.

48. The method of claim 44, wherein the application of each risk assessment guideline produces a factor score, the process of determining whether to approve the check comprising:

a. calculating a cumulative score which is a function of the amalgamation of the factor scores; and

b. determining whether to approve check based upon the cumulative score.

49. The method of claim 44, further comprising:

a. capturing biometric information of the user at the time of the transaction, and

b. authenticating the identification data by comparing the biometric information captured at the time of the transaction with stored biometric information relating to the user.

50. A method for facilitating an automated check-cashing transaction, the method comprising:

a. receiving check data and identification data from a user;

b. determining automatically whether to approve the check by;

i. applying a plurality of risk assessment guidelines, wherein the application of each guidelines produces a factor score;

ii. calculating a cumulative score which is a function of the amalgamation the factor scores; and

iii. determining whether to approve check based upon the cumulative score; and

c. upon approval of the check, provide a signal to the check-cashing apparatus to dispense cash.

51. The method of claim 50, further comprising authenticating the identification data by applying one or more validation algorithms to the identification data.

52. The method of claim 51, wherein the identification data comprises a driver'"'"'s license number and wherein the one or more algorithms is based on coding of name or date of birth information into the driver'"'"'s license number.

53. The method of claim 50, further comprising authenticating the identification data by cross-referencing the data against one or more databases containing validated identification information.

54. The method of claim 50, further comprising:

a. capturing an image of the check, the image comprising one or more data fields; and

b. authenticating the check data by;

i. converting one or more of the data fields of the check image into a format capable of being processed; and

ii. comparing the converted data fields to the check data input by the user.

55. The method of claim 50, further comprising:

a. capturing biometric information of the user at the time of the transaction; and

b. authenticating the identification data by comparing the biometric information captured at the time of the transaction with stored biometric information relating to the user.

56. A method for facilitating an automated check-cashing transaction, the method comprising:

a. receiving check data and identification data from a user, wherein the identification data comprises a driver'"'"'s license number;

b. capturing an image of a check presented by the user, the image comprising one or more data fields;

C. authenticating the identification data by applying a validation algorithm to the identification data based on coding of name or date of birth information into the driver'"'"'s license number;

d. authenticating the check data by;

i. converting one or more of the data fields of the check image into a format capable of being processed;

ii. comparing the converted data fields to the check data input by the user;

iii. calculating a score for each data field based on a probability that the converted data from the check image matches the check data input by the user; and

iv. applying an image filter to the transaction based upon one or more of the data field scores, the filter comprising criteria for determining if the check data is valid;

e. if the transaction fails the image filter, transferring the transaction for manual review;

f. if the transaction passes the image filter, determining automatically whether to approve the check by;

i. applying a plurality of risk assessment guidelines, wherein the application of each guidelines produces a factor score;

ii. calculating a cumulative score which is a function of the amalgamation of the factor scores; and

iii. determining whether to approve check based upon the cumulative score; and

g. dispensing cash upon approval of the check.

57. A method for facilitating an automated check-cashing transaction, the method comprising:

a. receiving check data and identification data;

b. determining if the user is an existing member by cross-referencing the identification data against the membership databases;

c. initiating a membership application process if the user is not an existing member, the membership application process comprising;

i. prompting the check-cashing apparatus to query the user for membership data;

ii. receiving the membership data from the user, wherein the membership data comprises demographic data relating to the user;

iii. authenticating the demographic data by cross-referencing the demographic data against one or more databases containing validated demographic information;

iv. upon authentication of the demographic data, establishing a membership for the user and storing the membership data in the membership database;

d. if the user is an existing member or has established membership, determining automatically whether to approve the check by applying one or more risk assessment guidelines using the identification data and check data; and

e. dispensing cash upon approval of the check.

58. The method of claim 57, wherein the membership data further comprises biometric information of the user, and wherein the membership application process further comprises capturing and storing biometric information relating to the user.

59. The method of claim 58, further comprising capturing biometric information of the user at the time of the transaction, and wherein the step of determining whether to approve the transaction further comprises the step of comparing stored biometric information captured during the membership process with biometric information captured at the time of the transaction.

60. The method of claim 57, wherein the demographic data is extracted from a driver'"'"'s license or identification card.