System and method of determining collectability in a distributed negative file

• US 7,664,687 B1
• Filed: 12/29/1999
• Issued: 02/16/2010
• Est. Priority Date: 12/29/1999
• Status: Expired due to Fees

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Burnside, Thomas E., Mollett, Cassandra J.
• Primary Examiner(s): RUDY, ANDREW J
• Application Number:
  US09/474,576
• Time in Patent Office: 3,702 Days
• Field of Search: 705/35, 705 37- 39, 705/42, 705/44, 705/45
• US Class Current: 705/35
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

The invention involves a system and a method of determining collectability of a check writer from a database including negative information of a plurality of check writers for check writing approval or denial. The invention provides for an improvement of determining collectability of a check writer in order to more effectively distinguish between collectible check writers and non-collectible check writers. The invention includes receiving the information of the check writer, processing the information to determine a score of the check writer, classifying the check writer within a predetermined category, and removing or retaining the check writer information from the database, depending on the category within which the check writer is classified.

Claims

1. A method comprising executing computer implemented instructions performed by one or more processors for determining the collectability of check writers, the method comprising:

storing a negative file in a database, the negative file including negative information about each check writer of a plurality of check writers;

classifying, via at least one processor, each check writer into one of a plurality of categories associated with a score based at least in part on the number of checks returned to merchants for insufficient funds;

modifying, via at least one processor, the negative file by removing the negative information for each check writer classified within a pre-determined set of the categories and retaining the negative information for each check writer not classified with the pre-determined set of categories;

labeling, via at least one processor, each check writer classified within the pre-determined set of categories as collectible and labeling each check writer not classified within the predetermined set of categories as non-collectible; and

transmitting the modified negative file to at least one merchant for use in check verification at a merchant location, wherein the modified negative file is accessed to determine check writer information.

2. The method of claim 1 wherein classifying each check writer into one of the plurality of categories comprises:

receiving the negative information from the negative file;

processing the negative information to determine a score for each check writer based on the negative information; and

classifying each check writer into one of the plurality of categories based on the score of the check writer.

3. The method of claim 2 further comprising saving the modified negative file as a scrubbed file.

4. A method for determining the collectability of a check writer, the method comprising:

receiving negative information about the check writer from a database;

processing the negative information to determine a score, wherein the score is based at least in part on the number of checks returned to merchants for insufficient funds;

classifying the check writer within one of a plurality of categories based on the score;

removing the negative information from the database if the category into which the check writer is classified is one of a predetermined set of categories; and

transmitting a scrubbed negative file from the database to at least one merchant for use in check verification at a merchant location, wherein the modified negative file is accessed to determine check writer information.

5. The method of claim 4 further comprising saving the negative information in a scrubbed filed if the category into which the check writer is classified is not one of the pre-determined set of categories.

6. A system for determining the collectability of check writers, the system comprising:

a database containing a negative file, the negative file including negative information of a plurality of check writers; and

a processor in communication with the database, the processor operative to;

(a) classify individual check writers of the plurality of check writers as one of a plurality of pre-determined categories associated with a score based at least in part on the number of checks returned to merchants for insufficient funds,

(b) modify the negative file by removing the negative information of the individual check writers classified within a pre-determined set of the plurality of pre-determined categories and retaining the negative information of the individual check writers not classified within the pre-determined set of the plurality of pre-determined categories,

(c) label the individual check writers classified within a pre-determined set of the plurality of pre-determined categories as collectible and labeling the individual check writers not classified within the pre-determined set of the plurality of pre-determined categories as non-collectible, and

(d) transmit the modified negative file to at least one merchant for use in check verification at a merchant location, wherein the modified negative file is accessed to determine check writer information.

7. The system of claim 6, the processor further configured to:

receive the negative information of the individual check writers from the negative file;

determine scores of the individual check writers based on the negative information; and

classify the individual check writers as one of the plurality of pre-determined categories based on the scores of the individual check writers.

8. The system of claim 7, wherein the processor is further configured to save the modified negative file as a scrubbed file.