System and method for biometric authorization for check cashing

• US 7,997,477 B2
• Filed: 04/10/2008
• Issued: 08/16/2011
• Est. Priority Date: 05/10/2002
• Status: Active Grant

• Current Assignee: Valsoft Corp., Inc. (Valsef Group)
• Original Assignee: Phoenix Check Cashing, Inc. (Valsef Group)
• Inventors: Robinson, Timothy L.
• Primary Examiner(s): Kim; Ahshik
• Application Number:
  US12/081,122
• Publication Number:
  US 20080290157A1
• Time in Patent Office: 1,223 Days
• Field of Search: 235/379, 235/380, 235/382, 705/10, 705/14, 705/44
• US Class Current: 235/379
• 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 and method for a biometric-based identity verification for authorizing a check cashing transaction between a consumer and a merchant using a biometric identification device and at least one consumer biometric identifier scan. Said consumer registers with said system at least one biometric identifier and personal identity-verifying data both used to authenticate the identity of the consumer without the use of a man-made identity token during a check cashing transaction. During said transaction, said consumer enters at least one digital scan of at least one of their registered biometrics and said system authenticates said consumer'"'"'s identity through comparing said digital scan with at least one digital scan stored in at least one system database. Upon positive identification of said consumer, said transaction is approved.

Claims

1. A method for authorizing a check cashing transaction, comprising:

receiving at a location, from a first entity that is presenting a check for cashing, information regarding said check that is drafted from a financial account of a second entity;

receiving, at a device at the location, a personal identifier and biometric data of said first entity;

transmitting said personal identifier to a central database storing registered biometric data for a plurality of entities;

receiving, by said device from said central database, registered biometric data associated with said transmitted personal identifier;

comparing, within said device, said biometric data of said first entity with said received registered biometric data; and

selectively designating said first entity as authorized to cash said check based on a result of said comparing.

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

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

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

5. The method of claim 1, wherein said biometric data is fingerprint data.

6. A check cashing transaction method provided by a check cashing service, comprising:

receiving, from a first entity initiating a check cashing transaction, information regarding a check that is drafted from a financial account of a second entity;

receiving biometric data of said first entity;

comparing said received biometric data to previously registered biometric data stored in a database;

selectively authorizing said check cashing transaction based on a result of said comparing; and

storing an identifier of a third entity associated with said check cashing service that is involved in said check cashing transaction, said identifier including check cashing parameters set by said third entity.

7. The method of claim 6, wherein said comparing comprises comparing at a central database.

8. The method of claim 6, wherein said comparing comprises comparing at a local database.

9. The method of claim 6, wherein said comparing comprises comparing at a local device.

10. The method of claim 6, wherein said storing comprises storing at a central database.

11. The method of claim 6, wherein said storing comprises storing at a local database.

12. The method of claim 6, wherein said third entity is a merchant.

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.

14. A check cashing transaction method, comprising:

receiving, from a first entity that is presenting said check for cashing, a check that is endorsed by a second entity;

receiving biometric data of said first entity;

comparing said received biometric data to previously registered biometric data stored in a database;

locating a check cashing history record of said first entity based on a result of said comparing;

determining whether said located check cashing history record indicates negative check cashing activities; and

automatically issuing a recommendation regarding the authorization of said check cashing transaction based on a result of said determining.

15. The check cashing method of claim 14, further comprising receiving a personal identification number from said first entity.

16. The check cashing method of claim 14, further comprising determining whether an account number that said check is drawn upon has a history of negative check cashing activities.

17. A check cashing transaction method at a point of sale, comprising:

receiving one or more items from a first entity as part of a financial transaction;

receiving at the point of sale, from said first entity as payment for said financial transaction, a check that is endorsed by a second entity;

receiving biometric data of said first entity;

receiving previously registered biometric data stored in a database at a device at the point of sale from the database;

comparing, within the device, said received biometric data to said previously registered biometric data;

determining, based at least in part on said comparing, whether said check cashing transaction is authorized; and

accepting said check as payment for said financial transaction if said check cashing transaction is authorized.

18. The method of claim 17, further comprising paying the difference of a value of said check and a value of said financial transaction to said first entity.

19. The method of claim 17, further comprising paying the difference of a value of said check and a value of said financial transaction to said first entity minus a check cashing fee.

20. The method of claim 17, wherein said check is received at a checkout lane with a biological identification device.

21. The method of claim 17, wherein said check is received at an electronic cash register.

22. A check cashing transaction method, comprising:

receiving at a location, a check from a first entity, said check being drawn on a financial account of a second entity and endorsed by said second entity;

receiving biometric data of said first entity;

receiving previously registered biometric data at a device at said location from a database;

comparing, within the device, said received biometric data to said previously registered biometric data;

querying a third party for a status of said financial account;

determining whether said financial account of said second entity can cover a value of said check based on said querying; and

selectively authorizing said check cashing transaction based on a result of said comparing and said determining.

23. The method of claim 22, wherein said determining comprises checking an existing balance.

24. The method of claim 22, wherein said determining comprises checking a credit limit.