System and method for processing duplicative electronic check reversal files

• US 8,296,223 B2
• Filed: 11/06/2007
• Issued: 10/23/2012
• Est. Priority Date: 11/07/2006
• Status: Active Grant

• Current Assignee: Federal Reserve Bank of Kansas City (Federal Reserve System)
• Original Assignee: Federal Reserve Bank of Atlanta (Federal Reserve System), Federal Reserve Bank of Cleveland (Federal Reserve System), Federal Reserve Bank of Kansas City (Federal Reserve System), Federal Reserve Bank of Richmond (Federal Reserve System)
• Inventors: Breeden, Benjamin T. Jr., Martin, Steven D., Rachek, Timothy, Mueller, Randall Lee, Nori, V. Srinivas, Maslaney, Daniel A.
• Primary Examiner(s): Apple, Kirsten
• Application Number:
  US11/982,923
• Publication Number:
  US 20080162319A1
• Time in Patent Office: 1,813 Days
• Field of Search: 705/38
• US Class Current: 705/38
• 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 20/0425 the cheque being electronic only
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

Processing duplicate items in image cash letter (“ICL”) reversal files for efficient handling. A duplicate item processing module can receive ICL reversal files comprising items representing duplicate electronic checks. The duplicate item processing module can determine whether the processing entity erroneously presented the item more than once. The duplicate item processing module can also determine whether the depositing institution erroneously deposited the item more than once for processing. Based on the determination of the source of the error, the duplicate item processing module can make a correction in its own records and/or forward the ICL reversal file with the duplicate item to the receiving institution.

Claims

1. A computer-implemented method for a duplicate item processing module, installed on a computer and being executed by a processor, to process duplicate electronic checks, comprising the steps of:

the duplicate item processing module electronically receiving from a depositing institution computing device a reversal image cash letter file comprising a reversal item, where the duplicate item processing module is located at a processing entity;

the duplicate item processing module electronically comparing the reversal item to a record of previously deposited items received from the depositing institution computing device;

if the reversal item does not match a plurality of items in the record of previously deposited items, the duplicate item processing module electronically forwarding the reversal item to a receiving institution;

if the reversal item does match a plurality of items in the record of previously deposited items, the duplicate item processing module electronically comparing the reversal item to a record of items previously presented to a receiving institution computing device to determine whether an item matching the reversal item has been previously identified at the processing entity as a duplicate; and

if the item matching the reversal item has been previously identified as a duplicate, the duplicate item processing module electronically terminating the reversal item; and

if the item matching the reversal item has not been previously identified as a duplicate, the duplicate item processing module electronically forwarding the reversal item for sending to the receiving institution computing device.

2. The computer-implemented method of claim 1, wherein the reversal image cash letter file includes a designation indicating that it comprises at least one reversal item.

3. The computer-implemented method of claim 1, further comprising the step of the processing entity electronically notifying the depositing institution of the disposition of the reversal item.

4. A computer-implemented method for a duplicate item processing module, installed on a computer and being executed by a processor, to process duplicate electronic checks comprising the steps of:

the duplicate item processing module electronically receiving at a processing entity a reversal file comprising a reversal item from a depositing institution;

the duplicate item processing module electronically comparing the reversal file to a record of previously deposited files;

if the reversal file does not match a plurality of files in the record of deposited files, the duplicate item processing module electronically forwarding the reversal file for sending to a receiving institution;

if the reversal file does match a plurality of files in the record of deposited files, the duplicate item processing module electronically comparing the reversal file to a record of files previously presented to a receiving institution computing device to determine whether a file matching the reversal file has been previously identified at the processing entity as a duplicate; and

if the file matching the reversal file has been previously identified as a duplicate, the duplicate item processing module electronically terminating the reversal file; and

if the file matching the reversal file has not been previously identified as a duplicate, the duplicate item processing module electronically forwarding the reversal file for sending to the receiving institution computing device.

5. The computer-implemented method of claim 4, wherein the reversal file includes a designation indicating that it is a reversal file.

6. The computer-implemented method of claim 4, further comprising the step of the processing entity electronically notifying the depositing institution of the disposition of the reversal file.

7. A computer-implemented system for processing duplicate electronic checks, comprising:

a check processing system operable for processing items in an image cash letter file for payment or presentment to a receiving institution computing device, the check processing system comprising a first database of records of items previously presented to the receiving institution computing device and a second database of records of items previously deposited with the check processing system for processing;

a duplicate item processing module operable for receiving from a depositing institution computer a reversal image cash letter file comprising a reversal item and for comparing the reversal item to the first database of records of items previously presented and the second database of records of items previously deposited with the check processing system for processing;

the duplicate item processing module further operable such that,

if the reversal item matches a plurality of items in the second database of records, the duplicate item processing module electronically compares the reversal item to the first database of records to determine whether an item matching the reversal item has been previously identified at the processing entity as a duplicate; and

if the item matching the reversal item has been previously identified as a duplicate, the duplicate item processing module electronically terminating the reversal item; and

if the item matching the reversal item has not been previously identified as a duplicate, the duplicate item processing module electronically forwarding the reversal item for sending to the receiving institution computing device.

8. The computer-implemented system of claim 7 wherein the items in the second database of records of items previously deposited with the check processing system for processing were received from a depositing institution computer.