Electronic image cash letter validation

• US 8,387,862 B2
• Filed: 05/16/2007
• Issued: 03/05/2013
• Est. Priority Date: 05/17/2006
• 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 Boston (Federal Reserve System), Federal Reserve Bank of Cleveland (Federal Reserve System), Federal Reserve Bank of Dallas (Federal Reserve System), Federal Reserve Bank of Kansas City (Federal Reserve System)
• Inventors: Mueller, Randall Lee, Purser, Steven Q., Nori, V. Srinivas, Schaadt, Thomas Edwin, DeLano, Jeannine M., Schiele, Jeffrey F., Mason, Ronald Ray
• Primary Examiner(s): Le, Thien M
• Assistant Examiner(s): STANFORD, CHRISTOPHER J
• Application Number:
  US11/803,887
• Publication Number:
  US 20080006687A1
• Time in Patent Office: 2,120 Days
• Field of Search: 235/379, 235/380
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/0425 the cheque being electronic only
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

Validating image cash letter (“ICL”) files using appropriate validation standards for each ICL file and, where appropriate, allowing successfully validated elements of an ICL file containing one or more unsuccessfully validated elements to be processed for payment and/or presentment. A processing entity can receive an ICL file with multiple ICLs that each includes multiple bundles of electronic check items from a customer. The processing entity can validate the ICL file using multiple validation rules selected based on a file type of the ICL file, data content of the ICL file, and/or an identity of a bank associated with the ICL file. The processing entity can transmit a report of the validation results to the customer. The processing entity can select certain successfully validated elements of the ICL file for check presentment and/or payment processing.

Claims

1. A computer-implemented method for validating electronic image cash letter (“

ICL”

) files, comprising the steps of;

receiving a first ICL file and a second ICL file, each ICL file comprising at least one ICL, each ICL comprising at least an electronic image of a check;

selecting, by a computer, from a plurality of validation rules, a first set of validation rules to apply to the first ICL file based on at least one of a file type of the first ICL file and an identity of a bank associated with the first ICL file;

selecting, by the computer, from the plurality of validation rules, a second set of validation rules to apply to the second ICL file based on at least one of a file type of the second ICL file and an identity of a bank associated with the second ICL file, the second set of validation rules being different than the first set of validation rules;

validating, by the computer, whether the first ICL file is acceptable for electronic processing for at least one of payment and presentment for payment based on the first selected set of validation rules;

electronically processing the first ICL file for at least one of payment and presentment for payment only in response to determining that the first ICL file has been successfully validated;

validating, by the computer, whether the second ICL file is acceptable for electronic processing for at least one of payment and presentment for payment based on the second selected set of validation rules; and

electronically processing the second ICL file for at least one of payment and presentment for payment only in response to determining that the second ICL file has been successfully validated.

2. The method of claim 1, further comprising the steps of:

generating a report comprising at least one result of the validating steps; and

transmitting the report to at least one of the banks associated with the first ICL file or the second ICL file.

3. The method of claim 2, wherein

the step of receiving the first ICL file comprises receiving the first ICL file from a first customer, and the bank associated with the first ICL file is the first customer.

4. The method of claim 1, further comprising the step of rejecting at least a portion of the first ICL file in response to determining that the first ICL file has not been successfully validated as acceptable for electronic processing for at least one of payment and presentment for payment.

5. The method of claim 4, wherein the step of rejecting at least a portion of the first ICL file comprises the steps of:

identifying a total number of validation errors when validating whether the first ICL file is acceptable for electronic processing;

comparing the total number of validation errors to a predefined threshold value; and

rejecting at least one element of the first ICL file if the total number of validation errors exceeds the predefined threshold value, each element of the first ICL file comprising one of an ICL, an item bundle, and an electronic check item.

6. The method of claim 1, wherein

the first ICL file comprises a plurality of ICLs, and

the step of electronically processing the first ICL file for at least one of payment and presentment for payment comprises the steps of:

determining that certain ICLs in the first ICL file have been successfully validated and that other ICLs in the first ICL file have not been successfully validated; and

processing only the ICLs determined to have been successfully validated for at least one of payment and presentment for payment.

7. The method of claim 1, wherein

the step of receiving the first ICL file comprises receiving the first ICL file from a customer, and

the step of selecting a first set of validation rules comprises the steps of:

identifying a service level associated with the customer; and

selecting at least one validation rule based on the identified service level.

8. The method of claim 1, wherein

the step of selecting the first set of validation rules comprises the steps of:

identifying a file type of the first ICL file; and

selecting at least one validation rule based on the identified file type.

9. The method of claim 1, wherein

the step of selecting the first set of validation rules further comprises the steps of:

reading data content of the first ICL file; and

selecting at least one validation rule based on the data content.

10. The method of claim 9, wherein the data content comprises information regarding whether an item in the first ICL file is associated with one of a forward transaction and a return transaction.

11. The method of claim 1, wherein the step of selecting the first set of validation rules further comprises the steps of:

selecting at least one validation rule based on an industry standard;

selecting at least one validation rule based on a standard of an entity receiving the first ICL file in the receiving step; and

selecting at least one validation rule based on a standard of the bank associated with the first ICL file, the bank comprising an entity other than the entity receiving the first ICL file in the receiving step.

12. The method of claim 11, wherein

the step of receiving the first ICL file comprises receiving the first ICL file from a customer, and

the bank associated with the first ICL file is the customer.

13. The method of claim 1, further comprising the step of:

determining whether an addenda data record of at least one of the first ICL file and the second ICL file includes a character or string of improper format.

14. The method of claim 1, wherein

the first ICL file comprises at least one ICL, each ICL comprises at least one bundle of items, each bundle of items comprises at least one check item, and each check item comprises at least one electronic image of a check, and

the step of validating whether the first ICL file is acceptable for electronic processing comprises

validating whether a first ICL of the ICL file is acceptable for electronic processing based on a first rule of the first set of validation rules

validating whether a first bundle of first ICL of the ICL file is acceptable for electronic processing based on a second rule of the first set of validation rules, and

validating whether each check item of the first bundle of the first ICL of the ICL file is acceptable for electronic processing based on a third rule of the first set of validation rules.

15. The method of claim 14, further comprising the step of rejecting, based on the step of validating whether the first ICL file is acceptable for electronic processing, one of an entire ICL of the first ICL and an entire bundle of items of the first ICL file.

16. A computer-implemented method for validating an electronic image cash letter (“

ICL”

), comprising the steps of;

receiving the ICL, the ICL comprising a bundle of check items, each check item comprising an electronic image of a check;

selecting, by a computer, at least one validation rule to apply to the ICL based on at least one of a file type of the ICL and an identity of a bank associated with the ICL;

determining by the computer, that certain check items of the ICL are successfully validated as acceptable for electronic processing for at least one of payment and presentment for payment based on the at least one validation rule;

determining that certain other check items of the ICL are not successfully validated as acceptable for electronic processing for at least one of payment and presentment for payment based on the at least one validation rule;

electronically processing the certain check items determined to be successfully validated; and

rejecting the certain other check items determined not to be successfully validated.

17. The method of claim 16, wherein the ICL comprises two bundles of check items, and the method further comprises the steps of:

determining that one of the bundles is successfully validated and that another one of the bundles is not successfully validated based on the at least one validation rule;

electronically processing at least one of the items of the one of the bundles determined to be successfully validated; and

rejecting each item of the another one of the bundles determined not to be successfully validated.

18. The method of claim 16, wherein the step of receiving the ICL comprises the step of receiving an ICL file comprising the ICL.

19. The method of claim 16, wherein the step of receiving the ICL comprises the step of receiving an ICL file comprising multiple ICLs, and the method further comprises the steps of:

determining that at least one of the ICLs is successfully validated and that at least one other of the ICLs is not successfully validated based on the at least one validation rule;

electronically processing at least one item of each ICL determined to be successfully validated; and

rejecting each item of each ICL determined not to be successfully validated.

20. The method of claim 19, wherein

each of the ICLs comprises multiple bundles of items, and

wherein the step of electronically processing at least one item of each ICL determined to be successfully validated comprises electronically processing at least one of the bundles of items of each ICL determined to be successfully validated.

21. The method of claim 16, wherein the step of selecting at least one validation rule comprises selecting, from a plurality of validation rules, a set of validation rules based on a file type of the ICL, data content of the ICL, and an identity of a bank associated with the ICL.

22. A computer-implemented method for validating an electronic image cash letter (“

ICL”

), comprising the steps of;

receiving the ICL, the ICL comprising a plurality of bundles of items, each item comprising an electronic image of a check;

selecting, by a computer, at least one validation rule to apply to the ICL based on at least one of a file type of the ICL and an identity of a bank associated with the ICL;

validating, by the computer, a bundle of the ICL as acceptable for electronic processing for at least one of payment and presentment for payment based on the at least one validation rule;

invalidating, by the computer, another bundle of the ICL for electronic processing for at least one of payment and presentment for payment based on the at least one validation rule;

electronically processing at least one item of the validated bundle for at least one of payment and presentment for payment; and

rejecting the another bundle for electronically processing for payment or presentment for payment.

23. The method of claim 22, wherein the step of rejecting the another bundle comprises rejecting each item of the another bundle.

24. The method of claim 22, further comprising the steps of:

validating an item of the validated bundle as acceptable for electronic processing for at least one of payment and presentment for payment based on the at least one validation rule; and

invalidating another item of the validated bundle for electronic processing for at least one of payment and presentment for payment based on the at least one validation rule, wherein

the step of electronically processing at least one item of the validated bundle further comprises electronically processing the validated item and rejecting the another item.

25. The method of claim 22, wherein the step of selecting at least one validation rule comprises selecting, from a plurality of validation rules, a set of validation rules based on a file type of the ICL, data content of the ICL, and an identity of a bank associated with the ICL.

26. A computer-implemented method for validating an electronic image cash letter (“

ICL”

) file, comprising the steps of;

receiving the ICL file, the ICL file comprising a plurality of ICLs, each of the ICLs comprising a plurality of bundles of items, each item comprising an electronic image of a check;

selecting, by a computer, at least one validation rule to apply to the ICL file based on at least one of a file type of the ICL file and an identity of a bank associated with the ICL file;

validating, by the computer, an ICL of the ICL file as acceptable for electronic processing for at least one of payment and presentment for payment based on a first validation rule of the at least one validation rule;

invalidating, by the computer, another ICL of the ICL file for electronic processing for at least one of payment and presentment for payment based on the first validation rule of the at least one validation rule;

electronically processing at least one item of the validated ICL for at least one of payment and presentment for payment; and

rejecting the another ICL for electronically processing for payment or presentment for payment.

27. The method of claim 26, wherein the step of rejecting the another ICL comprises rejecting each item of the another ICL.

28. The method of claim 26, further comprising the steps of:

validating or invalidating each ICL of the ICL file based on the first validation rule;

identifying a total number of invalidated ICLs of the ICL file and comparing the total number to a predefined threshold value; and

rejecting the ICL file if the total number of invalidated ICLs exceeds the predetermined threshold.

29. The method of claim 26, further comprising the steps of:

validating a bundle of the validated ICL as acceptable for electronic processing for at least one of payment and presentment for payment based on a second validation rule of the at least one validation rule; and

invalidating another bundle of the validated ICL for electronic processing for at least one of payment and presentment for payment based on the second validation rule of the at least one validation rule, wherein

the step of electronically processing at least one item of the validated ICL further comprises electronically processing the validated bundle and rejecting the another bundle.

30. The method of claim 29, wherein the step of rejecting the another bundle comprises rejecting each item of the another bundle.

31. The method of claim 29, further comprising the step of

validating or invalidating each bundle of the validated ICL based on the second validation rule;

identifying a total number of invalidated bundles of the validated ICL and comparing the total number to a predefined threshold value; and

rejecting the validated ICL if the total number of invalidated bundles exceeds the predetermined threshold.

32. The method of claim 29, further comprising the steps of:

validating an item of the validated bundle as acceptable for electronic processing for at least one of payment and presentment for payment based on a third validation rule of the at least one validation rule; and

invalidating another item of the validated bundle for electronic processing for at least one of payment and presentment for payment based on the third validation rule of the at least one validation rule, wherein

the step of electronically processing at least one item of the validated ICL further comprises electronically processing the validated item and rejecting the another item.

33. The method of claim 32, further comprising the steps of:

validating or invalidating each item of the validated bundle based on the third validation rule;

identifying a total number of invalidated items of the validated bundle and comparing the total number to a predefined threshold value; and

rejecting the validated bundle if the total number of invalidated items exceeds the predetermined threshold.

34. The method of claim 26, wherein the step of selecting at least one validation rule comprises selecting, from a plurality of validation rules, a set of validation rules based on a file type of the ICL file, data content of the ICL file, and an identity of a bank associated with the ICL file.

35. A computer-implemented system for validating electronic image cash letters (“

ICLs”

), comprising;

a communications network; and

a computer configured to

receive a first ICL and a second ICL over the communications network, each ICL comprising at least one check item comprising an electronic image of a check,

select, from a plurality of validation rules, a first set of validation rules to apply to the first ICL based on at least one of a file type of the first ICL and an identity of a bank associated with the first ICL,

select, from the plurality of validation rules, a second set of validation rules to apply to the second ICL based on at least one of a file type of the second ICL and an identity of a bank associated with the second ICL, the second set of validation rules being different than the first set of validation rules,

validate whether each check item in the first ICL is acceptable for electronic processing for at least one of payment and presentment for payment based on the first selected set of validation rules,

validate whether each check item in the second ICL is acceptable for electronic processing for at least one of payment and presentment for payment based on the second selected set of validation rules,

electronically process each check item in the first ICL and second ICL that is successfully validated as acceptable for at least one of payment and presentment for payment, and

reject each check item in the first ICL and second ICL that is not successfully validated as acceptable for at least one of payment and presentment for payment.

36. The system of claim 35, wherein the computer is further configured to:

generate a report comprising at least one result of the validation of the first ICL; and

transmit the report to the bank associated with the first ICL.

37. The system of claim 35, wherein the computer is further configured to:

receive the first ICL file from a customer,

identify a service level associated with the customer, and

select at least one validation rule based on the identified service level.