Electronic payment systems and methods utilizing digitally originated checks

• US 8,600,898 B2
• Filed: 10/09/2007
• Issued: 12/03/2013
• Est. Priority Date: 10/10/2006
• Status: Expired due to Fees

• Current Assignee: Global Standard Financial Incorporated
• Original Assignee: Global Standard Financial Incorporated
• Inventors: Gilder, Clark S., Lalonde, Michael G.
• Primary Examiner(s): Dixon, Thomas
• Assistant Examiner(s): Mehta, Nancy
• Application Number:
  US11/869,739
• Publication Number:
  US 20080249931A1
• Time in Patent Office: 2,247 Days
• Field of Search: 705 53- 55, 705 63- 69
• US Class Current: 705/53
• 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 20/10 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 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

The present invention provides a digitally originated check (DOC) through an electronic payment system (EPS) which captures payor metadata instructions regarding the intended payment to a payee. The metadata is stored in a database or the like for further processing instead of printing a paper check. The EPS is operable to clear the DOC through either paper or electronic Check 21 mechanisms.

Claims

1. An electronic payment system, comprising:

a data store configured to store a digital payment file;

a network interface configured to connect to a plurality of users; and

one or more processors connected to the data store and the network interface, wherein the one or more processors are configured to;

receive input from a payor;

create a digitally originated check to one or more payees responsive to the input from the payor;

store the digitally originated check in the data store created based on the input of the payor in the data store as metadata in the digital payment file for further processing of the digitally originated check by the electronic payment system instead of printing a paper check or a check image file, wherein the digitally originated check comprises a legal check item created without an original paper check that is maintained electronically from creation to clearing in the electronic payment system;

notify the one or more payees associated with the created digitally originated check after the digitally originated check is created and stored that the digitally originate check is available in the data store of the electronic payment system;

track the digitally originated check for activity associated with the digitally originated check; and

process the digitally originated check by the one or more payees, wherein the one or more payees access the digitally originated check through the electronic payment system;

wherein the digitally originated check is created by the payor, and wherein the metadata comprises the payment instruction, a globally unique identifier, tracking information, and security information; and

wherein an output from the metadata in the digital payment file is interoperable with both paper and electronic clearing methods associated with check clearing systems;

wherein the electronic payment system further comprising;

accepting by both the payor and the payee a full set of warranties and indemnities applicable to banks of first deposit and clearing banks thereby enabling electronic presentment from payor to payee of the digital originated check under the Uniform Commercial Code and extending existing check clearing regulations between payor to payee and through associated banks of first deposit and clearing banks.

2. The electronic payment system of claim 1, wherein the digitally originate check is created through one of a software program, a web user interface, a check card at a point-of-sale terminal, an OFX file, a XML file, or an Application Programming Interface.

3. The electronic payment system of claim 2, wherein the OFX file and the XML file are created directly through one of a software program and a website, wherein the software program includes a plugin to generate the OFX and XML file, wherein the one or more processors are configured to create the digitally originated check from the OFX file and the XML file, and wherein the website is operated by the electronic payment system.

4. The electronic payment system of claim 1, wherein the digitally originate check is processed through one of forwarding the metadata to a bank of first deposit as an electronic Cash Letter File, printing a substitute check from the metadata, forwarding the metadata as another digitally originated check to a third party, and one of converting and truncating the digitally originated check to an Automated Clearing House item.

5. The electronic payment system of claim 1, wherein the data store further is configured to store statistics associated with the tracking of the digitally originated check.

6. The electronic payment system of claim 5, wherein the processor is further configured to provide a payment score from the statistics, wherein the payment score comprises a rating for a payor associated with the digitally originated check.

7. The electronic payment system of claim 1, wherein the digitally originated check is notified to a payee through one of an electronic coupon, an email greeting card, an email, an instant message, a fax, and an automated phone call.

8. The electronic payment system of claim 1, wherein the one or more processors are further configured to:

authenticating the digitally originated check with a public key cryptography system through the electronic payment system.

9. The electronic payment system of claim 1, wherein the one or more processors are further configured to:

set a time-to-live value associated with the digitally originated check, wherein upon expiry of the time-to-live value, the digitally originated check is no longer valid.

10. The electronic payment system of claim 1, wherein the one or more processors are further configured to:

provide transaction risk placement upon creating the digitally originated check.

11. An electronic payment method, comprising:

providing an electronic payment system comprising a computer system connected to a network and a data store configured to store a plurality of digital payment files;

providing a payor access to the electronic payment system through the network;

receiving data from the payor associated with a payment from the payor to one or more payees;

creating a digitally originated check responsive to the data from the payor, wherein the data comprises payment instructions, wherein the digitally originated check is stored as metadata in the data store in a digital payment file of the plurality of digital payment files for further processing of the digitally originated check by the electronic payment system instead of printing a paper check or a check image file, and wherein the metadata comprises the payment instructions, a globally unique identifier, tracking information, and security information, wherein the digitally originated check comprises a legal check item created without an original paper check that is maintained electronically from creation to clearing in the electronic payment system;

notifying the payees of the digitally originated check after the digitally originated check is created and stored that the digitally originate check is available in the data store of the electronic payment system;

tracking the digitally originated check for activity associated with the digitally originated check;

providing the one or more payees access to the electronic payment system; and

processing the digitally originated check by the one or more payees;

wherein an output from the metadata is interoperable with both paper and electronic clearing methods associated with check clearing systems;

wherein the electronic payment method further comprising;

accepting by both the payor and the payee a full set of warranties and indemnities applicable to banks of first deposit and clearing banks thereby enabling electronic presentment from payor to payee of the digital originated check under the Uniform Commercial Code and extending existing check clearing regulations between payor to payee and through associated banks of first deposit and clearing banks.

12. The electronic payment method of claim 11, wherein the access comprises one of a web user interface, a check card, and a software program configured to provide one of an OFX file, an XML file, or an Application Programming Interface.

13. The electronic payment method of claim 12, wherein the OFX and XML file are created directly through the software program, and wherein the software program includes a plugin configured to generate the digitally originated check through the electronic payment system using the OFX and XML file.

14. The electronic payment method of claim 11, wherein the digitally originate check is processed through one of forwarding the metadata to a bank of first deposit as an electronic Cash Letter File, printing a substitute check from the metadata, forwarding the metadata as another digitally originated check to a third party, and one of converting and truncating the digitally originated check to an Automated Clearing House item.

15. The electronic payment method of claim 11, wherein the digitally originated check is created as a coupon.

16. The electronic payment method of claim 11, further comprising receiving and storing statistics associated with the tracking of the digitally originated check.

17. The electronic payment method of claim 11, further comprising providing a payment score from the statistics, wherein the payment score comprises a rating for a payor associated with the digitally originated check.

18. The electronic payment method of claim 11, further comprising:

authenticating the digitally originated check with a public key cryptography system through the electronic payment system.

19. An electronic payment system, comprising:

a data store;

a network interface configured to connect to a plurality of users; and

one or more processors connected to the data store and the network interface, wherein the one or more processors are configured to;

transmit and receive data with a first user of the plurality of users and confirm the first user'"'"'s acceptance of a contract;

generate an electronic payment file comprising metadata defining a negotiable instrument from the first user to a second user based upon the data provided by the first user, wherein the electronic payment file comprises a legal check item created without an original paper check that is maintained electronically from creation to clearing in the electronic payment system;

transmit data to the second user that the electronic payment file is available after the digitally originated check is generated, wherein the electronic payment file resides in the data store and the second user is made aware of availability of the electronic payment file in the data store; and

process, by the electronic payment system, the electronic payment file to provide a payment to the second user;

wherein the electronic payment system further comprising;

accepting by both the payor and the payee a full set of warranties and indemnities applicable to banks of first deposit and clearing banks thereby enabling electronic presentment from payor to payee of the digital originated check under the Uniform Commercial Code and extending existing check clearing regulations between payor to payee and through associated banks of first deposit and clearing banks.