Processing payment items

• US 8,719,160 B1
• Filed: 07/21/2008
• Issued: 05/06/2014
• Est. Priority Date: 07/21/2008
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Abernethy, George Miller, England, Tony, Lee, Clarence
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): GREGG, MARY M
• Application Number:
  US12/177,044
• Time in Patent Office: 2,115 Days
• Field of Search: None
• US Class Current: 705/40
• 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

Abstract

Payment items are received and processed in the course of a financial transaction. For example, a paying bank may receive an electronic transmission corresponding to a imaged check from a depositing bank. The paying bank may attempt to identify a reason for return within the payment item. If a reason for return is found, a determination may be made that the payment item is a re-clear payment item that has been previously transmitted by the depositing bank and returned by the paying bank. After determining that a payment item is a re-clear, the item may be processed within the paying bank along an abbreviated processing path for faster and less costly item processing. For example, in systems in which duplicate detection is performed on payment items, re-clear items may be classified separately and need not undergo certain automated and/or manual duplicate detection processes.

Claims

1. A method of receiving and processing payment items, comprising:

receiving a first electronic payment item at a paying bank device comprising at least one processor and memory, the paying bank device associated with a payment item processing entity;

processing, at the paying bank device, the first electronic payment item along a first processing path performing duplicate detection processing;

generating and transmitting, at the paying bank device, a return record based on nonpayment of the first electronic payment item, wherein the return record comprises a reason for return field;

receiving, at the paying bank device, a second electronic payment item;

identifying, at the paying bank device, a reason for return field encoded within the second electronic payment item;

determining, at the paying bank device, that the second electronic payment item is a re-clear item based on the identification of the reason for return field encoded within the second electronic payment item; and

processing, at the paying bank device, the second electronic payment item along an abbreviated processing path that does not include at least some of the duplicate detection processing of the first processing path, based on the determination that the second electronic payment item is a re-clear item.

2. The method of claim 1, wherein the processing comprises marking a predetermined field of the second electronic payment item to indicate that the second electronic payment item is not a duplicate transmission of the first electronic payment item, and then forwarding the second electronic payment item to another component for additional processing.

3. The method of claim 2, wherein based on said marking, the second electronic payment item is not sent to a duplicate detection process that is used to process other payment items.

4. The method of claim 1, wherein the first and second electronic payment items each comprise a same digital image of a check of an account holder at the payment item processing entity.

5. The method of claim 4, further comprising identifying a condition of a financial transaction associated with the first electronic payment item, said condition corresponding to a determination that an account of the account holder at the payment item processing entity does not contain an amount of funds required to clear the check.

6. The method of claim 1, wherein the second electronic payment item corresponds to an image replacement document (IRD) based on an original check.

7. The method of claim 1, wherein the first and second payment items comprise data objects formatted in accordance with one or more of the draft standard for trial use (DSTU) X9.37 standard or the American National Standard (ANS) X9.100-187 standard for electronic exchange of check and image data.

8. The method of claim 1, further comprising identifying transmission dates of the first and second electronic payment items, wherein the processing of the second electronic payment item along the abbreviated processing path is further based on a determination that the first electronic payment item and the second electronic payment item were transmitted on different days.

9. A paying bank device comprising:

a processor controlling at least some operations of the paying bank device; and

a memory storing computer executable instructions that, when executed by the processor, cause the paying bank device to;

receive a first electronic payment item at the paying bank device, the paying bank device associated with a payment item processing entity;

process, at the paying bank device, the first electronic payment item along a first processing path performing duplicate detection processing;

generate and transmit, at the paying bank device, a return record based on the first electronic payment item, wherein the return record comprises a reason for return field;

receive, at the paying bank device, a second electronic payment item;

identify, at the paying bank device, a reason for return field encoded within the second electronic payment item;

determine, at the paying bank device, that the second electronic payment item is a re-clear item based on the identification of the reason for return field encoded within the second electronic payment item; and

process, at the paying bank device, the second electronic payment item along an abbreviated processing path that does not include at least some of the duplicate detection processing of the first processing path, based on the determination that the second electronic payment item is a re-clear item.

10. The paying bank device of claim 9, the memory storing further computer executable instructions that, when executed by the processor, cause the paying bank device to mark a predetermined field of the second electronic payment item to indicate that the second electronic payment item is not a duplicate transmission of the first electronic payment item, and then forward the second electronic payment item to another component for additional processing.

11. The paying bank device of claim 10, wherein based on said marking, the second electronic payment item is not sent to a duplicate detection process that is used to process other payment items.

12. The paying bank device of claim 9, wherein the first and second electronic payment items each comprise a same digital image of a check of an account holder at the payment item processing entity.

13. The paying bank device of claim 12, the memory storing further computer executable instructions that, when executed by the processor, cause the paying bank device to identify a condition of a financial transaction associated with the first electronic payment item, said condition corresponding to a determination that an account of the account holder at the payment item processing entity does not contain an amount of funds required to clear the check.

14. The paying bank device of claim 9, wherein the second electronic payment item corresponds to an image replacement document (IRD) based on an original check.

15. The paying bank device of claim 9, wherein the first and second payment items comprise data objects formatted in accordance with one or more of the draft standard for trial use (DSTU) X9.37 standard or the American National Standard (ANS) X9.100-187 standard for electronic exchange of check and image data.

16. The paying bank device of claim 9, the memory storing further computer executable instructions that, when executed by the processor, cause the paying bank device to identify transmission dates of the first and second electronic payment items, wherein the processing of the second electronic payment item along the abbreviated processing path is further based on a determination that the first electronic payment item and the second electronic payment item were transmitted on different days.

17. One or more computer readable media storing computer-executable instructions which, when executed on a paying bank system, cause the paying bank system to perform:

receiving a first electronic payment item at the paying bank system, the paying bank system associated with at a payment item processing entity;

processing, at the paying bank system, the first electronic payment item along a first processing path performing duplicate detection processing;

generating and transmitting at the paying bank system, a return record based on the first electronic payment item, wherein the return record comprises a reason for return field;

receiving, at the paying bank system, a second electronic payment item;

identifying, at the paying bank system, a reason for return field encoded within the second electronic payment item;

determining, at the paying bank system, that the second electronic payment item is a re-clear item based on the identification of the reason for return field encoded within the second electronic payment item; and

processing, at the paying bank system, the second electronic payment item along an abbreviated processing path that does not include at least some of the duplicate detection processing of the first processing path, based on the determination that the second electronic payment item is a re-clear item.

18. The computer readable media of claim 17, storing further computer-executable instructions which, when executed on the paying bank system, cause the paying bank system to perform:

marking a predetermined field of the second electronic payment item to indicate that the second electronic payment item is not a duplicate transmission of the first electronic payment item, and then forwarding the second electronic payment item to another component for additional processing.

19. The computer readable media of claim 18, wherein based on said marking, the second electronic payment item is not sent to a duplicate detection process that is used to process other payment items.

20. The computer readable media of claim 17, wherein the first and second electronic payment items each comprise a same digital image of a check of an account holder at the payment item processing entity.

21. The computer readable media of claim 20, storing further computer-executable instructions which, when executed on the paying bank system, cause the paying bank system to perform:

identifying a condition of a financial transaction associated with the first electronic payment item, said condition corresponding to a determination that an account of the account holder at the payment item processing entity does not contain an amount of funds required to clear the check.

22. The computer readable media of claim 17, wherein the second electronic payment item corresponds to an image replacement document (IRD) based on an original check.

23. The computer readable media of claim 17, wherein the first and second payment items comprise data objects formatted in accordance with one or more of the draft standard for trial use (DSTU) X9.37 standard or the American National Standard (ANS) X9.100-187 standard for electronic exchange of check and image data.

24. The computer readable media of claim 17, storing further computer-executable instructions which, when executed on the paying bank system, cause the paying bank system to perform:

identifying transmission dates of the first and second electronic payment items, wherein the processing of the second electronic payment item along the abbreviated processing path is further based on a determination that the first electronic payment item and the second electronic payment item were transmitted on different days.