System and method for electronic deposit of a financial instrument by banking customers from remote locations by use of a digital image

• US 8,768,836 B1
• Filed: 08/07/2007
• Issued: 07/01/2014
• Est. Priority Date: 02/18/2000
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Acharya, Ravi V.
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): GREGG, MARY M
• Application Number:
  US11/890,605
• Time in Patent Office: 2,520 Days
• Field of Search: 705/18, 705/35, 705/42
• US Class Current: 705/42
• CPC Class Codes: G06F 40/174 Form filling; Merging
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0457 the tickets being sent electronically
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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

A system and method for initiating a deposit transaction, where the depositor is a banking customer located at a remote location, and where the item to be deposited is a financial instrument, such as a paper check from a third party, payable to the depositor. The enabling system features a Remote Customer Terminal (RCT) with certain input devices, connected to a bank system. An image and/or other data of the financial instrument are transmitted from the RCT to the Bank of First Deposit (BOFD) where the data may be processed by conversion to Electronic Funds Transfer (EFT), via Electronic Check Presentment (ECP), or via check reconstruction. The deposit transaction can be accomplished without physical transfer of the financial instrument to or through the bank system. The system and method provide convenience and improved transaction processing speed compared to other deposit transactions of financial instruments.

Claims

1. A system for depositing value associated with a financial instrument into a bank account of a banking customer payee comprising:

a customer terminal, located remote from a bank, the customer terminal comprising, a cell phone, a wireless handheld device, a personal digital assistant, or any combination thereof, the customer terminal further comprising at least an electronic processor and digital imaging capabilities;

an automated banking system comprising an electronic processor and connected to the customer terminal via a communication link; and

a check clearing system comprising an electronic processor, the check clearing system connected to the automated banking system via a communication link, the check clearing system being located remote from the automated banking system,

wherein the automated banking system is configured such that information from the financial instrument is received from the customer terminal, the information originating from a digital image of the financial instrument, the digital image having been electronically received by the banking customer payee from a digital camera interfaced with the customer terminal as part of the digital imaging capabilities and the digital image is directly sent to the automated banking system without requiring the banking customer payee to produce a physical copy of the digital image and the information is used to determine whether the automated banking system is associated with a paying bank of the financial instrument, wherein the information comprises a routing number, an account number, a date written, and an amount of the financial instrument, as well as the digital image of the financial instrument, and

wherein the automated banking system and check clearing system are configured to effectuate deposit of the value of the financial instrument into the bank account of the banking customer payee without physical receipt of the financial instrument by the automated banking system.

2. The system of claim 1, wherein the remote customer terminal further comprises one or more of a keypad, a keyboard, a microphone, a magnetic ink character reader, a digital image scanner, or a bar code scanner.

3. The system of claim 2, wherein the remote customer terminal further comprises optical recognition software configured to convert machine printed characters to electronic text or an intelligent character recognition configured to convert handwritten characters to electronic text.

4. The system of claim 1, wherein the remote customer terminal further comprises a printer configured to print a receipt or to mark the financial instrument using human readable ink or machine readable ink.

5. The system of claim 1, wherein the banking customer account comprises a demand deposit account.

6. The system of claim 1, wherein the automated banking system comprises a telephone, a cellular phone, a facsimile machine, a personal computer, a mainframe computer, a wireless handheld device, a personal digital assistant or any combination thereof.

7. The system of claim 1, wherein the financial instrument comprises a negotiable instrument.

8. The system of claim 7, wherein the financial instrument comprises a check.

9. A computerized method for a banking customer to deposit a value of a financial instrument into a bank account from a location that is remotely situated with respect to a bank, comprising:

logging the banking customer onto an automated electronic banking system through a customer terminal remotely located with respect to the bank and the automated electronic banking system, wherein the customer terminal comprises a cell phone, a wireless handheld device, a personal digital assistant, or any combination thereof, the customer terminal further comprising at least an electronic processor and digital imaging capabilities;

receiving a request by the automated electronic banking system from the banking customer to deposit the value of the financial instrument that is made payable to the banking customer;

receiving, by the automated electronic banking system, a digital image of the financial instrument from the customer terminal, the digital image having been electronically received by the banking customer from a digital camera interfaced with the customer terminal as part of the digital imaging capabilities and the digital image is directly sent to the automated banking system without requiring the banking customer to produce a physical copy of the digital image;

receiving, by the automated electronic banking system, transaction data transmitted by the banking customer and determining whether the automated electronic banking system is associated with a paying bank of the financial instrument based at least in part on the transaction data, wherein the transaction data comprises a routing number, an account number, a date written and an amount of the financial instrument;

depositing, by the automated electronic banking system, the value of the financial instrument into a bank account represented by the routing number and the account number without physical receipt of the financial instrument by the automated electronic banking system; and

transmitting by the automated electronic banking system to the banking customer a result of the transaction for the financial instrument.

10. The method of claim 9, wherein the result of the transaction comprises a credit to the banking customer'"'"'s account, a provisional credit to the banking customer payee'"'"'s account, or a denial of the transaction.

11. The method of claim 9, wherein depositing comprises electronic funds transfer, electronic check presentment or printing a reconstructed check, and physically routing the reconstructed check to the paying bank for payment.

12. The method of claim 11, wherein the reconstructed check is printed from the digital image of the financial instrument being deposited by the banking customer.

13. The method of claim 9, further comprising

subjecting the financial instrument to one or more actions to prevent redeposit of the financial instrument.

14. The method of claim 13, wherein the one or more actions comprise marking the financial instrument by human or machine readable ink, making an inquiry to a database whether the financial instrument has previously been deposited before receipt of the present deposit request, or combinations thereof.

15. The method of claim 9, wherein the bank account comprises a demand deposit account.

16. The method of claim 9, wherein the automated electronic banking system comprises a telephone, a cellular phone, a facsimile machine, a personal computer, a mainframe computer, a wireless handheld device, a wireless handheld device, a personal digital assistant, or any combination thereof.

17. The method of claim 9, wherein the financial instrument comprises a plurality of financial instruments payable to a plurality of banking customers.

18. The method of claim 9, wherein the financial instrument comprises a negotiable instrument.

19. The method of claim 18, wherein the financial instrument comprises a check.

20. A computerized method for a banking customer to deposit a value of a financial instrument from a location that is remote from a bank, comprising:

logging onto an automated electronic banking system from a customer terminal located remote from the bank, wherein the customer terminal comprises a cell phone, a wireless handheld device, a personal digital assistant, or any combination thereof, the customer terminal further comprising at least an electronic processor and digital imaging capabilities;

transmitting to the automated electronic banking system a request for authorization to make a transaction;

receiving authorization to access the automated electronic banking system;

transmitting a digital image of the financial instrument, the digital image having been electronically received by the banking customer from a digital camera interfaced with the customer terminal as part of the digital imaging capabilities and the digital image is directly sent to the automated banking system without requiring the banking customer to produce a physical copy of the digital image, and transaction data to the automated electronic banking system and determining whether the automated electronic banking system is associated with a paying bank of the financial instrument based at least in part on the transaction data, wherein the transaction data comprises a routing number, an account number, a date written and an amount of the financial instrument; and

receiving confirmation that the value of the financial instrument has been deposited into the account of the banking customer by the automated electronic banking system without physical receipt of the financial instrument by the automated electronic banking system.

21. The method of claim 20, wherein the value of the financial instrument is credited to the banking customer'"'"'s account, provisionally credited to the banking customer payee'"'"'s account, or the deposit request is denied.

22. The method of claim 20, wherein the value of the financial instrument is deposited by the automated electronic banking system by electronic funds transfer, electronic check presentment or printing of a reconstructed check and physically routing the reconstructed check to the paying bank for payment.

23. The method of claim 22, wherein the reconstructed check is printed from the digital image of the financial instrument being deposited by the banking customer.

24. The method of claim 20, further comprising subjecting the financial instrument to one or more actions to prevent redeposit of the financial instrument.

25. The method of claim 24, wherein the one or more actions comprise marking the financial instrument by human or machine readable ink, making an inquiry by the automated electronic banking system to a database whether the financial instrument has previously been deposited before receipt of the present deposit request, or combinations thereof.

26. The method of claim 20, wherein the account comprises a demand deposit account.

27. The method of claim 20, wherein the automated electronic banking system comprises a telephone, a cellular phone, a facsimile machine, a personal computer, a mainframe computer, a wireless handheld device, a personal digital assistant, a wireless handheld device, or combinations thereof.

28. The method of claim 20, wherein the financial instrument comprises a plurality of financial instruments.

29. The method of claim 20, wherein the customer terminal further comprises one or more input devices and output devices, a processing unit, a memory device, and a communications link to the automated electronic banking system.

30. The method of claim 29, wherein the one or more input devices comprise a keypad, a keyboard, a microphone, a magnetic ink character reader, a digital image scanner, a bar code scanner, or any combination thereof.

31. The method of claim 20, wherein the customer terminal digital imaging capabilities comprise optical recognition software configured to convert machine printed characters to electronic text and an intelligent character recognition software configured to convert handwritten characters to electronic text.

32. The method of claim 20, further comprising entering the transaction data into the customer terminal through one or more input devices.

33. The method of claim 20, wherein at least part of the transaction data comprises machine readable data on the financial instrument.

34. The method of claim 20, wherein at least part of the transaction data is stored in a memory device associated with the customer terminal.

35. The method of claim 20, wherein the financial instrument comprises a negotiable instrument.

36. The method of claim 35, wherein the financial instrument comprises a check.