Universal positive pay match, authentication, authorization, settlement and clearing system

• US 8,768,840 B2
• Filed: 06/25/2012
• Issued: 07/01/2014
• Est. Priority Date: 10/30/2000
• Status: Expired due to Fees

• Current Assignee: Bozeman Financial LLC
• Original Assignee: Bozeman Financial LLC
• Inventors: Bozeman, William O.
• Primary Examiner(s): Dass, Harish T
• Application Number:
  US13/507,387
• Publication Number:
  US 20130117183A1
• Time in Patent Office: 736 Days
• Field of Search: 705 39- 40, 705 64- 66, 705 44- 45, 705/37, 235/379, 382/138, 382/137
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 20/10 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 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/389 Keeping log of transactions for guaranteeing non-repudiation of a transaction
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A Universal Positive Pay Database (UPPD) method, system and/or computer useable medium to reduce financial transaction fraud. A UPPD database is configured to store thereon transaction records associated with financial transactions corresponding to customers of the UPPD database. A particular financial transaction is initiated between a payer and a payee by providing parameters associated with the financial transaction to the UPPD database. An issue File is provided to the UPPD database that includes parameters associated with the particular financial transaction. A correspondence determination is made between the financial transaction parameters from the Issue File and the financial transaction parameters provided to the UPPD database at every point along the financial transaction clearing process. The customer, payer, payee, payee bank, drawee bank, and banking institutions intermediate the payee bank and the drawee bank are able to access the correspondence determination at every point along the financial transaction clearing process.

Claims

1. A computer implemented method for detecting fraud in financial transactions during a payment clearing process, said method comprising:

receiving through one of a payer bank and a third party, a first record of an electronic financial transaction from at least one of the following group;

a payer, a point-of-sale terminal, an online account and a portable electronic device;

storing in a database accessible by each party to said payment clearing process of said electronic financial transaction, said first record of said electronic financial transaction, said first record comprising more than one parameter;

receiving at said database at least a second record of said electronic financial transaction from one or more of a payee bank and any other party to said payment clearing process as said transaction moves along said payment clearing process, wherein said second record comprises at least one parameter which is the same as said more than one parameter of said first record;

each of said first and second records received at said database comprise at least two of the same said more than one parameters;

determining by a computer when there is a match between at least two of said parameters of said second record of said first financial transaction received at said database and the same parameters of said first record of said financial transaction stored in said database, and wherein any party to said payment clearing process is capable of verifying said parameters at each point along said financial transaction payment clearing process;

sending a notification to said payee bank participant with authorization to process said electronic financial transaction when said parameters match; and

sending a notification to said payee bank participant to not process said electronic financial transaction when said parameters do not match.

2. The computer implemented method of claim 1 for detecting fraud in financial transactions, wherein said parameters include at least two of the following:

check number, amount, account number, routing number, issue date, and payee.

3. The computer implemented method of claim 1 for detecting fraud in financial transactions, wherein said first financial transaction may be at least one of check payment, credit card payment, debit card payment, and electronic payment.

4. The computer implemented method of claim 1 for detecting fraud in financial transactions, wherein said database receives said first record of said first financial transaction from one of the following:

a point of sale (POS), a point of presentment (POP), a point of encashment (POE), a point of data (POD), an automated teller machine, an online account, an internet point of sale, and a mobile device.

5. The computer implemented method of claim 1 for detecting fraud in financial transactions, wherein said computer performs at least two of the following steps:

archiving check register information in a record, storing check register information in a record, matching data in a record, verifying data in a record, and authenticating data in a record.

6. The computer implemented method of claim 1 for detecting fraud in financial transactions, wherein said computer performs the step of compiling a behavior matrix for a payer based upon the financial transaction records of said payer stored in said database.

7. The computer implemented method of claim 1 for detecting fraud in financial transactions, wherein said computer performs the step of authenticating said record of said first financial transaction received from a participant in said payment clearing process with information in said first record and communicating to said participant results of said authenticating.

8. A computer implemented method for detecting fraud in a check clearing process, said method comprising:

providing a computer having a database accessible by each participant to said check clearing process;

receiving at said computer a first record of a check from a payer including check register information;

storing in said database said first record of said check received by said payer, said first record comprising at least two of the following parameters;

a check number, a date issued, a payee, a routing number, an account number, and an amount;

providing a network interface to said database accessed by one or more participants in said check clearing process selected from the group comprising;

a payee of said check, a payee bank, a payer bank, banking institutions intermediate said payee bank and said payer bank, a clearing bank, a Federal Reserve Bank, and a third party processor;

enabling said one or more participants in said check clearing process to communicate separately with said database via said network interface as said check moves along said check clearing process;

receiving from said at least one or more participants in said check clearing process a second record of said check, said second record comprising at least two of the following parameters;

a check number, a date issued, a payee, a routing number, an account number, and an amount, and wherein any participant in said check clearing process is capable of verifying said parameters at each point along said check clearing process;

determining by said computer correspondence between said parameters of said first record and said parameters of said second record of said check;

providing an electronic notification to said participant, wherein said notification includes results of said correspondence determination;

wherein said notification informs said participant to process said financial transaction when said first and second records correspond; and

wherein said notification informs said participant to not process said financial transaction when said first and second records do not correspond.

9. The computer implemented method of claim 8 for detecting fraud in a check clearing process, wherein said check may be at least one of written check payment, electronic check payment, imaged check payment, check card payment, and debit card payment.

10. The computer implemented method of claim 8 for detecting fraud in a check clearing process, wherein said database receives said first record of said check from one of the following:

a point of sale (POS), a point of presentment (POP), a point of encashment (POE), a point of data (POD), an automated teller machine, an online account, an internet point of sale, and a mobile device.

11. The computer implemented method of claim 8 for detecting fraud in a check clearing process, wherein said computer automatically polls for check register information for receiving and storing on said database.

12. The computer implemented method of claim 8 for detecting fraud in a check clearing process, wherein said computer performs at least two of the following steps:

archiving check register information in a record, storing check register information in a record, matching data in a record, verifying data in a record, and authenticating data in a record.

13. The computer implemented method of claim 8 for detecting fraud in a check clearing process, wherein said computer performs the step of compiling a behavior matrix for a payer based upon checking account records of said payer stored in said database.

14. The computer implemented method of claim 8 for detecting fraud in a check clearing process, wherein said computer performs the step of authenticating said record of said check received from a participant in said check clearing process with information in said first record and communicating to said participant results of said authenticating.

15. A computer implemented method for detecting errors in processing financial transactions, said method comprising:

providing at least one computer having a processor, an area of main memory, and a storage device having a database, wherein said database is accessible by each participant involved in said processing of financial transactions;

storing in said database records of financial transactions relating to payments, comprising at least a first record of a first financial transaction received from at least one participant to said processing of said financial transaction selected from the following group;

a payer, a point of sale terminal, an online account, and a portable electronic device, each financial transaction record including more than one parameter;

receiving at said computer a second record of said first financial transaction from a bank of first deposit as said first financial transaction moves through said error detection process, said second record including at least some of said more than one parameters that are in said first record of said first financial transaction;

determining by said computer whether there is a match between at least one of said parameters of said second record of said first financial transaction received at said computer and one of the same parameters in said first record of said first financial transaction stored in said database, and wherein any participant in said processing of said financial transaction is capable of verifying said parameters at each point along said error detection process;

providing a notification to said bank of first deposit with results from said matching of said parameters of said second record with said parameters of said first record; and

providing a notification to said payer with results from said matching.

16. The computer implemented method of claim 15 for detecting errors in processing financial transactions, wherein said first financial transaction may be at least one of a check payment, a credit card payment, a debit card payment, a funds transfer payment and an electronic payment.

17. The computer implemented method of claim 15 for detecting errors in processing financial transactions, wherein said database receives said first record of said first financial transaction from one of the following:

a point of sale (POS), a point of presentment (POP), a point of encashment (POE), a point of data (POD), an automated teller machine, an online account, an internet point of sale, and a mobile device.

18. The computer implemented method of claim 15 for detecting errors in processing financial transactions, wherein said computer automatically polls check register information for receiving at said computer and storing on said database.

19. The computer implemented method of claim 15 for detecting errors in processing financial transactions, wherein said computer performs at least two of the following steps:

archiving check register information in a record, storing check register information in a record, matching data in a record, verifying data in a record, and authenticating data in a record.

20. The computer implemented method of claim 15 for detecting errors in processing financial transactions, wherein said computer compiles a behavior matrix for a payer based upon financial transaction records of the payer stored in said database.