METHOD FOR AUTHENTICATING FINANCIAL INSTRUMENTS AND FINANCIAL TRANSACTION REQUESTS

• US 20110270754A1
• Filed: 12/17/2010
• Published: 11/03/2011
• Est. Priority Date: 04/28/2010
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Fsb Ing Direct
• Inventors: DeLiberis, Joseph, Sandler, Todd Adam, Kelly, James John, Struble, Daniel Lloyd, Rowley, Robert Dean III, Wolfs, Rudolph Christian
• Granted Patent: US 9,747,601 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/354 Card activation or deactivation
• 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 30/0185 Product, service or business identity fraud

Abstract

A method for authenticating a check of a plurality of checks where the check was previously issued from a first party to a second party, including receiving first information from the first party, storing the first information in a file of a third party and receiving the check. The check has first party identifying information, a unique pseudorandom number of a pseudorandom sequence, and an amount. A status of activating the plurality of checks is determined. At least a portion of the first party identifying information included with the check, the unique pseudorandom number included with the check and the check amount included with the check are authenticated. The received check is authenticated if the first party, the unique pseudorandom number included with the check and the amount included with the check are authenticated and if the plurality of checks have been activated.

Claims

1. A method for authenticating a check, the check being one of a plurality of checks, the check being previously issued from a first party to a second party, the method comprising:

a) receiving first information from the first party, the first information including an amount of the check and information for identifying the check;

b) storing the first information in a file of a third party;

c) receiving the check having information for identifying the first party, a unique pseudorandom number of a pseudorandom sequence, and an amount, included with the check;

d) determining a status of activating the plurality of checks using at least a portion of the information for identifying the first party included with the check, a stored activation code, and stored information for identifying the first party, the stored information for identifying the first party being stored with the pseudorandom sequence;

e) authenticating the at least a portion of the information for identifying the first party included with the check with the stored information for identifying the first party;

f) authenticating the unique pseudorandom number included with the check using at least a portion of the information for identifying the first party included with the check, the stored information for identifying the first party and the stored sequence;

g) authenticating the amount included with the check using the stored first information; and

h) authenticating the received check if the first party, the unique pseudorandom number included with the check and the amount included with the check are authenticated and if the plurality of checks have been activated.

2. The method of claim 1, further comprising:

a) authenticating the amount included with the check with the stored first information amount of the check; and

b) notifying the first party if the amount included with the check is unauthentic; and

c) receiving a request to cancel the check based on the notification.

d) The method of claim 1, further comprising;

e) authenticating the amount included with the check with the stored first information amount of the check; and

f) rejecting the check if the amount included with the check is unauthentic.

4. The method of claim 1, further comprising:

a) providing a computer interface to the first party for entering first information; and

b) receiving the first information via the computer interface.

5. The method of claim 2, wherein the computer interface is provided at a website or a web portal of the third party.

6. The method of claim 1, wherein the first information further comprises at least one of a name of the second party, an address of the second party, a check date, a time the check was drafted, or a check description.

7. The method of claim 1, further comprising :

a) generating the pseudorandom sequence;

b) generating an activation code;

c) including a unique pseudorandom number of the sequence with each check of a plurality of checks;

d) issuing the plurality of checks with the activation code to the first party;

e) associating the activation code with each unique pseudorandom number of the pseudorandom sequence included with each check of the plurality of checks;

f) associating the activation code with second information for identifying the first party; and

g) storing the activation code with the pseudorandom number sequence and the associated second information.

8. The method of claim 5, further comprising dynamically displaying stored information associated with the check to the first party, the stored information including the stored first information, the stored unique pseudorandom number of the check, and the stored second information.

9. The method of claim 6, wherein the stored information associated with the check is dynamically displayed in an online check register.

10. The method of claim 7, further comprising:

a) storing information associated with each check of the plurality of checks in a database associated with the online check register;

b) updating information associated with each check of the plurality of checks in the database associated with the online check register using information received from the first party; and

c) dynamically displaying the stored information.

3. The method of claim 3, further comprising notifying the first party of the rejected check.

11. A method for authenticating a financial transaction request, the financial transaction request being representative of a check, the check being previously issued from a first party to a second party, the method comprising:

a) providing a first computer processor at a third party, the first computer processor having a computer readable storage medium, the computer readable storage medium comprising instructions stored therein for executing on said processor, the instructions when read and executed, for;

i. receiving first information from the first party, the first information comprising a check amount and information for identifying the check;

ii. storing the first information in a file of the third party;

iii. receiving second information including information for identifying the first party, a unique pseudorandom number of the check, and the check amount, the unique pseudorandom number of the check comprising a pseudorandom number of a pseudorandom number sequence associated with a plurality of checks;

iv. determining a status of activating the plurality of checks using at least a portion of the information for identifying the first party included with the second information, a stored activation code, and stored information for identifying the first party, the stored information for identifying the first party being stored with the pseudorandom sequence;

v. authenticating the at least a portion of the information for identifying the first party included with the second information with stored information for identifying the first party;

vi. authenticating the unique pseudorandom number included with the second information using at least a portion of the information for identifying the first party included with the second information, the stored information for identifying the first party and the stored sequence;

vii. authenticating the amount included with the second information using the stored first information; and

viii. authenticating the second information if the at least a portion of the information for identifying the first party included with the second information, the unique pseudorandom number included with the second information and the amount included with the second information are authenticated and if the plurality of checks have been activated.

12. The method of claim 12, the computer readable storage medium further comprising instructions stored therein for executing on said processor, the instructions when read and executed, for:

a) authenticating the amount included with the second information with the stored first information check amount;

b) rejecting the second information if the amount included with the second information is unauthentic; and

c) notifying the first party of the rejected second information.

13. The method of claim 12, the computer readable storage medium further comprising instructions stored therein for executing on said processor, the instructions when read and executed, for:

c) providing a computer interface to the first party for entering first information; and

d) receiving the first information via the computer interface.

14. The method of claim 12, the computer readable storage medium further comprising instructions stored therein for executing on said processor, the instructions when read and executed, for:

a) dynamically displaying stored information associated with the check to the first party, the stored information including the stored first information, the stored unique pseudorandom number of the check, and the stored second information.

15. The method of claim 15, wherein the stored information associated with the check is dynamically displayed in an online check register.

16. The method of claim 16, the computer readable storage medium further comprising instructions stored therein for executing on said processor, the instructions when read and executed, for:

a) storing information associated with each check of the plurality of checks in a database associated with the online check register;

b) updating information associated with each check of the plurality of checks in the database associated with the online check register using information received from the first party; and

c) dynamically displaying the stored information.

17. A method for authenticating a financial transaction request, the method comprising:

a) generating a pseudorandom number sequence;

b) generating an activation code;

c) including a unique pseudorandom number of the sequence with each check of a plurality of checks;

d) issuing the plurality of checks with the activation code to the first party;

e) associating the activation code with each unique pseudorandom number of the pseudorandom number sequence included with each check of the plurality of checks;

f) associating the activation code with first information for identifying the first party;

g) storing the activation code with the pseudorandom number sequence and the associated first information;

h) receiving check information from the first party, the check information including an amount of a check of the plurality of checks and information for identifying the check of the plurality of checks;

i) associating the received amount of the check with the unique pseudorandom number of the pseudorandom number sequence included with the check;

j) storing the received amount of the check with the unique pseudorandom number of the pseudorandom number sequence included with the check;

k) receiving second information from a second party, the second information including at least a portion of the first information, the unique pseudorandom number of the sequence included with the check of the plurality of checks, and an amount included with the check;

l) determining a status of activating the plurality of checks using at least a portion of the second information, the stored activation code, and at least a portion of the stored first information;

m) authenticating the received at least a portion of the first information with at least a portion of the stored first information;

n) authenticating the unique pseudorandom number of the sequence included with the second information with the received at least a portion of the first information, at least a portion of the stored first information and the stored unique pseudorandom numbers of the pseudorandom number sequence;

o) authenticating the second information amount using the stored amount; and

p) authenticating the second information if the received at least a portion of the first information, the unique pseudorandom number of the sequence included with the second information and the second information amount are authenticated and if the plurality of checks have been activated.