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

• US 20130117183A1
• Filed: 06/25/2012
• Published: 05/09/2013
• Est. Priority Date: 10/30/2000
• Status: Active Grant

• Current Assignee: Bozeman Financial LLC
• Original Assignee: Bozeman Financial LLC
• Inventors: Bozeman, William O.
• Granted Patent: US 8,768,840 B2
• Time in Patent Office: Days
• 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 Vile 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

1-199. -199. (canceled)

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

Receiving at one of a payor bank database and a third party database, 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 the database the first record of the electronic financial transaction including a plurality of parameters,

receiving at the database a second record of the electronic financial transaction from a payee bank as the transaction moves along the payment clearing process;

each of said first and second records received at the database including at least some of the same parameters,

determining by a computer when there is a match between at least two of the parameters of said second record of the first financial transaction received at the database and the same parameters of the first record of the financial transaction stored in the database, and

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

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

201. The computer implemented method of claim 200 for detecting fraud in financial transactions, wherein the parameters include at least two of the following:

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

202. The computer implemented method of claim 200 for detecting fraud in financial transactions, wherein the first financial transaction may be at least one of check payment, credit card payment, debit card payment, and electronic payment.

203. The computer implemented method of claim 200 for detecting fraud in financial transactions, wherein the database receives the first record of the 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.

204. The computer implemented method of claim 200 for detecting fraud in financial transactions, wherein the 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.

205. The computer implemented method of claim 200 for detecting fraud in financial transactions, wherein the computer performs the step of compiling a behavior matrix for a payer based upon the financial transaction records of the payer stored in the database.

206. The computer implemented method of claim 200 for detecting fraud in financial transactions, wherein the computer performs the step of authenticating the record of the first financial transaction received from a participant in the payment clearing process with information in the first record and communicating to the participant the results of the authenticating.

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

providing a computer having a database;

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

storing in said database the first record of the check received by the payer, said first record including at least three of the following;

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

providing a network interface to the database available to at least one of the participants in the check clearing process selected from the group comprising;

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

enabling said participant to communicate separately with the database via the network interface as the check moves along the check clearing process;

receiving from the participant a second record of the check as it exists at the participant for processing;

determining by a computer correspondence between the first record and the second record of the check;

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

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

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

208. The computer implemented method of claim 207 for detecting fraud in a check clearing process, wherein the first check may be at least one of written check payment, electronic check payment, imaged check payment, check card payment, and debit card payment.

209. The computer implemented method of claim 207 for detecting fraud in a check clearing process, wherein the database receives the first record of the first 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.

210. The computer implemented method of claim 207 for detecting fraud in a check clearing process, wherein the computer automatically polls for check register information for receiving and storing on the database.

211. The computer implemented method of claim 207 for detecting fraud in a check clearing process, wherein the 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.

212. The computer implemented method of claim 207 for detecting fraud in a check clearing process, wherein the computer performs the step of compiling a behavior matrix for a payer based upon the checking account records of the payer stored in the database.

213. The computer implemented method of claim 207 for detecting fraud in a check clearing process, wherein the computer performs the step of authenticating the record of the first check received from a participant in the check clearing process with information in the first record and communicating to the participant the results of the authenticating.

214. 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;

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

payer, point of sale terminal, online account, and portable electronic device, each financial transaction record including a plurality of parameters;

receiving at the computer a second record of the first financial transaction from a bank of first deposit as the first financial transaction moves through the payment clearing process, the second record including at least some of the same parameters that are in the first record of the first financial transaction;

determining by a computer whether there is a match between at least one of the parameters of the second record of the first financial transaction received at the computer and one of the same parameters in the first record of the first financial transaction stored in the database,

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

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

215. The computer implemented method of claim 214 for detecting errors in processing financial transactions, wherein the 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.

216. The computer implemented method of claim 214 for detecting errors in processing financial transactions, wherein the database receives the first record of the 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.

217. The computer implemented method of claim 214 for detecting errors in processing financial transactions, wherein the computer automatically polls check register information for receiving at the computer and storing on the database.

218. The computer implemented method of claim 214 for detecting errors in processing financial transactions, wherein the computer performs at least two of 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.

219. The computer implemented method of claim 214 for detecting errors in processing financial transactions, wherein the computer compiles a behavior matrix for a payer based upon the financial transaction records of the payer stored in the database.