Financial data processing system

• US 4,321,672 A
• Filed: 11/26/1979
• Issued: 03/23/1982
• Est. Priority Date: 11/26/1979
• Status: Expired due to Term

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: Edward L. Braun, Eric A Thomson
• Inventors: Braun, Edward L., Thomson, Eric A.
• Primary Examiner(s): Smith, Jerry
• Application Number:
  US06/097,400
• Time in Patent Office: 848 Days
• Field of Search: 364/200, 364/408, 364/900, 235/379, 235/383
• US Class Current: 705/42
• 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 20/108 Remote banking, e.g. home banking
• 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 19/20 Automatic teller machines [ATMs]
• CPC Class Codes: G07F 19/201 Accessories of ATMs

Abstract

Methods and systems for effecting a variety of electronic funds transfer transactions are based upon the use of unit records containing preprinted non-machine readable data, preprinted machine readable data, and manually entered data, and conversion of such records from negotiable instruments to documentary evidence of the satisfactory completion of the transaction. By first automatically reading the encoded data on the unit record and incorporating transaction data and security information in messages transmitted from a terminal, a financial institution can verify the validity of the transaction, effect the transaction and return an authorization message containing both reference and transaction information for imprinting on the unit record. The record then evidences the satisfactory completion of the transaction, and no further document generation or handling are needed at the merchant and financial institutions involved. The record is capable of usage as a conventional negotiable instrument if terminal facilities are inoperable or not available.

Claims

1. The method of effecting a financial transaction involving a financial institution and a customer of the institution comprising the steps of:

making entries on a unit record detailing a portion of the transaction, the entries being made by the customer;

transmitting the unit record information to the financial institution;

effecting automatic funds transfer at the financial institution from the transmitted unit record information; and

recording summary information as to the transaction on the unit record under control of the financial institution whereby electronic funds transfer is effected without rehandling of the unit record and the customer retains the unit record as evidence both of his intention and the actual completion of the transaction.

2. The method set forth in claim 1 above including the further step of producing a retrievable image of the unit record and summary information recorded thereon.

3. The method set forth in claim 1 above including the further steps of transmitting, under customer control, supplementary customer transaction data to the financial institution, generating an authorization message at the financial institution, and recording at least a part of the authorization message on the unit record to uniquely identify the transaction.

4. The method set forth in claim 3 above, wherein the unit record includes machine readable information, and including the further steps of transmitting customer entered indentification data and machine readable data to the financial institution.

5. The method set forth in claim 4 above, including the further step of invalidating the unit record by imprinting a machine readable code thereon.

6. The method set forth in claim 5 above, wherein the machine readable information includes a code uniquely identifying the unit record as suitable for use in electronic funds transfer.

7. The method as set forth in claim 4 above, further including the step of invalidating the unit record by imprinting a predetermined machine readable pattern in the region of the code uniquely identifying the unit record as suitable for use in electronic funds transfer.

8. The method as set forth in claim 1 above, wherein the transaction is of the type including account credits, account debits, transfers between accounts, and reversal of a prior transaction.

9. The method set forth in claim 1 above, wherein the transaction involves two financial institutions, one of which has a terminal for transmission of unit record information, and further comprising the step of effecting automatic funds transfer between the two financial institutions.

10. The method set forth in claim 9 above, wherein the customer'"'"'s financial institution is remote from the institution having the terminal and further comprising the step of entering teller-assisted unit record information.

11. The method set forth in claim 9 above, further comprising the step of entering, under customer control, data pertaining to the transaction.

12. The method set forth in claim 1 above, including the further step of providing a record for a merchant involved in the transaction with the financial institution and the customer.

13. The method set forth in claim 12 above in which the record for the merchant further includes information identifying the source of the funds used in the transaction.

14. The method as set forth in claim 13 above in which the identification of the source of the funds categorizes the transaction as a credit or debit transaction bearing different service charges for the merchant.

15. The method of effecting an automatic funds transfer transaction between a customer and an institution while providing protection for the parties thereto against fraud and error, comprising the steps of:

filling out, by the customer, of a portion of a unit record containing machine readable information including customer account information;

entering information detailing the financial aspects of the transaction;

transmitting a message to the institution containing the customer account and transaction related information;

verifying customer identification by the institution using at least the customer account and transaction related information;

executing the requested funds transfer, including adjustment of the customer'"'"'s account, immediately, whereby the recipient of the transfer is assured of its validity;

transmitting data to the customer indicating that the transaction was satisfactorily completed; and

recording at least part of the returned data on the unit record to evidence the manner in which the transaction was effected and convert the unit record to a further unusable document.

16. The method set forth in claim 15 above, further including the steps of entering, under customer control a personal identification number, transmitting the personal identification number to the institution, and verifying the proper relationship at the institution between the personal identification number and the account number.

17. The method set forth in claim 16 above, including in addition generating, at the institution, a reference number uniquely identifying the transaction, and imprinting, during recordation, the reference number on the unit record such that an audit trail for the transaction is established.

18. The method set forth in claim 17 above, including the steps of generating, at the institution, upon verification of the transaction, an authorization number which identifies at least the participants and the transaction and storing the authorization number electronically for possible reference.

19. The method of effecting a financial transaction involving a financial institution, a customer of the institution, an input terminal and a unit record having machine readable information thereon comprising the steps of:

entering, by the customer, information on the unit record as to a part of the transaction;

entering, under customer control at least financial data via the input terminal;

machine reading of information on the unit record at the input terminal;

transmitting the customer controlled data entry and machine read information to the financial institution;

verifying the transaction and execution of the transaction at the financial institution;

transmitting an authorization message to the terminal from the financial institution; and

recording at least a portion of the authorization message on the unit record to evidence authorization and completion of the transaction.

20. The method as set forth in claim 19 above, further including the step of recording data for the customer as to the nature of the completed transaction.

21. The method as set forth in claim 20 above, wherein the recording of data is on the unit record itself.

22. The method as set forth in claim 21 above, wherein the recorded data comprises data as to transaction type, date and amount as executed by the financial institution, whereby the customer has an immediate and permanent record which can be used to verify the transaction.

23. The method as set forth in claim 19 above, wherein the input terminal includes means for entering personal identification data and the method further includes the steps of:

assembling a transaction message at the terminal including machine read account and financial institution information, customer entered transaction type and amount information and personal identification information;

verifying at the financial institution the validity of the transaction from the transmitted transaction message; and

including in the authorization message, information uniquely identifying the particular transaction.

24. The method as set forth in claim 19 above, wherein the unit record comprises entries permitting use as a negotiable instrument, and wherein the method further comprises the step of invalidating the document by imprinting a predetermined readable pattern thereon.

25. The method as set forth in claim 19 above, including the step of recording on the unit record information verifiable by the customer as to the details of the transaction that was completed.

26. The method as set forth in claim 19 above, including the steps of entering, by the customer, personal code information, verifying the authorization of the customer by the financial institution using both machine read and customer entered information, and incorporating, in the authorization message, a reference code uniquely identifying the transaction.

27. The method as set forth in claim 26 above, wherein the unit record machine readable information includes encoded financial institution information and identifier code information characterizing the record as suitable for use in the method, and further comprising the step of verifying the identifier code information prior to transmission of any information to the financial institution.

28. The method as set forth in claim 27 above, including the further steps of imprinting an invalidating code evidencing a void or cancelled record, and rejecting the record if it contains the invalidating code.

29. The method of evidencing and completing an automatic funds transfer transaction between a customer and a financial institution, based upon usage of an independently negotiable instrument including machine readable fields, customer entry fields and imprinting fields, the method including the use of at least one customer terminal, at least one financial institution processor, and data links therebetween, and comprising the steps of:

preparing, by the customer, customer entry fields on the instrument to initiate the transaction;

assembling a transaction message at the terminal including machine reading of the instrument and customer entry of transaction information;

transmitting the transaction message to the financial institution processor;

returning an authorization message from the processor to the terminal evidencing execution of the funds transfer; and

post-printing instrument invalidating and transaction record information on the instrument to complete the transaction, whereby the instrument is initially available for use as a negotiable document but serves as a complete customer record when used for automatic funds transfer.

30. The method as set forth in claim 29 above, wherein the step of post-printing comprises converting the instrument to a non-negotiable instrument.

31. The method as set forth in claim 29 above, wherein the instrument includes encoded machine readable account and financial institution information and the terminal includes keyboard means and means for reading the encoded information, and further comprising the steps of entering transaction data and security information by the customer on the keyboard means, entering account and financial institution information by machine, and entering security code information by the customer on the keyboard means.

32. The method as set forth in claim 31 above, wherein the terminal is associated with a merchant institution and the merchant and customer financial institutions are different, and further including the steps of:

transmitting funds transfer information between the different financial institutions; and

accumulating transaction information at the terminal for the merchant.

33. The method as set forth in claim 31 above, wherein the terminal includes copying means, and including the further step of copying the completed instrument subsequent to post printing thereon.

34. The method as set forth in claim 33 above, including the further step of interposing a reference pattern on the copy of the completed instrument to identify the transaction.

35. In a system for automatic funds transfer including a terminal having key entry and code reader devices and a data processor at an institution, the method comprising the steps of:

accessing the system with a document evidencing customer intent and bearing machine readable data;

converting the intent evidenced on the document to a fully authorized transfer utilizing key entered information;

verifying the propriety of the authorized transfer at the institution;

effecting the intended transfer at the institution; and

rendering the document non-negotiable by control from the institution.

36. The method as set forth in claim 35 above, wherein the step of effecting the transfer is carried out in a secure environment not accessible to the customer.

37. The method as set forth in claim 36 above, wherein the document is adapted for alternative use as a traditional bank check.

38. A method for effecting multiple types of financial transactions with limited document handling using a data processor system comprising the steps of:

generating originating check documents by individual customers, each check document evidencing a part of a different transaction;

using the check documents and manually entered information in consummating electronic funds transfer for each transaction;

completing the check documents to evidence consummated funds transfer;

generating retrievable copies of each completed document;

electronically retaining transaction data, including reference to the retrievable copies, within the data processing system; and

immediately returning the originating check documents to the customers, whereby the customer has a verifying document and the transaction is thereafter handled by the data processor system, while a reference audit trail is also established.

39. The method as set forth in claim 38 above, wherein different terminals each communicating with the data processor system are disposed to effect the transactions, and wherein the method further comprises the steps of generating retrievable copies at each terminal to evidence transactions thereat.

40. The method as set forth in claim 39 above, further including the step of concurrently generating summary data for merchants affected by the transactions.

41. An integrated transaction system for debits or credits comprising:

a transaction instrument in the form of a negotiable instrument having coded customer account indicia and customer entered transaction indicia;

transaction terminal means including means for sensing account indicia on the instrument, controllable means for imprinting on the instrument, customer data entry means, and display means;

processor means coupled to control the transaction terminal means for sequencing the terminal means to derive the coded customer account indicia from the instrument and the customer entered transaction indicia, including a personal identification number;

an electronic funds transfer system coupled to the processor means for receiving the coded customer account indicia, the transaction indicia and the personal identification number, and providing authorization and transaction information where the transaction is permissible, while entering the transaction in the system; and

the processor means and terminal means responding to the authorization and transaction information to print the same on the instrument, whereby the customer has a complete and immediate record of the transaction in the form of a non-negotiable instrument with security against unauthorized access to his account.

42. The invention as set forth in claim 41 above, wherein the instrument is of the type traditionally negotiable in exchange for goods or services, and wherein said electronic funds transfer system provides post transaction balance information to the terminal means for the customer.

43. The invention as set forth in claim 41 above, wherein said electronic funds transfer system includes means providing access to both the accounts of the customer and a merchant firm with which the customer is dealing, and further including means for electronic transfer of funds between the customer'"'"'s financial institution and the merchant'"'"'s financial institution where they are different.

44. The invention as set forth in claim 43 above, where the terminal means comprises an automated teller machine, and wherein the electronic funds transfer system comprises a central processor for a financial institution.

45. The invention as set forth in claim 44 above, wherein the system includes in addition a cash dispensing mechanism and means at the electronic funds transfer system responsive to the coded customer account indicia and the personal identification number for actuating the cash dispensing mechanism to provide a selected money amount.

46. The invention as set forth in claim 43 above, wherein said terminal means comprises a point-of-sale terminal in a merchant institution, and wherein said electronic funds transfer system comprises means communicating both with the customer'"'"'s financial institution and the merchant'"'"'s financial institution, if different.

47. The invention as set forth in claim 43 above, wherein the terminal means further comprises controllable means for producing a retrievable image of the instrument, and said terminal means commands the controllable means to produce a retrievable image of the instrument after printing of information on the instrument.

48. The invention as set forth in claim 47 above, wherein said controllable means comprises a microfilm camera and a film cassette mechanism, and means responsive to the processor means for coding a unique code for each transaction.

49. The invention as set forth in claim 48 above, wherein the processor means provides a unique code for each transaction in the form of a code identifying the particular terminal and the time of the transaction.

50. The invention as set forth in claim 49 above, wherein said terminal means comprises keyboard means, keyboard display means, and transaction selector means.

51. The invention as set forth in claim 50 above, wherein said means for sensing account indicia on the instrument comprises code reader means of the optical character or magnetic ink character recognition type.

52. The invention as set forth in claim 51 above, wherein said display means comprises status command indicator means and video display means coupled to said processor means.

53. The invention as set forth in claim 52 above, wherein the instrument includes a machine readable identifier code identifying it as suitable for electronic funds transfer, and wherein the terminal means includes code reader means for such code.

54. The invention as set forth in claim 53 above, wherein the means for imprinting includes means for imprinting a machine readable invalidation code on the instrument.

55. The invention as set forth in claim 54 above, wherein the terminal further includes a receiver mechanism for the instrument, means for ejecting the instrument from the receiver mechanism, and means for signaling that the instrument has been ejected.

56. A system for enabling electronic funds transfer utilizing a conventionally negotiable instrument such as a check having a machine readable account code and comprising:

processor controlled terminal means including means for reading the account code on the instrument and means for customer entry of transaction data and a personal identification;

electronic funds transfer means including means (1) responsive to the account code and personal identification for authorizing a transaction (2) responsive to the transaction data for effecting electronic funds transfer and (3) for generating unit record identification; and

means coupled to said processor controlled terminal means and responsive to the electronic funds transfer means for imprinting unit record information on the check, whereby the customer may obtain a record evidencing a completed secure transaction or use the check in conventional fashion.

57. The invention as set forth in claim 56 above, wherein the processor controlled terminal means comprises a plurality of terminals coupled to cooperate with an individual processor, and wherein each terminal includes means for reading account codes and means for customer entry.

58. The invention as set forth in claim 57 above, wherein each terminal further comprises printer means, and means for producing a retrievable image of the check after printing thereon.

59. The invention as set forth in claim 58 above, wherein each terminal means further comprises display means coupled to the processor output, and keyboard means coupled to the processor input, and wherein the processor generates customer instruction sequences of the display for keyboard entry of transaction information and personal identification number by the customer.

60. The invention as set forth in claim 59 above, wherein said processor generates a code for each transaction, and wherein said terminals each include camera means including code generating means responsive to the transaction codes for filming the imprinted checks.

61. The invention as set forth in claim 60 above, wherein the transaction codes comprise terminal identification, date and time information.

62. A system for automatically processing checks presented by the payor of the check comprising a central computer capable of recording financial tranactions;

a remote data processing terminal capable of recognizing information on a check indicating the identity of the payor, the terminal comprising means for generating signals indicative of the identity of the payor, the amount to be paid, the account to be paid, and the identity of the remote terminal, the remote terminal also comprising means for printing on the check a record of the transaction, and means for storing a duplicate record of the transaction; and

means for relaying signals between the remote terminal and the central computer.

63. A system as claimed in claim 62 wherein the remote data processing terminal further comprises means for generating a security identification signal, and wherein the central computer comprises means for recognizing security identification signals and generating an authorizing signal in response to such recognition.

64. A system as claimed in claim 63 wherein the means for generating a security identification signal are physically separated from the remainder of the remote data processing terminal.

65. A system as claimed in claim 62 in which the means for storing a duplicate record comprises means for providing a retrievable copy of the check.

66. A system as claimed in claim 62 in which the remote terminal further comprises means for displaying information indicative of the transaction being processed.

67. A system as claimed in claim 62 in which the central computer includes means for generating signals indicative of account balances for transmission to the remote terminal.

68. A system as claimed in claim 62 wherein the central computer further comprises means for producing records of all of the accounts of a payor in response to the receipt of signals indicative of the identity of the payor.

69. A system as claimed in claim 62 in which the remote terminal further comprises means for displaying information to direct the processing of the transaction being processed.

70. A system as claimed in claim 62 wherein the remote terminal further comprises means for generating signals indicating different ones of a plurality of financial transactions to be accomplished.

71. A remote data processing terminal to be used with the central computer of a financial institution comprising means for reading account identification information from a financial institution check and for generating signals indicative thereof, means for generating signals indicative of transaction data related to the financial institution check, means for displaying information as to the transaction, and means responsive to the central computer and the transaction data for recording information on the financial institution check that converts the check to a non-negotiable record for return to the customer.

72. A remote data processing terminal as claimed in claim 71 further comprising means for generating security identification signals for comparison with signals stored by the central computer, means coupled to said means for recording for supplying a reference number to be recorded on the check, and means for retaining an image of the check on which the reference number appears.

73. A unit record for use as a negotiable instrument or alternatively as a document for initiating electronic funds transfer and recordation thereof, comprising:

a machine readable code field identifying at least an account number and financial institution and including a field for entry of voiding data;

manually enterable fields for receiving at least transaction and account holder data; and

imprintable fields comprising at least amount and confirmation data evidencing completion of the transaction.

74. A unit record as set forth in claim 73 above, wherein the record further comprises a second machine readable code field containing data uniquely identifying the unit record as a document suitable for the electronic funds transfer process, the field for entry of voiding data being contained therein.

75. A unit record as set forth in claim 74 above, wherein the manually enterable fields further comprise a data entry field and wherein the unit record further includes preprinted fields comprising account holder and financial institution information.

76. A unit record as set forth in claim 75 above, wherein the imprintable fields comprise portions for receiving authorization message data comprising a reference number from the financial institution.

77. A unit record as set forth in claim 76 above, wherein the unit record further comprises a visual identifier field for uniquely identifying the record as a document suitable for the electronics funds transfer process.

78. A unit record as set forth in claim 77 above, wherein the unit record comprises a negotiable instrument and the manually entered fields comprise payee, date and signature.

79. A unit record as set forth in claim 78 above, wherein the imprintable fields further comprise date and time information.

80. A unit record as set forth in claim 79 above, wherein the imprintable fields include at least a portion for cancelling the negotiable instrument.

82. A unit record as set forth in claim 83 above, wherein the imprintable fields include in addition a field for imprinting information identifying the merchant and terminal or seller, a field for identifying the debit or credit status of the transaction.

81. A unit record as set forth in claim 82 above, wherein the imprintable fields include in addition a field for imprinting the then current financial status of the customer'"'"'s account.