Mechanism for expediting the deposit, transport and submission of checks into the payment system

  • US 5,583,759 A
  • Filed: 07/27/1995
  • Issued: 12/10/1996
  • Est. Priority Date: 11/22/1993
  • Status: Expired due to Term
First Claim
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1. A system for effecting the deposit, settlement and submission into a payment system for collection of funds represented by financial instruments drawn on different institutions that are received by a payee at a first location, said first location determined by the payee remote from the payee'"'"'s collecting and clearing bank, comprising:

  • a sorter at said first location established by the payee (1) for receiving the financial instruments and (2) for sorting the instruments according to predetermined sort pattern categories determined by the collecting and clearing bank;

    a printer at said first location for applying to the instruments at a time before, during or after sorting of the instruments, a separate indorsement on behalf of each of the payee and the collecting and clearing bank with respect to each instrument received;

    the sorter further assembling the sorted instruments with the applied indorsements into discrete groups with respect to the predetermined sort pattern categories;

    a means at the first location for preparing one or more cash letters associated with each assembled group of instruments;

    a communication link between the first location and the collecting and clearing bank for reporting to the bank information in the cash letters in anticipation of a deposit of funds in the payee'"'"'s account at the payee'"'"'s collecting and clearing bank corresponding to the value of the one or more cash letters;

    transport means for delivering the groups of instruments and the one or more cash letters from the first location to a second location for receipt into the payment system according to parameters determined by the payee'"'"'s collecting and clearing bank; and

    a central processing unit and communication link providing a coordination between the payee and the payee'"'"'s collecting and clearing bank which predetermines the timing and monitors the transport of the sorted instruments and the cash letters associated therewith and coordinates the recordation of the deposit of the funds represented by the instruments with the collecting and clearing bank in a sequence coordinated with the timing of a settlement of accounts in the check payment system.

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