Automated check verification and tracking system using bar code information

• US 5,594,226 A
• Filed: 09/05/1995
• Issued: 01/14/1997
• Est. Priority Date: 07/11/1994
• Status: Expired due to Term

• Current Assignee: RPX Corporation
• Original Assignee: Paul Steger
• Inventors: Steger, Paul
• Primary Examiner(s): Hajec, Donald T.
• Assistant Examiner(s): LEE, MICHAEL GUNYOUNG
• Application Number:
  US08/523,646
• Time in Patent Office: 497 Days
• Field of Search: 235/379, 235/487, 235/375, 283/58
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07D 7/0043 using barcodes
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

The present invention provides an apparatus for automatically accessing and verifying checking account status based on information contained in a bar code printed on a check, travelers check or money order. A bar code scanner reads the information contained in the bar code and, based on that information, determines a bank code and an account code. Based on the bank code or account code, a proper bank, travelers check company or money order company is automatically contacted. Checking, travelers check or money order account information is then transmitted to the proper bank, travelers check company or money order company. Account status information is received from the bank, travelers check company or money order company and displayed on the merchant'"'"'s terminal. Finally, a receipt is printed with a bar code matching information on the check, travelers check or money order.

Claims

1. An apparatus for automatically accessing and verifying with an underwriting institution the status of an account underlying a negotiable instrument and the authority of a purchaser to issue said negotiable instrument against said account when said negotiable instrument is presented to a merchant based on account information and security information contained in a bar code printed on the instrument for establishing that the purchaser is recognized by the underwriting institution as an authorized issuer of said negotiable instrument against said account, comprising:

a terminal for use by the merchant at a point of sale;

a bar code scanner electrically coupled to said terminal for reading the bar code printed on the negotiable instrument;

means for automatically determining an underwriting institution code and an account number from the bar code, said means for determining located in said terminal;

means for automatically deriving a personal identification number from the security information contained in the bar code, said means located in said terminal;

a modem electrically coupled to said terminal transmitting and receiving electrical communication therewith;

a bi-directional underwriting institution switch electrically coupled to said modem and capable of automatically establishing electrical communication with the underwriting institution based on the underwriting institution code contained in the bar code;

a display screen attached to said terminal for displaying transaction information to the merchant; and

means for printing a receipt including a reproduction of the bar code contained on the negotiable instrument, said receipt capable of coordinating said negotiable instrument presented to the merchant with said receipt.

2. The apparatus of claim 1 further including means for saving account information and security information contained in said bar code for use in future processing of the transaction.

3. The apparatus of claim 1 wherein said bar code scanner is capable of reading a bar code printed on a drivers license, and said means for printing is capable of printing a reproduction of the drivers license bar code on a receipt for correlating said negotiable instrument presented to the merchant and said drivers license bar code with said receipt.

4. The apparatus of claim 1 further including means for automatically determining an encrypted security code from the bar code.

5. A method for automatically accessing and verifying with an underwriting institution the status of an account underlying a negotiable instrument and the authority of a purchaser to issue said negotiable instrument against said account when said negotiable instrument is presented to a merchant based on account information and security information contained in a bar code printed on the instrument for establishing that the purchaser is recognized by the underwriting institution against said account, comprising the steps of:

a) reading the bar code printed on the negotiable instrument;

b) deriving an underwriting institution code from the bar code;

c) deriving an account number from the bar code;

d) deriving a personal identification number from the bar code;

e) automatically contacting the appropriate underwriting institution based on the underwriting institution code contained in the bar code;

f) transmitting the account number and personal identification number to the appropriate underwriting institution;

g) receiving account status information from the underwriting institution;

h) displaying the account status information; and

i) printing a receipt including a reproduction of the bar code contained on the negotiable instrument, said receipt capable of coordinating said negotiable instrument presented to the merchant with said receipt.

6. The method of claim 5 wherein step (e) comprises a software routine using a look-up table containing underwriting institution codes and corresponding underwriting institution contact information for automatically establishing communication with the appropriate underwriting institution.

7. The method of claim 6 wherein step (e) comprises a financial institution switch which automatically and in real time contacts the proper underwriting institution based on the underwriting institution code.

8. The method of claim 5 further including the step of saving the account information and security information contained in said bar code for use in future processing of the transaction.

9. The method of claim 5 further including the steps of reading bar code information from a drivers license and printing a reproduction of the drivers license bar code on the receipt for correlating said negotiable instrument presented to the merchant and said drivers license bar code with said receipt.

10. The method of claim 5 further including the steps of reading bar code information from a drivers license, automatically determining drivers license information from the drivers license bar code, and automatically verifying the drivers license information.

11. The method of claim 5 further including the step of automatically determining an encrypted security code from the bar code.

12. A method for automatically accessing and verifying with an underwriting institution the status of an account underlying a negotiable instrument and the authority of a purchaser to issue said negotiable instrument against said account when said negotiable instrument is presented to a merchant based on account information and security information contained in a bar code printed on the instrument for establishing that the purchaser is recognized by the underwriting institution as an authorized issuer of said negotiable instrument against said account, comprising the steps of:

a) reading the bar code printed on the negotiable instrument;

b) deriving an underwriting institution code from the bar code;

c) deriving an account number from the bar code;

d) deriving an encrypted security code from the bar code;

e) automatically contacting the appropriate underwriting institution based on the underwriting institution code contained in the bar code;

f) transmitting the account number and personal identification number to the appropriate underwriting institution;

g) receiving account status information from the underwriting institution;

h) displaying the account status information; and

i) printing a receipt including a reproduction of the bar code contained on the negotiable instrument, said receipt capable of coordinating said negotiable instrument presented to the merchant with said receipt.