Enhanced pre-allocated check negotiability systems and methods

• US 7,500,600 B2
• Filed: 08/09/2007
• Issued: 03/10/2009
• Est. Priority Date: 09/09/2005
• Status: Active Grant

• Current Assignee: Money Network Financial LLC (Fiserv Incorporated)
• Original Assignee: Money Network LLC
• Inventors: Herrington, Mark, Jackman, Richard, Putman, Mark
• Primary Examiner(s): Lee; Michael G
• Assistant Examiner(s): KELLY, RAFFERTY D
• Application Number:
  US11/836,211
• Publication Number:
  US 20070272745A1
• Time in Patent Office: 579 Days
• Field of Search: 235/379, 235/382
• 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 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• 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

Abstract

Systems, methods, and software are described for authorizing transactions undertaken with a negotiable instrument which is pre-allocated a specific amount of funds. A host computer system may receive a request to allocate funds to a negotiable instrument. The host may verify the availability of funds, and allocate the funds to the negotiable instrument. The host may then receive a request to authorize the transaction in which the negotiable instrument is used. The host may verify that the particular instrument has been allocated the specific amount indicated, and thereby authorize the transaction.

Claims

1. A method for authorizing, with a host computer system, a transaction using a negotiable instrument, the method comprising:

receiving a request, at the host computer system, to allocate a first amount of funds to the negotiable instrument;

verifying availability of the first amount of funds;

allocating the first amount of funds to the negotiable instrument, wherein upon allocation the first amount of funds comprises a host-specified first amount of funds;

receiving a communications signal originating at a point-of-sale device, wherein the signal comprises a request to authorize the transaction using the negotiable instrument, and the request includes information comprising;

a user-specified second amount of funds; and

identification information which identifies the negotiable instrument;

authorizing the transaction based at least in part on a determination that the host-specified first amount of funds associated with the negotiable instrument is equal to the user-specified second amount of funds specified in the request to authorize; and

indicating that the transaction using the negotiable instrument was authorized, so that any future request to authorize one or more other transactions using the negotiable instrument will not be authorized.

2. The method of claim 1, wherein the availability of the first amount of funds is based on the availability of funds in a stored-value account.

3. The method of claim 2, wherein the stored-value account is funded by payroll funds owed by an employer to an employee.

4. The method of claim 1, wherein the availability of the first amount of funds is based on the availability of funds on credit from a credit card account.

5. The method of claim 1, wherein the request to allocate the first amount of funds to the negotiable instrument is communicated through a telephone voice response unit employing interactive voice response technology.

6. The method of claim 1, wherein the request to allocate the first amount of funds to the negotiable instrument is communicated through a web interface by a user of the negotiable instrument.

7. The method of claim 1, wherein the identification information comprises a routing number, a check number, and an account number.

8. The method of claim 7, wherein,

the identification information is printed on the negotiable instrument with magnetic ink character recognition (“

ICR”

) technology; and

the point-of-sale device includes a MICR reader which automatically reads the identification information from the negotiable instrument.

9. The method of claim 8, wherein,

the identification information and the user-specified second amount of funds are initially routed from the point-of-sale device to a check authorization service gateway;

and

the check authorization service gateway recognizes the routing number, and routes the identification information and the specific amount of funds to the host computer system.

10. The method of claim 1, wherein the authorizing step comprises querying a database, wherein the database indicates that the identification information which identifies the negotiable instrument has been allocated an amount of funds equal to the user-specified second amount of funds in the request.

11. The method of claim 1, wherein,

no form of personal identification is required from a user of the negotiable instrument at the point-of-sale device for authorization of the transaction;

and

the authorizing step further comprises a warranty for the negotiable instrument.

12. The method of claim 1, wherein the authorizing step comprises failing to deny the request to authorize.

13. A method for authorizing, with a host computer system, a transaction using a negotiable instrument, the method comprising:

receiving a request, at the host computer system, to allocate a first amount of funds to the negotiable instrument;

verifying the availability of the first amount of funds;

allocating the first amount of funds to the negotiable instrument, wherein upon allocation the first amount of funds comprises a host-specified first amount of funds;

receiving a request to authorize a transaction using the negotiable instrument to which the specific amount first amount of funds have been allocated, wherein the request includes information comprising;

a user-specified second amount of funds; and

identification information which identifies the negotiable instrument;

authorizing the transaction, based at least in part on a determination that the host-specified first amount of funds associated with the negotiab1e instrument is equal to the user-specified second amount of funds specified in the request to authorize; and

indicating that the transaction using the negotiable instrument was authorized, so that any future request to authorize one or more other transactions using the negotiable instrument will be declined.

14. The method of claim 13, wherein the availability of the first amount of funds is based on the availability of funds in an account or accounts selected from the group consisting of:

a stored-value account, a stored-value account funded by payroll funds owed from an employer to an employee, a stored-value card account, a credit card account, a bank account, a savings account, and any combination thereof.

15. The method of claim 13, wherein the request to allocate the first amount of funds to the negotiable instrument is communicated through a telephone call by a user of the negotiable instrument.

16. The method of claim 15, wherein a telephone call comprises use of a voice response unit employing interactive voice response technology.

17. The method of claim 13, wherein,

the negotiable instrument comprises a check, which includes a preprinted issuer number;

the allocating step further comprises providing a transaction number to the user of the negotiable instrument;

the request to authorize a transaction comprises a telephone call from a merchant; and

the identification information comprises the issuer number and the transaction number.

18. The method of claim 13, wherein,

the identification information comprises a routing number, a check number, and an account number which is printed on the negotiable instrument with magnetic ink character recognition (“

MICR”

) technology; and

the request to authorize a transaction comprises a telephone call from a merchant.

19. The method of claim 13, wherein,

no form of personal identification is required from a user of the negotiable instrument at the point-of sale device for authorization of the transaction;

and

the authorizing step further comprises a warranty for the negotiable instrument.

20. A method for authorizing, with a host computer system, a transaction using a negotiable instrument, the method comprising:

receiving a request, at the host computer system, to allocate a first amount of funds to the negotiable instrument;

verifying the availability of the first amount of funds;

allocating the first amount of funds to the negotiable instrument, wherein upon allocation the first amount of funds comprises a host-specified first amount of funds and are immediately rendered unavailable for alternative use;

receiving a request to authorize a transaction using the negotiable instrument to which the first amount of funds have been allocated, wherein the request includes information comprising;

a user-specified second amount of funds; and

identification information which identifies the negotiable instrument; and

authorizing the transaction based at least in part on a determination that the host-specified first amount of funds associated with the negotiable instrument is equal to the user-specified second amount of funds specified in the request to authorize.

21. A host computer system, the system comprising at least one computer readable storage medium having at least one computer-readable program for operation of the computer system, wherein the computer-readable program includes instructions to:

receive a request to allocate a first amount of funds to the negotiable instrument;

verify the availability of the first amount of funds;

allocate the first amount of funds to the negotiable instrument, wherein upon allocation the first amount of funds comprises a host-specified first amount of funds;

receive a first communications signal comprising a request to authorize a transaction using the negotiable instrument, wherein the request includes information comprising;

a user-specified second amount of funds; and

identification information which identifies the negotiable instrument;

transmit a second communications signal comprising authorization of the transaction, the authorization based at least in part on a determination that the host-specified first amount of funds associated with the negotiab1e instrument is equal to the user-specified second amount of funds specified in the request to authorize; and

indicate that the transaction using the negotiable instrument was authorized, so that a future request to authorize one or more other transactions using the negotiable instrument will be declined.