System and method for processing checks and check transactions with thresholds for adjustments to ach transactions

Abstract

A system and method of processing paper checks that divides into two independent paths the processing of a data file representing a check and the digital image of the check. The data files and image files are separated both in time and in space, with the data files being used to promptly initiate the transfer of funds to and from appropriate accounts, while the paper checks, at a remote location and typically lagging in time, are scanned to create digital image files and deposited as an image or substitute check if deemed ACH ineligible. The method provides for the comparison of data files to image files, based on MICR information, to find any unmatching or mismatched items for exception processing and a process to manage ACH-ineligible items as an image or substitute check. The system and method further provides for sorting exceptions according to transaction type (ACH eligible versus ACH-ineligible) and prioritizing the further processing of the exceptions based on transaction type.

What is claimed is: 
     
         1 . A method for processing paper checks, comprising:
 a) receiving, at a payment processor computer, a plurality of ACH-eligible transaction records;   b) submitting ACH transactions described in the ACH-eligible transaction records to an ACH network for processing;   c) comparing, at the payment processor computer, image records containing check images with the ACH-eligible transaction records to find matches;   d) determining, at the payment processor computer, a transaction amount difference by comparing a transaction record amount from the matching transaction record with an image record amount from the matched image record;   e) identifying a first previously submitted ACH transaction for reversal having a transaction amount difference that exceeds a predefined threshold for amount mismatch.   
     
     
         2 . The method for processing paper checks of  claim 1 , wherein each image record contains a digital image of a paper check, the image record transaction amount, and a check identifier used to find matches with ACH-eligible transaction records in the comparing step. 
     
     
         3 . The method for processing paper checks of  claim 2 , wherein the check identifier in the image record is image MICR information that is compared in the comparison step with transaction record MICR information found in the transaction records. 
     
     
         4 . The method for processing paper checks of  claim 1 , further comprising:
 f) submitting to the ACH network a request to reverse the first previously submitted ACH transaction.   
     
     
         5 . The method for processing paper checks of  claim 4 , further comprising:
 g) submitting a replacement transaction for the reversed first previously submitted ACH transaction.   
     
     
         6 . The method for processing paper checks of  claim 5 , wherein the replacement transaction is submitted via image exchange. 
     
     
         7 . The method for processing paper checks of  claim 5 , wherein the step of comparing image records with ACH-eligible transaction records occurs after the ACH transactions are submitted to the ACH network for processing. 
     
     
         8 . The method for processing paper checks of  claim 7 , further comprising scanning paper checks with a digital image scanner to create the check images in the image records. 
     
     
         9 . The method for processing paper checks of  claim 8 , wherein the paper checks are scanned with the digital image scanner after the ACH transactions are submitted to the ACH network for processing. 
     
     
         10 . The method for processing paper checks of  claim 1 , wherein the step of comparing image records with ACH-eligible transaction records occurs after the ACH transactions are submitted to the ACH network for processing. 
     
     
         11 . The method for processing paper checks of  claim 10 , further comprising scanning paper checks with a digital image scanner to create the check images in the image records. 
     
     
         12 . The method for processing paper checks of  claim 11 , wherein the paper checks are scanned with the digital image scanner after the ACH transactions are submitted to the ACH network for processing. 
     
     
         13 . The method for processing paper checks of  claim 1 , wherein the predefined threshold varies according to a merchant associated with the received ACH-eligible transaction records. 
     
     
         14 . The method for processing paper checks according to  claim 13 , wherein the predefined threshold value varies based on a transaction merchant identifier found in the received ACH-eligible transaction records, and further wherein separate predefined threshold values exist for each of a plurality of merchant identifiers. 
     
     
         15 . A system for processing paper checks, comprising:
 a) a transaction data connection that receives a plurality of ACH-eligible transaction records, each ACH-eligible transaction record containing a data transaction amount and not containing a check image;   b) an image data connection that receives digital image records, the digital image records each containing a digital image of a check and an image transaction amount; and   c) a processor that
 i) submits transactions described in the ACH-eligible transaction records for ACH processing before the image data connection receives the digital image records, 
 ii) compares the received digital image records with the ACH-eligible transaction records to find matching digital image records that match matching transaction records, 
 iii) compares the data transaction amount in the matching transaction records to the image transaction amount in the matching digital image record to determine a transaction amount difference for each matching record pair, 
 iv) determines for each matching record pair whether the transaction amount difference exceeds a predefined threshold, 
 v) submits a reverse transaction request to the ACH network for the matching record pairs having a transaction amount difference that exceeds the predefined threshold. 
   
     
     
         16 . The system of  claim 15 , wherein the processor further submits a replacement transaction for the image transaction amounts in cases where the transaction amount difference for the matching record pair exceeds the predefined threshold. 
     
     
         17 . The system of  claim 16 , wherein the replacement transaction is submitted via image exchange.