Database for check risk decisions populated with check activity data from banks of first deposit

Abstract

A plurality of banks of first deposit provide checking account activity data for both transit items (checks received for deposit that need to be cleared) and incoming returns (bounced checks) to a statistical model which determines from the data the likelihood that a check from a specific checking account will be returned. This data is used to populate a database of checking accounts to be used for making check risk decisions, such as check hold policy decisions, check acceptance decisions, and open to buy decisions.

1 . (canceled) 
     
     
         2 . A computer-implemented method for facilitating the making of a risk decision, comprising:
 receiving and storing, at a first database system accessed by a computer, status data relating to accounts maintained by member institutions that belong to a member service, the status data received from the member institutions;   receiving and storing, at a second database system accessed by the computer, account activity data relating to accounts of non-member institutions that do not belong to the member service, the account activity data contributed by member institutions and relating to accounts not maintained by the contributing member institutions;   filtering the activity data received at the second database system to remove activity data relating to accounts maintained by member institutions, and thereby storing in the second database system only data relating to accounts of non-member institutions that do not belong to the member service;   populating the second database system with risk data reflecting the likelihood that a transaction conducted against a specific account will not clear, as determined by a risk scoring model;   receiving, at the computer, account data relating to an account against which a transaction is conducted;   using the account data, at the computer, to determine if the transaction is conducted against one of the accounts of member institutions that belong to the member service and to determine if the transaction is conducted against one of the accounts of non-member institutions that do not belong to the member service;   accessing the first database system to make a risk decision for accounts of member institutions that belong to the member service; and   accessing the second database system to make a risk decision for accounts of non-member institutions that do not belong to the member service.   
     
     
         3 . The method of  claim 2 , wherein the accounts are checking accounts. 
     
     
         4 . The method of  claim 2 , wherein the activity data relates to a paper check drawn against the accounts. 
     
     
         5 . The method of  claim 2 , wherein the activity relates to an electronic transaction against the accounts. 
     
     
         6 . The method of  claim 5 , wherein the electronic transaction is an automated clearinghouse (ACH) transaction. 
     
     
         7 . The method of  claim 2  wherein the member service operates the first database system and the second database system. 
     
     
         8 . The method of  claim 7 , wherein member institutions subscribe to the service in order to access the status data stored in the first database system relating to accounts of member institutions, and access risk data in the second database system relating to accounts of non-member institutions. 
     
     
         9 . The method of  claim 2 , wherein the risk decision is a check acceptance decision. 
     
     
         10 . The method of  claim 2 , wherein the risk decision is a check hold policy decision. 
     
     
         11 . The method of  claim 2 , wherein the risk decision is an open to buy decision by a payment processor, pending a check clearing. 
     
     
         12 . The method of  claim 2 , wherein the risk data comprises a score relating to the likelihood of a transaction against an account not clearing, and wherein the method further comprises determining the score by the risk scoring model using the account activity data received at the second database system. 
     
     
         13 . A system for facilitating a risk decision, comprising:
 one or more processors; and   a memory storing instructions that are executed by the one or more processors and configure the system to:   receive and store, at a first database system, status data relating to accounts maintained by member institutions that belong to a member service, the status data received from the member institutions;   receive and store, at a second database system, account activity data relating to checking accounts of non-member institutions that do not belong to the member service, the account activity data contributed by member institutions and relating to accounts not maintained by the contributing member institutions;   filter the activity data received at the second database system to remove activity data relating to accounts maintained by member institutions, and thereby storing in the second database system only data relating to accounts of non-member institutions that do not belong to the member service;   populate the second database system with risk data reflecting the likelihood that a transaction conducted against a specific account will not clear, as determined by a risk scoring model;   receive, at the computer, account data relating to an account against which a transaction is conducted;   use the account data, at the computer, to determine if the transaction is conducted against one of the accounts of member institutions that belong to the member service and to determine if the transaction is conducted against one of the accounts of non-member institutions that do not belong to the member service;   access the first database system to make a risk decision for accounts of member institutions that belong to the member service; and   access the second database system to make a risk decision for accounts of non-member institutions that do not belong to the member service   
     
     
         14 . The system of  claim 13 , wherein the accounts are checking accounts. 
     
     
         15 . The system of  claim 13 , wherein the activity data relates to a paper check drawn against the accounts. 
     
     
         16 . The system of  claim 13 , wherein the activity relates to an electronic transaction against the accounts. 
     
     
         17 . The system of  claim 16 , wherein the electronic transaction is an automated clearinghouse (ACH) transaction. 
     
     
         18 . The system of  claim 13  wherein the member service operates the first database system and the second database system. 
     
     
         19 . The system of  claim 18 , wherein member institutions subscribe to the service in order to access the status data stored in the first database system relating to accounts of member institutions, and access risk data in the second database system relating to accounts of non-member institutions. 
     
     
         20 . The system of  claim 13 , wherein the risk decision is a check acceptance decision. 
     
     
         21 . The system of  claim 13 , wherein the risk decision is a check hold policy decision. 
     
     
         22 . The system of  claim 13 , wherein the risk decision is an open to buy decision by a payment processor, pending a check clearing. 
     
     
         23 . The system of  claim 13 , wherein the risk data comprises a score relating to the likelihood of a transaction against an account not clearing, and wherein the instructions that are executed by the one or more processors further configure the system to:
 determine the score by the risk scoring model using the account activity data received at the second database system.