Check writing point of sale system

Abstract

A point of sale system designed to read information from a consumer's check, credit card, or manual input with a subsequent debiting of a consumer's account and crediting merchant's account for the goods or services provided. Point of sale terminals are designed to accept a form of credit card with a consumer's bank account information encoded thereon or in the alternative to read the MICR number from a consumer's check in order to verify that a consumer has an appropriate balance to conduct the transaction with a given merchant. Thereafter the transaction of that information is transmitted to a central computer system which verifies the consumer's credit worthiness and stores the transaction event information for subsequent bank reconciliation via the ACH or other competing network. The invention eliminates the need for paper checks with all bank reconciliation being accomplished electronically. The present invention also includes fraud protection provisions such as velocity controls, social security checks, and scans. The present invention has the further flexibility to differentiate between “first time” consumer usage and those limits otherwise assigned to “known” consumer accounts. Additionally, there is not need for the present system to retain the consumer's check after verification.

1. A checkwriting system comprising:
 (a) a terminal adapted to receive consumer bank account information from any bank check;    (b) the terminal further adapted to receive consumer bank account information from a consumer communicating with the terminal over the Internet;    (c) a central computer system;    (d) first communications means for electronic communications between said terminal and the central computer system;    (e) second communication means for receiving information from a plurality of said terminals; and    (f) the central computer system second communication means enabling said central computer system to communicate with external databases for performing a consumer bank account status search and further enabling automated clearing house communication for transferring funds without using the bank check as a negotiable instrument.    
     
     
       2. The checkwriting system of  claim 1  wherein the terminal is further adapted to print activity reports of transaction events occurring at the terminal. 
     
     
       3. The checkwriting system of  claim 1  further comprising means for biometrically verifying the identify of the consumer. 
     
     
       4. A checkwriting process comprising:
 (a) providing checking account information to a merchant or service provider;    (b) storing the checking account information obtained;    (c) providing transaction event information; and    (d) transmitting the transaction event information for subsequent automated clearing house operations;    wherein the checking account is debited for the transaction without using a check as a negotiable instrument.    
     
     
       5. A method for electronic processing of consumer payment for goods or services comprising:
   receiving account information from a bank check;        receiving a transaction amount;        receiving authorization for an electronic funds transfer, the authorization being for the transaction amount;        transmitting the account information and the transaction amount;        annotating the bank check; and        submitting the account information and the transaction amount for electronic settlement.     
     
     
       6. The method of  claim 5 , further comprising originating the electronic funds transfer after the bank check has been annotated. 
     
     
       7. The method of  claim 6 , wherein the electronic funds transfer is an ACH debit as payment for goods or services, the ACH debit replacing a transaction that uses a written bank check retained by a merchant for subsequent negotiation. 
     
     
       8. The method of  claim 6 , wherein originating the electronic funds transfer is the last step of the method. 
     
     
       9. The method of  claim 5  wherein the authorization for an electronic funds transfer is received in written form. 
     
     
       10. The method of  claim 9 , wherein receiving written authorization comprises receiving a bank check bearing a consumer's signature and printing an electronic funds transfer notice on the bank check. 
     
     
       11. The method of  claim 5  further comprising settlement of the consumer payment for goods or services through electronic funds transfer. 
     
     
       12. The method of  claim 5  wherein receiving the account information is done by reading magnetic ink characters from the bank check. 
     
     
       13. The method of  claim 5  wherein receiving the account information is done by imaging the bank check. 
     
     
       14. The method of  claim 5  wherein receiving the account information and the transaction amount comprises imaging the bank check. 
     
     
       15. The method of  claim 5  wherein transmitting the account information is done by transmitting an image of the bank check. 
     
     
       16. The method of  claim 5  wherein receiving the account information is done by imaging the bank check and wherein transmitting the account information is done by transmitting an image of the bank check. 
     
     
       17. The method of  claim 5  wherein annotating the bank check comprises marking it “void”. 
     
     
       18. The method of  claim 5 , further comprising storing the account information and the transaction information. 
     
     
       19. The method of  claim 5 , wherein receiving authorization comprises receiving the consumer's signature for electronic funds transfer. 
     
     
       20. The method of  claim 19 , further comprising:
   a. comparing at least part of the account information with data in at least one database; and        b. making a transaction authorization decision based on the comparison.     
     
     
       21. The method of  claim 19 , further comprising receiving merchant data from any one of multiple, unrelated merchants. 
     
     
       22. The method of  claim 21 , wherein the merchant data is compared to data in a merchant database comprising information regarding multiple, unrelated merchants that are authorized to use the method. 
     
     
       23. The method of  claim 22 , wherein the electronic funds transfer is an offline ACH debit, the offline ACH debit replacing a transaction that uses a written check retained by a merchant for subsequent negotiation and being initiated without human intervention. 
     
     
       24. The method of  claim 23 , wherein the merchant data is compared to data in a merchant database comprising information regarding multiple, unrelated merchants that are authorized to use the method. 
     
     
       25. The method of  claim 24 , wherein the electronic funds transfer is an offline ACH debit, the offline ACH debit replacing a transaction that uses a written 
     
     
       26. The method of  claim 5 , wherein receiving authorization comprises receiving a bank check bearing a consumer's signature and printing an electronic funds transfer notice on the bank check. 
     
     
       27. The method of  claim 26 , further comprising:
   a. comparing at least part of the account information with data in at least one database; and        b. making a transaction authorization decision based on the comparison.     
     
     
       28. The method of  claim 27 , wherein the at least one database comprises a checkwriter database. 
     
     
       29. The method of  claim 28 , further comprising receiving merchant data from any one of multiple, unrelated merchants. 
     
     
       30. The method of  claim 29 , wherein the electronic funds transfer is an offline ACH debit, the offline ACH debit replacing a transaction that uses a written check retained by a merchant for subsequent negotiation and the offline ACH debit being initiated without human intervention. 
     
     
       31. The method of  claim 26 , further comprising receiving merchant data from any one of multiple, unrelated merchants. 
     
     
       32. The method of  claim 31 , wherein the merchant data is compared to data in a merchant database comprising information regarding multiple, unrelated merchants that are authorized to use the method. 
     
     
       33. The method of  claim 32 , wherein the electronic funds transfer is an offline ACH debit, the offline ACH debit replacing a transaction that uses a written check retained by a merchant for subsequent negotiation. 
     
     
       34. The method of  claim 33 , wherein the merchant data is compared to data in a merchant database comprising information regarding multiple, unrelated merchants that are authorized to use the method. 
     
     
       35. The method of  claim 34 , wherein the steps of submitting the account information and the transaction amount for electronic settlement are done without human intervention. 
     
     
       36. A method for electronic processing and settlement of consumer payment for goods or services:
   reading preprinted account information from a bank check drawn on an account, the preprinted account information comprising a routing number, an account number, and a bank check serial number;        receiving a transaction amount;        transmitting the account information and the transaction amount;        receiving written authorization for electronic funds transfer debit in the transaction amount through an electronic settlement network selected from the group comprising national authorization networks and regional authorization networks;        receiving an approval for the debit based on the status of an account on which the bank check is drawn;        annotating the bank check by printing “void”;        returning the annotated bank check to a consumer;        printing a receipt for the debit; and        originating the debit for the purchase of goods or services, the debit replacing a transaction that relies on presentment of a written bank check.     
     
     
       37. The method of  claim 36  wherein the written authorization for electronic funds transfer comprises a signed authorization by the consumer. 
     
     
       38. A method for a transfer of funds from a consumer account that eliminates presentment of a bank check for payment, the transfer based on electronic fund transfer authorization, the method comprising:
   receiving, at a central computer, account information from a bank check after account information is derived from the bank check at a system subscriber's terminal;        receiving, at the central computer, a transaction amount after the transaction amount is entered into the system subscriber's terminal; and        transmitting an authorization message to the system subscriber's terminal, the authorization message causes the printing of the electronic fund transfer authorization at the system subscriber's terminal, and an annotation on the bank check.     
     
     
       39. The method of  claim 38  wherein the transfer of funds is processed through an electronic settlement network selected from the group comprising national authorization networks, regional authorization networks, and ACH network. 
     
     
       40. The method of  claim 38 , further comprising:
   a. comparing at least part of the transaction information with data in at least one database; and        b. making a transaction authorization decision based on the comparison.     
     
     
       41. The method of  claim 40 , wherein at least one database comprises a checkwriter database. 
     
     
       42. The method of  claim 41 , further comprising updating the checkwriter database with at least part of the transaction information. 
     
     
       43. The method of  claim 40 , wherein the at least one database comprises a merchant database comprising information regarding multiple, unrelated merchants that are authorized to use the method. 
     
     
       44. The method of  claim 40 , further comprising updating a transaction database with transaction records for ACH processing. 
     
     
       45. The method of  claim 38  wherein receiving account information comprises reading magnetic ink characters from the bank check. 
     
     
       46. The method of  claim 45  wherein the account information comprises a routing number, an account number, and a bank check serial number. 
     
     
       47. The method of  claim 38  wherein receiving the account information comprises imaging the bank check. 
     
     
       48. The method of  claim 38  comprising transmitting an image of the bank check for processing through an electronic settlement network. 
     
     
       49. The method of  claim 38  wherein receiving the account information is done by imaging the bank check and comprising transmitting an image of the bank check for processing through an electronic settlement network. 
     
     
       50. The method of  claim 38  wherein the electronic fund transfer authorization is in written form comprising signature of the consumer. 
     
     
       51. The method of  claim 38 , further comprising receiving merchant data from any one of multiple, unrelated merchants. 
     
     
       52. The method of  claim 51 , wherein the merchant data is compared to data in a merchant database comprising information regarding multiple, unrelated merchants that are authorized to use the method. 
     
     
       53. The method of  claim 52 , wherein the electronic funds transfer is an offline ACH transaction. 
     
     
       54. A method for authorizing the debit of funds from a consumer account, the authorization based on a signed electronic fund transfer authorization agreement, the method comprising:
   receiving, at a central computer, account information from abank check after account information is derived from the bank check at a system subscriber's terminal, the account information comprising a routing number, an account number, and a bank check serial number;        receiving, at the central computer, a transaction amount after the transaction amount is entered into the system subscriber's terminal;        receiving transaction information from a checkwriter database;        making a transaction authorization decision based on the transaction information;        transmitting an approval message to the system subscriber's terminal, the approval message resulting in the printing of the electronic fund transfer authorization agreement at the system subscriber's terminal, and an annotation on the bank check; and        updating a transaction database with transaction records for processing through an electronic settlement network.     
     
     
       55. The method of  claim 54  wherein the electronic settlement network is selected from the group comprising national authorization networks, regional authorization networks, and ACH network. 
     
     
       56. The method of  claim 54  wherein the signed electronic fund transfer authorization agreement comprises a signed bank check with an electronic funds transfer authorization printed on the bank check. 
     
     
       57. The method of  claim 54  wherein the signed electronic fund transfer authorization comprises imaging a signed bank check. 
     
     
       58. The method of  claim 54  wherein the annotation comprises marking the bank check as “VOID”. 
     
     
       59. A system for electronic processing and settlement of consumer payment for goods or services comprising:
   a. a central computer system that includes:      a first communication interface that is communicably connectable to at least one communication network for communicating with at least one terminal; and        at least one database; and          b. at least one terminal that includes:      a reader for reading preprinted account information from a bank check;        a keypad for receiving transaction amount entries;        at least one printer capable of printing an authorization agreement, transaction receipts, and annotation of a bank check; and        a communication interface that is connectable to at least one communication network for communication with the central computer system.       
     
     
       60. A system for electronic processing and settlement of consumer payment for goods or services comprising:
   a. a central computer system that includes:      a first communication interface that is communicably connectable to at least one communication network for communicating with at least one terminal; and        at least one database; and          b. at least one terminal that includes:      an imaging apparatus for imaging a bank check;        a keypad for receiving transaction amount entries;        at least one printer capable of printing an authorization agreement, transaction receipts, and annotation of a bank check; and        a communication interface that is connectable to at least one communication network for communication with the central computer system.       
     
     
       61. A central computer system for enabling the conversion of a bank check into an electronic funds transfer, the electronic funds transfer eliminates presentment of the bank check for payment, the central computer system comprising:
   a first communication interface for receiving transaction information and account information from a plurality of point of sale terminals, the account information being read from a bank check;        a memory for storing transaction information and account information;        a second communication interface for communicating with at least one database that includes consumer and merchant information; and        logic to determine whether transactions should be authorized or declined based on information in at least one database.     
     
     
       62. The system of  claim 61  wherein the account information is read from preprinted magnetic ink characters. 
     
     
       63. The system of  claim 61  wherein the account information comprises a routing number, an account number, and a bank check serial number. 
     
     
       64. The system of  claim 61  wherein the at least one database comprises a checkwriter database. 
     
     
       65. The system of  claim 61 , wherein the merchant information includes information regarding multiple, unrelated merchants that are authorized to use the system. 
     
     
       66. The system of  claim 65 , wherein the electronic funds transfer is an offline ACH transaction. 
     
     
       67. A method of processing consumer payment from a checking account comprising:
   receiving account information via a communication network, the account information relating to a checking account;        storing the account information;        verifying the account information;        receiving transaction event information;        storing the transaction event information; and        transmitting the account information and the transaction event information to a financial institution to initiate an electronic funds transfer.     
     
     
       68. The method of  claim 67  wherein the account information comprises a routing number, an account number, and a bank check serial number. 
     
     
       69. The method of  claim 68  wherein the electronic funds transfer is an ACH transaction. 
     
     
       70. The method of  claim 67  wherein the electronic funds transfer comprises settlement through an electronic settlement network selected from the group comprising national authorization networks, regional authorization networks, and ACH network. 
     
     
       71. The method of  claim 67  further comprising means for biometrically identifying a consumer. 
     
     
       72. The method of  claim 67  wherein the electronic funds transfer comprises debiting a consumer account and crediting a merchant account. 
     
     
       73. The method of  claim 67  wherein verifying the account information comprises cross- searching one or more databases to determine whether a transaction should be approved.   
     
     
       74. The method of  claim 67  wherein the communication network comprises the Internet. 
     
     
       75. A method for eliminating the physical presentment of a bank check for payment of goods or services, comprising:
   receiving account information from a signed bank check that was received via mail or at a lock box location;        verifying the accuracy of the account information;        receiving a transaction amount as entered on the bank check;        storing the account information and the transaction amount;        transmitting the account information and the transaction amount to a financial institution to initiate an electronic funds transfer.     
     
     
       76. The method of  claim 75  further comprising receiving authorization to convert the bank check process to an electronic funds transfer process. 
     
     
       77. The method of  claim 75 , wherein the account information comprises a routing number, and account number and a bank check serial number. 
     
     
       78. The method of  claim 77  wherein the signed bank check is a source document. 
     
     
       79. The method of  claim 77 , further comprising receiving merchant data from any one of multiple, unrelated merchants. 
     
     
       80. The method of  claim 79 , wherein the merchant data is compared to data in a merchant database comprising information regarding multiple, unrelated merchants that are authorized to use the method. 
     
     
       81. The method of  claim 80 , wherein the electronic funds transfer is an offline ACH transaction. 
     
     
       82. The method of  claim 75  wherein the electronic funds transfer comprises settlement through an electronic settlement network selected from the group comprising national authorization networks, regional authorization networks, and ACH network. 
     
     
       83. A method for eliminating the physical presentment of a bank check for payment of goods or services, comprising:
   receiving a signed bank check including authorization to convert the bank check process to an electronic funds transfer process via mail or at a lock box location;        reading, with an optical or magnetic reader, preprinted account information from the signed bank check;        verifying the accuracy of the account information;        receiving a transaction amount as entered on the bank check;        transmitting the account information and the transaction amount to a central computer;        storing the account information and the transaction amount;        transmitting the account information and the transaction amount to a financial institution to initiate an electronic funds transfer.     
     
     
       84. The method of  claim 83  wherein the signed bank check is a source document. 
     
     
       85. The method of  claim 44 , further comprising receiving merchant data from any one of multiple, unrelated merchants. 
     
     
       86. The method of  claim 85 , wherein the merchant data is compared to data in a merchant database comprising information regarding multiple, unrelated merchants that are authorized to use the method. 
     
     
       87. The method of  claim 86 , wherein the electronic funds transfer is an offline ACH transaction initiated by the central computer without human intervention. 
     
     
       88. A method of eliminating the presentment of a consumer bank check for payment of goods or services, the method comprising:
   receiving account information from a consumer bank check;        receiving a transaction amount;        transmitting the account information and the transaction amount;        annotating the bank check; and        originating an electronic funds transfer after the bank check has been annotated, wherein originating the electronic funds transfer is the last step of the method.     
     
     
       89. The method of  claim 88  wherein in the electronic funds transfer is an ACH debit for the purchase of goods or services. 
     
     
       90. The method of  claim 88  wherein receiving the account information is done by reading magnetic ink characters from the bank check. 
     
     
       91. The method of  claim 88  wherein annotating the bank check comprises marking it as “void”. 
     
     
       92. The method of  claim 88  further comprising storing the account information and the transaction information. 
     
     
       93. A system for electronic processing and settlement of consumer payment for goods or services comprising:
   at least one terminal adapted to receive consumer bank account information from a consumer communicating with the terminal over the Internet;        a central computer system;        at least one central computer system communication interface for electronic communication between at least one terminal and the central computer system; and        at least one database for performing a consumer bank account status search, and further enabling electronic funds transfer communication for transferring funds without presentment of a bank check to an issuing financial institution.     
     
     
       94. The system of  claim 93  wherein the terminal is further adapted to print activity reports of transaction events occurring at the terminal. 
     
     
       95. The system of  claim 93  further comprising means for biometrically verifying identity of a consumer. 
     
     
       96. The system of  claim 93  further comprising at least one consumer identification element selected from the group comprising voice pattern recognition, fingerprint identification, retina scan, geometrics, biometrics, smart chips, consumer imaging broadcasting, check imaging broadcasting and signature broadcasting. 
     
     
       97. The system of  claim 93  comprising at least one biometric reader. 
     
     
       98. The system of  claim 93  further comprising at least one fraud identification element selected from the group comprising, fingerprint capture and analysis, signature capture and verification, imaging technology, retina scan, and biometrics. 
     
     
       99. A method for electronic processing and settlement of consumer payment for goods or services comprising:
   receiving from a bank check, at a point of sale, checking account information, including bank identification information;        storing the checking account information obtained;        providing transaction event information;        annotating the bank check; and        transmitting the transaction event information for subsequent electronic funds transfer operations;        wherein a checking account identified by the checking account information is debited for a transaction identified by the transaction event information without presenting the check to a bank.     
     
     
       100. A method for electronic processing of consumer payment for goods or services comprising:
   receiving account information from a bank check;        receiving a transaction amount;        receiving authorization for an electronic funds transfer, the authorization being for the transaction amount;        submitting the account information and the transaction amount for electronic settlement; and        annotating the bank check.     
     
     
       101. The method of  claim 20 , wherein the at least one database comprises a checkwriter database. 
     
     
       102. The method of  claim 101 , further comprising receiving merchant data from any one of multiple, unrelated merchants. 
     
     
       103. The method of  claim 102 , wherein the electronic funds transfer is an offline ACH debit, the offline ACH debit replacing a transaction that uses a written check retained by a merchant for subsequent negotiation. 
     
     
       104. A method for electronic processing and settlement of consumer payment for goods or services comprising:
   reading preprinted account information from a bank check drawn on an account, the preprinted account information comprising a routing number, an account number, and a bank check serial number;        receiving a transaction amount;        transmitting the account information and the transaction amount;        receiving written authorization for an ACH debit in the transaction amount;        receiving an approval for the ACH debit based on the status of an account on which the bank check is drawn;        annotating the bank check by printing “void”;        returning the annotated bank check to a consumer;        printing a receipt for the ACH debit; and        executing a set of computer instructions to originate, without human intervention, the ACH debit for the purchase of goods or services, the ACH debit replacing a transaction that relies on presentment of a written bank check.