Image analysis – Applications – Reading bank checks
Reexamination Certificate
2001-07-05
2004-11-09
Mehta, Bhavesh M. (Department: 2621)
Image analysis
Applications
Reading bank checks
C382S139000, C382S232000, C382S194000, C705S045000, C235S380000
Reexamination Certificate
active
06816608
ABSTRACT:
BACKGROUND INFORMATION
1. Field of Invention
This invention relates to storing information recorded as part of a financial transaction, and, more particularly, to storing data representing an image of a check or an image of a form of identification, such as a signature, a photograph, or a fingerprint, in an efficient manner.
2. Background Information
A number of banking interests have been pursuing a nationwide paperless transaction system in response to increases in the volume of checks handled and further in response to increases in the average cost of handling individual checks. In the early 1970's a group of California bankers formed the Special Committee on Paperless Entries (SCOPE) to explore the technical, operational, and legal framework needed for an automated payments system. In addition, in 1972, the first Automated Clearing House (ACH) association began operation, with the National Automated Clearing House Association (NACHA) being formed in 1974 to coordinate the ACH organizations being formed in various regions. Now, a nationwide ACH system makes paperless transaction exchanges available to all depository financial institutions, with benefits resulting from cost reductions and improved productivity, compared to conventional paper check transactions.
Currently, a number of efforts are being made to extend the application of paperless transactions with banks to a number of merchants. For example, in a conventional credit card transaction, an electronic transfer of funds results from a telephone transmission from the merchant to an agency handling credit card transactions, with the signed credit card slip being retained by the merchant for his records, and to be used, if necessary, to obtain subsequent payment or prosecute if such payment is refused. A further step, which is currently being implemented, is the electronic storage of the customer's signature, together with transaction data, so that the merchant no longer needs to retain the signed credit card slip. This is now accomplished by having the customer sign the credit card slip on a small digitizing, or graphics, tablet having associated electronics to generate signals representing the position of the pen tip as he signs the slip. These signals are used to generate graphical data representing the signature, which is stored by the merchant as proof that the customer in fact signed the slip.
A number of patents describe methods for processing checks by means of electronic funds transfer in real time, at the time the check is offered for payment, without requiring submission of the paper check itself into the banking system. For example, U.S. Pat. No. 5,832,464 describes a system and method providing an ability to use a check as a form of payment at a point of use without having to use the signed check as the binding document that is processed through the financial system to obtain payment by the entity rendering the service. The system and method comprises reading a hardcopy check via an electronic scanner, correlating the account number to a biometric or other piece of data that would positively identify the person tendering the check and using the biometric, such as a digital photograph of each authorized user, or other data, such as information from a driver's license, to confirm the identity of the person tendering the check. This data is then associated with an available record of the person who performed the biometric or other data comparison. Once a particular financial transaction is authorized, the check is returned to the tenderer and the financial transaction is processed as an electronic fund transfer (EFT).
U.S. Pat. No. 5,053,607 further describes a point of sale device for real-time check processing, with the financial transaction associated with a sale being completed while the merchant and customer are still face-to-face. The device uses means for reading the magnetic ink information extending along the lower edge of a check, a printer, and a keypad to feed information into a computing system, which communicates through an existing telecommunications system with the customer's bank and with the merchant's bank to transfer funds from the customer's account to the merchant's account.
U.S. Pat. No. 5,175,682 describes a method and structure provided for processing checks in a timely and cost-effective manner. A check recipient, such as a merchant, utility billing department, and the like, utilize hardware and software for quickly gathering data from checks received in order to allow prompt processing of those checks. Such hardware preferably includes a reader for reading the MICR account information printed on the check, and means for associating that data with information pertaining to the transaction at hand, including for example, the dollar amount of the transaction. This information is combined in a data record, which is stored for future batch data transmission to a clearinghouse or the issuing bank itself. In an alternative embodiment, this data is communicated in real time to the clearinghouse or issuing bank. In another embodiment, one or more selection criteria are used to determine which checks will be processed in real time, with the remaining checks being processed in the batch mode. For example, checks written above a threshold dollar amount, out of state checks, or any other high-risk checks are processed in real time in order to minimize losses due to fraudulent check use.
While these prior-art methods provide for processing check-based financial transactions without the need for processing paper checks through the financial infrastructure, the quantity of data that must be captured, stored, and transmitted is very large. Furthermore, the methods require data transmission in real time, when the check is presented, which may often be inconvenient, expensive due to the telephone connections which must be maintained, or even impossible. Therefore, what is needed is a method for efficiently storing data associated with financial transactions for later transmission or processing. If real-time check processing is to be avoided as often impractical, even for high-monetary value checks, security may be achieved by processing high-monetary value checks in a manner maximizing the likelihood that an arrest and prosecution can be expected in the event that a check given for a sale is not subsequently honored, either upon its presentation to a banking institution, or upon following attempts to collect funds. However, while successful prosecution depends on the presentation of clear and accurate evidence, conventional methods for storing the images of checks are potentially inadequate for determining whether a signature is genuine or a forgery. Yet, any practical system for storing check images must also be capable of storing thousands of images, including the images of many checks too small to suggest prosecution if they are dishonored. Thus, what is needed is a practical method for storing vast amounts of data to cover relatively small transactions and for storing accurate, detailed images to cover relatively large transactions.
U.S. Pat. No. 6,032,137 describes a system comprehensively supporting the processing of documents and electronic data associated with different applications, including sales, business, banking, and general consumer transactions. The system retrieves transaction data such as credit card receipts, checks in either electronic or paper form at one or more remote locations, encrypts the data, transmits the encrypted data to a central location, transforms the data to a usable form, performs verification using signature data and biometric data, generates informative reports from the data, and transmits the informative reports to the remote location(s). However, again, what is needed is a practical method for storing vast amounts of data to cover relatively small transactions and for storing accurate, detailed images to cover relatively large transactions.
A number of other patents describe methods to scan and recognize particular forms of
ChooBin Barry
Davidge Ronald V.
International Business Machines - Corporation
Mehta Bhavesh M.
Ray-Yarletts Jeanine S.
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