System and method for processing checks and check transactions

Abstract

A 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.

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) after step b), scanning the paper checks with a digital image scanner to create image records of the paper checks, the image records containing check images created by the digital image scanner; and   d) comparing, at the payment processor computer, the image records with the ACH-eligible transaction records to find matches.   
     
     
         2 . The method for processing paper checks of  claim 1  wherein the payment processor computer of step a) is the same physical computer as the payment processor computer of step d). 
     
     
         3 . The method for processing paper checks of  claim 1 , wherein each image record further contains a check identifier used to find matches with the ACH-eligible transaction records in the comparing step. 
     
     
         4 . The method for processing paper checks of  claim 3 , wherein the check identifier in the image record is image MICR information that is compared in the comparing step with transaction record MICR information found in the ACH-eligible transaction records. 
     
     
         5 . The method for processing paper checks of  claim 1 , wherein a first set of ACH-eligible transaction records is received in a first transaction file received from a first location of a first merchant. 
     
     
         6 . The method for processing paper checks of  claim 5 , wherein a second set of ACH-eligible transaction records is received in a second transaction file received from a second location of the first merchant, wherein the transaction files each contain a first merchant identifier identifying the first merchant and a location identifier identifying one of the first and second locations of the first merchant. 
     
     
         7 . The method for processing paper checks of  claim 6 , further comprising a third set of ACH-eligible transaction records received in a third transaction file received from a second merchant, the third transaction file containing a second merchant identifier identifying the second merchant. 
     
     
         8 . The method for processing paper checks of  claim 7 , wherein a plurality of ACH transactions are submitted in a single ACH file that is submitted to the ACH network for processing. 
     
     
         9 . The method for processing paper checks of  claim 8 , wherein all ACH transactions within a single ACH file are associated with the single merchant identifier. 
     
     
         10 . The method for processing paper checks of  claim 7 , further comprising receiving a first batch of paper checks from the first merchant and receiving a second batch of paper checks from the second merchant and scanning the first and second batches of paper checks at the same digital image scanner. 
     
     
         11 . The method for processing paper checks of  claim 10 , wherein each received batch of paper checks includes a deposit ticket including the merchant identifier associated with the merchant sending the batch of paper checks, and further wherein the merchant identifier is included in the image records containing check images created for the batch of paper checks. 
     
     
         12 . A method for processing paper checks, comprising:
 a) receiving, at one of a first computer and a second computer, a plurality of ACH-eligible transaction records associated with a plurality of paper checks;   b) submitting ACH transactions described in the ACH-eligible transaction records to an ACH network for processing; and   c) after step b), comparing, at one of the first computer and the second computer, image records containing check images of the plurality of paper checks with the ACH-eligible transaction records to find matches.   
     
     
         13 . The method for processing paper checks of  claim 12 , wherein step a) and step c) are both performed on the same first computer. 
     
     
         14 . The method for processing paper checks of  claim 13 , wherein step b) is also performed by the same first computer. 
     
     
         15 . The method for processing paper checks of  claim 12 , wherein each image record contains an image record transaction amount and a check identifier used to find matches with ACH-eligible transaction records in the comparing step. 
     
     
         16 . The method for processing paper checks of  claim 15 , wherein the check identifier in the image record is image MICR information that is compared in the comparing step with transaction record MICR information found in the ACH-eligible transaction records. 
     
     
         17 . The method for processing paper checks of  claim 12 , further comprising a step of providing exception processing procedures for unmatched image records and ACH-eligible transaction records. 
     
     
         18 . The method for processing paper checks of  claim 12 , wherein step a) further comprises receiving a plurality of ACH-ineligible transaction records, and further comprises separating ACH-eligible transaction records from the ACH-ineligible transaction records. 
     
     
         19 . The method for processing paper checks of  claim 18 , wherein step c) further comprises comparing image records with both ACH-eligible transaction records and ACH-ineligible transactions to find matches. 
     
     
         20 . The method for processing paper checks of  claim 19 , further comprising:
 d) after step c), submitting to a banking network an ACH-ineligible data file representing ACH-ineligible transactions described in the ACH-ineligible transaction records, said ACH-ineligible data file including the check images from the image records matched to the ACH-ineligible transaction records.   
     
     
         21 . The method for processing paper checks of  claim 12 , further comprising the step of:
 d) storing at one of the first computer and the second computer, in association with each ACH-eligible transaction record an expected date for receipt of the matching image record;   e) identifying, at one of the first computer and the second computer, ACH-eligible transaction records that have not been matched in step c) after the expected date; and   f) providing exception processing procedures for the ACH-eligible transaction records identified in step e).   
     
     
         22 . A computerized method for processing a plurality of paper checks, comprising:
 a) receiving, at a third party payment processor computer, a plurality of transaction records with each transaction record containing an amount of a transaction that used one of the plurality of paper checks and MICR information extracted from the one of the plurality paper checks, the transaction records being received without a digital image of the paper check;   b) determining, at the third party payment processor computer, whether each transaction record is ACH-eligible or ACH-ineligible;   c) submitting, from the third party payment processor computer, ACH-eligible transaction records to the ACH network for settlement;   d) after step c), scanning the plurality of paper check with a digital image scanner to create a plurality of digital check images, with each of the digital check images being associated with MICR information extracted from the paper checks;   e) submitting, at the third party payment processor computer, the ACH eligible transaction records and the ACH-ineligible transaction records to a matching protocol matching the transaction records to a matched digital check image;   f) creating an image exchange item for each ACH-ineligible transaction record for which a matched digital check image was found by the matching protocol, the image exchange item including the matched digital check and MICR information; and   g) submitting the image exchange items to a banking network for settlement.   
     
     
         23 . The method of  claim 22 , wherein the transaction records are matched to the matched digital check image by matching the MICR information in the transaction record to the MICR information associated with the digital check image. 
     
     
         24 . The method of  claim 22 , wherein the transaction records are matched to the matched digital check image by matching the MICR information in the transaction record to the MICR information associated with the digital check image and by matching a transaction merchant account number associated with the transaction record with an image merchant account number associated with the digital check image. 
     
     
         25 . The method of  claim 22 , wherein fields in the transaction records are matched to fields associated with the digital check images, wherein the fields include MICR information and an additional field chosen from a set comprising merchant bank account identifier, sale date, and check dollar amount. 
     
     
         26 . A method for processing a plurality of paper checks, comprising:
 a) receiving, at a third party payment processor computer, a plurality of transaction records via a data connection with a merchant location, each transaction record comprising a transaction amount and transaction MICR data extracted from one of the plurality of paper checks received at the merchant location;   b) submitting, at the third party payment processor computer, the transactions described in the transaction records for ACH processing;   c) transporting the plurality of paper checks to a scanning location remote from the merchant location;   d) scanning, after step b) and at the scanning location, the plurality of paper checks to create a plurality of digital check images, each digital check image being associated with image MICR data from the scanned paper check;   e) receiving, at the third party payment processor computer, the plurality of digital check images; and   f) comparing, at the third party payment processor computer, the image MICR data from the digital check images with transaction MICR data from the transaction records to find matching digital check images and transaction records with the same MICR data.   
     
     
         27 . The method for processing the plurality of paper checks of  claim 26  wherein the third party payment processor computer of step b) is the same physical computer as the third party payment processor computer of step f). 
     
     
         28 . The method for processing the plurality of paper checks of  claim 26 , wherein the plurality of paper checks comprises a first set of paper checks and the plurality of transaction records comprises a first set of transaction records, and further comprising:
 g) receiving, at the third party payment processor computer, a second set of transaction records via a second data connection with a second merchant location, each transaction record in the second set comprising data extracted from one of a second set of paper checks received at the second merchant location;   h) submitting, at the third party payment processor computer, the transactions described in the second set of transaction records for ACH processing;   i) transporting the second set of paper checks to the scanning location remote from the second merchant location;   j) scanning, after step h) and at the scanning location, the second set of paper checks to create a second set of digital check images;   k) receiving, at the third party payment processor computer, the second set of digital check images; and   l) comparing, at the third party payment processor computer, MICR information in the second set of transaction records and the second set of digital check images to find matching transaction records and digital check images.   
     
     
         29 . The method for processing the plurality of paper checks of  claim 28 , wherein each transported set of paper checks includes a deposit ticket including a merchant identifier identifying a merchant, and further wherein the merchant identifier is associated with each digital check image created by scanning that set of paper checks. 
     
     
         30 . The method for processing the plurality of paper checks of  claim 29 , wherein the comparing steps further comprise comparing merchant identifiers associated with the digital check images with a transaction merchant identifier within the transaction records. 
     
     
         31 . A system for processing paper checks, comprising:
 a) a data connection that receives at least one data file containing a plurality of transaction records relating to a plurality of check transactions, the transaction records being received without an image file;   b) a digital image scanner that scans paper checks to create digital image files; and   c) a processor controlled by programming that
 i) submits transactions records to the ACH network for processing over the data connection, and 
 ii) after submission of transaction records to the ACH network, compares said digital image files with said data files to find a matching digital image file and matching transaction records.