Method for authenticating financial instruments and financial transaction requests

Abstract

A method for authenticating a check of a plurality of checks where the check was previously issued from a first party to a second party, including receiving first information from the first party, storing the first information in a file of a third party and receiving the check. The check has first party identifying information, a unique pseudorandom number of a pseudorandom sequence, and an amount. A status of activating the plurality of checks is determined. At least a portion of the first party identifying information included with the check, the unique pseudorandom number included with the check and the check amount included with the check are authenticated. The received check is authenticated if the first party, the unique pseudorandom number included with the check and the amount included with the check are authenticated and if the plurality of checks have been activated.

What is claimed is: 
     
         1 . A method for authenticating a checking transaction comprising:
 receiving, at a financial institution, a first payment amount for a checking transaction of a payor and information for identifying a check for the checking transaction, the check being associated with a set checks;   receiving, at the financial institution, a checking request for a received check, the checking request including information for identifying the payor, a unique pseudorandom code of a pseudorandom sequence, wherein the pseudorandom sequence is for each check in the set of checks and generated via a random number processor, and a requested amount;   determining, at the financial institution, that the received check is activated based on a stored activation code for the set of checks;   determining, at the financial institution, that the information for identifying the payor matches stored information for identifying the payor;   determining, at the financial institution, that the unique pseudorandom code matches a stored pseudorandom sequence;   determining, at the financial institution, that the requested amount matches the first payment amount for the checking transaction; and   authenticating, at the financial institution, the received checking request.   
     
     
         2 . The method of  claim 1 , further comprising:
 providing an online banking interface to the payor for entering the first payment amount and information for identifying the check; and   receiving the first payment amount and information for identifying the check via the online banking interface.   
     
     
         3 . The method of  claim 2 , further comprising:
 storing information associated with each check of the plurality of checks in a database residing on non-volatile memory of the financial institution and accessible to the online banking interface;   updating information associated with each check of the plurality of checks in the online banking interface using information received from the payor to create updated information;   storing the updated information in the database; and   dynamically displaying the updated information in the online banking interface.   
     
     
         4 . The method of  claim 2 , wherein the online banking interface is provided at a website or a web portal of the financial institution. 
     
     
         5 . The method of  claim 1 , wherein the information for identifying the check further comprises at least one of a name of a payee, an address of the payee, a check date, a time the check was drafted, or a check memo. 
     
     
         6 . The method of  claim 1 , further comprising:
 associating the stored activation code with each unique pseudorandom code of the pseudorandom sequence; and   associating the stored activation code with additional information for identifying the payor.   
     
     
         7 . A method for authenticating a checking transaction comprising:
 receiving, at a financial institution, a first payment amount for a checking transaction of a payor and information for identifying a check for the checking transaction, the check being associated with a set checks;   receiving, at the financial institution, a checking request for a received check, the checking request including information for identifying the payor, a unique pseudorandom code of a pseudorandom sequence, wherein the pseudorandom sequence is for each check in the set of checks and generated via a random number processor, and a requested amount;   determining, at the financial institution, whether the received check is activated based on a stored activation code for the set of checks;   determining, at the financial institution, whether the information for identifying the payor matches stored information for identifying the payor;   determining, at the financial institution, whether the unique pseudorandom code matches a stored pseudorandom sequence;   determining, at the financial institution, whether the requested amount matches the first payment amount for the checking transaction; and   when the received check is activated, the information for identifying the payor matches the stored information for identifying the payor, the unique pseudorandom code matches the stored pseudorandom sequence, and the requested amount matches the first payment amount:
 authenticating, at the financial institution, the checking request; or 
   when the received check is not activated, the information for identifying the payor does not match the stored information for identifying the payor, the unique pseudorandom code does not match the stored pseudorandom sequence, or the requested amount does not match the first payment amount:
 declining, at the financial institution, the checking request. 
   
     
     
         8 . The method of  claim 7 , wherein the checking request is declined, the method further comprising:
 notifying the payor of the declined checking request.   
     
     
         9 . The method of  claim 8 , further comprising:
 receiving a request from the payor to cancel the check;   canceling the check; and   notifying the payor of the cancellation of the check.   
     
     
         10 . The method of  claim 7 , further comprising:
 associating the stored activation code with each unique pseudorandom code of the pseudorandom sequence; and   associating the stored activation code with additional information for identifying the payor.   
     
     
         11 . The method of  claim 10 , further comprising:
 dynamically displaying stored information associated with the check to the payor, the stored information including the first payment amount and information for identifying the check, the unique pseudorandom code of the check, and the additional information.   
     
     
         12 . The method of  claim 7 , wherein the requested amount does not match the first payment amount, the method further comprising:
 sending, from the financial institution, a request to an online banking interface for an updated payment amount from the payor;   determining that the updated payment amount matches the first payment amount; and   authenticating, at the financial institution, the received checking request.   
     
     
         13 . The method of  claim 7 , wherein the received check is not activated, the method further comprising:
 sending, from the financial institution, a request to an online banking interface for the payor to activate the received check;   receiving, from the online banking interface, an indication that the received check has been activated by the payor; and   authenticating, at the financial institution, the received checking request.   
     
     
         14 . The method of  claim 7 , wherein the received check is not activated, the method further comprising:
 sending, from the financial institution, a request to an online banking interface for the payor to activate the received check;   receiving, from the online banking interface, an indication that the received check has not been activated by the payor; and   declining, at the financial institution, the received checking request; and   notifying the payor of the declined checking request.   
     
     
         15 . The method of  claim 7 , wherein the received check is activated, the information for identifying the payor matches the stored information for identifying the payor, the unique pseudorandom code matches the stored pseudorandom sequence, and the requested amount matches the first payment amount, the method further comprising:
 sending, from the financial institution, a request to an online banking interface for the payor to authorize the received check;   receiving, from the online banking interface, an indication that the received check has been authorized by the payor; and   authenticating, at the financial institution, the received checking request.   
     
     
         16 . A system for authenticating a checks, the system comprising:
 one or more processors;   one or more transceivers for sending and receiving wired and/or wireless communications; and   non-volatile memory storing an electronic check register and instructions that when executed by the one or more processors cause the one or more processors to:
 receive, at the one or more transceivers, a first signal indicating that a plurality of checks were issued to a payor with an activation code and a unique pseudorandom code of a pseudorandom sequence, wherein the pseudorandom sequence is for each check in a set of checks and generated via a random number processor; 
 automatically update an electronic check register stored in the non-volatile memory to indicate that the plurality of checks were issued to the payor; 
 receive a second signal indicating that the plurality of checks were activated using the activation code; 
 automatically update the electronic check register to indicate that the plurality of checks were activated; 
 receive, at the one or more transceivers, a first unique pseudorandom code and an amount of a check of the plurality of checks from the payor; 
 automatically update the electronic check register to indicate that the check was issued to a payee and the amount; 
 receive, at the processor, a second unique pseudorandom code of a check and an expected amount from the payee; 
 determine whether the received unique pseudorandom code and the amount matches information stored in the electronic check register; 
 determine whether the check has been activated; and 
 when the unique pseudorandom code and the amount matches the information stored in the electronic check register and the check has been activated:
 authenticate the received checking request; 
 or 
 
 when the unique pseudorandom code or the amount does not match the information stored in the electronic check register or the check has not been activated:
 decline the received checking request. 
 
   
     
     
         17 . The system of  claim 16 , wherein the information for identifying the check further comprises at least one of a name of a payee, an address of the payee, a check date, a time the check was drafted, or a check memo. 
     
     
         18 . The system of  claim 16 , wherein the checking request is declined, wherein the instructions further cause the one or more processors to:
 send, with the one or more transceivers, a message notifying the payor of the declined checking request.   
     
     
         19 . The system of  claim 16 , wherein the instructions further cause the one or more processors to:
 receive, at the one or more processors, a request from the payor to cancel the check;   cancel the check; and   notify the payor of the cancellation of the check.   
     
     
         20 . The system of  claim 16 , wherein the instructions further cause the one or more processors to:
 associate the activation code with each unique pseudorandom code of the pseudorandom sequence; and   associate the activation code with additional information for identifying the payor.