System and method for compositing items and authorizing transactions

Abstract

A method of executing an electronic financial transaction involving two parties providing information for generating a transaction document and authorizing the document to execute the transaction. The method contemplates the maker electronically transmitting a data record representative of the financial transaction directly to a payee, such as by email. The payee can then convert the data record into a transaction acceptable to a bank of first deposit, such as by printing or imaging the data record into a form acceptable to the bank, such as a standard paper check.

1 . A method for compositing information and authorizing a financial transaction, comprising the steps of:
 forming, by a maker, a data record representative of a financial transaction with a payee;   electronically transmitting the data record representative of the financial transaction directly to the payee, wherein the electronic transmission includes an authorization by the maker to the payee to deposit the financial transaction;   wherein the payee can continue the processing of the financial transaction by presenting the transaction to a bank of first deposit.   
     
     
         2 . The method of  claim 1  wherein the step of transmitting the data record comprises sending an email to the payee. 
     
     
         3 . The method of  claim 2  wherein the step of transmitting the data record includes attachment of a file to the email which includes a printable representation of a check representative of the financial transaction. 
     
     
         4 . The method of  claim 2  wherein the step of transmitting the data record includes the step of emailing a data file which contains data that can be constructed into at least one of a physical check and an electronic image of a check compliant with Check21 standards. 
     
     
         5 . The method of  claim 1  and further comprising the step of registering data representative of the financial transaction between the maker and the payee with a third party service, whereby a processing bank can verify the accuracy of the data representative of the financial transaction. 
     
     
         6 . The method of  claim 1  and further comprising the step of sending a portion of the data record representative of the financial transaction to the payee with an identifier of where the remainder of the critical data to construct the data can be retrieved and submitted to the bank of first deposit as a complete transaction. 
     
     
         7 . The method of  claim 6  and further comprising the step of retrieving missing critical data constituting the financial transaction prior to or at the time of presentment to a bank of first deposit. 
     
     
         8 . The method of  claim 1  and further comprising the step of electronically signing a graphical representation of the check at the time of making of the data record representative of the financial transaction, and the step of electronically transmitting the transaction includes the step of transmitting the graphical representation of the check to the payee. 
     
     
         9 . The method of  claim 8  and further comprising the step of the payee physically printing the graphical representation of the check prior to presentment to a bank of first deposit. 
     
     
         10 . The method of  claim 1  and further comprising an interface located on a global computer network for performing at least one of: (a) receiving physical address information regarding at least one maker; (b) receiving bank account information regarding at least one maker; (c) receiving information regarding at least one payee for the at least one maker; (d) receiving payment information regarding a payee and an amount, wherein the payment information can be entered into an interface reflecting a standard paper check layout 
     
     
         11 . The method of  claim 10  and wherein the step of creating the data record representative of the financial transaction includes the step of constructing the data record from stored information entered into the interface. 
     
     
         12 . The method of  claim 1  wherein, upon receiving the transmission, the payee performs at least one of the following to present the payment transmission to a bank of first deposit: (a) printing the payment transmission into a form representative of a traditional paper check; and (b) transmitting a graphical representation of the payment transmission to the bank of first deposit. 
     
     
         13 . The method of  claim 1  and further comprising the step of providing a cryptographic or trusted timestamp associated with the transaction to prevent tampering with, or multiple presentment of, the financial transaction to multiple banks of first deposit. 
     
     
         14 . The method of  claim 1  and further comprising the step of the payee selecting the form of the transaction for presentment to the bank of first deposit. 
     
     
         15 . The method of  claim 1  and further comprising the maker providing a plurality of payment settlement modalities to the payee, and the payee selecting from at least one of the provided plurality of payment settlement modalities for presentment to at least one of a bank of first deposit and another settlement representative based on the selected settlement mode to settle the transaction received from the maker.