Patent ID: 6757664
Filing Date: 2004-06-29
Classification: G06Q

Abstract:
A check verification method for providing information concerning the availability of funds to cover a check proffered at a point of sale, said check being drawn on a checking account held at a payor institution and, if accepted, being processed by ACH or other clearing methods to cause payment from the payor institution and debiting of the account balance of the checking account maintained at the payor institution, the method comprising:enrolling one or more checking accounts held at at least one payor institution in a funds checking computer system that maintains a database for enrolled accounts containing checking account status information, including an account type, for the one or more enrolled checking accounts and further containing funds checking computer system current balance information maintained by the funds checking computer system; identifying in the funds checking computer system at least one of the enrolled checking accounts as a dedicated type account requiring that a proffered check can be presented for processing by ACH or other clearing methods and payment from the account at the payer institution only after a risk determination at the funds checking computer system; receiving periodically at the funds checking computer system in electronic record form account information provided by at least one payor institution holding at least one of the enrolled checking accounts, such account information including a payor institution account balance or credit and debit transaction amounts affecting the payor institution account balance; receiving at the funds checking computer system check transaction information in electronic record form from proffered checks drawn on the one or more enrolled checking accounts, said check transaction information being captured at one or more points of sale before such checks are processed by ACH or other clearing methods; responsive to the check transaction information for each proffered check, determining at the funds checking computer system whether the checking account on which the proffered check is drawn is an enrolled checking account and, if so, responsive to the check transaction information captured at the point of sale for such proffered check, the funds checking computer system current balance information, and whether the account type of the account on which the proffered check is drawn is dedicated or not dedicated, determining the risk associated with the availability of funds in the enrolled checking account to cover such check proffered at the point of sale; and providing to the point of sale where the check was proffered a funds availability status message for the check proffered, responsive to the risk determined.