Abstract:
A computer-implemented method for collecting bank account information from an individual and authenticating the individual prior to allowing the bank account to receive an electronic fund transfer comprises providing a website; allowing the individual on the website to enter bank account information to which funds will be transferred; delivering application forms with a unique bar-coded identifier over the internet to the individual; electronically receiving and storing the application forms after being completed by the individual and linking the bar coded identifier with the individual&#39;s bank account information; visually comparing by at least first and second customer support representatives information provided on the forms with information provided on the website to verify the identity of the individual; and validating payment to the individual if the individual&#39;s identity is verified.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
   This application claims the priority benefit of provisional application Ser. No. 60/692,582, filed Jun. 22, 2005, incorporated herein by reference. 

   BACKGROUND OF THE INVENTION 
   This invention relates generally to the field of banking and payments and more specifically to a method and system for collecting bank account information and securely linking an existing computer based electronic user account to those banking credentials for the purpose of authenticating the individual making such representations for making secure payments to the individual&#39;s bank account. 
   At the time of this invention, most business-to-business payments are made by check. This is slow and costly. We expect to reduce costs by making payments using the electronic banking system. In order to use that system, we must have a computer application and process in place to ensure, as best as possible, that payments are being directed to the desired payee. This application provides a way for accomplishing secure collection of bank account information as well as validation of the individual registering that bank account information. This is also to be accomplished over the Internet without face-to-face communication. 
   Prior systems simply use clerks to key faxed or mailed information and to complete a pre-authorization or “pre-note” transaction to verify that the account is valid. Perhaps, in some cases, a small value credit transaction is completed to verify that the specified account is receiving payment activity. 
   Also, with earlier systems only account information was collected, not identification information on the individual providing the banking information. Previously, it was a manual process to link the account with the paperwork submitted. Historically, a government issued photo ID has not been collected. 
   BRIEF SUMMARY OF THE INVENTION 
   It is an object of the present invention to provide a method and system to direct payments to the proper payee and diminish the potential for fraud by authenticating the individual providing a commercial or an individual&#39;s bank account information to which funds will be paid. 
   Other objects and advantages of the present invention will become apparent from the following descriptions, taken in connection with the accompanying drawings, wherein, by way of illustration and example, an embodiment of the present invention is disclosed. 
   In summary, the present invention provides a computer-implemented method for collecting bank account information from an individual and authenticating the individual prior to allowing the bank account to receive an electronic fund transfer, comprising:
         a) providing a website;   b) allowing the individual to obtain a password protected user account at the website;   c) allowing the individual to sign on at the website using credentials created in step b);   d) allowing the individual to enter banking information to which funds will be transferred;   e) delivering application forms with a unique bar-coded identifier over the internet to the individual:   f) receiving and storing the application forms after being completed by the individual via a fax and linking the bar coded identifier with the individual&#39;s payee record;   g) visually comparing by at least first and second customer support representatives information provided on the forms with information provided at step d) to verify the identity of the individual; and   h) validating payment to the individual if the individual&#39;s identity is verified at step g).       

   The present invention also provides a system for collecting bank account information from an individual and authenticating the individual prior to allowing the bank account to receive an electronic fund transfer, comprising: a web server for allowing the individual to obtain a password protected user account; a registration data server for storing the individual&#39;s user account information, and banking account and routing numbers; an ABA validation server for validating the individual&#39;s banking and routing numbers; an email server for delivering a forms package to the individual via the internet; a fax server for receiving the forms package after being completed by the individual; a first workstation for providing side by side visual display of faxed information with the information provided by the individual during a previous online session to allow a first customer support representative to authenticate the identity of the individual; and at least a second workstation for providing side by side visual display of faxed information with the information provided by the individual during a previous online session to allow at least a second customer support representative to authenticate the identity of the individual, whereby approval by the first and the at least second customer support representatives are required to activate the individual&#39;s bank account for receiving payments. 

   
     BRIEF DESCRIPTION OF THE DRAWINGS 
       FIG. 1  is a flow chart of the method of an embodiment of the present invention. 
       FIG. 2  is a bank account verification form used in the method of  FIG. 1 . 
       FIG. 3  is a registration images collection form used in the method of  FIG. 1 . 
       FIG. 4  is an ACH authorization form used in the method of  FIG. 1 . 
       FIG. 5  is a screen print showing an example of a display presented to the user for signing on onto the website. 
       FIG. 6  is a screen print showing an example of a display presented to the user for entering bank account information. 
       FIGS. 7-9  show an exemplary system for implementing the various stages of the method of  FIG. 1 . 
       FIG. 10  is a screen print showing an example of a display presented to a customer support representative for comparing information provided by the user during an online session and information from the forms of  FIGS. 2-4  faxed by the user. 
   

   DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
   Detailed descriptions of the preferred embodiment are provided herein. It is to be understood, however, that the present invention may be broader and may be embodied in various forms. Therefore, specific details disclosed herein are not to be interpreted as limiting, but rather as a basis for the claims and as a representative basis for teaching one skilled in the art to make and use the present invention in virtually any appropriately detailed system, structure or manner. 
   Turning to  FIG. 1 , an embodiment of the present invention is a process  2  that starts after a user has already completed a secure general registration process whereby he has obtained an active user account by obtaining a user ID, entity identifier and password. The user is a payee or his representative requesting to receive payment to his bank account. Several common methods are available to reach this point in the process. In our system, the user types the secure URL of the system (HTTPS), enters his user name, entity identifier, and password at step  4 . An example of a logon display presented to the user is shown in  FIG. 5 . After signing on, the user is offered the opportunity to register his banking account by entering the basic bank account information at step  6 . An example of a display presented to the user for entering bank information is shown in  FIG. 6 . Typically this bank information is obtained from his check. The collected information is stored in a SQL database. 
   The process  2  validates at step  8  the routing and transit number (bank identifier) against an on-line database of valid bank identifiers. In some cases the user will be routed back to re-enter routing information should the information fail basic validity checking. If the banking information provided by the user is valid, an account verification forms package is generated and delivered to the user at step  10 . The forms package contains a unique bar coded system identifier  11  (see  FIGS. 3-4 ) specific to the user. The user is instructed to fill out and return the forms via fax at step  12 . 
   The faxed forms, shown in  FIGS. 2 ,  3 , and  4 , comprise our Bank Account Verification Forms Package. The package contains an instructions page shown in  FIG. 2 , a Registration Images Form shown in  FIG. 3 , and an ACH Authorization Form shown in  FIG. 4 . The instruction page requires the user&#39;s full name that matches the name used during registration, date and phone number. The registration images form requires a copy of a government issued photo ID, such as a driver&#39;s license and a cancelled check. The ACH authorization form requires bank account information to which payment is desired to be made. The Bank Account Verification Forms Package must be completed by the user and faxed to our fax server at step  12 . The requirement to complete the Bank Account Verification Forms Package is presented to the user only after online capture of information is completed. The purpose of this is to possibly “catch” a fraudulent individual who may have started this process not realizing that a government issued photo ID and cancelled check information must be forwarded to complete the process. 
   When received by our server, the faxed forms package are stored at step  14  on the server in PDF format. The bar code ID  11  for the package is parsed from the fax images and linked to the existing user record in the SQL database at step  16  as a key to the image file, along with the calling telephone number, date and time. The bar code  11  is advantageously placed on the bottom of each page in the Bank Account Verification Forms Package in order to improve recognition. The system of the process  2  now includes an internet user account linked to a database record which contains the information necessary to activate payments to the checking or savings account, should the credentials be verified to be valid. Fax telephone numbers are an alternate linking field. 
   A customer support representative begins the process of visually verifying the credentials at step  18 . A GUI program is started that will bring up images of the identification documents in the order that they have been received at step  20 . Using the linkage created from the bar code ID  11  on the application package, the user&#39;s account will be automatically displayed at step  22  on the right hand pane while corresponding image data is displayed on the left to easily accommodate visual verification at step  24 . An example of a display presented to the customer support representative is shown in  FIG. 10 . Processing of the faxed registration information is in the order received, with the existing account information already linked. This advantageously eliminates the need of the customer support representative from finding the proper account from hand written information and search for the proper account to activate. 
   Once the first customer support representative is satisfied that the faxed credentials match the information provided during online registration at step  6 , the first customer support representatives activates the bank account at step  26 . The record is queued for a second representative for verification of the account at step  28  for a second time. The second customer support representative goes through the same steps as the first customer support representative to verify the faxed information with the information secured online. Like the first customer support representative, the second customer support representative&#39;s responsibility is to verify that the electronic records match the provided faxed credentials, company name, individual name, routing and transit number, and bank account number. In the event that there is something wrong with the user&#39;s credentials, the first and/or second customer support representative may elect to repair simple problems with supervisor approval, void the existing account at step  30 , or initiate a fraud investigation at step  32 . The second customer support representative also processes the faxed information in the order received. 
   Using two customer support representatives to verify the account advantageously increases the accuracy of the authorization process and reduces the possibility of fraud. The customer support representatives do not know if they are performing the first verification or the second verification in the account verification process. Both customer support representatives must activate the account. If one of the customer support representatives fails to verify the account, the account does not get activated. 
   Once the second verification at step  34  is completed, the account becomes active is now authorized to receive funds electronically at step  36 . 
   An exemplary system for implementing the process  2  is disclosed  FIGS. 7-9 . Referring to  FIG. 7 , the payee representative (user) connects to the internet  38  via a computer work station  40 . The payee representative then navigates to the website hosted by a webserver  41 . The payee representative securely signs on using existing client ID, user ID and password, such as shown in  FIG. 5 . The payee representative begins the bank registration by completing the on-line web-based form with the requested banking information, such as shown in  FIG. 6 . 
   The system validates the given bank routing number using an ABA validation server  40 . The payee entered bank information and linked unique client ID are stored in registration data server  42 . The system builds the custom bank account verification forms package with unique bar-coded client ID included on each page of the package. The forms package is shown in  FIGS. 2 ,  3  and  4 . The package is electronically delivered to the payee representative via an e-mail server  42  and via an on-line web application as a PDF document. The payee representative then prints the forms package with a printer  44 . 
   The payee representative completes the printed bank account verification forms package including copies of government issued photo ID and canceled check (see  FIGS. 2-4 ). The payee representative then faxes the completed forms to a fax number provided in the instruction form shown in  FIG. 2 . A fax machine  48  is connected via the public switch telephone network to a fax server  50 . The system receives the faxed information via the fax server  50 . Bar-coded client ID is electronically extracted from the faxed images. The electronic version of the faxed pages, its associated client ID (from bar code extract), and dates/time information is stored in registration data server  42 . The faxed record is linked to the original bank registration information stored during the user&#39;s previous on-line session. Customer support personnel are electronically notified of newly bank account verification forms package. 
   Customer support representative A receives notification via the system intranet application/monitoring system regarding newly received bank account verification forms package. Customer support representative A begins the verification process by selecting new faxed record. The intranet application displays the faxed images along with the linked payee registration data, such as shown in  FIG. 10 . Customer support representative A uses a computer  52  linked to the system. Customer support representative A uses applications and tools to verify information stored in the online registration data record matches information submitted via fax. Information verified includes at a minimum the payee representative&#39;s name on the account and on the photo ID, his signature, and the routing number and bank account on file compared with the check image. Customer support representative A indicates match if all information is verified as correct. The registration data record is then updated to reflect that one verification is complete and another verification is needed to complete the registration 
   Customer support representative B using computer  54  repeats the steps of customer support representative A as noted above. Once completed and verified, the registration data record is updated to reflect that two verifications have been completed. Bank account registration is now complete. 
   Each account is independently verified by two different customer support representatives. The representatives do not know if they are first or second individual to verify the bank and payee representative&#39;s information. Two support representatives as shown are a minimum requirement. More than two representatives may be used. The customer representative workflow is independent of the web functions used to collect banking information from payee representatives. 
   The method and system of the present invention configures and expands the authority of a user account to allow a user to receive banking payment transactions electronically. The method and system configure and control account access allowing authorized users to choose which bank and which account will be credited for payments. The user must know his bank routing and transit number, account number, has a cancelled check or savings account deposit slip as well as a government issued photo ID. The name on the individual&#39;s government issued photo ID must match the name of the user&#39;s name when the account was first registered. This information and a personalized bar-coded identifier are used to authenticate the user&#39;s ability to accept payments at this account. The telephone number that they use to contact us may also be used. 
   While the invention has been described in connection with a preferred embodiment, it is not intended to limit the scope of the invention to the particular form set forth, but on the contrary, it is intended to cover such alternatives, modifications, and equivalents as may be included within the spirit and scope of the invention as defined by the appended claims. For example, alternative applications may include: an additional step to initiate a pre-note transaction or, the exclusion of an already established password-protected user account.