Abstract:
The present invention features a Point of Sale (POS) printer that includes an encoding module that magnetizes and reads the account and bank information from existing magnetic characters on a check. The encoding module prints the characters in the AMOUNT field of the check, according to ANSI 1 , ISO 2 , or other standards. The characters are printed with an ink having magnetic particles embedded therein. The POS printer magnetizes and reads these characters after they are printed, in order to verify that the correct amount has been encoded onto the check. The encoding module can include a magnet to magnetize the characters; a read head to read and analyze the signal waveform from each character; and a print mechanism with the capability of using magnetic ink for printing the characters. The method of the invention directs the POS printer to follow a certain sequence of actions in order to accomplish the printing and verification at the point of sale.

Description:
FIELD OF THE INVENTION 
     This invention relates to a new point-of-sale printer and check processing method and, more particularly, to a new point of sale (POS) printer and method for printing magnetic ink characters on a check in the AMOUNT field, with subsequent verification that the magnetic characters were correctly printed. 
     BACKGROUND OF THE INVENTION 
     In retail establishments, it is often found that the retailer does not have the means to print (encode) MICR (Magnetic Ink Character Recognition) characters on a check. In such a case, the retailer typically pays the bank(s) a fee for printing and verifying these characters. In those cases where the retailer has purchased an encoding machine to encode the checks, the encoding is performed as a separate task, at a later time than the sale itself. In either case, the subsequent printing of MICR characters on ae check is wasteful both of time and money for the retailer. The present invention suggests that it is more useful to print these characters at the point of sale (POS), and actually provides a new method and apparatus for processing checks at the point of sale. 
     The present invention pertains to a point of sale (POS) printer capable of encoding and verifying MICR characters on checks. More particularly, the invention provides the retailer with the capability for printing MICR characters, and for printing these characters in the AMOUNT field of the check. (Hereinafter, the word “encode” shall be used to mean “to print the amount of the sale in magnetic ink characters in the AMOUNT field of the check.”) 
     This invention allows a retailer to save money and/or time in one of two ways: 
     (a) Having the POS printer of this invention, a retailer can print and verify these characters at the time of sale. This saves the retailer money, while saving banks the time to perform this procedure. 
     (b) A retailer having a POS printer need not purchase an encoding machine to encode the checks. Neither need he or she encode the checks as a separate task at a later time than that of the sale. The retailer having the POS printer of this invention saves the time and labor by performing this task at the point of sale, not as a separate function performed at a later time. In addition, the retailer can reconcile checks sooner allowing for earlier availability of funds (reduced “float” time ) than when the bank must encode the checks. 
     The POS printer of this invention includes an encoding module that magnetizes and reads the account and bank information from the existing magnetic characters on the check. The encoding module prints the characters according to ANSI 1 , ISO 2 , or other standards using an ink having magnetic particles embedded therein. The POS printer magnetizes and reads these characters after they are printed, in order to verify that the correct AMOUNT has been encoded onto the check. The encoding module may comprise a magnet to magnetize the characters; a read head to read the signal waveform from each character; electronic circuitry to analyze these waveforms; and a print mechanism with the capability of using magnetic ink for printing the characters. Certain read heads, such as DC-biased read heads, do not require a magnet to pre-magnetize the characters. In such a case, the encoding module may comprise a DC-biased read head, electronic circuitry and a magnetic ink printer. 
     Our copending U.S. patent application, Ser. No. 08/944,155, describes a check processing procedure, and is hereby incorporated by reference. 
     SUMMARY OF THE INVENTION 
     In accordance with the present invention, there is provided a POS printer that includes an MICR reader that magnetizes and reads the account and bank information from preprinted magnetic characters on a check. An encoding module prints the characters in the AMOUNT field of the check, according to ANSI 1 , ISO 2 , or other standards. The characters are printed with an ink having magnetic particles embedded therein. The POS printer magnetizes and reads these characters after they are printed, in order to verify that the correct amount has been encoded onto the check. 
     The encoding module can comprise a magnet to magnetize the characters; a read head to read the signal waveform from each character; electronic circuitry to analyze these waveforms; and a print mechanism with the capability of using magnetic ink for printing the characters. 
     Currently, the AMOUNT field is printed by the retailer, or the customer&#39;s bank after the purchase transaction has occurred. The encoding module of the POS printer allows for the customer&#39;s check to have the AMOUNT field printed and verified, while the customer is still at the point of sale. 
     The method of the invention directs the POS printer to follow a certain sequence of actions in order to accomplish the printing and verification at the point of sale. First, the ROUTING and ON-US (see FIG. 1) fields of the check are magnetized, either by a fixed magnet, or within the read head itself. Next, the characters within the ROUTING and ON-US fields are read by the read head, and the signals analyzed by the electronics of the POS printer. This is followed by a validation, in which the printer sends this data to the POS host which electronically accesses a list of “bad” account numbers to determine if the check is good. The printer can continue either to endorse the check on the back, and/or to encode the check by printing MICR characters in the AMOUNT field on the face of the check, if the validation is successful. Check encoding can be effected by utilizing impact/ribbon, laser/toner, inkjet, or thermal transfer printing. Thermal transfer printing can be either parallel (full field width) printing, or serial (one character at a time) printing. 
     It is an object of this invention to provide a point of sale printer and method. 
     It is another object of the invention to provide a point of sale printer and method for reading, printing and verifying MICR characters upon a check. 
     It is a further object of this invention to provide an improved printer that allows for a customer&#39;s check to have the AMOUNT field printed and verified, while the customer is still at the point of sale. 
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS 
     A complete understanding of the present invention may be obtained by reference to the accompanying drawings, when considered in conjunction with the subsequent detailed description, in which: 
     FIG. 1 illustrates a plan view of a typical personal check used at a point of sale transaction; 
     FIG. 2 depicts a flow diagram of a current check processing method; 
     FIG. 3 shows a revised check processing method in accordance with the present invention; 
     FIG. 4 illustrates a perspective view of a schematic embodiment of a point of sale machine, in accordance with the current invention; 
     FIG. 5 depicts a side view of the point of sale mechanism shown in FIG. 4; 
     FIG. 6 shows a side view of a second embodiment of a point of sale mechanism; and 
     FIG. 7 illustrates a side view of a third embodiment of a point of sale mechanism. 
    
    
     DESCRIPTION OF THE PREFERRED EMBODIMENT 
     Generally speaking, the invention features a new printer and method for negotiating transactions at the point of sale in retail establishments. The POS printer includes an MICR Printer module that magnetizes and reads the account and bank information from existing magnetic characters on a check. The encoding module prints the characters in the AMOUNT field of the check, according to ANSI 1 , ISO 2 , or other standards. For purposes of clarity and brevity, like elements and components will bear the same number throughout the figures. 
     Now referring to FIG. 1, a typical personal check  10  is shown in plan view. The exact location of various fields of check  10  is defined in the ANSI 3  and ISO 2  specifications. The ROUTING and On Us fields  11  and  12 , respectively, convey the bank and account information of the customer&#39;s check. These fields are already printed with MICR-readable characters when a customer begins a transaction. Currently, the AMOUNT field  14  is printed by the retailer or the customer&#39;s bank after the purchase transaction has occurred. 
     The encoding module of a POS printer is described hereinafter, with reference to FIGS. 4 through 7. The encoding module allows for the customer&#39;s check  10  to have the AMOUNT field  14  printed and verified while the customer is still at the point of sale. The POS printer follows a certain sequence of actions for the sales transaction to be negotiated. The POS printer  20  first magnetizes the ROUTING and ON-US fields  11  and  12 , respectively. This can be accomplished either by a fixed magnet, or within the read head itself. Next, the characters within the ROUTING and ON-US fields  11  and  12 , respectively, are read by the read head and the signals analyzed by the electronics of the POS printer. This analysis is followed by a validation step, wherein the POS host determines whether the account is on a list of “bad” account numbers. The printer can continue to endorse the check on the back and/or encode the check by printing MICR characters in the AMOUNT field  14  on the face of the check  10 , after validation is accomplished. Check encoding can be effected by utilizing impact/ribbon, laser/toner, inkjet, or thermal transfer. Thermal transfer printing can be either in parallel (full line), or in serial (one character at a time). For reasons of simplicity, it is preferred for the printer to contain a serial thermal transfer mechanism that provides MICR characters. 
     Once the check  10  is encoded, the POS printer verifies that the characters are readable by magnetizing and actually reading the encoded characters. The signals can then be analyzed and compared to the original transaction amount. In the event that the reading of the encoded amount does not. correspond to the transaction amount, the retailer may attempt to use the POS printer to reread the encoded amount during the transaction or at a later time. In some cases, it may be necessary for the retailer or bank to add a strip of paper along the bottom of the check and reprint the MICR characters for all the fields: the ROUTING field  11 , the ON-US field  12 , and the AMOUNT field  14 . 
     Thus, another use for the POS printer is manifest. Since the POS printer can print and read MICR characters, the potential exists for the printer to be used to reprint the ROUTING, ON-US, and AMOUNT fields either at the point of sale or at a later time as a second operation. 
     Referring to FIGS. 2 and 3, flowcharts  100  and  200 , respectively, demonstrate the conventional and the improved check handling sequence provided by the inventive POS encoding procedure. The basic improvement is realized when the retailer or bank is not required to re-enter the amount on the check  10  in order to encode same. Flowchart  100  depicts the current procedure. At the point of sale, the sales items are totaled and a figure amount of the transaction is provided, step  101 . The customer then provides a personal check, and signs same, step  102 . A device then reads the check, step  103 , and verifies that the customer is a good customer (credit worthy), step  104 . If the checking account is a “bad” account, or if the proper characters are missing, step  105 , the transaction is canceled, step  106 . If the transaction is in order, step  105 , the check  10  is endorsed, and a receipt is printed, step  107 . If the retail establishment does not have an encoding machine on its premises, step  108 , then the check  10  is sent to the bank for encoding, step  109 . The bank deducts the amount of the transaction from the account of the customer, step  110 , and it then charges the retailer an encoding fee, step  111 . 
     When the retailer has its own encoding equipment, the check  10  is sent to the back room, typically, where the amount is entered onto the check  10 , step  112 . The check is then encoded, step  114 , and then sent to the bank. Decision block  115  is then entered. If the bank can successfully read the encoded characters, it deducts the transaction amount from the account of the customer, step  116 . When the bank cannot decipher the encoding, step  115 , the bank reprints the check  10  with newly encoded fields, step  117 . The bank then exacts a surcharge from the retailer, step  118 , and deducts the amount of the transaction from the customer&#39;s account, step  119 . 
     Referring to FIG. 3, flowchart  200  illustrates the new transaction procedure in accordance with the invention. At the point of sale, the sales items are totalled and a figure amount of the transaction is provided, step  201 . The customer then provides a personal check  10 , and signs same, step  202 . A device then reads the check, step  203 , and verifies whether the customer is a good customer (credit worthy), step  204 . If the account is “bad”, or the proper magnetic characters are missing, step  205 , the transaction is canceled, step  206 . If the transaction is in order, step  205 , the check  10  is endorsed and a receipt is printed, step  207 . The POS printer then encodes the check  10 , step  208 . If the check  10  can be successfully read, step  209 , then the transaction amount is deducted from the customer&#39;s account, step  210 . 
     When the bank cannot decipher the check  10 , then it reprints the check and encodes the necessary fields, step  211 . The bank then exacts a surcharge from the retailer, step  212  and deducts the transaction amount from the customer&#39;s account, step  214 . 
     The invention can be embodied in several ways at the point of sale. The preferred method depicted in flowchart  200  requires that MICR characters be printed serially using a thermal transfer ribbon  23 . In the serial method, printhead heating elements print a vertical column of dots at each printing station, as the head is moved horizontally with respect to the longest edge of the check  10 . 
     Three embodiments are shown in FIGS. 4 through 7, in which serial encoding of checks is accomplished at the point of sale. The first embodiment for a POS encoding device is useful as an enhancement to an existing POS printer/check processor. This embodiment is shown in FIG.  4 . The housing of the machine is shown in schematic outline  24 . A typical POS printer  20  has an MICR read head  22  for reading the account and bank information of checks being processed. The encoding mechanism is in the front of the machine and utilizes either a main feed roll system or an auxiliary feed roll system (not shown) within the encode mechanism  21 . A second read head  22 ′ is utilized to verify previously encoded amount information. 
     Referring to FIG. 5, the encode mechanism  21  (FIG. 4) is shown in greater detail. The mechanism  21  uses the print platen  25  to advance the check  10  during the encoding thereof. In the orientation of the readhead  22  (FIG.  4 ), the check  10  is placed face down and driven by feed rollers  28  into machine  20  in the direction of the arrow  27 , in order to read the bank and account information. The POS machine  20  then activates read head  22  to verify the account and funds. Afterwards, the check  10  is driven back out into the encode mechanism  21  by the main feed rollers  28  until a document or paper detection sensor  29  is tripped. The main feed rollers  28  may continue to drive the check  10  a given distance past the sensor  29 . 
     Then, the printhead solenoid  30  allows the printhead  31  to push the check  10  against the platen  25 . A switch  43  is provided which verifies that printhead  31  is in the proper position for printing. Subsequently, the main feed rollers  28  release the check  10 . In this position, the thermal transfer ribbon  32  is sandwiched between the printhead  31  and the check  10 . The check  10  is then driven in the direction of arrow  27  by the platen  25 , which is driven by the platen motor  33  through pinion  36  and gear  35 . This action also advances the ribbon  32  through an over-running slip drive system comprised of drive pulley  37 , garter spring  38 , and driven pulley  39 . Back tension on the ribbon  32  is provided by a friction system comprised of fixed pulley  40 , garter spring  41 , and pulley  42 . Once the sensor  29  is tripped again, some amount of motor steps can be counted to determine the position of the check  10 . When the check  10  is correctly positioned, printhead heaters (not shown) are turned on to create the characters on the check, as it is driven forward into the machine  20 . 
     When the printing cycle is finished, main feed rollers  28  engage the check  10  again, and the printhead solenoid  30  moves the printhead  31  out of the print position and away from platen  25 . Another solenoid  35  activates the pad/arm  34  against read head  22 ′ to press the check  10  against the read head  22 ′. The check  10  can then be driven into the machine  20 , and read head  22 ′ verifies that the printed MICR characters represent or are equivalent to the amount of sale. After the encoding process is finished, the POS printer  20  may continue to perform other functions on the check  10 , such as printing on the check face, or endorsing the check on its back. 
     Referring to FIG. 6, a second embodiment for a POS printer  20  features an encoding mechanism  21  that is internal to the housing  24  of the machine. This is the preferred embodiment, since it tends to keep the size of the POS machine and the number of parts to a minimum. 
     A side view of a machine  20  is shown, having an internal encoding device  21 . In this embodiment, the check  10  is driven by two sets of feed rollers  28   a  and  28   b , respectively. The rollers  28   a  and  28   b  are coupled to each other (not shown). The left-hand side represents the front of the machine. The forward set of feed rollers  28   a  (left-hand side) drives the check (arrow  27 ) into the machine  20 , and the ROUTING and ON-US fields  11  and  12  (FIG. 1) are read by the read head  22 . 
     Once the check  10  has been verified, the check  10  is driven further, and the rear set of feed rollers  28   b  grip the check and drive it until the trailing edge of the check  10  is past the sensor  29 . At this point, the feed rollers  28   b  position the check  10  to the first printing position. The printhead solenoid  30  then activates the printhead  31  against the platen  25 . In contrast to the first embodiment, where a separate motor was provided for driving the platen  25 , the existing feed roller system  28   b  is also used to drive the check  10  and ribbon  23  during the encode process. Once encoding has been completed, the printhead solenoid  30  retracts the printhead  31 , the check  10  is driven back past the sensor  29 , and the feed rollers then position the check to be read by the read head  22 . The pad/arm solenoid  35  then activates the pad/arm  34 , and the check  10  is driven to verify the encoded amount. After the read operation, pad/arm  34  is released and the POS machine continues to perform other functions. 
     The aforementioned embodiments described herein have assumed that the check  10  is face-down in the machine  20 , and that the read head  22  is stationary. These embodiments can also easily accommodate a check that is face-up, and can utilize a dynamic read head. 
     Referring to FIG. 7, a third embodiment for the point of sale encoding device  21  of this invention is illustrated. The encoding device  21  has a separate module that is distinctly apart from the POS printer  20 . This mechanism is essentially the same as that shown in FIG. 6, with the exception that the components are external to the machine. Note that the mechanism is depicted in a vertical arrangement. In such an embodiment, a communication line (not shown) to the POS printer would be required. The device would still accomplish the same functions: read the ROUTING and ON-US fields  11  and  12 , respectively; verify the bank and account information through the communication line; encode the check  10 ; and read the encoded amount as a final verification. A separate motor  33  is required for driving the feed rollers  28   b . A necessary belt between the sets of feed rollers is not shown. The operation of this embodiment is essentially identical to that of the second embodiment (FIG.  6 ), and need not be described in detail here. 
     As can be observed from the foregoing description, this invention proposes that a point of sale printer can be used to print and verify MICR characters on checks. The primary application of this invention is for checks to be encoded directly at the point of sale in order to save retailers time and money. The three embodiments allow for an encoding module to be implemented on the front of a POS printer, internal to the POS printer, or as a separate module to the printer. 
     REFERENCES 
     1. Print and Test Specifications for Magnetic Ink Printing (MICR), ANSI X9.27, 1995, EDI Support Services, Chardon, Ohio. 
     2. Information Processing-Magnetic Ink Character Recognition-Print Specifications, ISO 1004: 1995(E), International Organization for Standardization, Geneva, Switzerland, 1995. 
     3. American National Standard Specifications For Placement and Location of MICR Printing, ANSI X9.13, 1990, American Bankers Association, Washington, D.C. 
     4. Method and Apparatus for High Speed Thermal Printing, Osmera et al., U.S. Pat. No. 4,394,092, issued 1983. 
     Since other modifications and changes varied to fit particular operating requirements and environments will be apparent to those skilled in the art, the invention is not considered limited to the example chosen for purposes of disclosure, and covers all changes and modifications which do not constitute departures from the true spirit and scope of this invention. 
     Having thus described the invention, what is desired to be protected by Letters Patent is presented in the subsequently appended claims.