Patent Publication Number: US-2005137979-A1

Title: Apparatus and method for amount verification of paper checks for electronic redeposit

Description:
BACKGROUND OF THE INVENTION  
      1. Field of the Invention  
      This invention relates to financial transaction processing, and, in particular, to qualifying a paper check for electronic redeposit from a merchant terminal.  
      2. Description of the Related Art  
      Many financial transactions involve a customer making a payment in exchange for goods or services from a merchant. Many times the payment is in a promissory form that instructs the customer&#39;s bank to pay the merchant. A check is one example of such promissory form of payment. The customer writes a check and presents it to the merchant as a convenient way for the customer to make a payment to the merchant. The merchant will then, typically at the end of the day, provide the check (together with others received that day) to the merchant bank as a deposit to the account, which the merchant maintains in the merchant bank.  
      The merchant bank, after posting the checks to the merchant account, forwards a batch of checks to the appropriate issuing banks.  
      As is well known, the funds promised by the check are sometimes not paid due to reasons such as insufficient or uncollected funds in the customers&#39; checking accounts or fraud.  
      If there were insufficient funds or uncollected funds in the customer&#39;s account at the time that the check was initially processed, the merchant can collect the funds if the merchant redeposits the check when sufficient funds exist in the customer&#39;s account.  
      The amount of time to redeposit a paper check varies. It can take between 5 to 8 days before the merchant knows whether the check cleared. The merchant also has little control over when the redeposit will debit the customer&#39;s account.  
     SUMMARY OF THE INVENTION  
      Rather than redepositing a paper check, if the check meets predetermined criteria, the merchant has the option of electronically redepositing the check. To electronically redeposit the check, the merchant, a check acceptance service, or the like creates an electronic ACH debit from the information on the paper check.  
      Creating an electronic ACH debit has several advantages over redepositing the paper check. An electronic ACH debit can take fewer days to process. For example, the merchant can often determine in 2-3 days whether the check cleared. It is may also be possible to influence the date the electronic ACH debit debits the customer&#39;s account. For example, paydays traditionally occur on Fridays or on the first and the fifteenth of the month. If the merchant controls when to create an ACH debit, such as just prior to the payday, then the electronic ACH debit debits the customer&#39;s account when there is a greater probability of funds in the account. Additionally, an electronic redeposit has priority over a paper check redeposit at the customer&#39;s bank, which again increases the likelihood that the customer&#39;s account will have sufficient funds to pay the check.  
      However, merchants have difficulty determining the criteria for electronic redeposit. Complying with the NACHA rules for electronic redeposit of paper checks can be time consuming and frustrating for merchants. If a merchant submits a check, which does not qualify for electronic redeposit, the financial institution returns the check to the merchant. This further delays the possible collection of the funds for the merchant.  
      In one embodiment of the invention, an electronic redeposit verification system allows a merchant, using a merchant terminal, to verify that a paper check meets certain criteria to be redeposited as an electronic ACH debit.  
      One such criterion is the amount of the paper check. During the initial deposit process, as previously described, the merchant bank encodes the value or amount of the paper check on the MICR (Magnetic Ink Character Recognition) line, which is located at the bottom of the check front in MICR line positions 1-12.  
      If the value of the check, which is encoded on the MICR line, exceeds a predetermined threshold, the paper check is ineligible for electronic conversion.  
      Further, if the check amount area of the MICR line is blank or null, the check is not available for electronic redeposit. A blank check amount area on the MICR line indicates that the merchant bank has not processed the paper check, and that the check is not a returned check. Thus, the check can not be redeposited.  
      In an embodiment of the invention, the merchant places the check into an interactive merchant terminal. The terminal reads the MICR line of the paper check. If the check amount area of the MICR line is blank or null, the merchant terminal ends the electronic redeposit process, and, in an embodiment, the merchant terminal indicates that the check should not be electronically redeposited.  
      If the check amount area of the MICR line is not blank, the merchant terminal compares the amount of the check with the predetermined threshold amount. If the amount of the check is less than the threshold amount, the merchant terminal proceeds with the electronic redeposit process. If the amount of the check exceeds the threshold amount, the merchant terminal ends the electronic redeposit process, and, in an embodiment, the merchant terminal indicates that the check cannot be electronically redeposited.  
      One embodiment of the invention relates to a method of determining whether the amount of a returned paper check qualifies for electronic redeposit. The method comprises receiving a returned paper check where the paper check is returned due to lack of funds in the payer&#39;s account. The method further comprises reading the MICR line of the check with an interactive terminal, verifying that the check amount is encoded on the MICR line, and comparing the encoded check amount with a predetermined amount threshold. The method also comprises qualifying the check for electronic redeposit if the amount of the check does not exceed the amount threshold and proceeding with the electronic redeposit. The method further comprises displaying on the interactive terminal that electronic redeposit is not allowed if the amount of the check exceeds the amount threshold and ending the electronic redeposit process.  
      In another embodiment of the invention, an apparatus for verifying whether a check amount qualifies a returned paper check for electronic redeposit comprises an interactive terminal having a MICR reader for reading a MICR line of a check and a display for displaying information to a user, and computer readable code. The computer readable code comprises instructions to compare the MICR encoded check amount with a predetermined amount threshold, and to display information to the user if the check amount exceeds the predetermined amount threshold.  
      In another embodiment of the invention, an article of manufacture comprises a computer readable medium having computer readable code. The computer readable code responds to commands to read the MICR line to determine a check amount and to compare the check amount with a predetermined amount threshold. If the check amount does not exceed the predetermined amount threshold, the computer code responds to a command to proceed with the electronic redeposit process. If the amount of the check exceeds the predetermined amount threshold, the computer readable code responds to a command to end the electronic redeposit process, and to display on the terminal that electronic redeposit is not allowed.  
      In an embodiment, the merchant starts an automatic redeposit process by entering a code, pushing a key on the merchant terminal, or swiping the check in the MICR reader. The redeposit process automatically verifies the check amount and the check age, contacts the host computer so as to allow the host computer to verify any additional criteria for electronic redeposit, and initiates through the host computer the ACH debit process. In addition to starting the turn key qualification process, the merchant only takes action in response to queries or commands from the terminal displayed on the terminal display. The terminal may tell the merchant, for example, to insert check into MICR reader, or to enter the check date.  
      Thus, the merchant easily complies with the rules for electronic redeposit. The merchant is not frustrated by the process, and increases the possible collections of funds from returned paper checks.  
      For purposes of summarizing the invention, certain aspects, advantages and novel features of the invention have been described herein. It is to be understood that not necessarily all such advantages may be achieved in accordance with any particular embodiment of the invention. Thus, the invention may be embodied or carried out in a manner that achieves or optimizes one advantage or group of advantages as taught herein without necessarily achieving other advantages as may be taught or suggested herein. 
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
      A general architecture that implements the various features of the invention will now be described with reference to the drawings. The drawings and the associated descriptions are provided to illustrate embodiments of the invention and not to limit the scope of the invention. Throughout the drawings, reference numbers are re-used to indicate correspondence between referenced elements.  
       FIG. 1  illustrates a paper check electronic redeposit system, according to an embodiment of the invention.  
       FIG. 2  illustrates a merchant terminal, according to an embodiment of the invention.  
       FIG. 3  is a flow diagram of operations performed by a process to qualify a paper check for electronic redeposit, according to an embodiment of the invention.  
       FIG. 4  is a flow diagram of operations performed to determine whether the amount of a returned paper check qualifies the paper check for electronic redeposit, according to an embodiment of the invention.  
       FIG. 5  is a flow diagram of operations performed to determine whether the age of a returned paper check qualifies the paper check for electronic redeposit, according to an embodiment of the invention.  
       FIG. 6  is a flow diagram of operations performed by a host system to determine if a returned paper check qualifies for electronic redeposit, according to an embodiment of the invention.  
       FIG. 7  is a flow diagram of operations performed by a check image processing process, according to an embodiment of the invention. 
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS  
      An electronic redeposit verification system determines with a merchant terminal whether a paper check meets certain criteria to qualify for electronic redeposit. For a more detailed understanding of the invention, reference is first made to  FIG. 1 .  FIG. 1  depicts an embodiment of a verification system for electronic redeposit of paper checks  100 . The verification system for electronic redeposit of paper checks  100  comprises an interactive electronic transaction terminal  102 , a communications medium  104 , and an electronic redeposit system  150 .  
      As shown in  FIG. 1 , in an embodiment, the interactive electronic transaction terminal or merchant point of sale (POS) terminal  102  comprises a Magnetic Ink Character Recognition (MICR) reader  114 , a display  116 , a keypad  118 , and a magnetic stripe reader  120 . The MICR reader  114  includes a MICR read head positioned adjacent a MICR slot and is operative for electronically reading the MICR characters on a check. The form or font of the MICR characters and their positions along the bottom edge of the check are prescribed ANSI standards X9.27-1988 and X9.13-1990, which are published by the American National Standards Institute, Inc. 25 West 43 rd  Street 4 th  Floor, New York, N.Y. 10036, and are incorporated herein by reference.  
      In another embodiment, the MICR reader is a stand-alone unit, which communicates with the terminal through an interface.  
      In an embodiment, the merchant inserts the check into the MICR reader  114  on the terminal  102 . The interactive terminal  102  reads the MICR line and determines whether the MICR line contains valid characters in the area corresponding to the check amount. If the MICR characters are valid, the interactive terminal  102  compares the value of the check encoded on the MICR line with a predetermined threshold. If the check amount exceeds the predetermined threshold, the paper check does not qualify for electronic redeposit. The merchant terminal  102  indicates to the merchant that electronic redeposit is not allowed by displaying a message on the terminal display  116 .  
      In another embodiment, the merchant terminal  102  sends the MICR line data to the host  106 . The host  106  determines whether the MICR line contains valid characters in the area corresponding to the check amount. If the MICR characters are valid, the host  106  compares the value of the check encoded on the MICR line with a predetermined threshold. If the check amount exceeds the predetermined threshold, the paper check does not qualify for electronic redeposit. The host  106  indicates to the merchant through the merchant terminal  102  that electronic redeposit is not allowed by displaying a message on the terminal display  116 .  
      If the check amount encoded on the MICR line does not exceed the predetermined threshold amount, the interactive terminal  102  proceeds with the verification process.  
      In an embodiment, the terminal  102  prompts the merchant to enter the check date from the paper check by displaying a message on the display  116 . The merchant enters the check date into the merchant terminal  102  using the keypad  118 . The terminal  102  retrieves the current date from an internal clock and calculates the age of the check. The terminal compares the age of the check with a predetermined age threshold. If the age of the check exceeds the age threshold, the paper check does not qualify for electronic redeposit. The merchant terminal  102  indicates to the merchant that electronic redeposit is not allowed by displaying a message on the terminal display  116 .  
      In another embodiment, the merchant retrieves the current date from the host  106 . In a further embodiment, the terminal  102  sends the check date data to the host  106  and the host  106  calculates the age of the check. The host  106  further compares the age of the check with the predetermined threshold. If the age of the check exceeds the age threshold, the paper check does not qualify for electronic redeposit. The host  106  indicates to the merchant through the merchant terminal  102  that electronic redeposit is not allowed by displaying a message on the terminal display  116 .  
      If the age of the check does not exceed the predetermined threshold age, the interactive terminal  102  proceeds with the verification process.  
      The interactive electronic transaction terminal or POS terminal  102  transmits information from the paper check through the communication medium  104  to the electronic redeposit system  150 . The electronic redeposit system  150  verifies that the returned paper check meets additional criteria for electronic redeposit using the transmitted information. For example, in an embodiment, checks drawn on some credit unions are not available for electronic redeposit. In addition, in an embodiment, business checks are not available for electronic redeposit. In another embodiment, stolen checks, forged checks, checks having a stop payment, checks with an invalid account number, checks with an unknown account number, or the like, are not available for electronic redeposit. In an embodiment, the additional criteria comprises whether the check is returned due to uncollected funds or insufficient funds. Typically, a database in the electronic redeposit system  150  stores the additional criteria.  
      Focusing now on the communication medium  104 , in one embodiment of the invention, the communications medium  104  is a telephone network. In other embodiments, the communications medium  104  can be any communication system including by way of example, dedicated communication lines, the Internet, which is a global network of computers, wireless data transmission systems, two-way cable systems, customized computer networks, interactive kiosk networks, automatic teller machine networks, interactive television networks, and the like.  
      The electronic redeposit system  150  receives the check information from the interactive terminal  102  and determines whether the paper check qualifies for electronic redeposit based on additional criteria as described above.  
      The electronic redeposit system  150  comprises a host computer  106 , an ACH debit processing system  108 , an image uploader  110 , and an image archive system  112 .  
      The host computer  106  can be associated with a merchant, a check processing company, a check acceptance service, or the like. Some merchants employ check processing companies, such as, for example, TeleCheck Inc., or the like, to handle their checking transaction processing.  
      In one embodiment, after the merchant terminal  102  verifies that the paper check qualifies for electronic redeposit based on the check age and the check amount, the host computer  106  receives the check information from the merchant terminal  102 . The check information comprises, for example, information from a MICR line and check image data.  
      The host computer  106  further comprises a database, which comprises additional qualification criteria, such as, for example, financial institutions that do not permit electronic redeposit of paper checks. If the check does not qualify for electronic redeposit, the host computer  106  transmits a message denying electronic redeposit of the paper check to the merchant terminal  102 . In an embodiment, the merchant terminal displays a message to the user stating that electronic redeposit is denied.  
      If the paper check qualifies for electronic redeposit, the host computer  106  creates an ACH debit request for the paper check from the information. The host computer  106  transmits the ACH debit request to the ACH debit processing system  108  to initiate processing of the ACH debit. Additionally, once a check is approved for electronic redeposit by the verification system  100 , the host computer  106  communicates with the image archiving device  112  via the image uploader  110  to store a full image or at least a portion of a check image. In an embodiment of the invention, the image uploader  110  transmits check image data to the archival storage system  112 . In an embodiment of the invention, the archival storage system  112  stores the check image according to NACHA&#39;s rules for electronic redeposit.  
       FIG. 2  illustrates functional blocks of an embodiment of the merchant terminal  102 . The merchant terminal  102  comprises a computer  202 , which further comprises electronic redeposit verification program logic  204 .  
      The computer  202  can comprise, by way of example, processors, program logic, or other substrate configurations representing data and instructions, which operate as described herein. In other embodiments, the processors can comprise controller circuitry, processor circuitry, processors, general purpose single-chip or multi-chip microprocessors, digital signal processors, embedded microprocessors, microcontrollers and the like.  
      In one embodiment of the invention, the program logic  204  can advantageously be implemented as one or more modules. The modules can advantageously be configured to execute on one or more processors. The modules can comprise, but are not limited to, any of the following: software or hardware components such as software object-oriented software components, class components and task components, processes, methods, functions, attributes, procedures, subroutines, segments of program code, drivers, firmware, microcode, circuitry, data, databases, data structures, tables, arrays, or variables.  
      In another embodiment, the processor  202  and the program logic  204  resides in the host  106 .  
      As illustrated in  FIG. 2 , the merchant terminal  102  further comprises an input/output port  206 , a temporary image storage buffer  208 , an imaging device  210 , an internal clock  212 , a printer  214 , the MICR reader  114 , the display  116 , the keypad  118 , and the magnetic stripe reader  120 .  
      In an embodiment of the invention, the merchant receives a check, which is returned, for example, due to lack of funds, insufficient funds, unavailable funds, or the like in the payer&#39;s checking account. The merchant inserts the returned check into the MICR reader  114  of the merchant terminal  102 . The MICR reader  114  reads the MICR line. In another embodiment, the merchant manually enters the characters on the MICR line using the keypad  118 .  
      The MICR line comprises characters formed of magnetic ink, which include, for example, a transit number, a bank number, and an account number. In addition, the merchant bank encodes the check amount on the MICR line when the paper check is initially processed.  
      The merchant terminal  102  determines whether the MICR line is encoded with a check amount. If the check has a blank or null check amount on the MICR line, then the check has not been initially processed. In an embodiment, paper checks that have not been processed are not eligible for electronic redeposit. In an embodiment, the terminal  102  displays on display  116  that electronic redeposit of the check is denied.  
      Further, the terminal  102  determines whether the check amount encoded on the MICR line is greater than a predetermined amount threshold. When the check amount is greater than the predetermined amount, the terminal  102  displays on display  116  that electronic redeposit of the check is denied. When the check amount is not greater than the predetermined amount threshold, the verification process for electronic redeposit of paper checks proceeds. In an embodiment, the process proceeds automatically.  
      In another embodiment, the host  106  determines whether the MICR line is encoded with a check amount and the host  106  determines whether the check amount encoded on the MICR line is greater than a predetermined threshold.  
      In another embodiment of the invention, the merchant enters the check date into the merchant terminal  102  using the keypad  118 . The merchant terminal  102  retrieves the current date from its internal clock  212  and calculates the age of the check. The terminal  102  compares the age of the check with a predetermined age threshold. If the age of the check is greater than the predetermined age threshold, the check is not available for electronic redeposit. The terminal  102  displays on display  116  that electronic redeposit of the check is not allowed. If the age of the check is not greater than the predetermined age threshold, the process for electronic redeposit of paper checks proceeds. In an embodiment, the process proceeds automatically.  
      In an embodiment, the imaging device  210  optically scans at least a portion of the check. Typically, the imaging device  210  scans the check at the same time the MICR reader reads the MICR line. The merchant terminal  102  stores the check image data in the temporary image storage buffer  208 .  
      In a further embodiment, the imaging device  210  optically scans at least the check date. The merchant terminal  102  reads the check date by performing optical character recognition on the scanned check image data.  
      In an embodiment of the invention, the merchant terminal  102  automatically proceeds to electronically redeposit a paper check where the age of the check is less than the age threshold and the amount of the check is less than the amount threshold. The merchant terminal  102  contacts the host computer  106  and transmits check information, such as, for example, MICR line data and check image data, to the host computer  106 . MICR line data comprises, for example, the account number, the transit number, the routing number, the check number, and the check amount. After receiving the check information, the host computer  106  determines whether the check meets additional criteria for electronic redeposit.  
      For example, some credit unions may not allow electronic redeposit of paper checks drawn on the credit union. In another example, NACHA rules may not allow electronic redeposit of paper business checks. In another embodiment, for example, business checks, stolen checks, forged checks, checks having a stop payment, checks with an invalid account number, checks with an unknown account number, or the like, are not available for electronic redeposit. In an embodiment, additional criteria comprises whether the check is returned for insufficient funds or uncollected funds.  
      Typically, the host computer  106  stores the additional criteria for electronic deposit and applies the rules to the transmitted check information. Thus, in an embodiment, the host computer  106  compares the bank numbers with a list of bank numbers of financial institutions that do not permit electronic redeposit. In another embodiment, the host computer  106  determines if the account number is a business account that does not permit electronic redeposit.  
      If the check meets the additional criteria for electronic redeposit, the host computer  106  sends the merchant terminal  102  an image tag and image tag instructions. The host computer  106  proceeds with the ACH debit process. The merchant terminal  102  tags, as instructed by the host computer  106 , at least a portion of the check image stored in the temporary image storage buffer  208  with the image tag from the host computer  106 .  
      In an embodiment of the invention, the host computer  106  sends the terminal  102  a report, which is printed by the printer  214 . The report provides the merchant with a record of the checks, which meet the criteria for electronic redeposit. In an embodiment, the printer is an integral part of the merchant terminal  102 . In another embodiment, the printer  214  is a stand-alone printer, which communicates with the merchant terminal  102  through an interface.  
      In an embodiment of the invention, during idle time, the merchant terminal  102  uploads the tagged images that have been stored in the merchant terminal  102  for greater than a predetermined time. In another embodiment of the invention, during idle time, the merchant terminal  102  uploads the tagged images when the accumulated tagged image size exceeds a predetermined memory amount. The terminal  102  uploads the tagged images to the host computer  106  and the host computer  106  sends the tagged images to the image archival system  112  via the image uploader  110 .  
      If the check does not meet the additional criteria for electronic redeposit, the host computer  106  transmits a message to the merchant terminal  102 . In an embodiment, the merchant terminal  102  displays on display  116  that electronic redeposit of the check is denied.  
       FIG. 3  is a flow diagram of operations performed by a process to qualify a paper check for electronic redeposit, according to an embodiment of the invention.  
      In block  310 , the merchant terminal  102  verifies that the MICR line of the check comprises a valid check amount and that the check amount is less than a predetermined amount threshold. The terminal  102  reads the MICR line and compares the encoded value of the check with a predetermined amount threshold.  FIG. 4  describes the process in further detail.  
      In block  312 , the merchant terminal  102  verifies that the age of the check is less than a predetermined age threshold. The merchant enters the check date into the merchant terminal  102 . The terminal  102  retrieves the current date from the internal clock  212 , and calculates the age of the check. In an embodiment, the terminal  102  subtracts the check date from the current date to generate the age of the check. The terminal  102  compares the age of the check with a predetermined age threshold.  FIG. 5  describes the process in further detail.  
      In block  314 , the merchant terminal  102  sends to the host computer  106  the check information, such as, for example, the account number, the check number, the transit number, and the routing number, and receives notification from the host computer  106  whether the check meets additional criteria for electronic redeposit. The host computer stores additional criteria, such as, for example, financial institutions that do not permit checks drawn on their accounts to be electronically redeposited, and compares the additional criteria with the transmitted check information. The host computer  106  also sends the merchant terminal  102  the image tag for the check image data if the check qualifies for electronic redeposit.  FIG. 6  describes the process in further detail.  
      In block  316 , the merchant terminal  102  tags at least a portion of the check image with the image tag and stores the tagged check image. The merchant terminal  102  transmits tagged check image data to the host computer  106  during idle time.  FIG. 7  describes the process in further detail.  
       FIG. 4  illustrates in more detail the process of block  310 . The merchant receives a check, which is returned, for example, due to insufficient or unavailable funds in the payer&#39;s checking account. In an embodiment of the invention, the merchant indicates the start of a redeposit process by keying a code on the terminal keypad  118 . In an embodiment of the invention, the merchant inserts the check into the MICR reader  114  of the merchant terminal  102 . The check amount verification process begins at a start block  408 .  
      In block  410 , the merchant terminal  102  reads the MICR encoded line on the check and scans all or a portion of the check. The merchant terminal  102  temporarily stores all or a portion of the check as check image data in the temporary image storage  208 .  
      In block  412 , the merchant terminal  102  determines whether an encoded check amount exists on the MICR line. The merchant bank encodes and applies the check amount to the MICR line during the initial deposit process. It is likely that a check without an encoded check amount on the MICR line is not a returned or bounced check and can not be electronically redeposited in accordance with an embodiment of the invention.  
      In block  414 , for checks without an encoded check amount on the MICR line, the terminal  102  displays to the merchant that electronic redeposit is denied. In an embodiment, the terminal  102  displays to the merchant that the check amount on the MICR line is not detected. In another embodiment, the terminal  102  displays to the merchant that the merchant should deposit the paper check.  
      Optionally, in an embodiment of the invention, the merchant can verify that the MICR line contains a dollar-encoded amount by visually inspecting the MICR line before inserting the check into the MICR reader  114 .  
      For checks with a valid check amount on the MICR line in block  412 , the process moves to block  416  or optionally, block  430 .  
      In an optional embodiment, the merchant terminal  102  can compare the MICR encoded check amount with a merchant entered check amount. In another optional embodiment, the merchant terminal  102  can correct errors in the MICR encoded check amount.  
      In block  430 , the merchant enters the check amount into the merchant terminal  102  using the keypad  118 .  
      In block  432 , the merchant terminal  102  compares the manually entered check amount with the check amount encoded on the MICR line.  
      In block  434 , the merchant terminal  102  determines whether the manually entered check amount is the same as the check amount encoded on the MICR line. If the two amounts are the same, the check amount verification process moves to block  416 .  
      If the manually entered check amount is not the same as the MICR dollar-encoded amount, the terminal displays to the merchant that the encoded check amount is different than the manually entered check amount.  
      Optionally, the merchant can correct the error in block  436 . In an embodiment, the ability to override a MICR encoded-dollar amount is password protected to reduce the possibility of fraudulently changing the check amount. In an embodiment, the merchant enters a code to override the MICR line check amount to match that of the manually entered check amount. In another embodiment, the merchant reenters the check amount to override the MICR line check amount. In a further embodiment, the merchant cannot override the MICR line check amount to match that of the manually entered check amount if the manually entered check amount is greater than the predetermined threshold.  
      Once the merchant corrects the MICR encoded check amount, the process moves to block  416 .  
      In block  416 , the merchant terminal  102  compares the amount of the check with a predetermined amount threshold. In an embodiment, the threshold is downloaded into the merchant terminal from the host computer  106 . In another embodiment, the merchant enters the threshold into the merchant terminal  102  via the keypad  118 . The merchant terminal  102  stores the predetermined amount threshold in memory associated with the processor  202 .  
      In an embodiment of the invention, the National Automated Clearing House Association (NACHA) establishes the predetermined amount threshold. In an embodiment of the invention, the predetermined amount threshold is approximately $25,000. In another embodiment of the invention, the merchant or the financial transaction processing company establishes the predetermined amount threshold. In another embodiment of the invention, the merchant or financial transaction company establishes the predetermined threshold amount, which does not exceed the predetermined threshold amount established by NACHA.  
      If the check amount is greater than the amount threshold, the process moves to block  414 . In block  414 , the merchant terminal  102  displays to the merchant that electronic redeposit is denied. In an embodiment, the merchant terminal  102  displays to the merchant that the check amount exceeds the amount permitted for electronic redeposit.  
      If the check amount is less than the amount threshold, the check amount verification process moves to block  418 . In block  418 , the image storage buffer  208  temporarily stores the check image data. In an embodiment, the check image data comprises digitally encoded optical scans of at least a portion of the check. In another embodiment, the merchant enters information, such as, for example, the account name, account address, payer&#39;s phone number, payer&#39;s drivers license number, and the like, from the check via the keypad  118 .  
      The check amount qualification process stops at an end block. Based on the amount of the check, the returned paper check qualifies for electronic redeposit.  
       FIG. 5  illustrates a flow diagram of a check age verification process according to an embodiment of the invention.  FIG. 5  illustrates in more detail the process of block  312 . The check age verification process begins at a start block  508 .  
      In block  510 , the merchant enters a check date from the paper check into the merchant terminal  102  using the keypad  118 . In an embodiment, the check date is the date the payer wrote the check.  
      In block  512 , the merchant terminal  102  retrieves the current date and time from the internal clock  212 .  
      In block  514 , the merchant terminal  102  calculates the age of the check using the check date and the current date and time. In an embodiment, the age of the check is the number of days from the date payer wrote the check to the current date. In another embodiment, the age of the check is the number of days from the date the payer wrote the check to the date of the electronic redeposit.  
      In block  516 , the merchant terminal  102  compares the age of the check with a predetermined age threshold. In an embodiment, the threshold is downloaded into the merchant terminal from the host computer  106 . In another embodiment, the merchant enters the threshold into the merchant terminal  102  via the keypad  118 . The merchant terminal  102  stores the predetermined age threshold in memory associated with the processor  202 .  
      In an embodiment of the invention, the predetermined age threshold is 180 days. In an embodiment of the invention, the predetermined age threshold is approximately 180 days. In another embodiment of the invention, the National Automated Clearing House Association (NACHA) establishes the predetermined age threshold. In another embodiment of the invention, the merchant or the financial transaction processing company establishes the predetermined age threshold.  
      For checks having a check age greater than the predetermined age threshold, the check age verification process moves to block  518 . Checks having a check age greater than the age threshold can not be electronically redeposited. In block  518 , the merchant terminal  102  displays to the merchant that electronic redeposit is denied. In another embodiment, the merchant terminal  102  displays to the merchant that the check is too old for electronic redeposit.  
      For checks having a check age less than the predetermined age threshold, the check age verification process stops at an end block  520 . Based on the age of the check, the returned paper check qualifies for electronic redeposit.  
       FIG. 6  illustrates a flow diagram of one embodiment of a host verification process.  FIG. 6  illustrates in more detail the process of block  314 . The host verification process begins at a start block  608 .  
      In block  610 , the merchant terminal  102  contacts the host computer  106  through the communications medium  104 .  
      In block  612 , after the host computer  106  authorizes the electronic conversion, the merchant terminal  102  transmits the check information to the host computer  106 . Typically, the check information comprises information from the MICR line, such as, for example, the account number, the check number, the transit number, the routing number, and the like.  
      The host computer  106  verifies whether the check meets additional criteria for electronic redeposit. For example, some credit unions may not allow checks drawn on the credit union to be electronically redeposited. In another embodiment, for example, NACHA rules do not permit business checks to be electronically redeposited. In block  614 , the merchant terminal receives notification from the host computer  106  as to whether the check meets any additional criteria for electronic redeposit.  
      In block  616 , the merchant terminal  102  determines from the notification sent from the host computer  106  whether the check meets the additional criteria.  
      For checks not meeting the additional criteria, the process moves to block  618 . In block  618 , in an embodiment, the merchant terminal  102  displays to the merchant that electronic redeposit is denied.  
      For checks meeting any additional criteria for electronic redeposit, the host verification process stops at an end block  620 . Based on any additional criteria from the host computer  106 , the returned paper check qualifies for electronic redeposit. The host computer  106  proceeds with the ACH debit process.  
       FIG. 7  illustrates a flow diagram of a check image storage process according to an embodiment of the invention.  FIG. 7  illustrates, in more detail, the process of block  316 . In an embodiment, the image archival system  112  stores the check image for redeposited paper checks, according to the NACHA rules. The check image storage process begins at a start block  708 .  
      In block  710 , the merchant terminal  102  receives an image tag from the host computer  106 . In an embodiment of the invention, the image tag is a 22-digit trace identifier.  
      In block  712 , the merchant terminal tags all or a portion of the check image, as requested by the host computer  106 , with the image tag.  
      In block  714 , the merchant terminal  102  stores all or a portion of the tagged image in the temporary image storage buffer  208 .  
      In block  716 , the merchant terminal transmits the tagged images to the host computer  106 . In an embodiment of the invention, the merchant terminal  102  transmits the tagged images during idle time when the age of the tagged images exceeds a predetermined amount of time. In another embodiment of the invention, the merchant terminal  102  transmits the tagged images during idle time when the accumulated size of the tagged images in the temporary image storage buffer  208  exceeds a predetermined size. The host computer  106  transmits the tagged check images to the image archive system  112  via the image uploader  110 . The check image storage process stops at an end block  718 .  
      While certain embodiments of the inventions have been described, these embodiments have been presented by way of example only, and are not intended to limit the scope of the inventions. Indeed, the novel methods and systems described herein may be embodied in a variety of other forms; furthermore, various omissions, substitutions and changes in the form of the methods and systems described herein may be made without departing from the spirit of the inventions. The accompanying claims and their equivalents are intended to cover such forms or modifications as would fall within the scope and spirit of the inventions.