Source: https://patents.google.com/patent/US8678273
Timestamp: 2019-12-06 16:46:35
Document Index: 23282131

Matched Legal Cases: ['Application No. 60', 'Application No. 2562964', 'Application No. 2007', 'Application No. 05732679', 'Application No. 94110477', 'Application No. 200580011962', 'Application No. 200580011962', 'Application No. 2007']

US8678273B2 - Electronic transaction verification system - Google Patents
US8678273B2
US8678273B2 US12/050,772 US5077208A US8678273B2 US 8678273 B2 US8678273 B2 US 8678273B2 US 5077208 A US5077208 A US 5077208A US 8678273 B2 US8678273 B2 US 8678273B2
US12/050,772
US20080156866A1 (en
2008-03-18 Application filed by Biometric Payment Solutions filed Critical Biometric Payment Solutions
2008-03-18 Priority to US12/050,772 priority patent/US8678273B2/en
2008-07-03 Publication of US20080156866A1 publication Critical patent/US20080156866A1/en
2014-03-25 Publication of US8678273B2 publication Critical patent/US8678273B2/en
235000020945 retinal Nutrition 0 description 6
210000001957 Retinal Vein Anatomy 0 description 1
An electronic transaction verification system for use with transaction tokens such as checks, credit cards, debit cards, and smart cards that gathers and transmits information about the transaction token and biometric data is described herein. The electronic verification system includes a biometric data device for recording and/or transmitting biometric data taken at the transaction location. The electronic system is adapted to accept or deny a transaction based on the comparison result generated by comparing the biometric data and the information obtained from the transaction token at the transaction location with information previously stored in one or more databases.
This application is a continuation of U.S. patent application Ser. No. 10/994,934 filed Nov. 22, 2004, which is a continuation-in-part of U.S. patent application Ser. No. 10/816,037, filed Apr. 1, 2004, now U.S. Pat. No. 7,231,068, which is a continuation-in-part of U.S. patent application Ser. No. 09/335,649, filed Jun. 18, 1999, now U.S. Pat. No. 6,728,397, which in turn, claims the benefit of U.S. Provisional Application No. 60/089,959 filed Jun. 19, 1998. This application incorporates U.S. Pat. No. 6,728,397 by reference into this description as fully as if here represented in full.
There are devices known in the art that gather biometric data from persons for storage or for comparison with stored biometric data for purposes of identity verification. An example of storing biometric data for identity verification is U.S. Pat. No. 4,213,038 to Silverman, et al., for an access security system. Silverman, et al, discloses storing a fingerprint on a card, in either an actual print or “micropattern,” and the card is read by a control means. The fingerprint recordation is ancillary to the preferred function of the card which is identification based upon solely the microperforation of the card, which is not directly related to the fingerprint.
The present invention, in one exemplary embodiment thereof, comprises a verification system for check/negotiable instruments or other form of tokens, which has the ability to scan the information from negotiable instruments such as the magnetic ink character recognition (MICR) line, and gather biometric data such as fingerprints. The system alternately scans driver's licenses or other identification cards, and obtains and transmits a signature of a customer, preferably all occurring at a transaction location (e.g., point-of-sale) for purposes of identity and fund verification. However, the electronic transaction can occur at places other than a point-of-sale. For example, the electronic transaction can occur over the Internet, as part of an Internet-based transaction and include transmission of biometric data or signatures for user verification. Therefore, in general, transaction location refers to the place where the user or customer enters his information, such as account data or biometric data into the electronic transaction verification system. The verification system preferably digitizes various indicia of the check, the preferred indicia being the magnetic ink (MICR line) on the check, tendered by the customer at the transaction location, and transmits the data through a communications medium, to a processing system including a negotiable instrument information database, whereby the inputted data is compared with an existing database of information to determine if the customer at the point-of-sale is in fact authorized to use the account, and if the account is in satisfactory condition for transaction approval. The communications medium can be a broadband connection, a dial-up connection, a direct communications link, a satellite link, or fiber optic cable or any other communication link that allows communications between a transaction location and a central or local processing system and database.
As is well known in the banking industry, the MICR line on a check includes the bank routing number, account number, check number, check amount, and other information, that can be printed near the bottom of the check in magnetic ink in accordance with generally applicable industry standards. In operation, the central (or local) processing system receives data from the transaction location and then determines if the “ABA” magnetic number on the MICR line of the check is a valid number, if the fingerprint data is that of an account owner authorized to use that account, and/or if the signature is that of the authorized account owner, whereby any negative response to these decisions preferably causes return of the data indicative of the negative response to the transaction location. Upon affirmative indications in the decisions, the central (or local) system retrieves the frequency of the account accesses to determine if the current requested access is in excess of a predetermined limit of an allowable number of accesses. If the current access is in excess of the pre-determined allowable limit, then the data is returned to the transaction location indicating the unacceptable request to exceed the limit, and thus, disapproval of the transaction. If the current access is not in excess of the allowable determined limit, then the verification of the check is approved and such verification is used to update the frequency of account access database, and the approval is returned to the transaction location. Various account conditions can be used, alternatively, to verify the condition of an account. Such conditions can include “outstanding checks,” “returned checks,” and “account closed” among others. For example, if there are outstanding checks on the system for a user's account, then the present invention can return an indication to the transaction location that the user's account is not in condition to satisfy the negotiable instrument. Likewise, if the token is a credit card, debit card, loyalty card, smart card or similar-type token, the condition of an account can include “exceeding credit limit,” “unpaid balance,” “insufficient funds,” etc.
A substitute check, as used herein, has the meaning given to it in the “Check Clearing for the 21st Century Act,” Public Law 108-100, Oct. 28, 2003.A substitute check is a legal equivalent of the original check that has been truncated. It contains an image of the front and back of the original check and bears a MICR line containing all information appearing on the MICR line of the original check.
The biometric recording device 18 preferably digitizes the fingerprint of a customer at the point-of-sale for transmission to a remote biometric database. Many devices for digitization and transmission of fingerprints are well known in the art, such as the devices of digital biometrics. Other biometric devices such as retinal scanners and voiceprints are alternately used with, or in lieu of, the exemplary fingerprint scanner. Such biometric devices are commercially available and adaptable for use with the invention. The electronic transaction verification unit 10 also preferably includes a card reader/scanner, such as a driver's license scanner 20 which scans information (e.g., name, address, date of birth, driver's license number) from a driver's license, which is especially useful in states that put information, such as fingerprints, in a computer-readable medium such as a magnetic strip (e.g., a California license) or a bar code (e.g., a Georgia license) on the driver's license. When the license contains this information (e.g., name, address, date of birth, driver's license number, the electronic transaction verification unit 10 can perform an initial comparison between the biometric recorder device 18 and the device's license scanner 20 for determination of the user's/customer's identity, in addition to or instead of, transmitting biometric data to the biometric database of the central processing system 12. The information (e.g., name, address, date of birth, and driver's license number) gathered from the license scanner 20 can also be verified with information licensed from a state division of motor vehicles in order to authenticate a driver's license. Finally, the electronic transaction verification unit 10 preferably includes a signature-taking device 22 that allows a customer to write his or her signature on the device that then encodes the signature into digital format for transmission. Such transmissions can occur with or separately from the transmission of the check identification and biometric data. There are many devices known in the art that allow a signature to be digitized for storage and comparison, and any of such devices will work satisfactorily in the present inventive system.
The electronic transaction verification unit 10 is preferably a computer platform which has the capability to receive, digitize and process the incoming data from the devices, shown by block 24, for transmission to a central processing system 12. The central processing system 12 can be remotely located from the electronic transaction stations or can be at the same location as the electronic transaction station, e.g., an in-store central processor and database connected to electronic transaction stations by a local area network. The other devices can be integrated with the computer platform of the electronic transaction verification unit 10, however, the devices can also be independent from the computer platform as long as they are in connection with the electronic transaction verification unit 10 sufficient to transmit and have received by the unit 10 the relevant data from the devices. The central processing system 12 is in connection with, at least, an identification database 14, which at a minimum contains the relevant specific identification data related to various checking and/or credit accounts. The identification database 14 can be a hard drive on the central processing system 12, computer platform, or other type of memory device located either locally or remotely, but in connection with, the central processing system 12. Thus, in its most basic form, the present invention solely generates and records identification data of the customer relevant to a single sale and acceptance of a token at a transaction location through recordation of the specific token identification and biometric data of the customer at the transaction location, which is then transmitted by the various devices of the electronic transaction verification unit 10 for recordation. When the simple recordation of the event is effected, it is preferable that the electronic transaction verification unit 10 output a fingerprint (or other biometric data) for inputting on the specific check, negotiable instrument, or in conjunction with another type of token at the transaction location, shown by output 26, either in actual or digitally encoded form, whereby this identifying characteristic of the person cashing or tendering the check is contained upon the check itself and banks processing the check have the capability to compare that imprinted fingerprint with fingerprints on file for the actual account holders, if necessary. However, the printing of the fingerprint on the check or in conjunction with the token (e.g., credit card receipt) can be alternately used in any embodiment of the present inventive verification system.
1. A negotiable instrument system for use at a location where a negotiable instrument is presented by an individual, comprising:
a negotiable instrument scanner configured to read encoded negotiable instrument information data on the negotiable instrument when it is presented;
a biometric scanner configured to generate biometric data from the individual presenting the negotiable instrument;
access an identification database using at least the generated biometric data and personal information associated with the individual including at least one of a date of birth or a driver's license number at the time of presentation of the negotiable instrument, to locate in the database and identify the individual presenting the negotiable instrument to authenticate the identity of the individual presenting the negotiable instrument, and
analyze the negotiable instrument information data to determine if the negotiable instrument should be rejected,
wherein the processor is configured to access the identification database by comparing at least the generated biometric data with biometric data stored in the identification database.
2. The system of claim 1, wherein the negotiable instrument is a check.
3. The system of claim 2, wherein the check is a cashier's check.
4. The system of claim 2, wherein the individual is the payee on the check.
5. The system of claim 2, wherein the negotiable instrument information data is the check number on the check.
6. The system of claim 1, wherein the system returns a report on the usage of the system by the individual presenting the negotiable instrument.
7. The system of claim 1, wherein the system prints the biometric data of the individual presenting the negotiable instrument on the negotiable instrument.
8. The system of claim 1, wherein the biometric scanner is a fingerprint scanner.
9. The system of claim 1, wherein the negotiable instrument scanner and the biometric scanner are located remotely from the identification database.
10. The system of claim 1, wherein the negotiable instrument scanner and the biometric scanner are local with the identification database.
11. The system of claim 1, further comprising a negotiable instrument information database, wherein the negotiable instrument information data is analyzed by comparing the check number to check numbers in the negotiable instrument database.
12. The system of claim 1, wherein the processor is configured to analyze the negotiable instrument information data by comparing the negotiable instrument information data with negotiable instrument information stored in a negotiable instrument database and associated with at least one of a biometric information, birth date, name, address or driver's license number associated with the individual.
13. A method of processing a negotiable instrument tendered by an individual, the method comprising the steps of:
obtaining encoded negotiable instrument information from the negotiable instrument using a negotiable instrument scanner at the time it is tendered;
obtaining biometric data from the individual tendering the negotiable instrument using a biometric scanner at the time the negotiable instrument is tendered;
at the time the negotiable instrument is tendered:
accessing an identification database using at least the obtained biometric data and personal information associated with the individual including at least one of a date of birth or a driver's license number to locate in the database the individual tendering the negotiable instrument and authenticate the identity of the individual presenting the negotiable instrument,
obtaining information about usage of the system by the individual tendering the negotiable instrument; and
comparing the negotiable instrument information with information previously stored in a negotiable instrument information database to determine if the negotiable instrument should be rejected.
14. The method of claim 13, wherein the negotiable instrument is a check.
15. The method of claim 14, wherein the individual is the payee on the check.
16. The method of claim 14, wherein the negotiable instrument information is the check number on the check.
17. The method of claim 13, further comprising the step of providing a report on the usage of the system by the individual presenting the negotiable instrument.
18. The method of claim 13, further comprising the step of printing the biometric data on the negotiable instrument.
19. The method of claim 13, wherein the step of obtaining biometric data comprises obtaining a fingerprint.
20. The method of claim 14, wherein the step of comparing the negotiable instrument information comprises comparing a check number of the check to check numbers in the negotiable instrument database.
21. The method of claim 13, wherein the information previously stored in the negotiable instrument information database is associated with at least one of a biometric information, birth date, name, address or driver's license number associated with the individual.
22. A negotiable instrument processing system, the system comprising:
a negotiable instrument scanner that is configured to read data encoded on the negotiable instrument;
a biometric data scanner that is configured to obtain biometric data from the individual presenting a negotiable instrument at the time the negotiable instrument is presented;
a first biometric database that stores biometric data for users of the negotiable instrument verification system; and
a negotiable instrument database;
wherein at the time the negotiable instrument is presented, the negotiable instrument processing system is configured to access the first biometric database using at least the obtained biometric data and personal information associated with the individual including at least one of a date of birth or a driver's license number to locate in the database the individual presenting the negotiable instrument and further compare the biometric data from the individual to data in the first biometric database to authenticate the identity of the individual presenting the negotiable instrument; and
wherein the negotiable instrument processing system is configured to compare the encoded data to data in the negotiable instrument database to determine whether to reject the negotiable instrument.
23. The system of claim 22, wherein the negotiable instrument is a check.
24. The system of claim 23, wherein the check is a cashier's check.
25. The system of claim 24, wherein the individual is the payee on the check.
26. The system of claim 23, wherein the negotiable instrument information data is the check number on the check.
27. The system of claim 22, wherein the system returns a report on the usage of the system by the individual presenting the negotiable instrument.
28. The system of claim 22, wherein the system prints the first biometric data of the individual presenting the negotiable instrument on the negotiable instrument.
29. The system of claim 22, wherein the biometric data scanner is a fingerprint scanner.
30. The system of claim 22, wherein the negotiable instrument scanner and the biometric data scanner are located remotely from the biometric database.
31. The system of claim 22, wherein the negotiable instrument scanner and the biometric scanner are local with the biometric database.
32. The system of claim 22, further comprising a negotiable instrument information database, wherein the negotiable instrument information data is analyzed by comparing the check number to check numbers in the negotiable instrument database.
33. The system of claim 22, wherein the encoded data is character recognition data that is printed on the negotiable instrument.
34. The system of claim 22, wherein the system prints biometric data from the individual on the negotiable instrument.
35. The negotiable instrument processing system of claim 22, wherein the biometric data is used to access a second biometric database to determine if the individual presenting the negotiable instrument is an invalid user.
36. The system of claim 22, wherein the data in the negotiable instrument database is associated with at least one of a biometric information, birth date, name, address, or driver's license number associated with the individual.
37. A transaction processing system located at a transaction location, the system comprising:
a device configured to obtain biometric data from an individual presenting a token; and
a processor configured to access an identification database located at the transaction location using at least the obtained biometric data and personal information associated with the individual including at least one of a date of birth or a driver's license number to locate in the database and identify the individual presenting the token to verify the identity of the individual presenting the token.
38. The system of claim 37, further comprising a scanner configured to read information stored on the token presented by the individual.
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