Patent ID: 8165381

Claim:
A computer implemented method for processing payment items, the computer implemented method comprising the steps of: receiving, at a sorter, a payment item comprising a paper check; extracting electronic data from the payment item from an electronic MICR readable line of the payment item; imaging the payment item to obtain image data of the payment item; verifying payment data associated with the payment item by comparing the electronic data and the image data; determining automatically, using a transaction decision making module, an optimal settlement path from a plurality of possible settlement paths for the payment item wherein the optimal settlement path represents clearing and final settlement of the payment item, wherein the plurality of possible settlement paths includes ACH, wire transfer, and one or more of IRD, ARC, ECP, posting to a consumer account, and data archive; determining automatically, using the transaction decision making module, whether the paper check can be destroyed; and routing the paper check to be destroyed; and wherein the step of verifying further comprises the step of: accessing account data to identify positive and negative account data.