Patent ID: 7925576

Claim:
A system for processing check transactions, the system comprising: an enrollment system that enrolls a user by associating a checking account with a transponder to allow the user to pay for charges on the transponder via the checking account wherein the enrollment system requests a risk analysis before enrolling the user; a merchant terminal that accepts identification information from the transponder as payment for goods or services, wherein the identification information does not contain MICR data and wherein the merchant terminal uses the identification information to determine appropriate MICR data indicative of a checking account based on a database including a record storing the identification information and MICR data associated with the identification information; and a transaction processor system, remote from the merchant terminal, that performs the risk analysis in response to the request from the enrollment system and accesses historical data associated with the MICR data from the merchant terminal to process a transaction from the merchant terminal, the processing based at least in part on the historical data, and wherein: the transaction processor system processing the transaction includes determining a risk assessment for the transaction; determining the risk assessment includes generating a risk score; and the merchant terminal authorizes or declines the transaction based at least in part on the risk score.