Point of sale check service

A point-of-transaction check service system comprising:

• device means for receiving checking account information from a paper check of an individual and for receiving an amount representing a monetary transaction which is to be deposited into a depositing account, said checking account information, said amount and a depositing account being collectively transaction information, said paper check not being used as a negotiable instrument;
• a host computer arranged to receive said transaction information from said device means and to forward it into said point-of-transaction check service system;
• a switch computer arranged to receive said transaction information from said host computer and to further route said transaction information;
• a drawee bank which receives said transaction information from said switch computer;
• and
• a drawee computer of said drawee bank that receives said transaction information and is arranged to perform conversion, verification or guarantee based upon said transaction information, said drawee computer further arranged to return a response message to said host computer indicating the result of said conversion, verification or guarantee.

A method of performing a transaction at a point of sale, said method comprising:

• a step for performing the function of receiving checking account information from a paper check of a customer;
• entering an amount of said transaction into a terminal;
• assembling a service request message that includes said checking account information, said amount and a request to perform conversion only, conversion with verification or conversion with guarantee;
• sending said service request message to a switch computer arranged to receive and to further route said service request message;
• receiving a response message via said switch computer indicating a response to said request to perform conversion only, conversion with verification or conversion with guarantee;
• and
• returning said paper check to said customer, said paper check not being used as a negotiable instrument.

A method of processing a paper check transaction occurring at a point of sale, a monetary amount originating at said point of sale and said paper check providing checking account information, said method comprising:

• receiving a service request message from said point of sale, said service request message including said checking account information, said monetary amount and a request for a type of check service;
• determining whether a portion of said checking account information matches with one of a plurality of participating banks;
• determining whether said request for a type of check service matches with a service provided by one of said banks;
• determining where to route said service request message;
• sending said service request message to an authorizing institution that is equipped to handle said request for a type of check service;
• receiving a response message to said service request message from said authorizing institution;
• and
• sending said response message to said point of sale indicating the result of said request for a type of check service, whereby said paper check is not used as a negotiable instrument and is returned to said customer.