Database for check risk decisions populated with check activity data from banks of first deposit
AssigneePrimary Payment Systems, Inc.
InventorsLaura E. Weinflash, Larry W. Spooner
Life of this patent
Estimating the term…
Abstract
A plurality of banks of first deposit provide checking account activity data for both transit items (checks received for deposit that need to be cleared) and incoming returns (bounced checks) to a statistical model which determines from the data the likelihood that a check from a specific checking account will be returned. This data is used to populate a database of checking accounts to be used for making check risk decisions, such as check hold policy decisions, check acceptance decisions, and open to buy decisions.
Claims27
A computer implemented method of populating a database of checking account with statistical data regarding the likelihood that a check from a specific checking account will be returned, the method comprising:
- (a) receiving checking account activity data directly from a plurality of banks of first deposit, the checking account activity data including:
- (i) transit items, and
- (ii) incoming returns;
- (b) analyzing the checking account activity data using a statistical model to determine the likelihood that a check from a specific checking account will be returned;
- (c) populating a database with checking account data including:
- (i) checking account numbers, and
- (ii) likelihood that a check from a specific checking account number will be returned;
- and
- (d) periodically repeating steps (a) and (b) with new checking account activity data and updating the database of checking account data with the new checking account activity data.
A computer-implemented method of making a check risk decision using a database of checking account data, the database being created and maintained by (i) receiving checking account activity data directly from a plurality of banks of first deposit, the checking account activity data including transit items and incoming returns, (ii) analyzing the checking account activity data using a statistical model to determine the likelihood that a check from a specific checking account will be returned, and (iii) populating the database with checking account data including checking account numbers and likelihood that a check from a specific checking account number will be returned, the method comprising:
- (a) receiving checking account data of a check presented for deposit, payment or clearing;
- and
- (b) using the information in the database to make a check risk decision.
A computer-implemented method of making a check risk decision using (i) a first database populated with checking account status and item level data from checking accounts of payor institutions that belong to a member service, and (ii) a second database that is populated with checking account data of checking accounts that are not held by payor institutions that belong to the member service, the second database including checking account numbers and likelihood that a check from a specific checking account number will be returned as determined by a statistical model, the second database being populated by checking account activity data, including transit items and incoming returns, received directly from a plurality of banks of first deposit, the method comprising:
- (a) receiving checking account data of a check presented for deposit, payment or clearing;
- (b) using the first database to make a check risk decision for checking accounts of payor institutions that belong to the member service;
- and
- (c) using the second database to make a check risk decision for checking accounts that are not held by payor institutions that belong to the member service.
A computer implemented method of populating a database of checking account with statistical data regarding the likelihood that a check from a specific checking account will be returned, the method comprising:
- (a) receiving checking account activity data from a single entity that receives such data from a plurality of banks of first deposit, the checking account activity data including:
- (i) transit items, and
- (ii) incoming returns;
- (b) analyzing the checking account activity data using a statistical model to determine the likelihood that a check from a specific checking account will be returned;
- (c) populating a database with checking account data including:
- (i) checking account numbers, and
- (ii) likelihood that a check from a specific checking account number will be returned;
- and
- (d) periodically repeating steps (a) and (b) with new checking account activity data and updating the database of checking account data with the new checking account activity data.
A computer-implemented method of making a check risk decision using a database of checking account data, the database being created and maintained by (i) receiving checking account activity data from a single entity that receives such data from a plurality of banks of first deposit, the checking account activity data including transit items and incoming returns, (ii) analyzing the checking account activity data using a statistical model to determine the likelihood that a check from a specific checking account will be returned, and (iii) populating the database with checking account data including checking account numbers and likelihood that a check from a specific checking account number will be returned, the method comprising:
- (a) receiving checking account data of a check presented for deposit, payment or clearing;
- and
- (b) using the information in the database to make a check risk decision.
A computer-implemented method of making a check risk decision using (i) a first database populated with checking account status and item level data from checking accounts of payor institutions that belong to a member service, and (ii) a second database that is populated with checking account data of checking accounts that are not held by payor institutions that belong to the member service, the second database including checking account numbers and likelihood that a check from a specific checking account number will be returned as determined by a statistical model, the second database being populated by checking account activity data, including transit items and incoming returns, received directly from a single entity that receives such data from a plurality of banks of first deposit, the method comprising:
- (a) receiving checking account data of a check presented for deposit, payment or clearing;
- (b) using the first database to make a check risk decision for checking accounts of payor institutions that belong to the member service;
- and
- (c) using the second database to make a check risk decision for checking accounts that are not held by payor institutions that belong to the member service.
Dependencies are inferred from the claim text.