Rule-based circuit, method and system for performing item level reconciliation

A method of operation for controlling an electronic check processing system for reconciling a first database with a second database, said first database containing first item data arranged in records and fields, said second database containing second item data arranged in records and fields, said method comprising the steps of:

• establishing at least one field mismatch tolerance rule indicating, by field, an allowed extent of mismatch;
• comparing said records of said first database with said records of said second database;
• placing a designation on mismatching ones of said records of said first and second databases;
• applying said at least one field mismatch tolerance rule to said fields of said mismatching ones;
• and
• removing said designation when said fields of said mismatching ones fall within said mismatch tolerance rules.

A network of processing systems, including a presenting financial institution (FI) processing system and a receiving FI processing system, for reconciling a first database with a second database, said first database containing first item data arranged in records and fields, said second database containing second item data arranged in records and fields, said network comprising:

• a matching circuit for comparing said records of said first database with said records of said second database, said matching circuit placing a designation on mismatching ones of said records of said first and second databases;
• at least one field mismatch tolerance rule indicating, by field, an allowed extent of mismatch;
• and
• a mismatch tolerance circuit for applying said at least one field mismatch tolerance rule to said fields of said mismatching ones, said mismatch tolerance circuit removing said designation when said fields of said mismatching ones fall within said mismatch tolerance rules.