Automated check verification and tracking system

An apparatus for automatically accessing and verifying with an underwriting institution the status of an account underlying one of a plurality of negotiable instruments held by a purchaser and the authority of the purchaser to issue said one negotiable instrument against said account when said one negotiable instrument is presented to a merchant based on account information and encrypted security information contained in a bar code visibly printed on each of the negotiable instruments for establishing that the purchaser is recognized by the one underwriting institution as an authorized issuer of said negotiable instrument against said account, comprising:

• a terminal for use by the merchant at a point of sale;
• a bar code scanner electrically coupled to said terminal for reading the bar code printed on the one negotiable instrument, said bar code scanner capable of reading a bar code printed on a driver's license, and further comprising means for printing a reproduction of the driver's license bar code on a receipt for correlating said negotiable instrument presented to the merchant and said driver's license bar code with said receipt;
• means for automatically determining an underwriting institution code and an account number from the bar code, said means for determining located in said terminal;
• means for automatically deriving a security code from the encrypted security information contained in the bar code, said means located in said terminal;
• means, on said terminal, for receiving a security code from the purchaser;
• a modem electrically coupled to said terminal in transmitting and receiving electrical communication therewith;
• a bi-directional underwriting institution switch electrically coupled to said modem and capable of automatically establishing electrical communication with the underwriting institution based on the underwriting institution code contained in the bar code for verification of the account number and the security code of said purchaser;
• and
• a display screen attached to said terminal for displaying transaction information to the merchant.

A method for automatically accessing and verifying with an underwriting institution the status of an account underlying one of a plurality of negotiable instruments and the authority of a purchaser to issue said one negotiable instrument against said account when said one negotiable instrument is presented to a merchant based on account information and encrypted security information contained in a bar code visibly printed on each of the plurality of negotiable instruments for establishing that the purchaser is recognized by the underwriting institution as an authorized issuer of said one negotiable instrument against said account, comprising the steps of:

• a) reading the bar code printed on the negotiable instrument;
• b) deriving an underwriting institution code from the bar code;
• c) deriving an account number from the bar code;
• d) deriving a security code from the encrypted security information in the bar code;
• d1) entering a security code;
• e) automatically contacting the appropriate underwriting institution based on the underwriting institution code contained in the bar code;
• f) transmitting the account number and the security code to the appropriate underwriting institution;
• g) receiving account status information from the underwriting institution only when the security code and the account number are verified;
• and
• h) displaying the account status information.

A method for automatically accessing and verifying with an underwriting institution the status of an account underlying one of a plurality of negotiable instruments and the authority of a purchaser to issue said one negotiable instrument against said account when said one negotiable instrument is presented to a merchant based on account information and encrypted security information contained in a bar code visibly printed on each of the plurality of negotiable instruments for establishing that the purchaser is recognized by the underwriting institution as an authorized issuer of said one negotiable instrument against said account, comprising the steps of:

• a) reading the bar code printed on the negotiable instrument;
• b) deriving an underwriting institution code from the bar code;
• c) deriving an account number from the bar code;
• d) deriving a security code from the encrypted security information in the bar code;
• d1) entering a security code;
• e) automatically contacting the appropriate underwriting institution based on the underwriting institution code contained in the bar code;
• f) transmitting the account number and the security code to the appropriate underwriting institution;
• g) receiving account status information from the underwriting institution only when the security code and the account number are verified;
• h) displaying the account status information;
• and
• reading bar code information from a driver's license and printing a reproduction of the driver's license bar code on a receipt for correlating said negotiable instrument presented to the merchant and said driver's license bar code with said receipt.

A method for automatically accessing and verifying with an underwriting institution the status of an account underlying one of a negotiable plurality of instruments and the authority of a purchaser to issue said one negotiable instrument against said account when said one negotiable instrument is presented to a merchant based on account information and security information contained in a bar code printed on each of the plurality of negotiable instruments for establishing that the purchaser is recognized by the underwriting institution as an authorized issuer of said one negotiable instrument against said account, comprising the steps of:

• a) reading the bar code printed on the negotiable instrument;
• b) deriving an underwriting institution code from the bar code;
• c) deriving an account number from the bar code;
• d) deriving an encrypted security code from the bar code;
• d1) storing a plurality of distinct underwriting institution codes and corresponding underwriting institution contact information;
• d2) providing a bi-directional underwriting institution switch for automatically establishing communication with the underwriting institution issuing the one of the plurality of negotiable instruments presented by the purchaser based on institution code information contained in the bar code on said one negotiable instrument;
• e) automatically contacting the appropriate underwriting institution issuing the one negotiable instrument based on the underwriting institution code contained in the bar code;
• f) transmitting the account number and personal identification number to the appropriate underwriting institution;
• g) receiving account status information from the underwriting institution;
• and
• h) displaying the account status information.