Method and apparatus for recording magnetic information on traveler's checks

An apparatus for preventing fraudulent use of a cash document, comprising:

• said cash document having a front face and a rear face;
• wherein said front face comprises a first region for containing a signature, a second region for containing a countersignature, and a third region containing a denomination value;
• wherein said rear face comprises a magnetic information carrying medium bearing encoded information, said encoded information comprising a unique identifying code for said cash document;
• a central database having a database object referenced by said unique identifying code, said database object including status information uniquely associated with said cash document;
• a swipe reader coupled to said central database, said swipe reader having means for reading said encoded information from said information carrying medium and for transmitting and receiving information with said central database, said swipe reader transmitting at least said unique identifying code to said central database, wherein said central database uses said unique identifying code to identify a status of said cash document, said central database causing said at least said status code to be sent to said swipe reader, and said swipe reader receiving at least said status code from said central database;
• and
• an indicator, responsive to said status code received from said central database, for indicating an attempted fraudulent use of said cash document.

A method for purchasing goods or services using a cash document of the type having a first face with a first region for containing a signature, a second region for containing a countersignature, and a third region containing a denomination value, said method comprising:

• (a) presenting said cash document at a point of purchase, said cash document having a magnetic stripe including a unique identifying code that uniquely identifies said cash document said point of purchase having a magnetic stripe reading device coupled to a processor, said processor selectively coupled to transmit and receive information from a central database;
• (b) swiping said cash document through said magnetic stripe reader;
• (c) transmitting said unique identifying code read from said magnetic stripe to said central database;
• (d) determining if said unique identifying code is resident in said central database;
• (e) checking a status code associated with said unique identifying code;
• and
• if said status code indicates that said cash document has not been reported as stolen or previously cashed, transmitting an authorization code to said point of purchase.