System and method for point-of-sale check authorization

A point-of-sale check transaction authorization system for authorizing a check that is presented to a merchant at the point of sale in payment for goods or services, the system comprising:

• an input unit operable to input information comprising:
• data from the check, including information as to a financial institution upon which the check was written, and transaction information, including an amount of the transaction;
• and
• a merchant processor operable to make an authorization decision, said merchant processor having:
• a communication unit operable to communicate with the financial institution;
• means for accessing information relating to a writer of the check from all experiential database;
• and
• logic means for making the authorization determination on the basis of:
• (a) the input information and information from the accessed experiential database, in a case that the data from the check is not indicative that the financial institution upon which the check was written is a participating financial institution;
• or
• (b) the information received in a communication with the financial institution, in a case that the data from check is indicative that the financial institution upon which the check was written is a participating financial institution;
• said merchant processor being operable, by means of the communication unit, to:
• transmit to the participating financial institution upon which the check was written an information request based upon the input financial institution data from the check and the input transaction information;
• and
• receive account information from the participating financial institution, the account information relating to whether the account has sufficient finds to cover the transaction amount and whether the account has been debited in real-time by the participating financial institution,
• the merchant processor further being operable to:
• if the financial institution has real-time debited the account:
• communicate a transaction authorization to the merchant, the merchant voiding the check and returning the check to the customer in response to the communication;
• and
• if the financial institution has not real-time debited the account, making a transaction authorization determination based upon information other than the account information transmitted from the financial institution,
• wherein for real-time debits said system utilizes a message format compatible with ATM transactions.

A point-of-sale check transaction authorization apparatus for authorizing a check that is presented to a merchant at the point of sale in payment for goods or services, the apparatus comprising:

• an input unit operable to input information comprising:
• data front the check, including information as to a financial institution upon which the check was written, and transaction information, including an amount of the transaction;
• a merchant processor operable to make an authorization decision, said merchant processor including:
• a communication unit operable to communicate with the financial institution;
• means for accessing information relating to a writer of the check from an experiential database;
• and
• logic means for making the authorization determination on the basis of:
• (a) the input information and information from the accessed experiential database, in a case that the data from the check is not indicative that the financial institution upon which the check was written is a participating financial institution;
• or
• (b) on the basis of the information received in the communication with the participating financial institution, in a case that the data from check is indicative that the financial institution upon which the check was written is a participating financial institution;
• said merchant processor being operable, by means of the communication unit, to:
• transmit to the participating financial institution upon which the check was written an information request based upon the input financial institution data from the check and the input transaction information;
• and
• receive account information from the participating financial institution, the account information relating to whether the account has sufficient funds to cover the transaction amount and whether the account has been debited in real-time by the participating financial institution,
• the merchant processor further being operable to:
• if the financial institution has real-time debited the account:
• communicate a transaction authorization to the merchant, the merchant voiding the check and returning the check to the customer in response to the communication;
• and
• if the financial institution has not real-time debited the account, making a transaction authorization determination based upon information other than the account information transmitted from the financial institution,
• wherein for real-time debits said apparatus utilizes a message format compatible with ATM transactions.