System, method and database for processing transactions

Abstract

A check transaction processing system using a customer's checking account identification number as a unique customer identification code (“check ID”) comprising a transaction processor for processing check transactions for a store, and for storing a customer database, including customer records, for that store; each customer record being uniquely identified by the customer's check ID, and including selected customer information; said customer information including check verification status information such that a customer is assigned a check verification status value of positive, negative, or caution.

Description

TECHNICAL FIELD OF THE INVENTION [0001] This invention relates to transaction processing and analysis systems, including check verification systems, and more particularly, to a method and system for processing and developing a local customer database of customer information, such as check verification status and transaction frequency and dollar volume over specified intervals, that can be used for check verification, marketing and other customer relations purposes. BACKGROUND OF THE INVENTION [0002] Retail and other business establishments that serve a large number of customers generally have a problem obtaining transactional information about their customers, such as for identifying new customers and determining transactional patterns for repeat customers (such as transactional frequency and dollar volume). [0003] For those stores that experience a high volume of check transactions, an immediate customer information problem is determining whether to authorize a check transaction in...

AI Technical Summary

Benefits of technology

[0029] Important features and advantages of this invention are the following. The check transaction processing system uses as a unique customer identification number the customer's check identification number, avoiding the requirement for additional identification and the attendant delay in completing the check transaction.

[0030] The system develops and maintains a local customer database, allowing the store to accumulate customer information relevant to the store's customers over and above that information necessary for check verification. The system provides for the selection of procedures and criteria for database management and check verification, allowing the store owner/manager considerable flexibility in developing and using the customer information in the store's customer database.

[0031] For check verification, the system uses three primary status levels—POSITIVE, NEGATIVE and CAUTION—allowing the store to identify those customers with a bad check outstanding, and to identify new customers and establish selected interim risk management procedures for granting those customers check transaction privileges. In addition to check verification status, the system collects and accumulates selected additional transact...

Problems solved by technology

Retail and other business establishments that serve a large number of customers generally have a problem obtaining transactional information about their customers, such as for identifying new customers and determining transactional patterns for repeat customers (such as transactional frequency and dollar volume).

For those stores that experience a high volume of check transactions, an immediate customer information problem is determining whether to authorize a check transaction in the typical situation where the sales clerk does not personally know the purchaser.

However, this requirement for additional identification reduces the efficiency of the checkout process, and inconveniences the significant majority of check transaction customers who do not write bad checks—typically, a grocery store's bad check experience will be approximately 2% of its check transactions.

Thus, check verification presents a store with problems in customer relations and risk management.

In the former case, bad check risk is greatly dependent upon abnormal check transaction activity over a given interval.

In the latter cases, the bad check risk is greatly dependent upon check transaction history (total check transaction frequency and dollar volume at a store).

The check transaction risk management problem has two principal aspects—the risk that a person will write a bad check and the risk that a bad check cannot be recovered.

As the total number of check transactions by a customer at a particular store increases, both the risk that the customer will write a bad check decreases, and more significantly, the risk that store will not be able to recover on a bad check decreases.

These risk management problems are multiplied in the case of multiple store businesses, particularly in the case of concerted bad check cashing schemes.

Beyond these check verification and risk management problems, grocery stores have a broader problem in accumulating customer information because of the emphasis on minimizing the amount of time required for a sales transactio...

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