Check Image OCR Routing for Secure Electronic Transfers
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Solution Overview
Problem
Checks are less secure and more prone to fraud compared to electronic transfers, yet some customers prefer them due to familiarity and bookkeeping convenience, particularly for retaining paper copies of payments.
Innovation Solution
A computer system and method that converts an image of a check into an electronic transfer by extracting data from standardized check fields, such as the recipient field, to initiate an electronic transfer using routing data, and generates an electronic receipt resembling a check.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If checks are used for transfers, then bookkeeping convenience is improved, but security is worsened
Solution Approach 1:
The patent creates an electronic copy (image) of the physical check that preserves all visual information including perforations and record portions. This electronic copy can be stored and referenced digitally, providing both the security of electronic storage and the bookkeeping convenience of having a permanent record of the check details.
Solution Approach 2:
The patent introduces an intermediary system that captures images of checks and stores them in an electronic repository. This intermediary layer allows customers to maintain paper checks for bookkeeping purposes while the electronic image serves as a secure digital record, eliminating the need to choose between security and convenience.
2Reliability
If electronic transfers are used, then security is improved, but familiarity and bookkeeping convenience are worsened
Solution Approach 1:
The system creates an electronic image that replicates the visual appearance of a physical check, including all fields, perforations, and record portions. This allows customers to interact with a familiar check-like interface electronically, maintaining the familiarity of traditional checks while benefiting from electronic security and processing.
Solution Approach 2:
The electronic check image serves multiple functions: it provides secure electronic transfer capabilities, maintains familiar check-like appearance for user comfort, preserves bookkeeping records with perforation details, and enables electronic storage and retrieval. This multi-functionality resolves the contradiction by making electronic transfers as versatile as physical checks.
3Ease of operation
If paper checks are retained for bookkeeping, then record-keeping convenience is improved, but fraud risk is worsened
Solution Approach 1:
The patent creates an electronic image copy of the check that includes all visual information. This electronic copy can be stored securely in digital form, providing permanent record-keeping capability without the physical security risks of storing paper checks. The electronic image preserves the ability to reference check details for bookkeeping while eliminating fraud risks associated with physical check storage.
Solution Approach 2:
The system introduces an electronic repository as an intermediary for storing check images. This intermediary provides secure digital storage with controlled access, eliminating the need to physically store paper checks while maintaining complete record-keeping capabilities. The electronic image serves as a secure reference that prevents fraud while preserving bookkeeping convenience.
Data Source
AI summary
A computer system is provided, comprising a processor; a communications module coupled to the processor; and a memory module coupled to the processor and storing instructions that, when executed by the processor, cause the computer system to: receive an image representing a check; extract data from a portion of the image; identify routing data, based on the extracted data, from a recipient field associated with the check; and initiate an electronic transfer by sending a transfer message using the routing data. Extracting data from the portion of the image may be performed using image recognition and optical character recognition.