Image Replacement Document Check Processing System
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Solution Overview
Problem
The existing check processing system is costly and time-consuming due to manual encoding, high-speed check capture devices, and physical transportation of checks, with a lengthy 'float' period before funds are settled.
Innovation Solution
A computerized method using image replacement documents (IRDs) where payment information is electronically received, an image replacement document template is retrieved, and an electronic image of a check is generated, allowing for electronic transmission and processing, eliminating the need for high-speed capture devices and physical checks.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual encoding and physical check processing is used, then check processing can be performed with simple equipment, but processing speed is slow (1,200 to 1,400 checks per hour) and costs are high
Solution Approach 1:
The patent uses image replacement documents that are electronic copies of physical checks. Instead of processing actual paper checks through manual encoding and physical transportation, the system creates and processes digital images of checks, eliminating the need for high-speed capture devices while maintaining processing capability.
Solution Approach 2:
The patent replaces the mechanical physical check processing system (manual encoding, physical transportation, high-speed capture devices) with an electronic system that uses image replacement documents. This substitution eliminates the need for complex mechanical equipment while enabling faster processing speeds.
2Loss of time
If physical checks are used for payment, then payment can be effected through traditional banking channels, but transportation costs and time are consumed during the collection process
Solution Approach 1:
The system uses electronic copies of checks in the form of image replacement documents, eliminating the need for physical transportation of actual checks. This reduces the float period by enabling faster electronic processing while maintaining the same payment functionality.
Solution Approach 2:
The patent transitions from physical two-dimensional paper checks to electronic digital representations. This dimensional change eliminates physical transportation requirements and reduces processing time while maintaining payment validity.
3Productivity
If high-speed check capture devices are used, then check processing speed increases, but equipment cost and complexity increase
Solution Approach 1:
The system uses pre-existing image replacement document templates that are electronically stored, eliminating the need for high-speed physical check capture devices. The electronic images are generated from templates rather than captured in real-time, reducing equipment complexity while maintaining processing speed.
Data Source
AI summary
According to one embodiment of the present invention, a computerized method for effecting payment by a check includes electronically receiving payment information for a check drawing on a checking account of an account holder, retrieving from a storage location an image replacement document template associated with the checking account in response to receiving the payment information, and generating an image replacement document representative of the check by inserting the payment information into respective fields of the image replacement document template. The payment information includes a date, a payee, a dollar amount, a legal amount, and a signature.