Mobile Check Image Capture and Verification System
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Solution Overview
Problem
The use of checks as a form of payment is prone to errors and fraud, leading to incorrect and unauthorized transactions from the drawer's account.
Innovation Solution
A system and method that captures an image of a check using a mobile device or image capture device, extracts relevant financial information, and uploads it to a financial institution for verification, allowing for comparison with the information presented for payment to ensure accuracy and authorization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If checks are used as a form of payment, then payment transactions can be conducted, but errors and fraud occur leading to incorrect and unauthorized payments
Solution Approach 1:
The system captures an image of the check and extracts payment information before the check is transferred to the payee. This preliminary capture and extraction of check data allows the financial institution to have a record of the original check information, enabling later verification against the presented check to detect alterations or fraud.
Solution Approach 2:
The system creates a digital copy of the check by capturing an image and extracting information from it. This digital copy is stored and later used for verification purposes, allowing comparison between the original check data and the check presented for payment, thereby detecting any modifications or fraudulent alterations.
2Reliability
If check information is verified in real-time, then fraud and error are minimized, but system complexity increases
Solution Approach 1:
The system introduces an intermediary verification process where captured check information is stored and later compared against the presented check. This intermediary layer of verification allows automated comparison and detection of discrepancies without requiring complex real-time analysis during the actual payment processing, simplifying the overall system architecture.
3Reliability
If check information is captured and stored prior to transfer, then subsequent verification is enabled, but information security risks increase
Solution Approach 1:
The system extracts only the essential payment information from the check image (such as amount, payee, date, and check number) rather than storing the entire image or sensitive personal information. This extraction approach enables verification capability while minimizing the storage and transmission of sensitive data, thereby reducing potential security risks and data breach impacts.
Data Source
AI summary
A system and method is presented for assembling information contained within a financial instrument for subsequent verification of the financial instrument, wherein the financial instrument includes an identifier corresponding to a payee of the financial instrument. An imaging device, such as, for example, a mobile phone or the like, is used to obtain an image of the financial instrument prior to the financial instrument being transferred to the payee. Information is extracted from the image of the financial instrument, and the information is transferred to a storage area that is separate and remote from the imaging device.