Remote Check Deposit System Using Image Capture and OCR
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing methods for depositing checks are inconvenient and time-consuming, particularly for payees who need to physically visit a bank branch, and do not allow for quick access to funds until the check has cleared.
Innovation Solution
A system and method for remotely depositing checks using a customer-controlled general-purpose computer, where a software component is delivered to capture and process check images, perform optical character recognition, and facilitate electronic deposit through a publicly accessible network, enabling secure and efficient processing of check deposits.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a payee uses traditional check deposit methods by visiting a bank branch, then the check can be physically deposited, but the payee must spend time and effort traveling to the bank during operating hours
Solution Approach 1:
The patent replaces the mechanical process of physically transporting a check to a bank branch with an electronic image transmission system. A scanner captures the check image, which is then transmitted electronically to the bank's server, eliminating the need for physical travel and in-person deposit.
Solution Approach 2:
The patent creates a digital copy (image) of the physical check and uses this copy for the deposit process. The scanner generates an electronic representation of the check that can be transmitted and processed without moving the original physical check to the bank branch.
2Reliability
If a payee waits for check clearance before accessing funds, then the check clearing process is completed, but the payee cannot access funds quickly
Solution Approach 1:
The system performs preliminary verification of the check image and initiates the deposit process before the traditional clearing period ends. By scanning and transmitting the check image immediately, the bank can begin processing earlier and potentially expedite fund availability while maintaining verification standards.
3Speed
If a payor uses cash for transactions, then the transaction is immediate and liquid, but the transaction lacks verifiable history and security
Solution Approach 1:
The system provides automated feedback to both payor and payee through electronic notifications and transaction records. When a check is deposited remotely, the system generates electronic confirmations and maintains a digital trail that provides verifiable transaction history, similar to the immediate confirmation of cash transactions.
4Adaptability or versatility
If a payee endorses and transfers a check to a third party, then the check can be transferred, but the third party may not be willing to accept the risk of insufficient funds
Solution Approach 1:
The bank's electronic deposit system acts as an intermediary that verifies and validates the check before it reaches the third party. By providing electronic verification and confirmation of the check's validity through the secure transmission system, the third party receives assurance that reduces their risk exposure.
Data Source
AI summary
Remote deposit of checks can be facilitated by a financial institution. A customer's general purpose computer and image capture device may be leveraged to capture an image of a check and deliver the image to financial institution electronics. Additional data for the transaction may be collected as necessary. The transaction can be automatically accomplished utilizing the images and data thus acquired.