Remote Check Deposit Using Image Capture and OCR
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Solution Overview
Problem
Current 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 immediate access to funds, as checks are not freely transferable and require clearing before funds can be used.
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, performing OCR on the MICR line, and facilitating the deposit process by converting images into appropriate formats for bank processing, allowing for electronic data transmission and quick fund access.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If a payee physically visits a bank branch to deposit a check, then the check can be deposited, but the payee experiences time loss and inconvenience due to traveling and waiting
Solution Approach 1:
The patent creates a digital copy (image) of the physical check and transmits it electronically to the bank, replacing the need for physical transport of the actual check. The image capture device scans the check, and the software component transmits the digital representation to the bank's processing system, eliminating travel time and queue waiting time.
Solution Approach 2:
The patent replaces the mechanical physical deposit process (handing over the check at a teller window) with an electronic system. The software component on the payee's computer captures the check image and transmits it through electronic networks to the bank's automated processing systems, eliminating the need for physical interaction with bank staff.
2Reliability
If a payee waits for check clearing before accessing funds, then the bank can verify the check validity, but the payee experiences delayed access to funds
Solution Approach 1:
The patent performs preliminary actions by capturing and transmitting the check image immediately upon receipt, before the traditional clearing process begins. The bank receives and processes the digital image quickly, and the system provides an estimated timeline for fund availability, allowing the payee to plan accordingly while the check clears in the background.
3Reliability
If a payee uses a check for payment, then the payor receives secure payment with transaction history, but the payee cannot freely transfer or use the check for purchases
Solution Approach 1:
The patent creates a digital copy of the check that can be transmitted and processed electronically. This digital representation maintains the security features of the original check while enabling faster processing and immediate fund availability to the payee, who can then use those funds freely for purchases or transfers without being constrained by the original check's limitations.
Applied Scientific Principles
This section explains which scientific principles are used to turn an abstract innovation direction into a practical engineering solution.
Function Achieved in This Case
Enables payees to remotely deposit checks securely and efficiently, reducing the time and effort required for depositing and providing immediate access to funds, while ensuring accurate transaction history and security.
Implementation Method 1
performing optical character recognition (OCR) on a magnetic ink character recognition (MICR) line location of the image
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.