Value Token Conversion via Scanning and Temporary Account Identifier
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Solution Overview
Problem
The existing check verification process is slow and vulnerable to fraud, as it does not occur in real-time, posing risks for merchants and limiting the acceptance of personal checks, and there is a need to integrate checks with the payment card infrastructure more effectively.
Innovation Solution
A system that uses a scanning device to capture images of value tokens, such as checks, and generates a temporary, one-time use account identifier for verification and payment, which can be widely accepted by merchants, ensuring secure and efficient transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If batch verification is used for checks, then verification can be performed, but the process is significantly delayed and not real-time
Solution Approach 1:
The system performs preliminary verification actions by capturing the check image and extracting MICR data at the point of sale, preparing the verification process in advance rather than waiting for batch processing. This allows the verification to be initiated immediately, reducing the overall delay despite the inherent batch processing nature of check verification.
2Adaptability or versatility
If merchants accept personal checks, then consumers can use checks for payment, but merchants face significant risk and may not accept payment in the form of personal checks
Solution Approach 1:
The system introduces an intermediary verification layer between the merchant and the check. The imaging device and verification system act as a mediator that captures the check, extracts data, and provides verification information to the merchant, reducing the merchant's direct exposure to risk while maintaining payment acceptance capability.
Solution Approach 2:
The system provides feedback to the merchant about the check's verification status and the consumer's account standing. This feedback mechanism allows merchants to make informed decisions about whether to accept a check, reducing risk by providing real-time or near-real-time information about the check's validity and the account's sufficiency.
3Productivity
If check data is transmitted electronically, then banks can process checks, but the majority of check verification is accomplished in batch and may be significantly delayed
Solution Approach 1:
The system performs preliminary data extraction and verification initiation at the point of sale, capturing the check image and MICR data immediately. This preliminary action prepares the check for processing without waiting for batch cycles, reducing the overall clearing and settling time while maintaining compatibility with existing electronic processing systems.
4Loss of information
If merchants scan and transmit MICR data, then check verification can be initiated, but real-time verification of the check or checking account cannot be accomplished
Solution Approach 1:
The system performs preliminary data capture and verification initiation immediately when the check is scanned, extracting MICR data and starting the verification process before the transaction is completed. This preliminary action reduces information loss and accelerates verification by eliminating delays between data capture and verification initiation.
Data Source
AI summary
A method is disclosed. The method includes obtaining value token image data associated with the image of the value token, the value token image data being derived from an image of the value token obtained from a scanning device. The method also includes initiating verification of the value token. The method may also include (i) providing a temporary use account identifier correlated with the value token; and sending the temporary use account identifier to a user; or (ii) increasing the value of a prepaid account.