US-12619958-B2 - Method and system for implementing an electronic exchange for bill pay and other transactions via an interbank information network (IIN)

US12619958B2US 12619958 B2US12619958 B2US 12619958B2US-12619958-B2

Abstract

The invention relates to an exchange for paper check transactions via an interbank information network (IIN) architecture. An embodiment of the present invention provides a marketplace for secure collection, assignment and distribution of payments and data from paper check transaction originators to lockbox providers. This eliminates paper checks, resulting in faster deposit into client accounts, better management of payment exceptions, and reduction in overall operating costs. The IIN architecture provides a global platform using blockchain technology for real-time interconnected flow of information that address immediate pain points across the financial industry and enable new services. With an embodiment of the present invention, a distributed network may streamline process for resolving compliance based inquiries and provide global beneficiary account validations. An embodiment of the present invention provides a platform/ecosystem that network participants may use to deliver value-added service applications to other network participants.

Inventors

Steve Hoffman
Ruwayd DODIN
Amanda PRESTON
Ganesh Raut
Josephine LANNING
Kimberly YANG
Shriya KOMMURI
Sejdo RADONCIC
Tiffany Ashley WAN
Amy M LESLIE
John L BILOZ
Raghvendra Singh
Maria Adele RESSA
Zachary Chestnut
Thomas Eapen

Assignees

JPMORGAN CHASE BANK, N.A.

Dates

Publication Date: 20260505
Application Date: 20240312

Claims (20)

1 . A system for implementing an exchange via an interbank information network (IIN) architecture for paper check transactions, the system comprising: a printer configured to print a paper check using ordinary ink that is not a magnetic ink character recognition (MICR) ink and ordinary printing paper that is not American National Standards Institute (ANSI) compliant; a scanner configured to scan the paper check printed by the printer for generating a print image file; a blockchain network comprising: a bill pay blockchain node in communication with a paper check transaction platform associated with one or more paper check transaction originators, and a lockbox platform node in communication with a lockbox platform associated with one or more lockbox service providers; and a computer processor, coupled to the bill pay blockchain node and the lockbox platform node second electronic input, the computer processor executing an Interbank Information Network (IIN) application and is further configured to perform: receiving, via the bill pay blockchain node, data elements from the paper check transactions platform; receiving, via the lockbox platform node second electronic input, reference data elements from the lockbox platform; comparing, via the computer processor, the data elements and the reference data elements to identify one or more participants; identifying, via the computer processor, a first set of transactions that require printing and mailing of a check and a second set of transactions that require processing through an IIN; causing, via the computer processor and using the printer, printing of paper checks using the ordinary ink and the ordinary printing paper for the second set of transactions; causing, via the computer processor and using the scanner, scanning of the paper checks printed for the second set of transactions for generating print image files for the second set of transactions; transmitting, via the computer processor, a corresponding payment file for the second set of transactions to a centralized lockbox deposit account, wherein the corresponding payment file includes the print image files for the second set of transactions; and transmitting, via the computer processor, a lockbox file to the one or more participants via the lockbox platform.
2 . The system according to claim 1 , wherein the corresponding payment file comprise an Automated Clearing House (ACH) file.
3 . The system according to claim 1 , wherein the reference data elements comprise biller data.
4 . The system according to claim 1 , wherein the data elements comprise a transaction file from a paper check transaction originator.
5 . The system according to claim 1 , wherein the comparing is based on a unique identifier shared by the reference data elements and the data elements.
6 . The system according to claim 1 , wherein the comparing is based on biller address data.
7 . The system according to claim 1 , wherein the one or more participants are participants of the IIN.
8 . The system according to claim 1 , wherein transaction data is distributed based on one or more lockbox rules.
9 . The system according to claim 1 , wherein the computer processor is further configured to perform the step of: publishing transaction data to a distributed ledger.
10 . The system according to claim 9 , wherein the distributed ledger comprises built-in entitlements for restricted access.
11 . The system according to claim 1 , wherein the data elements include data elements from the one or more paper check transaction originators.
12 . The system according to claim 11 , wherein the data elements from the one or more paper check transaction originators include at least check fields, transactions details, and related remittance information in any format the one or more paper check transaction originators provides.
13 . The system according to claim 1 , further comprising another printer equipped with MICR ink and configured to print a check image file for at least one paper check transaction included in the second set of transactions, wherein the other printer is further equipped with ANSI compliant check printing paper, and wherein the ANSI requires that the check printing paper is composed of at least 20-pound long grain with paper moisture content being between 4.7 to 5.5%.
14 . The system according to claim 1 , wherein the printer is equipped with non-MICR carbon black ink and configured to print a check image file for at least one paper check transaction included in the second set of transactions.
15 . The system according to claim 14 , wherein the ANSI requires that the check printing paper is composed of at least 20-pound long grain with paper moisture content being between 4.7 to 5.5%.
16 . The system according to claim 1 , wherein the transmitting of the corresponding payment file for the second set of transactions includes transmitting a scanned check image as the print image file and remittance information, and wherein the remittance information is saved and the scanned check image is printed and subsequently scanned.
17 . The system according to claim 16 , wherein the computer processor in receipt of the transmitted payment file, determines whether the payment file is capable of digital conveyance or not based on the remittance information.
18 . The system according to claim 17 , wherein, when the payment file is capable of digital conveyance, digitally convey the scanned check image for fulfilling at least one paper check transaction, and when the payment file is determined to be incapable of digital conveyance, causing another printer to print a substitute check using the scanned check image and with MICR ink, and sending, via physical mail, the printed substitute check to a recipient indicated by the remittance information.
19 . The system according to claim 1 , wherein the reference data elements include directory data of the one or more lockbox service providers.
20 . A method for implementing an exchange via an interbank information network (IIN) architecture for paper check transactions, the method comprising the steps of: receiving, via a bill pay blockchain node, data elements from a paper check transactions platform, wherein the bill pay blockchain node is in communication with the paper check transactions platform associated with one or more paper check transaction originators; receiving, via a lockbox platform node, reference data elements from a lockbox platform, wherein the lockbox platform node is in communication with the lockbox platform associated with one or more lockbox service providers; comparing, via a computer processor, the data elements and the reference data elements to identify one or more participants, wherein the computer processor is coupled to the bill pay blockchain node and the lockbox platform node and executes an Interbank Information Network (IIN) application; identifying, via the computer processor, a first set of transactions that require printing and mailing of a check and a second set of transactions that require processing through an Interbank Information Network (IIN); printing, via a printer, paper checks using ordinary ink and ordinary paper for the second set of transactions, wherein the printer is configured to print a paper check using the ordinary ink that is not a magnetic ink character recognition (MICR) ink and the ordinary printing paper that is not American National Standards Institute (ANSI) compliant; scanning, via a scanner, the paper checks printed by the printer for the second set of transactions for generating print image files for the second set of transactions; transmitting, via the computer processor, a corresponding payment file for the second set of transactions to a centralized lockbox deposit account, wherein the corresponding payment file includes the print image files for the second set of transactions; and transmitting, via the computer processor, a lockbox file to the one or more participants via the lockbox platform.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS This application is a Continuation-in-part of U.S. patent application Ser. No. 16/887,031, filed on May 29, 2020, which claims priority to U.S. Provisional Patent Application No. 62/854,567, filed May 30, 2019. The disclosure of each of these documents, including the specification, drawings, and claims, is incorporated herein by reference in its entirety. TECHNICAL FIELD The invention relates generally to a method and system for implementing an electronic or digital exchange via an interbank information network (IIN) for bill pay transactions destined for paper lockboxes and other checks originated from large check origination providers. BACKGROUND The developments described in this section are known to the inventors. However, unless otherwise indicated, it should not be assumed that any of the developments described in this section qualify as prior art merely by virtue of their inclusion in this section, or that those developments are known to a person of ordinary skill in the art. Each year, tens of millions of bill pay or paper check transactions start out as a digital payment transaction, but turn into a check that is mailed from a bank and commercial bill payers out to billers. These billers receive their checks via an in-house lockbox or one operated by banks or third party providers. Bill pay providers and check origination providers send millions of physical checks each year to lockboxes across the industry. This transaction costs the billers and the industry 10 times more than if the payment were routed electronically. In addition, this process generates a delay in deposit into client accounts and additional operational costs for both bill pay providers or check originators and lockbox providers (e.g., postage fees, sorting and processing of paper checks, etc.). Because there are several root causes to why a bill pay transaction turns into a check, this problem is not going away anytime soon. Current solutions require clients to adopt and make changes to their back office systems. However, these solutions involve extensive time and resources for industry participants. Conventional checks for processing by financial institutions require printing with specialized ink or toner (e.g., Magnetic Ink Character Recognition (MICR) ink or toner). A check that is printed with regular (e.g., non-MICR) ink or toner, a financial institution may be unable to process using its conventional readers or sorters. Moreover, at least since checks may conventionally be processed via one or more sorters, American National Standards Institute (ANSI) compliant (e.g., at least 20-pound long grain with paper moisture content being between 4.7 to 5.5%) printing paper may be required to avoid faulty printing or damaging checks during conventional processing. Moreover, presently, there are billions of paper check transactions exchanged in the United States on a yearly basis, which cause significant costs on the industry and participants to the transactions. Costs may include operational costs and security risks to the check originator and the lockbox provider. Paper checks may be subject to fraud and physical conveyance is at the mercy of any physical disruption (e.g., environmental or human-caused), thus posing potential delays and risks to the payment cycle of the parties involved in the transaction. These and other drawbacks currently exist. SUMMARY According to one embodiment, the invention relates to a system for implementing an electronic exchange via an interbank information network (IIN) architecture for check transactions and associated remittance information. The system comprises: a first electronic input in communication with a check originator platform associated with one or more payors; a second electronic input in communication with a lockbox platform associated with one or more lockbox service providers; and a computer processor, coupled to the first electronic input and the second electronic input, the computer processor executing an IIN application and is further configured to perform the steps of: receiving, via the first electronic input, data elements from the check originator platform; receiving, via the second electronic input, reference data elements from the lockbox platform; comparing, via the computer processor, the data elements and the reference data elements to identify one or more participants; identifying, via the computer processor, a first set of transactions that require a check print and a second set of transactions that require processing through an IIN; transmitting, via the computer processor, a corresponding payment file for the second set of transactions to a centralized lockbox deposit account; and transmitting, via the computer processor, a lockbox file to the one or more participants via the lockbox platform. According to another embodiment, the invention relates to a method for implementing an electronic exchange via an IIN architecture for check