WO2000026872A1

WO2000026872A1 - A system for guaranteeing a cheque

Info

Publication number: WO2000026872A1
Application number: PCT/AU1999/000941
Authority: WO
Inventors: George Pharmacis
Original assignee: George Pharmacis
Priority date: 1998-10-29
Filing date: 1999-10-29
Publication date: 2000-05-11
Also published as: GB2359174A; CA2348754A1; NZ512036A; AUPP679998A0; GB0112950D0; GB2359174B

Abstract

A system for verifying and depositing a cheque comprises a cheque and a card having data relating to the owner of the card and an authorisation code. The card data is transmitted over a communication network to a control station. The control station checks the card authorisation against stored data, accesses guarantee means for an amount limit, and transmits approval with a cheque receipt identifier so that the account data base may have its balance adjusted.

Description

A SYSTEM FOR GUARANTEEING A CHEQUE FIELD OF THE INVENTION

The present invention relates to business and finance industries. There are currently many different ways of conducting financial transactions without using paper money. These include EFTPOS cards and cheques. BACKGROUND OF THE INVENTION

The present invention is concerned primarily with financial transactions involving cheques.

A typical ATM card provides access to savings accounts and cheque accounts . A person may use their ATM card to withdraw funds from either account by using an ATM terminal in the traditional manner. Although a cheque account is accessible using an

ATM access card such cards are not practical for use by businesses. In such situations if money is required to purchase an article, a cheque is typically used as fixed amounts can therefore be used in a transaction and the cheque is only valid for the person whose name the cheque is made out to.

It follows therefore that an employee of a company can use a cheque which is already completed and signed to purchase an article from the company without the need of having to carry cash.

In many situations it is desirable to be able to cash a company cheque in order to receive cash to pay for products for that company. In such a situation cheques typically require counter signing and can only be cashed at a relevant bank.

In some countries a cheque guarantee card exists for guaranteeing a cheque upto a certain amount . Because of the incidence of fraud strict guidelines cover the use of such cheque guarantee cards as set out below for a UK domestic cheque guarantee card scheme.

EXTRACT OF THE RULES OF THE UK DOMESTIC CHEQUE GUARANTEE CARD SCHEME

Subtitute Sheet The rules of the UK Domestic Cheque Guarantee Card Scheme state that a card issuer "guarantees in any single transaction the payment of only one cheque taken from only one of its own cheque books for up to 50 pounds or for up to 100 pounds or 250 pounds if indicated in the hologram, provided the cheque is not drawn on the account of a limited company and: i) The cheque bears the same customer name, and, where printed, bank sort code, as the card; ii) The cheque is dated with the actual date of issue; iii) It is signed before the expiry of the card, in the United Kingdom of Great Britain and Northern Ireland, the Channel Islands, Isle of Man, Gibraltar or on the premises of any United Kingdom Customs post located outside these territories in the presence of the payee by the account number; iv. The card number is recorded on the reverse of the cheque by the payee (this requirement can only be varied by specific prior agreement of the Scheme's governing body; v. The card has not been adhered or defaced; vi. Where the guarantee is used to support an encashment service, then the following rules will apply; a) The number of guaranteed cheque encashments service, when made with the support of a cheque card is limited to one cheque per customer per day; b. Special "frequency marking" pages provided at the back of cheque books and the appropriate day square is effectively cancelled by cashiers whenever cheque cards are used to support encashments. c . The cheque is delivered to the bank of the encashment service provider for collection no later than 3 days after the date upon which the cheque is received by the encashment service provider (for these purposes weekend days and Bank holidays shall not be included in the day count, nor the day upon which the cheque is received by the encashment service provider. These conditions of use are not to be printed on the card but are readily accessible to any Enquirer at the Issuer' s branches .

Because the rules are quite complicated and limit the use of the cheque card to specific amounts the existing cheque guarantee card scheme does not offer the user a great deal of flexibility.

Although electronic transactions are increasingly popular cheques remain a common way of transacting monies between persons and are still used widely throughout the world.

In addition to the above a cheque can only be deposited by taking it to a financial institution. If the payee has an account at that institution the cheque can be deposited in the account and over a period of days the cheque will eventually be cleared by a clearinghouse. SUMMARY OF THE INVENTION

According to one aspect of the present invention there is provided a system for depositing a cheque, the system comprising a cheque having a cheque identifier and amount entered thereon, a card having data relating to an owner of the card and an authorisation code, a card data means for receiving the data of the card, a communication network connected to the card data means, a control station connected to the communication network and a guarantee means, wherein a cheque is arranged to be deposited by establishing a communication link between the card data means and the control station, the card data means is arranged to be used to enter and transmit data including the authorisation code, cheque identifier and amount to the control station, the control station is adapted to access a data base to check the card authorisation code matches the stored authorisation code and transmit a request to the card data means to enter the cheque identifier and cheque amount into the card data means and transmit the cheque identifier and amount to the control station, which is adapted to access the guarantee means to compare the cheque amount for the card with a predetermined amount set by the guarantee means for the owner, whereby an approval is adapted to be transmitted with a cheque receipt identifier to the card data means if the cheque amount is less than the predetermined amount and the control station is adapted to transmit the amount to an account data base for the owner whereby the amount is able to be deducted from the account balance for the owner.

According to one embodiment the account balance for the owner is only updated once the cheque is presented for payment of goods and services.

According to another embodiment the account balance for the owner is updated automatically and if the cheque ultimately bounces the cheque guarantor guarantees the amount and is adapted to transmit the amount to the financial institution where the account is held.

Preferably the system includes sending the cheque with the cheque receipt identifier entered thereon to a cheque clearing means.

It is preferred that the control station includes a processor, which is adapted to access an account database of a financial institution where the owners account is located.

Preferably the card data which is received by the card data means includes a financial institution code where the owners account is located.

It is preferred that the financial institution database is adapted to update the account balance for the account for the owner when the control station transmits an approval signal indicating the approval issued by the guarantee means.

According to one embodiment the card data includes data relating to the type of account where the owner wishes to deposit the amount entered on the cheque.

It is preferred that the database is accessible through the communication network.

The database preferably includes an owner database and a payer database.

Each database may be located at the control station.

It is preferred that the control station is an autocall centre which is adapted to communicate with a financial institution database containing account data for each owner and/or payee on the cheque.

Preferably the guarantee means comprises a cheque guarantee database which is accessible by the autocall centre through the communication network. The cheque guarantee means preferably includes a list of payees and an amount limit for each payer on a cheque .

The cheque guarantee means may include a credit limit for each payer. It is preferred that the card data means comprises a card reader.

Alternatively the card data means comprises a telephone keypad whereby the keypad can be used to enter data relating to the card and cheque. According to one embodiment the card data means comprises a keyboard of a computer connected to the internet, whereby data relating to the card and cheque is entered onto the computer and is able to be transmitted to the control station. It is preferred that the card data means comprises a computer program which prompts the owner of the card to enter data relating to the card and the cheque.

Preferably the computer program includes a data entry facility whereby a plurality of fields are presented in which data relating to the card and cheque is to be entered.

It is preferred that the program includes an icon which can be clicked on in order to transmit entered data once the data has been successfully entered in the relevant fields.

According to another embodiment the card data means comprises a POS/ATM card reader.

The communication network may include a telephone network, internet or any other method of transmitting information from one data processor to another data processor. The control station preferably comprises an automatic call centre having a processor for processing data and controlling transmission of data between the card data means and the or each database.

The processor preferably is adapted to communicate between the cheque guarantee means and the financial institution database.

The card data preferably includes a password, an expiry date and an owner name.

The card data may also include an account identifier for the owner.

The authorisation code may be in the form of a password, barcode, pin number or other means of storing data securely.

The owner name may be an identification number or code.

It is preferred that the system includes a loyalty network which is connected to the autocall centre through the processor, whereby every time a cheque is deposited and approved loyalty credits are allocated to an account of the owner .

It is preferred that the system for verifying a cheque includes a system for depositing a cheque and guaranteeing the cheque .

It is preferred that the system includes the step of mailing the cheque to a cheque deposit institution with a receipt number located thereon.

It is preferred that the cheque deposit institution communicates with a cheque clearing house which also communicates with the financial institution.

According to another embodiment of the present invention there is provided a system for guarantee of a cheque, comprising a card having data relating to the owner of the card, an authorisation code for the card and an account identifier, a communication network, a card data means connected to the communication network, the card data means being adapted to receive data of the card, a computer database connected to the communication network, a control station connected to the communication network, wherein a cheque is verified by using the card reader to read data on the card including the account number and authorisation code, the read data is transmitted to the control station using the control station to access the database and retrieve account data for the account of the authorisation code if the code matches that for the account identifier, transmit a message to the card reader device to enter an identifier for a cheque and an amount to be authorised, receiving the cheque identifier and amount, checking an approval database and transmitting approval if the amount is above a predetermined amount set by a guarantee means.

It is preferred that the system includes deducting the amount from the account balance located in the computer database and transmitting approval of the amount balance if the deduction is greater than the predetermined amount .

Preferably the cheque identifier is a number.

The predetermined amount may be zero. The authorisation code may include a pin number.

The control station may be adapted to prompt the card reader device to enter the data of the cheque.

Preferably transmittal of approval includes transmitting a receipt number to be written on the cheque. It is preferred that a fee is deducted from the account balance if the transaction is approved.

It is preferred that the fee is credited to the merchant identified by the card reader device if the transaction is approved.

According to another embodiment the owner of the database is credited with a fee each time a transaction is approved.

According to one embodiment the financial institution may include a fee everytime a transaction is approved.

It is preferred that the cheque guarantor charges a fee for each card.

The cheque guarantor may charge a fee each time the card is used to guarantee a cheque.

Preferably the predetermined amount is determined by a guarantor controller. The guarantor controller may extend credit for the payee entered on the cheque .

It is preferred that the guarantor controller includes a guarantor data processor in communication with the computer database, which guarantor controller records the amount and issues an approval to the control station.

According to another embodiment of the present invention the system for verifying a cheque includes the step of the control centre issuing an approval identifier which is adapted to be provided on the cheque whereby the approval identifier guarantees the amount written on the cheque when the cheque is presented at a merchant for payment of goods or services .

It is preferred that when the cheque is provided with the approval identifier the merchant is adapted to use an approval system in communication with the control station in order to verify the approval identifier on the cheque .

It is preferred that the verification step includes the control station sending a confirmation that the approval identifier is correct and confirmation of the amount which was approved, whereby the merchant can check the amount approved with the amount written on the cheque. It is preferred that the merchant uses a telephone and is able to verify the approval identifier and amount over the telephone.

According to another variation the merchant is adapted to have a merchant cheque guarantee card which is adapted to be used with a card reader means to access the control station.

It is preferred that the control station is adapted to provide a prompt for entry of the approval identifier amount so that the merchant can transmit this information by entering it into the card reader means.

The present invention is aimed at providing an alternative system for verifying and depositing a cheque. BRIEF DESCRIPTION OF THE DRAWINGS A preferred embodiment of the present invention will now be described by way of example only with reference to Figure 1 which shows a cheque verification system using a POS transaction in accordance with a preferred embodiment of the present invention. DETAILED DESCRIPTION OF THE DRAWINGS

As shown in Figure 1 a merchant 11 is provided with a POS terminal 12 having a card reader 13, a display 14 and a keypad 15.

The terminal 12 is connected through a modem to a communication network to an autocall centre 16. The autocall centre 16 is connected to a processor 17 which itself is connected to a cheque guarantor 18, a merchant database 19, a customer database 20 and a financial institution database 21. A cheque deposit institution 23 is connected with a cheque clearing house 24 which is connected to the financial institution 22 and autocall centre 16.

Optionally a loyalty network 25 may also be provided and connected to the autocall centre 16. The system described above requires a customer to be provided with a cheque guarantee card which can be issued by the cheque guarantor 18 or financial institution 22 .

The cheque card provides access to a single or multiple cheque accounts.

The cheque card may be plastic in the traditional manner and may have an identification code which is stored by a pin number, barcode, photograph, finger print, electromagnetic print or any other form of coded information which is unique to the card holder.

The cheque card is adapted to be used at all POS or automatic teller machines for deposit or purchase of goods and services all over the world through any communication channel.

If the cheque card is used at a POS or ATM terminal the card is either swiped in the traditional manner to access the identification code and then an identification procedure must be followed to authentic that code.

Thus if the cheque card is used with a pin number the cheque card is swiped so that the identification code is recorded and then the customer must key in the right code before the transaction can be processed.

The identification procedure will vary depending on how the identification is stored on the card. Therefore if the card is used telephonically identification data can be keyed in a similar fashion to a credit card identification procedure.

According to the preferred embodiment a customer is issued with a cheque guarantee card which in effect acts as a line of credit for cheques to be issued until a set amount is achieved.

A customer possessing a cheque guarantee card uses this in conjunction with a cheque in order to make a purchase .

According to the preferred embodiment the customer purchases a product or service by writing a cheque to the value of the purchase and includes the name of the merchant and the date of the transaction. The merchant then accepts the cheque and cheque card and uses the system shown in Figure 1 to verify the authenticity of the transaction.

A number of variations are possible to the cheque verification system but the following example will be provided for a merchant possessing a POS terminal.

Firstly the merchant either keys in or uses a merchant card to swipe in information relating to the identification of the merchant. This information is transmitted over the communication network to the call centre 16 and is processed by processor 17 which is able to access the merchant database 19 to verify the authenticity of the merchant ID which it receives.

The processor 17 then issues prompts to the display 14 through the communication network and these prompts include the following. i. the merchant's card number. ii. the expiry date of the merchant's card; iii. the merchant's ID number; iv. the customer cheque card ID number and optionally account type (cheque, savings etc.); v. the customer cheque card expiry date; xi. the amount written on the cheque; vii. the cheque number or cheque ID number. This information is keyed in serially by both the merchant and customer as prompted by the processor 17. The customer data base 20 is accessed by the processor 17 to authenticate account and ID information relating to the cheque card. Finally when all the verification of the cheque card has been entered and approved by the processor 17 the amount is keyed in and the processor communicates with the cheque guarantor which may be in the form of a computer database to check that the amount is below the predetermined upper limit for that customer.

If the amount is approved by the cheque guarantor 18 the processor then requests identification of the cheque number so that this can be recorded in either a separate database of the processor, the database of the financial institution or alternatively the cheque guarantor 18.

A receipt number is then able to be transmitted back to the terminal 12 and displayed on the display 14 and can be written on the back of the cheque by the merchant.

According to a variation on the above system, each customer is provided with his or her own account in a similar fashion to a savings or cheque account. This account is held by a financial institution and determines the amount which is able to be written on the cheque.

The financial institution may provide an overdraft facility so that an amount can be written which exceeds the amount which is currently stored in the account.

With this variation every time a cheque is written and approved by the cheque guarantor the account balance held on database 21 of the financial institution 22 is updated to reflect the amount which should be deducted as a result of the transaction with the merchant.

Although the above variation provides a constant up to date account balance the present invention also encompasses a system whereby a cheque guarantor effectively extends a line of credit and cheques are able to be written as long as the line of credit is still below a predetermined level .

When a cheque has been accepted by a merchant eventually the cheque must be deposited at a deposit institution 23 in a conventional manner. The cheque is then presented at a cheque clearing house 24 and the amount cleared is then transmitted to the financial institution which is then able to approve a change to the account balance on its database 21 to reflect the transaction which occurred with the merchant . Details of the account balance are then transmitted to the cheque guarantor so that this database can be updated. The cheque card system described above also includes the possibility of a loyalty system being associated with it. For example every time a cheque card is used in conjunction with the writing of a cheque, a certain amount of credits may be transmitted to the loyalty network from the autocall centre.

Accordingly the more the cheque card is used the more credits are accumulated by the loyalty network 25. Thus the loyalty network 25 acts as a frequent user reward system whereby the number of credits which are accrued provides access for the customer to various types of rewards .

The loyalty network 25 may also extend to the merchant, so that the merchant also accumulates rewards for accepting transactions using the cheque card.

It is envisaged that financial institutions would use the loyalty network in order to provide inducements to use the cheque card system.

The embodiment described above outlines the procedures involved in presenting a cheque at a merchant and having this cheque verified and guaranteed.

According to another embodiment of the present invention a cheque that is received by a business or person is able to be deposited without depositing the cheque physically at a financial institution.

The same basic system shown in Figure 1 is used to deposit a cheque.

As an example a business which receives cheques for payment of services can use the cheque verification system to deposit the cheque.

In its preferred form the cheque may be deposited by accessing a computer terminal connected to the internet.

In this case the computer terminal would be item 12 in Figure 1 and the card reader 13 could be a card reader which is provided as a peripheral device connected to the computer terminal or the card reader could be dispensed with altogether. The owner of the card accesses the internet and specifically the website of the autocall centre. The autocall centre has a deposits page which includes a list of fields which must be filled in to complete a depositing step.

Each field requests data relating to the owners name, the owners password and if a card is used the expiry date of the card. Furthermore the payee on the cheque is entered along with the cheque number and the amount on the cheque .

Once the fields have been filled in an icon is clicked for processing a depositing transaction.

In a manner previously described in relation to Figure 1 the data entered in the fields is processed to verify the particulars which have been entered into the fields and to guarantee the cheque and the amount entered on it.

If the cheque is guaranteed an approval is transmitted to the owner along with an approval number or code which is to be entered on the cheque.

The amount on the cheque is automatically added to the owner's account at a financial institution so that an immediate deposit to the owner's account can be made.

The cheque is then mailed in a traditional manner to the owner's financial institution where the cheque can be processed in the traditional way.

The above procedure can be modified so that a verified cheque can be issued over the internet to the owner. in such a situation the owner accesses the home page of the autocall centre and clicks on an icon for writing a cheque.

A series of fields are then produced which prompt the owner to enter data relating to the owner's name, the owner's password, the owner's expiry date of the cheque guarantee card, the cheque number and the amount entered on the cheque . If all the data entered is verified by the autocall centre as being correct and the amount that is to be written on the cheque is guaranteed by the cheque guarantor then an approval is transmitted to the owner's terminal along with an approval identifier which is to be entered onto the cheque .

To this effect the cheque may be specially provided with a field in which the approval identifier is to be added. The owner is then able to take the cheque to a merchant and the cheque effectively acts as cash because the approval identifier provides a guarantee for the cheque.

Thus when the owner takes the cheque and presents it at a merchant's premises and purchases goods or services the merchant asks that the cheque be signed and optionally is only required to check that the name on the signature is authentic.

This can be achieved by the owner merely producing a drivers licence.

The above procedure may be modified whereby the owner merely produces the cheque guarantee card which may then be read by a card reader terminal of the merchant and prompt the owner (customer) to insert a password which in effect if approved by the autocall centre when this information is received at the autocall centre, quickly authenticates the cheque as being associated with the owner.

However, it should be noted that the cheque could be presigned with the approval identifier entered so that in effect the cheque acts as cash and no further approval is required by the merchant when presented with this cheque.

It is preferred that a cheque is specially adapted to have a field to allow entry of the approval identifier.

According to another embodiment financial institutions could issue cheques of set amounts which can be approved by any of the previously described procedures so that an approval identifier can be entered into a field on the cheque . It is also possible that a mini cheque be provided which only has a field for a signature to be inserted and a field for an approval identifier to be added. As no additional information needs to be added such as the amount the cheque can be much smaller than traditional cheques.

It is preferred that the new cheque described above is the size of a credit card.

Preferably the new cheque comprises a ticket which is adapted to be signed and provided with an approval identifier or code representing approval of the preset amount occurring on the cheque.

An additional procedure may be added whereby the merchant has a cheque guarantee card which is swiped when a cheque is presented with an approval identifier already added. The merchant can then use the cheque guarantee card to confirm that the amount written on the cheque is the amount that was approved. All this would entail is that the merchant is prompted by the autocall centre to enter the cheque identifier and the amount. If both of these match the approval identifier and the amount recorded by the autocall centre then the transaction is approved. The above system may be modified to replace internet transactions with transactions over the telephone and according to one embodiment may not need the use of a card. For example if the relevant information is memorised by the owner this information can then just be entered over a telephone through a telephone keypad or by verbally providing the relevant information which is prompted by an automated voice authorisation procedure, similar to that used by pay-by phone systems.

Different embodiments of the cheque verification system will now be described for different types of processing. These processing methods include voice authentication over a telephone, keyed in authentication by a telephone keypad, POS transaction, ATM transaction, and transactions over the Internet . Each embodiment will be described as a sequence of steps which must be conducted by the customer/card holder, the merchant, the autocall centre, the processor 17, the cheque guarantor 18, the loyalty network 25, the depositing financial institution 23, the clearing house 24 and the financial institution 22. METHODS OF PROCESSING TELEPHONE VOICE (only when touch pad unavailable) 1) Paying Customer "CC" Cardholder a) Writes Cheque i) $value ii) payee iii) date b) Advise "CC" merchant of "CC" cheque account code number, or routing; number as on cheque if has forgotten shortened "CC" Cheque account code No. c) Hands Cheque to customer with "CC" card. d) Customer provides to "CC" call centre Voice User ID as requested in 3)d)i. 2) Receiving Customer "CC" Merchant a) Calls "CC" call centre b) By, Voice. i) Gives "CC" Merchant card number ii) Connected till date/valid date iii) user ID iv) Voice ID number or password c) Merchant provides, Paying Customers "CC" card number if correct code given as IN 3)c),I Inclusive of, i) Connected till date/valid date ii) Routing numbers or "CC'cheque account code as 1) b) iii) Cheque details as in l)a) i, ii and iii iv) "CC" Merchant advises whether wants

(1) Cheque Verification

(2) Cheque guarantee and date d) Merchant writes the following details on back of cheque; i) Call receipt number as in 3) a) ii) Code as described in 3)c)i. iii) Code as described in 3)e)i. or 3)e)iii e) "CC" Merchant then banks the Cheque in financial

Institution for clearing f) Should Cheque not clear CC" Merchant alternatives . i) Make claim to "CC" cheque guarantor. ii) As in 7)c) i,ii. iii) Should negative approval be received as in

3)e)ii or 3)e)iv cheque returned to "CC" cardholder and advised to call "CC" call centre for possible override. 3) "CC" call centre/ "CC" Cheque Connected Network a) Answers and provides "CC" Merchant Call receipt No. to caller and Requests; i) Merchants "CC" Card number ii) Connected till date/Valid date, iii) User ID number iv) Voice ID number or password b) Inputs 2 b) i, ii iii and iv into "CC" cheque network computer system and communicates with processor, and existing data base. c) Supplies Code #. i) If details correct, code M10, M12, M13, M14 or MI5 and to proceed, ii) If details incorrect code M20, M21, M23, M24 or M25 can not proceed with transaction depending on which code can request customer service, customer service depending on code can override and provide new code as in 3)c)i. d) Call centre then requests, Paying Customers

"CC" card number if correct code was given as 'm 3)c) 1. Then requests ; i) To talk to "CC" Card holder and request

Voice user ID or Voice user Password, once received and inputted and all OK.

Then requests to talk to "CC" Merchant, ii) To talk to "CC" Merchant to provide

(1) Connected till date/valid date

(2) Routing numbers or "CC" cheque account code as 1) b)

(3) Call centre requests cheque details as in l)a) i, ii and iii

(4) Call centre requests if "CC" Merchant wants. (a) Verification of cheque.

(b) Guarantee of cheque and date for guarantee . e) Inputs 2 c) i, ii , iii an iv into "CC" cheque network computer system and communicates with processor, and existing data base, and issues code repeating details of cheque; i) Code starting with DUO, VI 2, V13, VI 4 or

VI 5 if cheque verified correctly, ii) Code starting with V20, V21, V22, V23, and V24 Or V25 if not verified.' iii) Code starting with G10, 011, G12, G13, G14 or G15 if Cheque guaranteed, iv) Code starting with G20, G21, G23, G24, or 025 if Cheque riot guaranteed.

4) Processor. a) Processor communicates with associated "CC" Cheque network connections or with its own database, and provides code or Information to make judgement on code decision to 'CC" call centre for decision as in 3)c),i and ii. b) Processor Communicates with associated "CC" Cheque network connections (Guarantor) or with its own data base and provides information to make judgement on decision as in 3)e) 1, ii, iii and iv.

5) Cheque Verification/Cheque Guarantor. a) Provides Information directly to "CC" call centre, or to call "CC" Processor for decision as in 3)e)ii, ii, iii and iv. b) If decision provide for Guarantee as in 3)e)iii i) Guarantee accompanies cheque until cheque writer provides funds to cover cheque. c) If cheque dishonoured i) Rights to cheque remain with cheque guarantor to fulfil, as, lie so requires by criminal or civil law, to recover funds from cheque writer 6) Loyalty Network/Barter Network. a) If connected to Loyalty network "CC" Merchant points updated in "CC" Loyalty Network Ledger, if transaction approved as in 3)c)i and 3)e) i and iii b) If "CC" cardholder connected to loyalty network updated in "CC" Loyalty Network Ledger c) If transaction completed as in 3)c) i and 3)e) i and iii . 7) Depositing Financial Institution a) Sends cheque and details to Clearing house for clearing, or whatever method it uses for clearing for cheque . b) Provides funds for "CC Merchant if 9)b) or 9)c)i. c) If No funds available i) Decides to provide "CC Merchant with overdraft .

(1) Transferring rights of cheque guarantee to financial institution for collection from cheque guarantor, ii) Returns cheque to "CC" Merchant and awaits funds from cheque guarantor while providing bridging finance. iii) Provides No funds and returns cheque to "CC"

Merchant .

8) Clearing House a) Sends details and Cheque to "CC" cardholders financial Institution for funds. b) Provides funds for depositing bank if funds available as in 9)b) or 9)c)i. c) Advises depositing financial institution No funds available.

9) "CC" Cardholder Financial Institution a) Accesses if funds available to pay cheque. b) If funds available settles amount through clearing house or by means available. c) If fund not available; i) Decides to honour cheque based on guarantee and allow overdraft to "CC" cardholder for negotiated period, ii) Decides to return cheque unpaid Keyed in through telephone keypad Keyed in through telephone keypad

1) Paying Customer "CC" Cardholder a) Writes Cheque, i) $value ii) payee iii) date b) Hands Cheque to "CC" Merchant with "CC" card c) "CC" cardholder Keys in Pin/Password as requested in 3)e) d) "CC" cardholder Inputs 'CC" Cheque Account code e) "CC" cardholder Inputs "CC" Cheque Account Pin/Password.

2) Receiving Customer "CC" Merchant a) Calls "CC" automatic call centre b) Punches in i) "CC" Merchant Number ii) "CC" Connected till date/valid date iii) User id. iv) User pin/password. c) Responds to prompts as mentioned in 3)b) to validate information and continue with procedure. d) Writes approval code on back of cheque and prompts to go on. e) "CC" Merchant inputs "CC" cardholders number; f) "CC" Merchant then inputs details as prompted in

3)g)i,ii and iii. g) "CC" Merchant presses code accepting details as requested in 3)h h) "CC" Merchant enters request as 'm 3)i)i or 11. i) "CC" Merchant confirmed receipt of Information and writes details on back of cheque as Telephone Voice 2)d)i,ii and iii. j) Follows same procedures then as Telephone voice. ) "CC" Automatic call centre. a) Answers provides receipt No. and prompts for., i) "CC" Merchant card number ii) "CC" Connected till date/valid date iii) User id number iv) User pin/password. b) Prompts after each sequence of 2)b) i,ii,iii,iv, entered if correct "CC" Merchant. c) Issues approval code following same procedures as mentioned in Telephone Voice 3)b)c)i,ii. d) Prompts then to go on and requests 'CC" cardholder number. e) Requests pin/Password number from "CC" Cardholder. f) Once accepted requests i) Cheque Accountant "CC" Code ii) Request Pin/pass word to access this account if requested pin at this level on application g) Prompts for "CC" Merchant to input; i) Cheque Number ii) Cheque date iii) $ Value, h) Prompts "CC" Merchant if details correct. i) Prompts "CC" Merchant if wants; i) Cheque Verification ii) Cheque Guarantee iii) Carries out procedure as in Telephone Voice 3)e)i, ii, iii or iv 4) Processor a) Same procedures as Telephone Voice. 5) Cheque Verification/Cheque Guarantor a) same procedure as Telephone voice 6) Loyalty Network a) Same procedure as Telephone voice

7) "CC" Merchant Depositing Financial Institution a) Same Procedure as Telephone Voice 8) Clearing House a) Same procedure as Telephone voice 9) "CC" Card Holder Financial Institution a) Same procedure as Telephone Voice POS TRANSACTION 1) Paying Customer "CC" Cardholder a) Writes Cheque, i) $value ii) payee iii) date b) Hands Cheque to merchant with "CC" card c) "CC" selects Deposit or Cheque. d) "CC" Card holder inputs pin/ID Procedure as requested in 3)d) . e) "CC" Card holder inputs "CC" Account code as requested in 3)e f) "CC" cardholder Inputs ID Procedure /Pin. As requested in 3)f

2) "CC" Merchant a) "CC" Merchant swipes or Inputs Card "CC" Merchant card (Unless otherwise arranged and not needed) Otherwise proceeds to step 2)b)iii. b) "CC" Merchant inputs i) User id ii) User pin/ID Procedure iii) "CC" Merchant swiped or Inputs "CC"

Cardholder card and chooses cheque. c) As requested in 3)g) "CC" Merchant Processes Details. , i) Manually into POS Terminal ii) With the aid of Interfacing MICR. reader keying in Date . $ iii) With the aide of image recognition Interfacing Terminal iv) Other Cheque reading Technology d) Merchant replies to request through POS terminal to 3)h)i and ii. i) Receipt given to "CC" cardholder and "CC" Merchant retains one. e) Should Merchant request direct debit to account or EFT within agreed time frame through processor, clearinghouse, or Financial Institution. i) Keys In Request code.

3) POS TERMINAL a) Prompts "CC" Merchant for; i) User ID ii) PIN/ID Procedure b) Gives Authorisation code as in Telephone Voice

3) c) i or ii . c) Prompt for "CC" Cardholder card d) Deposit or Cheque e) Prompts for "CC" cardholder pin/ID Procedure. f) Prompts "CC" Cardholder for 'CC" Account code NO. g) Prompts for if requested on application second level of ID Procedure/PIN. h) Prompts "CC" Merchant for Cheque details, i) Prompt 'CC" Merchant for; i) Cheque Verification. ii) Cheque guarantee, iii) Direct Debit, j ) POS Terminal issues Receipt with number itemising cheque details guaranteed or j verifiying as Telephone voice 3)c)i or ii and 3)e) ii, ii, iii, iv. Inclusive of. i) Cheque account routing numbers. ii) Cheque date. iii) Cheque amount, k) If requested Direct Debit, EFT. By agreement with "CC" cardholder i) POS Terminal issues receipt No. for "CC" Cardholder to sign issuing E10 .Ell 1 ,E12

E13,E14 or E 15 code. Inclusive of Telephone Voice code of 3)c)i or ii. ii) Also contained on the receipt is

Authorisation by "'CC" cardholder to turn Cheque into an electronic item for direct processing containing details as included if used Technology as described in 2)c)i,ii,iii or iv.

(1) Cheque No. (2 ) Currency/Amount .

(3) Date.

4) Processor a) Same procedures as Telephone Voice. b) Unless requested EFT as 3)h)iii following laws and procedural rules for that country.

5) Cheque Verification/Cheque Guarantor a) same procedure as Telephone voice

6) Loyalty Network a) Same procedure as Telephone voice b) Update d in same manner for 3)h)iii request

7) "CC" Merchant Depositing Financial Institution a) Same Procedure as Telephone Voice b) Unless requested as EFT 3)h)iii following laws and procedural rules for that country.

8) Clearing House a) Same procedure as Telephone voice b) Unless requested as EFT transaction as in 3)h)iii following laws, and procedural methods for that country.

9) "CC" Card Holder Financial Institution a) Same procedure as Telephone Voice b) Unless requested EFT as 3)h)iii following laws and procedural methods

ATM

1) "CC" Cardholder enter card into ATM machine

2) "CC" Merchant ATM Prompts for Cheque or Deposit

3) "CC" Cardholder enters prompt Cheque for Cash withdrawal or deposit to load in depositor's cheques.

4) "CC" merchant Prompts for Cheque/Cash out (IF ELECTED DEPOSIT GO TO a) "CC" Merchant ATM requests pin at this level b) "CC" Cardholder enters Pin/ID Procedure. c) "CC" Merchant ATM then prompts for "CC" shortened account code . d) "CC" Merchant then keys in; i) Cheque number ii) Date iii) Amount as machine accepts e) Electronic signature requesting acceptance of terms and conditions f) "CC" Merchant ATM release's cash debits account with details, is above g) "CC" Merchant ATM gives receipt NO. Itemising account and cheque details debited with, h) "CC" cardholder places details on Chequebook stub and tears up cheque! or deposits in ATM depending on "CC" ATM merchant arrangement for procedure .

5) "CC" cardholder requests deposit. a) Enters Pin/ID procedure Prompted for "CC" Shortened account . code b) Promoted for Pin/ID identification code c) Prompted for Routing number of each depositing Cheque inclusive of., i) Date ii) Amount iii) Verified iv) Guaranteed v) EFT d) "CC" ATM merchant then prompts if details correct e) "CC" cardholder accepts conditions by keying in electronic signature, f) "CC" merchant ATM Processes Cheque as arranged according to Authorisation code given per cheque, be it E, V or G series as TELEPHONE VOICE. g) Print receipt with itemised transaction of each deposit place cheques in A TM deposit terminal or as otherwise arranged with "CC" Merchant.

6) All Associated "CC" Cheque Parties networks then updated for both transactions. INTERNET

1) "CC" Merchant site displays 'CC" Logo. a) "CC" Merchant site requests following details type of virtual cheque details i) "CC" cardholder number ii) "CC" connected until date /valid date iii) "CC" ID Procedure /Pin iv) "CC" Shortened Account code Request v) "CC" ID Procedure/Pin vi) Your next Cheque Number vii) Date viii )Amount ix) Transaction Type (1) Verification

(2 ) Guarantee

(3 ) EFT x) Internet Signature Code b) After pressed transmit as in 3)c) Screen come back showing details as correct with authorisation codes accept/decline as Telephone voice and receipt number. c) Requests you print transaction for your records with all legal titles transferred to this cheque. d) "CC" Merchant Then has Cheque to print e) "CC" Merchant then banks Cheque in normal fashion if hasn't requested EFT transaction. 2) "CC" Cardholder. a) Chooses to make purchase sees available "CC" Logo i) Clicks on "CC" Merchant displayed logo b) Answers Prompt as l)a i) "CC cardholder number ii) "CC" connected until date /valid date iii) Deposit or Cheque (deposit used for banking of cheque) iv) Pin/ID procedure. v) "CC" Shortened Account code Request vi) "CC" ID Procedure/Pin vii) Your next cheque Number viii)Date ix) Amount x) Transaction Type (1) Verification (2 ) Guarantee

( 3 ) EFT xi) Internet Signature Code c) Transmit Information accepting all legal rights and transfer of cheque d) Accept final Transaction as in l)b. e) Print transaction for your record's as in l)c).

3) Processor a) Same procedures as Telephone Voice. b) Unless requested EFT as 3)h)iii following laws and procedural rules for that country.

4) Cheque Verification/Cheque Guarantor a) same procedure as Telephone voice

5 ) Loyalty Network a) Same procedure as Telephone voice b) Update d in same manner for 3)h)iii request

6) "CC" Merchant Depositing Financial Institution a) Same Procedure as Telephone Voice b) Unless requested as EFT 3)h)iii following laws and procedural rules for that country.

7 ) Clearing House a) Same procedure as Telephone voice b) Unless requested as EFT transaction as in 3)h)iii following laws and procedural methods for that country.

8) "CC" Card Holder Financial Institution a) Same procedure as Telephone Voice b) Unless requested EFT as 3)h)iii following laws and procedural methods If a cheque is received in the mail the authentication process can be summarised as follows:

DEPOSITING CHEQUES RECEIVED FROM CUSTOMERS THROUGH MAIL

1) "CC" Card holder swipes card at home terminal a) Promoted for 2) Cheque or deposit a) Chooses deposit b) Inputs pin/ID Procedure 3) Selects which "W Shortened account code a) Inputs pin/ID Procedure b) Inputs Routing numbers c) Date d) Amount 4) Requests either a) Verification b) Guarantee c) EFT

5) Authorisation code comes back with D10,D12.D13.D14 or D15

6) Receipt printed Acknowledging Processing arrangement waiting for Physical Cheques.

7) Banks cheques or Malls into institution to be processed as TELEPHONE VOICE. If Internet deposits are made into a customer's account or cheques are directed to another or cheques are directed to another account, the following sequence of steps are required: INTERNET DEPOSTING YOUR CHEQUES TO ANOTHER ACCOUNT DEPOSITS 1) GO TO financial Institution web site

2) Press "CC" icon

3) PAGE COMES UP REQUESTING a) Log in "CC" card details b) Connected date c) Cheque or deposit d) Chose deposits e) Log on pin f) Select account to deposit into shortened "CC" account code No . g) Second, level PIN/H) Procedure, h) Once Keyed in details and submit 4) New page comes up requesting a) Depositing cheque No b) Routing numbers c) Writer d) Date e) Amount

5) Transaction sought a) Verification b) Guarantee. c) EFT 6) Press submit

7) New Screen back accepting or declining deposits detailed.

8) Requests you accept and print detail of transaction

9) Mall Cheques in Once a week or whenever by arrangement to financial institution.

10) Clearing cycle starts early awaiting cheque if needed depending on laws in country as bearer has right to transfer ownership.

According to one embodiment it is necessary for a cheque holder to update their own credits associated with the loyalty network 25, the procedures involved are summarised below

CHEQUE TRANSFER WITH YOUR "CC" CARD UPDATING YOUR LOYALTY SYSTEM AUTOMATICALLY 11) GO TO financial Institution web site

12) Press "CC" icon

13) PAGE COMES UP REQUESTING a) Log in "CC" card details b) Connected date c) Cheque or deposit d) Chose Cheque e) Log on pin f) Select account cheque wanted out off using shortened "CC" account code No. g) Second, level PIN/ID Procedure, h) Once Keyed in details and submit

14) New page comes up requesting a) Next cheque No from your book b) Payee c) Payee Routing Number d) Date to transfer c) Amount

15) Transaction sought a) Verification b) Guarantee c) EFT

16) Press submit

17) New Screen back accepting request 18) Print detail of transaction with approval codes as in

Telephone Voice.

19) Mall Cheque Verified or Guaranteed for date requested with receipt and approval codes

20) EFT Cheque directly to Payee on date requested 21) Clearing cycle starts early awaiting cheque if needed depending on laws in country as bearer has right to transfer ownership.

It is envisaged that the cheque card can be a cheque and deposit card, a cheque card alone, a deposit card alone, an acceptor card (merchant card), a travellers card, a loyalty card/barter card and a combination of any one or more of the above . A summary of the possible functions of each of these types of cards is set forth below.

Fees Applicable

"CC" Cardholder Application Fees/Increase Limit Allocation Fee

Annual Card Fee

Credit Limited establishment Fee/Increase Limit Fee

Loyalty Linked Fees

Account Two, Three, Four, Five or other Linked Fees Account Two, Three, Four, Five or other Linked Loyalty

Fees

Transaction Fee

Guarantee Fee

EFT Fee ATM Fee

Loyalty Transaction Fee

Monthly Account Fee

Over Limit Fee

Over Transaction Limit Fee Any others applicable with above

MERCHANT

Application Fees/Increase Limit Allocation Fee

Annual Card Fee

Credit Limited establishment Fee/Increase Limit Fee Loyalty Linked Fees

Account Two, Three, Four, Five or other Linked Fees Account Two, Three, Four, Five or other Linked Loyalty Fees Transaction Fee Guarantee Fee

Verification Fee EFT Fee ATM Fee Loyalty Transaction Fee

Monthly Account Fee

Over Limit Fee

Over Transaction Limit Fee Any others applicable with above Fees

Functions and Other

1/"CC" Cheque and Deposit Card

Link any number of cheque or deposit accounts

Pin/ID encoded at different levels To be used for deposit or cheques issuance

Can maintain free or predetermined levels at different levels done by arrangement

Size of normal plastic card

Can come with pre-printed Cheque book wallet in duplicate or stubbed measuring 10cm by 7cm or as currently available

Various colours

Two Earth's in Background

Hologram of issuing country "CC" Logo

2/"CC" Cheque Card Link any number of accounts Pin/ID encoded at different levels To be used for issuance of cheques Comes with pre-printed cheque book wallet in duplicate or stubbed measuring 10cm by 7cm or as currently available

Size of normal plastic card Can maintain free or predetermined levels at different levels done by arrangement

Can maintain free or predetermined limits at different levels done by arrangement Various colours Two Earth' s in Background

Hologram of issuing country

"CC" Logo

4/"CC" Acceptor Card (Merchant Card) Linked to Merchant Account

Loyalty Linked

Pin ID/encoded

Accepting of all "CC" Cards

Size of normal plastic card 5/"CC" Travellers Card

For use with Travellers Cheques or Cheque account certain series numbers

Comes with pre-printed cheque book wallet in duplicate or stubbed measuring 10cm by 7cm or as currently available

Size of normal plastic card

PIN/ID Encoded

Loyalty Linked

Various Colours Two Earth's in Background

Hologram of issuing country

"CC" Logo

6/"CC" Loyalty Card/Barter Card

Predetermined Limit or Free at different levels PIN/ID Procedure

To be used on Loyalty Network/Barter Network for encashment of points

Can also connect to direct debit card one or any number Size of normal plastic card

Available in various colours Two Earth's in Background Hologram of issuing country "CC" Logo

7/"CC" Combination Cards

Combination of all or any of the above cards

Available in various Colours

Two Earth's In Background

Hologram of issuing country

"CC" Logo

Claims

1. A system for verifying and depositing a cheque, the system comprising a cheque having a cheque identifier and amount entered thereon, a card having data relating to the owner of the card and an authorisation code, a card data means for receiving the data of the card, a communication network connected to the card data means, a control station connected to the communication network and a guarantee means, wherein a cheque is arranged to be deposited by establishing a communication link between the card data means and the control station, the card data means is arranged to be used to enter and transmit data including the authorisation code, cheque identifier and amount to the control station, the control station is adapted to access a data base to check the card authorisation code matches the stored authorisation code and transmit a request to the card data means to enter the cheque identifier and cheque amount into the card data means and transmit the cheque identifier and amount to the control station, which is adapted to access the guarantee means to compare the cheque amount for the card with a predetermined amount set by the guarantee means for the owner, whereby an approval is adapted to be transmitted with a cheque receipt identifier to the card data means if the cheque amount is less than the predetermined amount and the control station is adapted to transmit the amount to an account data base for the owner whereby the amount is able to be deducted from the account balance for the owner.

2. A system as claimed in claim 1 wherein the database includes an owner database and a payer database .

3. The system as claimed in claim 1 or 2 wherein the guarantee means comprises a cheque guarantee database which is accessible by the control station through the communication network.

4. The system as claimed in claim 3 wherein the cheque guarantee means includes a database including a list of payees and an amount limit for each of the payees .

5. The system as claimed in claim 4 wherein the card data means comprises a card reader.

6. The system as claimed in claim 4 wherein the card data means includes a keyboard of a computer terminal .

7. The system as claimed in claim 6 wherein the card data means comprises a computer program which is adapted to prompt the owner of the card to enter data relating to the card and the cheque.

8. The system as claimed in claim 7 wherein the computer program includes a data entry facility whereby a plurality of fields are presented in which data relating to the card and cheque is to be entered.

9. The system as claimed in claim 8 wherein the program includes an icon which can be clicked on in order to transmit entered data once the data has been successfully entered in the relevant fields.

10. The system as claimed in claim 9 wherein the communication network includes the internet.

11. The system as claimed in claim 10 wherein the control station is adapted to send an approval signal to a loyalty network database whereby the loyalty network database can update loyalty credits for the account of the owner.

12. The system as claimed in claim 11 wherein the cheque includes a field for entering an approval identifier.

13. A system for guaranteeing a cheque, the system comprising a card having data relating to the owner of the card, an authorisation code for the card and an account identifier, a cheque having a field for an approval identifier, a communication network, a card data means connected to the communication network, the card data means being adapted to receive data of the card, a computer data base connected to the communication network, a control station connected to the communication network, wherein an amount is arranged to be entered on the cheque and the card data means is adapted to receive card data including the cheque amount and a cheque identifier code, wherein the card data means is adapted to transmit the data and cheque amount and cheque identifier to the control station whereby the control station compares the data, cheque amount, and cheque identifier with information stored on a database to verify the correctness of the data and the cheque identifier, and whereby if the data and cheque identifier is verified a signal is transmitted to a cheque guarantor means with the amount for the card data whereby the cheque guarantor means is arranged to compare the amount with a predetermined limit for the card data and to transmit an approval signal to the control station if the amount is less than a predetermined amount, and the control station is adapted to transmit an approval identifier to the card data means whereby the approval identifier can be entered in the relevant field of the cheque .

14. The system as claimed in claim 13 wherein the card data means comprises a card reader connected to a computer.

15. The system as claimed in claim 13 wherein the card data means comprises a keyboard connected to a computer connected to the internet .

16. The system as claimed in claim 15 wherein the control station is adapted to alter an account balance of the owner of the card.

17. A system substantially as hereinbefore described with reference to the accompanying drawing.