Method and system for effecting payment by checks through the use of image replacement documents

1. A computerized method for effecting payment by a check, comprising:

receiving, at an output device, a smart card storing information relating to a check;

generating, based on reading the information in the smart card by the output device, an electronic image of the check drawing on a checking account of an account holder;

receiving payment information for the check on the output device;

generating a snippet of the payment information; and

electronically transmitting the snippet to a remote location for generation of an image replacement document representative of the check based on the snippet.

2. The computerized method of claim 1 , wherein reading the information in the smart card comprises reading a check image template in the smart card.

3. The computerized method of claim 1 , wherein receiving the payment information for the check on the output device comprises receiving a date, a payee, a dollar amount, and a signature on the output device.

4. The computerized method of claim 1 , further comprising storing the snippet in a storage location.

5. The computerized method of claim 1 , wherein electronically transmitting the snippet to the remote location comprises electronically transmitting the snippet to a payee bank.

6. A non-transitory computer-readable storage media storing code that upon execution cause an output device to:

read, using a smart card reader, information relating to a check from a smart card;

generate, based on the information in the smart card, an electronic image of the check drawing on a checking account of an account holder;

receive payment information for the check;

generate a snippet of the payment information; and

electronically transmit the snippet to a remote location for generation of an image replacement document representative of the check based on the snippet.

7. The non-transitory computer-readable storage media of claim 6 , wherein the information in the smart card comprises a check image template stored in the smart card and associated with the account holder.

8. The non-transitory computer-readable storage media of claim 6 , wherein the payment information comprises a date, a payee, a dollar amount, and a signature.

9. The non-transitory computer-readable storage media of claim 6 , wherein the code upon execution causes the output device to store the snippet in a storage location.

10. The non-transitory computer-readable storage media of claim 6 , wherein the remote location is selected from the group consisting of a payee bank, a payor bank, and an image replacement document service provider.

11. The non-transitory computer-readable storage media of claim 6 , wherein the snippet comprises a file size of no more than about one kilobyte.

12. The computerized method of claim 1 , wherein the image replacement document is generated using an image replacement document tool.

13. The computerized method of claim 1 , wherein the image replacement document tool is to, in response to receiving the transmitted snippet:

retrieve an image template from an image template database, the image template corresponding to a checking account of the consumer; and

electronically merge the image template with the snippet to create the image replacement document.

14. The computerized method of claim 1 , wherein the information relating to the check is stored on at least one of an integrated circuit chip and semiconductor device.

15. An output device comprising:

a smart card reader to receive a smart card storing information relating to a check; and

a hardware processor to:

generate, based on reading the information in the smart card by the smart card reader, and electronic image of the check drawing on an account of an account holder;

receive, at the output device, payment information for the check;

generate a snippet of the payment information; and

electronically transmit the snippet to cause a remote server to generate an image replacement document representative of the check based on the snippet.

16. The output device of claim 15 , wherein the image replacement document includes fields into which the payment information is inserted.

17. The output device of claim 15 , wherein the smart card stores a check image template; and

the computer is to read the stored check image template.

18. The output device of claim 16 , wherein the fields comprise a date field, a payee field, a dollar amount field, a legal amount field, and a signature field.

19. The output device of claim 15 , wherein the generating of the image replacement document representative of the check comprises:

generating an image of a completed check;

generating an image replacement document identification section;

generating a legal notification section; and

generating a magnetic ink character recognition (MICR) section representative of an MICR line of the check.