System and method for managing financial transactions based on electronic check data
A system and method of transmitting a check-type payment between a payor and a payee using a third-party service includes registering a payor, receiving a check-type payment request from the payor by the third-party service, generating a unique identifier for the check-type payment request and associating payment information with the unique identifier, transmitting a payment notice to the payee, receiving a deposit request to a deposit account from the payee by the third-party, generating a depositable item responsive to the deposit request, and depositing the depositable item into the deposit account by the third-party service.
1. A method of electronically transmitting a check-type payment between a payor and a payee using a validation service comprising the steps of:
electronically receiving, by the validation server, a check-type payment request from the payor, wherein the check-type payment request comprises payment information comprising at least a payee identifier, an amount for the check-type payment, and a bank account identifier representative of one of the at least one bank account identity supplied by the payor;
generating, using one or more processors of the validation service, a unique identifier associated with the check-type payment request, wherein the unique identifier corresponds to the payment information;
electronically transmitting, by the validation service to the payor, the unique identifier for transfer to the payee with the check-type payment request;
electronically receiving, by the validation service from the payee, a deposit request to a deposit account instructed by the payee for the check-type payment, wherein the deposit request includes associated with the unique identifier corresponding to the payment information;
validating, using the one or more processors of the validation service, the unique identifier received from the payee;
in response to validating the unique identifier, electronically transmitting, by the validation service to the payee, a payment notice, the payment notice indicative of a payment to be made to the payee in response to the check-type payment request;
generating, using the one or more processors of the validation service, electronic data representing a depositable item responsive to the deposit request by associating the payment information and the supplied bank account identity associated with the payment information; and
electronically transmitting, by the validation service, the electronic data representing the depositable item, wherein the electronic data representing the depositable item is converted into the depositable item for depositing into the deposit account.
2. The method of claim 1 and further comprising the step of withholding information representative of the payor's at least one bank account identity from the payee.
3. The method of claim 1 and further comprising the step of checking whether the payee is registered with the validation service and, if not, registering the payee with the validation service and receiving at least one bank account identity to the validation service.
4. The method of claim 1 wherein the step of receiving the deposit request further includes the step of providing a list of check-type payments received by the validation service from a plurality of payees and providing an interface for selecting at least one check-type payment for deposit.
5. The method of claim 1 and further comprising the step of adding a secret to the depositable item after the step of transmission of the payment notice to the payee.
6. The method of claim 5 wherein the secret is added by the payee at the time of generating the deposit request.
7. The method of claim 5 wherein the secret is added by the validation service after the deposit request is received from the payee.
8. The method of claim 7 wherein the secret is accessible by the payor after the check-type payment has cleared the specified payor bank account.
9. The method of claim 8 and further comprising the step of validating the identity of the payor by asking the payor for the secret associated with the payment information.
10. The method of claim 8 and further comprising the step of verifying that the payor has authority over the specified payor bank account by asking the payor for the secret associated with the payment information.
11. The method of claim 1 wherein the check-type transaction comprises one of a check or an electronic check.
12. The method of claim 1 wherein the step of depositing the depositable item into the deposit account by the validation service further comprises one of the steps of (1) printing the depositable item on paper and presenting the printed depositable item to the banking institution associated with the deposit account; or (2) generating an electronic representation of the depositable item and transmitting the depositable item to the banking institution associated with the deposit account via remote deposit capture.
13. The method of claim 1 and further comprising the step of receiving remittance information from the payor and associating the remittance information with the payment notice transmitted to the payee.
14. The method of claim 13 and further comprising the step of mapping fields contained in the remittance information provided by the payor to fields acceptable to the payee using an interface provided by the validation service.
15. The method of claim 1 wherein the validation service prohibits printing of the depositable item once an electronic deposit request is received from the payee.
16. The method of claim 1 wherein the unique identifier comprises at least one of a hash value and a cryptographic digest.