Patent attributes
A method to prevent check fraud and to ensure valid negotiable instrument transactions with the use of randomized alphanumeric and special character sequence passwords or passcodes. Check stock is prepared with either serialized or un-serialized check numbers printed on the check stock. Randomized passcodes are generated, one for each check in the check stock. Each of the randomized passcodes is printed on a single check and correlated to a unique check number. A passcode file listing correlated check numbers and passcodes is prepared. Alternatively, the passcode can be maintained physically separate from the check. When a check is presented for payment, the check number and passcode has to be presented to the payor bank that compares the check number/passcode combination to list in the passcode file. If there is no match, or if the match has occurred before concerning another payment, the check is invalidated. The passcodes may be printed on the checks in invisible ink. If invisible ink is used, payee banks process presented checks to render the invisible passcodes visible before transfer to either a check clearing unit, or a payor bank. Alternatively, two sets of randomized passcodes can be created and used with one passcode printed on a check and correlated to the check number and a second passcode maintained physically separate from the check and delivered separately to the check payee for presentment with the check to seek validation and payment.
