Abstract: A system which, by means of a specially devised instrument, affords the option of processing checks by Electronic Funds Transfer (EFT) procedure. The system includes a specially designed check having a punch out or other machine readable element which, by its presence and position, identifies the instrument as a check which may be processed by such EFT procedure. The check is also imprinted with certain covenants, which are stated as pertaining only to the processing of the check by EFT procedures. Therefore the check may also be used in completely routine fashion. The system is adapted to interpret such punch out or other machine readable elements and accompanying MICR data so as automatically route this check, as well as other types of banking instruments, in appropriate manners through clearance channels to the proper drawee.

Abstract: An Electronic Funds Transfer (EFT) system comprising a number of uniquely designed instruments including a letter of credit card from which, at the time of each negotiation thereunder, data can be derived which, with a high degree of certainty, identifies the card holder the amount available for the transaction and such additional data as is required to complete, at the time of the transaction, a uniquely designed draft form to include all of the data needed to transfer the funds involved between the proper parties to the transaction on a purely EFT basis.

Abstract: A credit card processing system involving the use of a machine for reading the data encoded in the magnetic stripe of such a card and for printing such data in MICR characters, at the point of sale, along the bottom of the merchant's bank sales slip copy of each transaction under the credit card. The machine also has means for selecting any one of four punches for making a punch out in said bank copy in any one of four predetermined optional ABA standards positions to designate the transaction as a credit or charge transaction and whether it is to be processed by EDP or EFT procedures. The system also includes all of the various instrumentalities necessary to process each transaction, guided by the punch out information, through the merchant's bank, the clearing house, and the issuer institution for final posting and billing.

Abstract: A letter of credit device consisting of the combination of a card and a check. The card has a plurality of numerical columns each of which is headed by a numeral and also a plurality of transaction sections extending across the numerical columns and having a punch out element in each of the numerical columns so that, by selective punch outs, the dollar value of each of the transactions is irrevocably recorded. The check and card each identify the issuing bank and the account number of the holder. In addition the card carries an identification of the holder, including his signature, and also states the terms under which a negotiating party is guaranteed payment for any sum paid under the negotiated transaction. The check also has a punch out section, which the negotiating party punches out, before forwarding the check for payment to the issuing bank, as a representation that the negotiation was under the card and in accordance with the terms on the card.