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The more that I read about what is coming out of the Reconciliation Committee, particularly the debate on the Durbin Amendment, the more inclined I am to quote Shakespeare:
Much Ado About Nothing.
All this has to do with fixing Too Big To Fail how?
And poor me, I thought the original objective of all of this Financial Services Reform movement was to prevent a crisis like we experienced in 2008 from ever happening again!
Somehow, my feeble brain just cannot make the link between debit cards and derivatives, CDOs, mortgage fraud and all of the other hanky panky that was going on.
Talk about the Law of Unintended Consequences!
But, never waste a good crisis, at least in Washington!!
Check out this recent news item:
http://www.digitaltransactions.net/newsstory.cfm?newsid=2483
Starting to get some attention in the industry.......
Aaron et al,
Before I end up beating this horse to death, let me suggest that you review these GSF patents closely.
What they cover, at least in my opinion, is a whole lot broader than just "the image" of a Digitally Originated Check.
The GSF patents are all about "metadata" and their "invention" goes to a higher plane & a more abstract concept than just the creation of a digital image of a check.
It is this "metadata" concept of their patents that in fact will allow B2B payments to flow invoice data along with the payment information in a single transaction that I found so ground breaking when I started trying to learn more about this announcement last week.
If I am correct in my assessment, what we have here folks is a major disruptive technology on our hands!
But do not simply take my word for it. Delve into these patents and make your own conclusions as payments systems professionals.
However, be careful and do not injure yourself when your jaw hits the floor once you realize the implications to our industry of what you are reading!
So what does everyone here think about the Digitally Originated Check (DOC) concept (aka EPO) and the news of Global Standard Financial, Inc's patents that broke during this conference? See below if you missed this important development.
As I understand it from what I have read, DOCs pretty much solve the B2B payment problem that Aaron described as well as cover the EPO concept. Seems to me, that a DOC-based product offering that created a B2B electronic lock box would fall under the purview of these patents.
Interesting to me, while we in the banking industry have been implementing Check 21-based solutions and exchanging rhetoric about pure e-payments, someone else was busy creating the solution that the Fed and ECCHO as well as others have been postulating and wanting to implement. In fact, according to the filing dates on these patents, GSF was building this technology long before the Fed even began to think about the EPO concept.
When you think about what GSF has done in hindsight, shame on us in the industry who have always thought that a check had to enter the payments system as a paper document. How simple and elegant is GSF's solution in letting a check be born as a digital document and never ever having to take the form of a paper item.
