Intelligent Agents Based Virtually-Defaultless Check System: SafeCheck System

Abstract

Issuing a paper checkbook with multiple sheets implies that the authorization is required once for each checkbook at the risk of default due to the missed authorization for each check sheet issuance. However, the check system is an inexpensive way of payment in the high-credit business environment. To complement the defect of missed authorization on the likely-to-be-defaulted check issuance in the paper check system, we devised an agent based electronic check system which can monitor the situation and block the non-allowable check issuance in a distributed manner. The type of allowable service may be adjusted depending upon the check issuers credibility. To the top credit class, authorization will be required only for each checkbook issuance with distributed monitoring. The second level credit class requires authorization for each check issuance. The third level credit class are allowed to issue checks only within the balance in the check account. The credit level can be dynamically adjusted by the bank depending upon the record of default. To implement such an electronic check system on the Internet, we have designed the SafeCheck System which is composed of three agents: Checkbook Agent at check issuer site, Check-receipt Agent at check receiver site, and Banks Control Agents at the check issuers and receivers banks respectively. For security purpose, SafeCheck has adopted the public key cryptography, digital signature, and certificate schemes just like the SET protocol for the credit card. The essence of a checkbook agent may be stored in the IC card.