What Is an MICR Line?
MICR, pronounced phonetically, is the 5/8-inch line printed across the bottom of all checks printed in North America and numerous other countries. The acronym stands for magnetic ink character recognition and refers to the line as well as the typeface.
Other People Are Reading
-
Identification
-
The MICR line is made up of numbers and symbols that provide the bank's routing number, the checking account number and the check number. The MICR line is printed using magnetic ink made of iron oxide additives, which allows the line to be read by machines. The MICR line on each check is unique to safeguard against any inaccuracy that may result in a duplicate check. The width of MICR characters is fixed at 1/8 inch, and they must be positioned accurately within a fixed character cell. The American National Standards Institute mandates the requirements for the MICR fonts and toner.
History
-
Prior to the advent of the MICR line, checks had to be processes manually. In the 1950s the American Bankers Association realized the need to automate the process of handling and sorting checks. The MICR line was developed in the 1956 by the Stanford Research Institute in response to the increase in checks written by consumers. By 1959 MICR technology was standard in the U.S. banking industry.
-
Function
-
The magnetic quality of the MICR line allows for easy and accurate readability by the machines, even if they have been printed over. A device called a MICR read head, which operates similarly to the playback head in a tape recorder, reads the line. The specifications of the rounded font ensure that each letter or number delivers a distinct waveform for reliable character recognition.
Significance
-
The MICR line is the only way that multitudes of checks can be processed each day. Before its implementation it could take weeks for checks to clear. Furthermore, the MICR line has a substitution rate, the rate of misread information, of about one out of 100,000 characters.
Theories/Speculation
-
In 1991 the introduction of MICR toner to the consumer market made it possible to print checks from home, lessening the cost and susceptibility to check fraud. Although MICR-compatible software and toner can be purchased, any variation in the line can result in declined or unreadable checks.
Some experts feel that soon the need for paper checks will be replaced by electronic payment methods, rendering MICR technology obsolete.
-
