What Is a MICR Code?
MICR is an abbreviation for "magnetic ink character recognition." Seen on all bank checks and many other financial and legal documents, MICR is a combination of ink and type design to produce code that computers can quickly read right off the printed page. The encoding used to make MICR functional allows not only computers to "read" the text, but people also. This makes MICR more accessible than barcodes and other computer-readable formats.
Other People Are Reading
-
History
-
As the banking industry grew after World War II, the process of manually reading, debiting and crediting accounts for check amounts meant tremendous amounts of labor. With the advent of computer technology in the 1950s, the ability to read and translate magnetic tape meant other type magnetic surfaces could also be readable. MICR was developed as a way to make magnetic surfaces on paper for quick computer data input.
MICR Ink
-
The source for MICR technology is MICR ink. Almost always black, MICR ink contains high concentrations of iron powder. This makes an ink that is easily magnetized as a way to store digital computer information. In the same way iron was placed on plastic strips to make computer tape, MICR ink is printed on checks to make strips of data that computers can read with magnetic sensitive devices.
In recent years, MICR toner is also available for computer laser printers. This allows bank customers to print their own checks that are fully compatible with the bank's computer MICR data system.
-
MICR Type
-
MICR type is a unique typeface known for rather odd-looking thick and thin segments on different alphabet letters and numbers. The combination of thick and thin sections allows for printed MICR ink to be in different saturation on the paper. This allows the magnetic read device (or "read head") to discern the different letters and numbers.
MICR Data Input
-
Before MICR a clerk had to sit at a console and manually type the checking account, account name, check number and amount for each check presented to the bank. After MICR the checks are read (or scanned) at the rates of up to 25,000 per hour. Additionally, there are special code dots at the beginning and end of each MICR line telling the computer when the data starts and when it ends. This means the checks going through the read head do not need to be the same size or style. The computer adjusts for different intervals between each line of code based on the start/stop code dots.
Limitations
-
MICR does not eliminate all manual manipulation of checks. Actual written dollar amounts must still be entered. Also, handwritten signatures must be verified.
-
References
- Photo Credit check in macro image by Alexey Klementiev from Fotolia.com
