What Is MICR Toner?
MICR stands for "Magnetic Ink Character Recognition." Banks use MICR toner for printing checks and other important documents to facilitate transaction processing and help with fraud reduction.
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Characteristics
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MICR toner is a mix of ink, plastic powder, lubricants, enhancers, iron oxide. The iron oxide makes the MICR toner machine-readable. Depending on the brand and supplier, MICR toner cartridges cost between $99 and $329. The toner cartridges work with brand name printer such as HP, Lexmark, IBM, and Xerox.
Significance
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The MICR line is the line of numbers at the bottom of the check. The numbers in this line contain the routing and account information on the check. The numbers must be on this line for the MICR machine to read it.
How It Works
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When the cashier feeds the check through the register, the check slides through the machine. The machine passes magnetic charges through the check as it passes, reading the numbers. Software matches the information on the account from a database; if the check is good, it is validated and the account is debited.
Considerations
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If you get a check with improperly placed MICR numbers, contact the issuing bank for advice. Improperly placed MICR numbers may indicate counterfeit or fraudulent checks.
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References
Resources
- Photo Credit check and pen in close up image by Alexey Klementiev from Fotolia.com
