The Best Method of Input Data for Bank Checks

Banks in the U.S. and around the world use the Magnetic Ink Character Recognition method, or MICR, for inputting checks and balancing accounts. The MICR system was judged by the Bank of America as the most efficient system of inputting checks into a banking system.

History

The MICR system was developed by SRI International in the 1950s under contract to the Bank of America, who wanted an automated system to input the large number of checks it processed daily. MICR uses magnetic ink to allow checks to be read by machine.

Magnetic

Magnetic ink allows checks to be read and inputted when the information on the check is obscured or defaced. The use of magnetic ink allows checks with problems to be rejected with others processed at greater speeds than by hand.

Standards

Using the MICR system, banks print checks with a series of Arabic numbers and symbols to code the information on the check. The type of font used in MICR and the location of the information is governed by standards created by the American National Standards Institute.

References

• Elfring Fonts: What is MICR?
• SRI: ERMA & MICR