Micr Technology And Its Usage In Check Printing

By Author: Acheson Walker
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Everything in life comes from somewhere, and those odd, hieroglyphic-looking symbols at the bottoms of checks are no exception.

Seemingly invented to obfuscate, MICR or Magnetic Ink Character Recognition as it's formally known, "is the common machine language specification for the paper-based payment transfer system," as one Web site puts it. Or to put it in simpler terms, the numbers help checks and other financial documents get where they need to go.

So why do the numbers look the way they do? They're designed to be readable at a high rate of speed, magnetically scan-able off of shapes that each unique number creates and printed in either a CMC-7 or E-13B Font (which, on an interesting side note, became a precursor to modern computer fonts in the 1960s.)

The MICR numbers are optimized as they are for quick recognition since financial institutions can face a heavy volume of transactions in a given day, and the numbers ensure that checks and other documents get processed quicker, making funds available more immediately. They're vital for efficiency, and with a read rate of better than 1 percent, they're ...
... more reliable than other codes. This helps minimize fees for rejected checks and extraneous processing.

MICR check printing is a process in itself with two basic options. Blank check stock can be ordered with pre-printed numbers. The other option is to order fully blank checks and print the numbers from an office or home with the help of check printing software. Special MICR toner will also be needed so that the checks can be produced from a laser printer, though companies that offer the software typically have the toner as well. It is admittedly harder to find MICR cartridges for ordinary ink jet printers, since there can be a high amount of inconsistency.

The toner or magnetic ink often has iron oxide in it, and as the printing occurs, the checks are impacted by a so-called MICR read head, which has the same effect on the checks as a tape recorder playback device, creating a wave on the check which makes the numbers readable.

Looking at a check or other financial document, the MICR on them may look like impenetrable symbols, and in a sense they are, providing security in their inscrutability at least to newcomers. Who hasn't ever stared at a blank check while attempting to fill out a direct deposit form for a job, finally going online to Google what the numbers mean?

But it's not difficult to get an understanding of MICR numbers and harness their power. In fact, as opposed to bar codes (the true mystery language of commerce, harder to decipher than Navajo) and related symbolism, MICR is easily readable for most humans. On checks, the numbers are broken down with brackets accordingly for the two font formats:

* E-13B: transit, on-us, amount, and dash

* CMC-7: internal, terminator, amount, routing, and an unused character.

End of day, MICR is a fairly simple technology, going strong for decades and sure to continue to serve good purpose.

Mirabel Oliva is the author of this article on MICR check printing and how it is used to transform blank check stock into secure financial documents.