MICR stands for Magnetic Ink Character Recognition. It's a technology used primarily by banks to facilitate the processing and clearance of checks and other documents. Here’s a quick rundown of how it works
Special ink containing magnetic particles is used to print specific characters on documents. This ink can be magnetized and is crucial for the MICR system.
The characters printed with magnetic ink are encoded in a specific format known as the MICR line, typically located at the bottom of a check. This line usually includes the routing number, account number, and check number, all formatted in a standardized way.
The MICR reader/scanner passes the check under a magnetic head that magnetizes the ink. The magnetic properties of the ink are crucial for the recognition process.
The MICR reader detects the magnetic variations created by the ink and translates these variations into digital signals that represent the characters printed on the check. The reader interprets the encoded information, allowing for automated processing.
Once the MICR data is read, it’s used for various banking functions, such as verifying the check, sorting, and routing it to the correct bank for processing. This helps in reducing errors and speeds up the processing of checks.
MICR is valued for its reliability and speed. The magnetic properties of the ink help ensure that the data can be read accurately even if the check is damaged or the ink is smudged.
