MICR TONER – How can cheque printers, software providers and organizations that produce their own cheques confirm that their new versions meet all of the new specifications?

Cheque printers, software providers and companies that print their own cheques are strongly encouraged to provide pre-production samples to their financial institution to ensure that they meet the requirements of the new standard. These organizations should contact their financial institutions for more information about the testing process and timelines.

Does magnetic ink still need to be used in the MICR line on cheques?

Yes, magnetic ink must be used in the MICR line, as automated processing equipment still relies on magnetic ink to read data from the MICR line.

WHAT IS MICR in MICR TONER?

Magnetic Ink Character Recognition (MICR),  is the common machine language specification for the paper-based payment transfer system.  It consists of magnetic ink printed characters of a special design which can be recognized by high speed magnetic recognition equipment.   This series of readable characters provides the receiving party with information needed for processing the check including: check number, bank routing number, chequeing account number and in some cases the amount of the cheque.

MICR characters are printed in the form of either an E-13B or CMC-7 Font.  Each font series is made up of a series of numbers and symbols specifically designed for readability on cheque sorting machines which read at extremely high rates of speed.  The symbols provide a beginning and ending point for each group of numbers allowing the machine to quickly determine what each series of number signifies.  Line placement, character placement, skew and quality are several critical components of printing MICR; the line must be precisely positioned in the MICR Clear Band area.  To create consistency in the cheque clearing process it is critical that each character is readable and that the printing methods are reliable.

Some key phrases that you need to know in order to understand “What is MICR” include:

MICR (Magnetic Ink Character Recognition)

MICR Printing

MICR Toner

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MICR, Magnetic Ink Character Recognition:

MICR is the technology which allows the characters printed on the bottom of the check to be read by reader-sorter machines.  A special formulation of ink or toner, MICR can be printed with impact machines, on a printing press, or a laser printer.

The magnetically charged printing allows each character to be recognized based on the magnetic signal created by each character’s unique shape.  These shapes create a unique magnetic “fingerprint” which allows the reader-sorter machines to recognize each character.  Since MICR is a machine readable process, it is imperative that each character is accurately placed and is free of irregular marks or voids.  The uniformity of print is another key component to readability.

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MICR Printing: 

Checks can be ordered with the MICR Characters already printed in the clear band of each check.  This is known as a pre-printed check; these checks are typically printed by a production house utilizing high speed impact equipment and ship based on minimum order quantities.  Pre-printed checks can be costly if purchased in small quantities.

Another option is to order blank checks where the MICR Characters are printed at the same time you print the checks.  Other checks are typically printing using a laser printer on a blank check stock, in this case the MICR line is printed at the point in time when the check is created and the MICR line often contains the amount.  When check printing is done in-house it is important to verify that all of the necessary elements for printing the MICR Line are in place.  In order to printer your checks you will need a check writing software, which provides check formatting, blank check stock, MICR Toner, as well as a printer capable of printing MICR.

 

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MICR Toner:

MICR Toner provides the ability to print checks on demand using a desktop laser printer with blank check stock.  The toners are formulated with a special grade of magnetic iron oxide which provides the characters with a magnetic signal.  Should you attempt to print checks with standard (non-magnetic) toner the characters will appear visually to be correct, but they will not be magnetically readable by a reader-sorter.  The net results are check rejects at the clearing center and often times additional check processing charges imposed by the banks.

Some areas to consider when deciding which MICR Toner cartridge to purchase include:  cartridge type (new or remanufactured), cartridge brand (manufacturer) and cartridge price.  Purchasing premium cartridges, a cartridge which has not been previously used, typically provides more reliable cartridge performance and consistent yields (or total number of prints per cartridge).  When purchasing a remanufactured cartridge, yields and consistency can often be compromised.