Magnetic Ink Character Recognition Line

Author: Source Technologies

Magnetic Ink Character Recognition (MICR) refers to the formulation of toner used to print the special font at the bottom of checks. At Source Technologies, we have built our technology around the importance of the MICR line for secure and efficient check and document printing and processing.


How the MICR Line Works

Different from regular laser toner, MICR toner contains iron oxide, a requirement of the Federal Reserve, making check-clearing a more efficient process. This specialized MICR toner enables checks and other negotiable documents to pass through high-speed reader/sorters in the clearing process. The reader / sorter machine sends a magnetic charge to the paper, and this is how the machine reads the routing number and account information contained within the magnetic ink character recognition or MICR line.

When a check, WIC voucher, or other negotiable document is printed using regular non-MICR toner, the reader / sorter will reject the check, resulting in a bank fee for the company that printed the document.


How the MICR Line Reduces Fraud Risk & Saves Money

When the MICR line is printed on checks and documents on demand, banks eliminate the need for pre-printed checks. Blank check stock prevents check fraud because it is “useless” until the magnetic ink character recognition or MICR line is printed with a MICR printer. The average loss per successful fraudulent attempt that a company or bank can expect is $17,100. Equipping your company with a secure MICR solution eliminates the costs associated with pre-printed checks, such as purchasing, storing, distributing and tracking these documents. By printing the MICR line on-demand, you also reduce voids, missing checks and paid-unadvised charges.

To learn more about how Source Technologies has developed the highest quality MICR solution for printing the MICR line on checks and documents, contact us today!