Did you know that 47% of companies experienced fraud in the past 24 months? To put that in perspective, that’s about a $42 billion loss due to fraud.
In 2020, fraudsters have become more advanced as technology has evolved, and they are still finding loopholes to steal financial data. Many businesses are turning towards biometric technology and other security features to help safeguard financial assets, but there is one financial document that is easily overlooked when assessing fraud risks: the check.
Avoiding Check Fraud with MICR
If financial institutions or businesses aren’t careful, they can be highly susceptible to check fraud. Unfortunately, many financial institutions don’t realize that a check was forged until weeks after it had already been deposited and the individual received the money. By the time the business realizes what has happened, it’s too late to go back. This financial loss ends up affecting the bottom line of your business.
So, how are businesses ensuring that they are printing secure checks that won’t be an easy target for fraudulent activity? The answer is in MICR technology solutions.
MICR Meaning: What is MICR?
MICR stands for Magnetic Ink Character Recognition, and it is a term commonly used in the check printing world. So if you have been on the hunt for a secure check printer for your financial institution or small business, you may have heard the word MICR quite a few times.
How do MICR printers work? MICR printers use a special MICR toner to print the MICR line at the bottom of checks. The MICR line consists of the check number, account number, and bank routing number. Here is a MICR template of the pieces that your checks should include:
Why is MICR Technology Important?
Having an ISO compliant MICR solution is critical to have in your business because the Federal Reserve requires that checks be printed with MICR toner for ease of processing.
Although it should be standard for businesses to use MICR solutions anytime they need to print off secure checks, some still don’t. Some businesses choose to use a regular laser printer to print off payroll checks or other official documents. This can be a cheap check printing alternative in the short-term, but your business may run into fraud issues or bank reject fees later down the road if you aren’t using an ISO compliant MICR printer.
Other Reasons Why Your Business Should Use MICR Solutions:
- Eliminates pre-printed check stock
- Offers a secure and reliable method of on-demand check printing
- Adheres to compliance standards
- Quickens the check printing process