A Concise Guide To MICR And Associated Technologies
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A Comprehensive Guide to MICR and Related Technologies
Introduction
Magnetic Ink Character Recognition (MICR) revolutionized the banking industry by integrating computer technology to automate check sorting, a process that was previously manual and labor-intensive. Before MICR, systems like Sort-A-Matic and Top Tab Key Sort were used to handle the vast number of checks processed daily.
Historical Check Sorting Systems
Sort-A-Matic System: This involved using 100 numbered dividers (00-99), made of metal or leather. Checks were sorted using the first two digits of the account number and repeatedly grouped for subsequent digits.
Top Tab Key Sort System: Checks had small holes at the top indicating each digit. A metal "key" was inserted through these holes to sort checks by the digit values, a process repeated until all checks were sorted.
Both systems were effective but time-consuming, paving the way for computers to streamline tasks like sorting and matching checks efficiently.
The Birth of MICR
Stanford University and Bank of America collaborated to create what is now known as MICR. They introduced the MICR font, E-13B, approved by the American Banking Association. This font includes ten numbers (0-9) and four special symbols: Transit, Amount, On-Us, and Dash. The development of E-13B was a significant achievement, characterized by precise measurements crucial for accuracy.
Understanding MICR Readers
MICR readers primarily use magnetic technology to detect characters, although Optical Character Recognition (OCR) readers are also employed.
Magnetic Readers: These readers use toner with iron oxide, which is magnetizable. As checks pass by a magnet and a magnetic read head, the resulting magnetic field generates a current that helps decipher the characters.
Types of Magnetic Readers:
- Single-Track Readers: Use a single gap to detect magnetic flux patterns, producing a unique waveform for each character.
- Multi-Track Readers: Use a matrix of small read heads to create a unique matrix pattern for each character through flux detection.
OCR Readers: These do not use magnetism but rely on detecting light differences between characters and their backgrounds.
Waveform Analysis
Checks are read from right to left, with specific peaks created as characters move across the read head. The placement and height of these peaks are vital for accurate character recognition.
Factors Affecting Signal Levels
Various factors can influence the signal levels in MICR, such as:
- Iron oxide concentration in toner
- How toner is applied, impacting the "pile height"
- Vertical edge regularity and height
Effective waveform detection requires clear peaks without unnecessary interference.
Selecting MICR Printers and Consumables
When choosing MICR printers and consumables, consider the following:
- MICR Fonts: Ensure compatibility with the printer engine and compliance with ABA-X9 standards.
- Magnetic Toner: Select toner designed specifically for the printer, ensuring consistent signal strength and image quality.
- Cartridges: While OEM cartridges are reliable, high-quality compatible brands can be cost-effective if they include new components like OPC drums and magnetic sleeves.
Vendors should utilize advanced MICR test equipment to conform to ANSI X9 Standards and exceed U.S. and Canadian check printing requirements.
Conclusion
MICR and its associated technologies have significantly improved the efficiency of check processing in the banking industry. By understanding the systems, readers, and consumables involved, institutions can ensure accurate and secure transactions.
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