MICR

MICR, or Magnetic Ink Character Recognition, is a data-collection technology used primarily in banking to automate the processing of checks and similar documents. Characters are printed with magnetic ink or toner and read by specialized MICR readers as documents move through processing equipment.

The most common MICR fonts are E-13B and CMC-7. In the United States and Canada, the MICR line on a check typically encodes the routing transit number (a nine-digit bank identifier), the account number, and the check number. The routing and account information are printed in a fixed layout at the bottom of the check, often with symbols that indicate the start and end of fields. E-13B is the dominant standard in North America, while CMC-7 has been used in some European systems.

How MICR works: the ink contains magnetic particles. When passed over a reader, the magnetic field detects the magnetization pattern of each character, converting it into digital data. The system is designed to tolerate minor damage, stamping, or perforation, enabling high-speed sorting of large volumes of payments.

History and standards: MICR emerged in the 1950s to automate check processing. The E-13B font was standardized for widespread use in North America, with CMC-7 used in certain regions. Standards cover font shapes, ink composition, and reading tolerances to ensure interoperability.

Advantages and limitations: MICR provides fast, reliable recognition with relatively low error rates and strong immunity to misreads caused by common check damage. It requires specialized printers and magnetic ink, which can wear or degrade over time and may be vulnerable to certain cleaning chemicals.

Other uses: Beyond checks, MICR can be employed on other financial documents and forms in high-volume processing environments.