The banking industry is complex, simply because it deals on the movement of money, particularly through check payments. Because of the complexity, it becomes necessary that checks should be coursed through with an MICR (magnetic ink character recognition) check printer.
The main reason why payments must be MICR check printed is to ease and speed-up the banking processes. The physical abuse that checks go through, renders it mushy and almost impossible to read once it reach the concerned bank. This is understandable as the validation process is thorough and series of signatures are allowed defacing the check. Optical reading will never be sufficient to determine the actual content, and regularly mistakes happen.
Mistakes are often in the form of misread figures, resulting in wrong credits to concerned accounts and balance at the end of a banking day is impossible to achieve. To relieve banks from this, they often prefer checks have MICR encoding at the bottom. All checks that passes through the MICR reader of the bank delivers accurate readout, even on checks that are no longer optically legible.
In whatever physical form the check maybe if it has MICR markings, the banks MICR reader will be able to credit the check easily and accurately. Because MICR prepared checks have document type indicator, a bank code, a bank account number, the cheque number, the cheque amount and a control indicator. This banking technology allows the resident MICR reader to scan and read the information directly and stored in a data-collection storage.
What makes MICR check printer different from your regular printer is the special ink used in the process. It could be ink or toner but has magnetic properties, usually iron oxide. As the document passes through an MICR reader, the ink in the document is first magnetized. A device similar to the head of a tape recorder reads only the magnetized information and will not recognize any other characters appearing on the document.
And since the process is automatic, sorting and crediting of cheques is easy and convenient for the bank personnel. All margin of errors are practically omitted using the MICR check printer and reader. At the end of a banking day, office personnel simply need to push a button and transaction balance is achieved. There is no need for personnel to pore over each document to achieve a similar result.
Remember, using an MICR check printer not only helps ease the banking process, but offers clients peace of mind as transactions are accurately consummated.