A Concise Guide To MICR And Associated Technologies

 

The banking industry developed Magnetic Ink Character Recognition (MICR) to leverage the benefits of computer technology. Prior to the use of a MICR line, check sorting by account number was a manual process. Two systems were previously used to handle the large numbers of checks processed in the banking industry: Sort-A-Matic and Top Tab Key Sort.

The Sort-A-Matic system included 100 metal or leather dividers numbered 00 through 99. We placed each check in the corresponding divider based on the first two numbers of the account. We then repeated the sorting process for the next two digits of the account number, and so on. Upon completion of the process, we grouped the checks by account number.

Under the Top Tab Key Sort system, small holes punched at the top of the checks indicated the digits. For instance, the first hole indicated the value of the first digits (0, 1, 2, 3...) We inserted a metal "key" through the holes to separate all checks with the same value in the first digit, repeating this step for each digit until we sorted all the checks.

Both of these systems worked, but they were time-consuming. With the advent of the computer and its movement from the laboratory into the business world, sorting and matching tasks seemed ideal. Stanford University and Bank of America were the first to successfully use computers to sort and match checks. They developed what is now known as MICR. 
The Development of the MICR Font 

Stanford University and Bank of America collaborated to develop the MICR font, which received approval from the American Banking Association. The font is known as the E-13B font. E-13B has a total of 14 characters: ten specially designed numbers (0 through 9) and four special symbols (Transit, Amount, On-Us, and Dash). 

The letter E indicates the fifth version considered. The letter B indicates the second revision of that version. The number 13 is derived from the 0.013-inch module construction used for stroke and character width. This means that all character widths, both horizontal and vertical, are in multiples of 0.013 inches, ranging from 0.052 to 0.091. We will delve deeper into the significance of this later in this article.
MICR Readers 

We use three types of machines to read MICR characters. We refer to the two machines that read the characters magnetically as MICR readers. The third machine is an optical character recognition (OCR) reader.

E-13B characters are printed with toner containing iron oxide, which is capable of being magnetized. MICR readers transport the checks containing the E-13B magnetic characters past a magnet, thereby magnetizing the iron oxide particles. The magnetized characters then pass under a magnetic readhead. The magnetized characters create a magnetic field (flux pattern) that in turn generates a current in the read head. The strength and timing of this current allow the reader to decipher the characters. 

Magnetic readers come in two types: single track (single gap or split scan) and multiple track (matrix or pattern) readers.

Single-track Reader Characteristics
The single track employs a single-gap read head to identify the magnetic flux pattern that the MICR character generates. A magnetized E-13B-printed character moves across the narrow gap of the read head, generating an electric voltage unique to each character due to the magnetic flux from the character.

Multi-track Reader Characteristics
The multiple track reader employs a matrix of tiny, vertically aligned read heads to detect the presence of the magnetic flux pattern. The small, individual readheads slice across the character to detect the presence of magnetic flux. This sensing of magnetic flux over time produces a unique matrix pattern for each character.

An OCR reader does not use magnetic properties to detect the E-13B characters. Instead, it employs a scanner to measure the reflected light from the character and the background. A photocell column detects the presence of the dark area of a character.
Waveform Theory 

The readers move and read documents from right to left. The right-hand edge of the character, as a result, is the first to cross the read-head. We can better understand this by analyzing the signal level that results from reading the character 0.

As the character moves from right to left under the read head, the gap detects the magnetism of the first right-hand edge (edge 1). As a result, the magnetism increases, leading to the creation of a positive peak (peak 1). The wave form returns to the zero signal level as soon as the right-hand edge moves beyond the read-head gap, indicating the absence of new magnetism.

At the second edge, the vertical read head detects a drop in magnetism, which results in a -110 signal level at peak 2. The waveform returns to zero once more until it detects the next portion of the inner ring of the character. Peak 3 indicates an increase in magnetism (+110). Finally, reading the outer portion of the character leads to a negative peak (peak 4) of -130.

The placement of the vertical edges must occur in increments of 0.013 inches from the first right-hand edge. Five characters, resembling the character 0 with two positive and two negative peaks, are arranged in a positive-negative-positive-negative pattern. The waveforms differentiate 0, 2, 4, 5, and the transit character from each other based on the horizontal location of their peaks. The peaks do require different amplitudes, but ANSI standards allow them to vary from 50% to 200% of the nominal amplitudes; Canadian standards allow them to vary from 80% to 200% of the nominal amplitudes. This underscores the significance of waveform placement and the peculiar shape of the characters.
What Affects the Signal Level? 

Signal level can vary based on a number of factors. The amount of iron oxide (concentration) that is present in the character will affect the signal level. Numerous other cartridge components (i.e., "hot" OPCs) can control not only the toner itself, but also its placement on the paper and the pile height.

The taller the vertical edge of the character, the taller the peak (either positive or negative). A vertical edge that is not regular and/or not vertical will result in a reduction in the amplitude of the peak and will flatten the peak out. 

Keys to proper waveform detection are:

* You must detect all peaks in a character's waveform. The reader must recognize the presence of the peak.

* The peak must be located at or near its anticipated location. 

* No significant "extra" peaks can be present. 

* There cannot be wide variations in the signal levels of peaks within a character. 

What to look for in MICR printers and consumables

Printers that are used for MICR printing must have a unique MICR font that is modified to suit the unique printer engine, and it must be modified to the pixel level to match the magnetic toner provided for that printer. Printing checks with the correct MICR characters ensures the correct waveform, dimension, and signal strength. In addition, the MICR font must meet ABA-X9 standards to ensure acceptance of your checks by banking institutions.

You must specifically design the magnetic MICR toner for the printer's specific print engine. Make sure you have thoroughly tested the toner to ensure consistent signal readings, image permanence and uniformity, and excellent edge acuity. Toner coverage must be solid with no extraneous toner laydown.

OEM cartridges are always a safe (but more expensive) bet. If you buy a "compatible" brand, ensure it has a new OPC drum, new primary charge rollers (PCRs), a new black velvet magnetic sleeve, and new image wiper blades. The hopper system must be filled with high-quality, low-abrasion MICR toner.

The vendor you choose should use the latest and most advanced MICR test equipment, such as a verifier and golden qualifier, to conform to ANSI X9 standards. We also recommend that the systems surpass U.S. and Canadian check printing standards.

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