Xerox MICRFund If Not Then 701P22140

User Manual: Xerox If not then Manual: ://.support.xerox.com/pub/docs/DocuPrint_100_100MX/userdocs/any-os/en/MICRFund_701P22140

Open the PDF directly: View PDF .
Page Count: 172

Download
Open PDF In Browser	View PDF

January 2003
701P22140

Xerox Document Services Platform

Generic MICR
fundamentals
guide

Prepared by:
Xerox Corporation
Global Knowledge and Language Services
800 Philips Road Bldg. 845-17S
Webster, New York 14580
USA
©2003 by Xerox Corporation. All rights reserved.
Copyright protection claimed includes all forms and matters of copyrightable material and information
now allowed by statutory judicial law or hereinafter granted, including without limitation, material generated
from the software programs displayed on the screen such as icons, screen displays, or looks.
Printed in the United States of America.
XEROX® and all Xerox product names mentioned in this publication are trademarks of XEROX CORPORATION.
Other company trademarks are also acknowledged.
Changes are periodically made to this document. Changes, technical inaccuracies, and typographic
errors will be corrected in subsequent editions.

Table of contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
About this guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
How to use this guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . x

1. Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1
A brief history . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2
Why MICR? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5
Check printing capabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5
Check processing procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-6
Production cycle of a check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-9
Changes in check creation role . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-11

2. Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1
Types of MICR applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Manufacturing checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuing checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Issuing turnaround documents . . . . . . . . . . . . . . . . . . . . . . . . . .
Printing financial forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Xerox MICR printing systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MICR printing technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Printer technical optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Typical MICR printing concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2-1
2-1
2-2
2-2
2-3
2-3
2-4
2-5
2-5

3. Paper facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1
Paper guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MICR paper requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Basis weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sheffield smoothness scale . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Grain direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Moisture content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reflectance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Curl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Perforation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Metallic content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stiffness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cutting precision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Xerox paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Generic MICR Fundamentals Guide

3-1
3-2
3-2
3-3
3-4
3-5
3-5
3-6
3-6
3-7
3-7
3-8
3-8

iii

Table of contents
Paper maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9
Wrapping factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9
Storage factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9
Temperature and humidity conditions . . . . . . . . . . . . . . . . . . . 3-10
Paper runability criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-11
Preprinted forms considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-13
Inks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-13
Security features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-14
Duplication detection . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-14
Alteration prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-15
Application design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-15
Numbered stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-15
Features to avoid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-16

4. Document design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1
Check document content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1
Security features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1
Background printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2
Fixed information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2
Date line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2
Amount lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3
Payee line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3
Signature lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-4
Name of financial institution . . . . . . . . . . . . . . . . . . . . . . . 4-4
Memo line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-4
Account title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-4
Check serial number . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5
Fractional routing number . . . . . . . . . . . . . . . . . . . . . . . . 4-5
MICR line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5
MICR line (clear band) format requirements . . . . . . . . . . . . . . . . . . . . . 4-5
Format specifications using E13B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7
E13B character set . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7
E13B numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7
E13B symbols . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7
On-Us symbol . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7
Transit symbol . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8
Amount symbol . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8
Dash symbol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8
E13B character design . . . . . . . . . . . . . . . . . . . . . . . . . . 4-9
Field formats—E13B font . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-9
Document Specifications form . . . . . . . . . . . . . . . . . . . . 4-11
Amount field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13
On-Us field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13
Transit field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13
External processing code (EPC) field . . . . . . . . . . . . . . 4-14
Auxiliary On-Us field . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-14

Generic MICR Fundamentals Guide

Table of contents
Field formats summary . . . . . . . . . . . . . . . . . . . . . . . . .
Character alignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CMC7 font . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CMC7 numbers and symbols . . . . . . . . . . . . . . . . . . . . . . . . . .
Character design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MICR character spacing requirements . . . . . . . . . . . . . . . . . . . . . . . .
Character spacing algorithm for 300 dpi . . . . . . . . . . . . . . . . . .
Fixed pitch and proportional font spacing . . . . . . . . . . . . . . . . .
Check size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other application considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Two sided printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Perforations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Multiple-up printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Readability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4-14
4-16
4-16
4-16
4-18
4-19
4-19
4-19
4-23
4-25
4-25
4-25
4-25
4-27

5. Document processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1
Proofing checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-2
Amount determination errors . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-2
Proofing equipment errors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-2
Reader sorter function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-3
Waveform generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-4
Types of reader sorters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-5
Waveform reader sorters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-5
Matrix or AC reader sorters . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-5
Optical reader sorters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6
Dual read magnetic reader sorters . . . . . . . . . . . . . . . . . . . . . . . 5-6
Hybrid magnetic and optical reader sorters . . . . . . . . . . . . . . . . 5-7
Processing speeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-7
Paper handling by reader sorters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-8
Hopper jogger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-8
Separator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-8
Aligner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-9
Read/write heads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-9
Item numbering and endorsing stations . . . . . . . . . . . . . . . . . . . 5-9
Microfilm or image capture unit . . . . . . . . . . . . . . . . . . . . . . . . . 5-9
Sorter pockets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-10
Reject repair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-10

6. Quality control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-1
Print quality specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Optical tools used to check MICR . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MICR Gauge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Small Optical Comparator . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Magnetic testing equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
E13B calibration document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Testing sample documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Generic MICR Fundamentals Guide

6-1
6-2
6-2
6-3
6-3
6-4
6-5

Table of contents
Specifications for testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-6
Horizontal position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-6
Vertical position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-7
Skew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-9
Character-to-character spacing . . . . . . . . . . . . . . . . . . . . . . . . 6-11
Voids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-13
Extraneous ink spots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-14
Signal strength . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-17
Debossment and embossment . . . . . . . . . . . . . . . . . . . . . . . . . 6-20
Summary of ANSI standards . . . . . . . . . . . . . . . . . . . . . . . . . . 6-21
Additional performance considerations . . . . . . . . . . . . . . . . . . 6-22
Dry ink slivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-22
Damaged or ragged characters . . . . . . . . . . . . . . . . . . . 6-22
Crayoning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-22
Operational maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-22
Quality measurements: magnetic versus optical . . . . . . . . . . . . . . . . . 6-23
Magnetic testing equipment usage . . . . . . . . . . . . . . . . . . . . . . 6-23
Optical testing equipment usage . . . . . . . . . . . . . . . . . . . . . . . 6-25
Recommendation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-26

7. Problem solving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-1
When problem solving is required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-1
New accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-1
Existing applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-1
Possible misinterpretations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-2
Problem solving process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-2
Determining the problem source . . . . . . . . . . . . . . . . . . . . . . . . 7-4
Reader sorter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-4
Printer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-4
Operator training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-4
Application software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-5
Unknown cause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-5
Reader sorter testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-5
Interpreting test results . . . . . . . . . . . . . . . . . . . . . . . . . . 7-6
Questions to consider . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-7
Expected reject rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-9
Reducing reject rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-9
Inspecting documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-12
Correct font placement or format . . . . . . . . . . . . . . . . . . 7-12
MICR character defects . . . . . . . . . . . . . . . . . . . . . . . . . 7-12
Document damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-13
Excessive ink smears . . . . . . . . . . . . . . . . . . . . . . . . . . 7-13
Paper size and characteristics . . . . . . . . . . . . . . . . . . . . 7-13
MICR line format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-13
Job history or results . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-14
Compare the documents with previous samples . . . . . . 7-14

Generic MICR Fundamentals Guide

Table of contents
Analyzing reader sorter printout . . . . . . . . . . . . . . . . . . . . . . . . 7-14
Test patterns: alternative to reader sorter testing . . . . . . . . . . . 7-15
Verifying problem resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-16

8. Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-1
Xerox printing systems security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-1
Physical security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-2
Restricting physical access . . . . . . . . . . . . . . . . . . . . . . . 8-2
Securing paper stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-3
Storage and disposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-3
Responsible presence . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-4
Software security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-4
Logon levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-4
Memory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-4
System commands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-5
Audit control processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-5
Accounting information . . . . . . . . . . . . . . . . . . . . . . . . . . 8-5
Paper jams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-5
Samples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-6
Tampering methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-7
Chemical tampering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-7
Mechanical tampering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-7
Modifying printed checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-8
Lithographic printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-8
Impact printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-8
Cold pressure fix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-9
Xerography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-9
Preventing tampering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-10
Safety papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-11
Overprints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-11
Textures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-11
Amount limit statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-12
Amount in Words fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-12
Preventing check duplication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-12
Microprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-13
Watermarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-13
Drop-out print . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-13
Dataglyph™ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-14
VOID pantograph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-14
Avoiding counterfeit and stolen checks . . . . . . . . . . . . . . . . . . . . . . . . 8-14
Alteration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-14
Embezzlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-15
Stolen checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-16
Counterfeits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-16
Cost considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-17

Generic MICR Fundamentals Guide

vii

Table of contents

A. References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-1
Standards documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Instructions for ordering U. S. standards . . . . . . . . . . . . . . . . . . . . . . . .
Ordering online . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ordering hardcopy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Standards development process information (U. S. only) . . . . .

A-1
A-2
A-2
A-2
A-3

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Glossary-1
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Index-1

viii

Generic MICR Fundamentals Guide

Introduction

About this guide
The purpose of the Generic MICR Fundamentals Guide is to
provide a reference for the various facets of the MICR
environment within the context of the Xerox MICR printing
products. This document does not contain specific information
on individual Xerox MICR printers.
Since the printing of MICR documents involves application and
operational considerations not normally associated with any of
the standard Xerox printing systems, this document provides
principles and guidelines to ensure successful MICR printing.
This document has been developed with the assumption that
readers have knowledge of standard Xerox printing systems
products, and the skills to develop applications and job source
libraries.
The Generic MICR Fundamentals Guide contains the following
chapters and appendices:
Chapter 1: Overview. Describes MICR, its historical
background, and the printing and processing procedures for the
MICR document.
Chapter 2: Environment. Examines the types of applications
that use MICR, trends within the industry, and typical MICR
printing methods and concerns.
Chapter 3: Paper facts. Identifies paper grades and properties
required for MICR printing, and describes paper maintenance
procedures.
Chapter 4: Document design. Describes the standard format,
features, and requirements of a check document.
Chapter 5: Document processing. Examines the common
types of reader sorter technology and the way these systems
function.

Generic MICR Fundamentals Guide

Introduction
Chapter 6: Quality control. Describes MICR document print
quality specifications, the tools available to determine if a
document is within specifications, and general operator
maintenance procedures.
Chapter 7: Problem solving. Provides information on
identifying MICR printer related problems and using rejection
rate information to isolate the problem source.
Chapter 8: Security. Provides an overview of the security
procedures used to control and audit access to a Xerox MICR
printing system and to check printing functions.
Appendix A: MICR references. Lists the domestic and
international standards documents that apply to MICR
publications. Also contains a list of Xerox documents containing
MICR information.
Glossary: Lists terms and definitions related to MICR printing
and banking environments.

How to use this guide

•

First, become thoroughly familiar with the operation of your
own MICR system.

•

Read through this guide to acquaint yourself with all of the
topics.

•

As needed, refer to sections of this guide that are pertinent to
your work.

Generic MICR Fundamentals Guide

Overview

MICR (Magnetic Ink Character Recognition) is a process by
which documents are printed using magnetic ink and special
fonts to create machine readable information for quick document
processing.
Although traditionally MICR has been used to print accounting
and routing information on bank checks and other negotiable
documents, the magnetic encoding lends itself to any form of
document processing.
The following figure shows a check with a MICR line. This line
contains block-shaped numbers running along the bottom of the
check, and non-numeric characters called “symbols.” This entire
string of numbers and symbols is printed using magnetic ink.

Figure 1-1. MICR line on a check

Generic MICR Fundamentals Guide

1-1

Overview

A brief history
Originally, checks were processed manually. However, by the
mid-1940s the banking system became inundated with paper as
society grew more mobile and affluent. Finding a means of
handling the growing number of paper documents became vital
to bankers. The banking and electronics industries searched for
a standard process that could be used in all banks throughout
the country.
In the mid-1950s, the first automated processing of checks was
initiated. The system that is now known as MICR was developed
by the Stanford Research Institute, using equipment designed by
the General Electric Computer Laboratory. The E13B MICR font
was also developed.
The specifications for producing the E13B font using magnetic
ink were accepted as a standard by the American Bankers
Association (ABA) in 1958. In April 1959, the ABA issued
Publication 147, The Common Machine Language for
Mechanized Check Handling.
Deluxe Check Printers had the task of translating the
specifications into a working process. By the end of 1959,
Deluxe successfully produced checks using magnetic ink.
In countries throughout the world there are groups that set
standards and dictate the design specifications for document
encoding, processing equipment, and quality criteria for MICR
printing. Some of these are:

1-2

•

American Banking Association (ABA)

•

American National Standards Institute (ANSI)

•

United Kingdom—Association for Payment Clearing Services
(APACS)

•

Canadian Payments Association (CPA)

•

Australian Bankers Association (ABA)

•

International Organization for Standardization (ISO)

•

France—L'Association Francaise de Normalisation

Generic MICR Fundamentals Guide

Overview
In 1963, the American National Standards Institute (ANSI)
accepted the ABA specifications, with minor revisions, as the
American standard for MICR printing. The ANSI publication
covering these standards is Print Specifications for Magnetic Ink
Character Recognition, first issued in 1969. Although compliance
with the standards is voluntary in the U. S., the banking industry
considers them to be the definitive basis for determining
acceptable quality of a MICR document.
Another MICR font, called CMC7, was developed by the French
computer company Machines Bull and has been the official
French standard since September 1964. The CMC7 font is also
used in other countries, including Italy, Spain, and Brazil. Like the
E13B font, CMC7 is a magnetically readable font, but with a
different character design and recognition criteria.
Some countries also use OCR-A or OCR-B, which are optically
read check processing fonts. These fonts do not need to be
printed with magnetic ink in order to be processed. The following
table shows which countries use the four check printing fonts.

Generic MICR Fundamentals Guide

1-3

Overview

Country
E13B CMC7 OCR-A OCR-B
North America:
USA
X
Canada
X
Central America
Bermuda
X
Mexico
X
Panama
X
South America:
Argentina
X
Brazil
X
Chile
X
Columbia
X
Ecuador
X
Peru
X
Uruguay
X
Venezuela
X
Europe:
Austria
X
Belgium
X
X
Denmark
X
X
Finland
X
X
France
X
Germany
X
Holland
X
X
Italy
X
X
Norway
X
X
Spain
X
Sweden
X
X
United Kingdom
X
X
Middle East and Africa:
Israel
X
South Africa
X
Far East:
Australia
X
Hong Kong
X
India
X
Japan
X
X
Kuala Lumur
X
Malaysia
X
New Zealand
X
Philippines
X
Singapore
X
Taiwan
X
Thailand
X

1-4

Generic MICR Fundamentals Guide

Overview
Recognizing significant market value in combining the
advantages of electronic laser xerography with MICR technology,
Xerox initiated investigations in late 1979 and early 1980. Early
efforts at the Xerox Webster Research Center concentrated on
basic material physics. The objective was to provide a
xerographic dry ink and developer that would produce high visual
quality images that could be read using the standard banking
reader sorter equipment.
Xerox’s MICR printing products combine the following:
•

A modified xerographic engine

•

A unique magnetic materials package

•

The standard ANSI and ISO MICR character sets

The Xerox MICR systems meet ANSI, CPA, and ISO
specifications for automatic check handling.
Why MICR?
MICR was chosen by the ABA because it can be read accurately
by machine, it uses existing printing technology, and the printed
documents are durable to withstand mutilation.
A MICR encoded document can be read through overstamping,
pen and pencil marks, oils and greases, and carbon smudges.
However, MICR printing is one of the most quality-conscious
application areas within the printing industry. It meets ABA
security requirements for negotiable documents. MICR is the
only system that produces reliable results at high processing
speed.

Check printing capabilities
A Xerox MICR printing system with a magnetic material package
and MICR fonts can print a character line at the bottom of a
check form that is machine readable by standard banking reader
sorter equipment. On blank security paper, the Xerox MICR
printing system can produce the entire check image, including
the form, all fixed and variable data, logos and signatures, and
the MICR line, in a single pass.

Generic MICR Fundamentals Guide

1-5

Overview
The printing process is one small part of the total processing
procedure for a MICR printing system user. Quality and accuracy
of the check documents must be closely controlled during
printing to prevent problems from occurring when the document
is processed off-site.

Check processing procedure
All checks impact at least three parties:
•

The person who writes the check

•

The person to whom the check is being paid

•

The bank at which the check writer has an account

Depending on where and by whom the check is deposited, how
the check is processed, and how the check is handled for funds
clearance, many different parties can handle the same check.
Fraud can occur at any of the steps or access points in this
process.
The following steps, illustrated in figure 1-2, trace a document
through a series of corporate and banking system procedures
typical of the MICR environment.

1-6

Generic MICR Fundamentals Guide

Overview

Figure 1-2. Life cycle of a check

Generic MICR Fundamentals Guide

1-7

Overview
1. The check printer (1) produces a blank check that will be
completed later. This check includes the static data that is
needed for a negotiable document:
•

Financial institution name and address, issuer name and
address, check form, company logo, etc.

•

The MICR line, containing the account and routing
information that is needed to process the check

•

Other audit, account, and report information as required
by the customer

2. The customer (2) adds the transaction information—payee,
amount, and date—and authorizes the funds transfer with a
signature.
NOTE: When using a MICR laser printer, steps 1 and 2 may
happen simultaneously.
3. The completed check is transferred to the payee (3), who
deposits it in the bank of first deposit (BOFD). The payee may
receive the check in person, by mail, or through a third party.
A third party check may require a second endorsement.
4. Deposits (4) are made in several ways: through a teller, using
an automated teller machine (ATM), using a drop box, or
through a postal lock box. Deposited items are accompanied
by a deposit ticket that lists and totals the items and identifies
the payee account.
This is the entry point for the automated payment processing
system.
5. The BOFD encodes the amount of the check in the MICR line
(5) and balances the check against the deposit ticket to verify
that the correct amount is being credited to the payee
account (proof of deposit).
6. MICR documents that are printed on a Xerox MICR printing
system are usually corporate paychecks, stock dividend
checks, etc. After printing, these type of documents require
additional processing using a high-speed device called a
“reader sorter.” The reader sorter identifies each magnetized
character and symbol of the MICR line using logical analysis
algorithms of the electronic wave patterns that the characters
produce.
In the “capture pass,” checks are read in a reader sorter for
the first time (6). At this time, they are sorted into checks
drawn on the BOFD, known as “On-us items” (8), and checks
drawn on other banks.

1-8

Generic MICR Fundamentals Guide

Overview
7. Checks drawn on other banks are sent to the payor bank
through a clearing (7) arrangement. The check may be
cleared through the Federal Reserve, a correspondent bank,
a clearing house, or directly by the issuing bank.
The payor bank also balances the check against the deposit
ticket (proof of deposit) (7a) to verify the check amount, and
performs its capture pass (7b) on the reader sorter in order to
identify the issuer account (7c). (Refer to the “Proofing
checks” section of chapter 5 for more information on this part
of the process.)
8. In most cases, the check is debited from the issuer account
and moved to bulk filing (8), where it is stored until time for
monthly statement rendering.
From this point forward, an On-Us item is treated the same as
one that was cleared to another bank.
Two exceptions may occur:
•

If the payor bank does not honor the check, it is returned
(9) through the BOFD to the payee. The amount is then
deducted from the payee account.

•

During reconciliation, the account holder may discover a
discrepancy (10) between its records and those of the
bank. Their bank then researches any discrepancies.

NOTE: Account holders may contract with their banks to
perform reconciliation before clearing the check.

Production cycle of a check
The check production process starts as soon as the need is
identified. Design requirements should comprehend purchasing,
distribution, warehousing, manufacturing, internal and external
processing requirements, and the needs of the check issuer.
Banks frequently require new corporate accounts to submit
checks for approval before the banks approve the account.
The following steps, illustrated in figure 1-4, describe the typical
process that is required before the first negotiable checks are
delivered to the payee.

Generic MICR Fundamentals Guide

1-9

Overview

Figure 1-3. Check ordering and production cycle
1. Design requirements are defined for a new account.
2. Requirements are passed to application development.
3. Samples pass internal quality checks.
4. Samples are forwarded to the bank for approval.
5. Any problems are referred to application developers, who
ensure that the problems cannot occur in production.
6. After approval by the bank, the check design becomes
available for routine production.
7. Variable check data is prepared for incorporation.
8. The checks are printed.
9. The printed checks are inspected.
10. Any problems are reported to the source for correction and
reprinting.
11. When they have passed bank validation and quality
inspection by the issuer, the checks are issued to the payee.

1-10

Generic MICR Fundamentals Guide

Overview

Changes in check creation role
In the past, the roles of manufacturer and check issuer were
distinct. Because the technical requirements of doing MICR
printing were fairly difficult, the manufacturer usually did all of the
process steps that involved the generation of the check, except
for entering the amount, date, and payee.
The introduction of MICR impact printers allowed the check
issuer to sometimes take over printing the MICR line. With
further technological advances, such as the Xerox MICR printing
systems, the check issuer has assumed still more
responsibilities that previously belonged to the manufacturer.

- - - - - Printing functions - - - - Background
Manufacturer

Manufacturer
Form and border

MICR line and serial number
Check
issuer

Check
issuer
Amount and payee

Old areas of
responsibility

New areas of
responsibility
Figure 1-4. Changes in check creation roles
Because MICR documents are typically negotiable documents,
every possible measure must be taken to ensure successful
processing. With a less clear division between check
manufacturer and check issuer responsibilities, the check issuer
becomes more involved in the development of a new check
issuance application.

Generic MICR Fundamentals Guide

1-11

Overview

1-12

Generic MICR Fundamentals Guide

Environment

Checks and other bank forms constitute the most frequent uses
of MICR printing. All businesses issue checks to meet payroll
and accounts payable obligations. In addition, all profitable
publicly owned businesses make periodic stock dividend
distributions by check.
Most medium and small companies buy check production
services from a service bureau or a bank. Individuals who once
obtained personal checks through their banks can now buy
checks through the mail from check printers.
A major trend in the banking industry is check truncation.
Truncation refers to the ability of the bank of first deposit to
process MICR documents, both theirs and those belonging to
other banks, without further transfers of the paper document
(check). The check is processed electronically. This reduces
cost and improves check clearance.

Types of MICR applications
A MICR system need not be dedicated to check printing or to any
other MICR-specific application. A MICR system operates no
differently from an identical system that does not have MICR.
MICR and non-MICR systems may be mixed at a site and do not
impact scheduling of jobs that do not require MICR magnetic
materials.
MICR printing is most frequently used for the following types of
applications.
Manufacturing checks
Check manufacturing refers to the process of converting milled
paper into finished check and deposit books, computer
stationery, etc. This is usually done by a small group of specialty
or security printers, mail order check printers, and others. MICR
printing systems are becoming more popular in this market.

Generic MICR Fundamentals Guide

2-1

Environment
Issuing checks
The most common use of MICR printing systems is the process
of obtaining check stationery from the manufacturer and
encoding it with MICR information. Most businesses regularly
issue checks in at least two of the following categories.
•

Payroll checks

•

Accounts payable checks

•

Dividend checks

•

Benefit checks

•

Drafts

•

Warrants

•

Negotiable orders of withdrawal

Issuing turnaround documents
Turnaround documents refer to any type of volume transaction,
whether negotiable or not, that requires data capture. Familiar
examples of turnaround documents are:
•

Credit card invoices

•

Insurance payment booklets

•

Instant rebate coupons

Turnaround documents are also used in remittance processing,
which is a procedure for handling items returned with a payment.
MICR encoded turnaround documents enable organizations to
cut their resource and equipment costs. For example:
1. A bank card company MICR encodes an account number on
the bill and remittance slip that is sent to the customer.
2. The payment is returned with the remittance slip. When the
bank card company receives the check and payment slip, the
two documents are visually checked to see that the amounts
are the same on both.
3. The documents are processed by a MICR reader sorter,
which reads magnetic ink characters.

2-2

Generic MICR Fundamentals Guide

Environment
Printing financial forms
MICR is also used for printing a variety of financial forms.
Examples of MICR financial forms include:
•

Personal checkbooks

•

Limited transaction checks, such as money market checks

•

Direct mail promotional coupons

•

Credit remittance instruments

•

Internal bank control documents, such as batch tickets

Xerox MICR printing systems
The Xerox MICR printing systems are a unique range of
products that combine speed, intelligence, and high print quality.
They also provide great flexibility in font selectivity, graphics
capability, and dynamic page formatting.
An advantage to Xerox printing systems is their ability to print a
document in a single pass, as shown in the following figure. The
form design, variable data, logos, and signatures can all be
printed together. With MICR enablement, the MICR line can be
included.
Additional benefits include:
•

The elimination of expensive production and inventory of preprinted forms

•

The ability to produce multiple checks on one physical page

•

Reduced handling steps by using cut sheet rather than
fanfold paper

•

The reduction of additional equipment, such as bursters,
decollators, trimmers, and signature machines

•

Reduced turnaround time

•

Ability to print checks against multiple accounts

With the introduction of the latest MICR printing systems, Xerox
has expanded its application base, using more paper sizes and
multiple paper stocks.

Generic MICR Fundamentals Guide

2-3

Environment

MICR printing technologies
The following basic printing techniques are capable of
generating magnetic characters:
•

Letterpress
Letterpress is based upon a raised typeface that sits above
the plane of the image carrier. The typeface is inked with
special magnetic ink and applied to the paper under
pressure. Common forms of letterpress are: hot metal type,
sequential number machines, and ribbon encoders.

•

Offset lithography
Large offset devices are typically used to produce check
stationery. The lithographic process uses magnetic ink and
water to shape the image on a plate. The image is transferred
to a rubber sheet called a blanket. The image is then “offset”
to the paper.

•

Impact ribbon encoding
Ribbon encoding, also called “direct printing,” is a letterpress
technology with a different delivery method. Instead of the ink
being applied to the typeface and then to the paper, the ink is
suspended on a thin sheet of backing (usually a polymer
base) called a ribbon.
The ribbon is held between the typeface medium (drum,
daisy wheel, or hammer) and the paper, so that when the
typeface is struck against the paper, the components on the
ribbon are trapped and pressed onto the document to be
printed.

•

Non-impact (xerography and ionography)
Non-impact printing technologies have been growing in
market penetration. They require highly sophisticated and
consistent equipment utilizing magnetic materials.

•

Thermal ribbon encoding
A non-impact, thermal transfer version of ribbon encoding
combines some of the characteristics of the conventional
ribbon encoding with those of non-impact technology.

2-4

Generic MICR Fundamentals Guide

Environment

Printer technical optimization
The Xerox MICR systems use the same operating software as
their standard configuration counterparts. In addition, the MICR
systems have been enhanced to include the following features:
•

Optimized print engine

•

MICR materials package

•

Optimized paper handling system

•

Digitized MICR font

Optimization of the MICR print engines subsystem is required by
the physical properties of the dry ink. As a result of these
changes, dry ink and developer are not interchangeable between
MICR and non-MICR printers, unless specifically designed to
accept more than one type of materials.
The Xerox MICR systems have a paper handling system
designed for the highly accurate registration. This is required for
precise placement of the MICR line to maximize readability
during check processing.

Typical MICR printing concerns
The following areas of MICR user concerns have made banks
want to increase reliability of the MICR document generating
process:
•

Security: This can be addressed by providing high security
within the document creation process. In addition,
counterfeiting can be reduced by the use of various design
and production techniques.

•

Quality: Sensitive to the banking industry demands, printing
businesses maintain tight quality control procedures.

•

Production speed

•

Cost

In addition to their need to adhere to required print quality
standards, they have the following concerns about the printing
operation:
•

Traditional MICR printing devices are labor intensive.

Generic MICR Fundamentals Guide

2-5

Environment
•

High security measures are needed in any environment that
uses check stationery. These measures affect physical
access restrictions and staff supervision.

•

Check printing usually requires frequent starting and
stopping, which is time-consuming and degrades print speed.

•

Storing hundreds of different preprinted check and deposit
forms can be costly.

•

Short print runs of continuous forms can waste materials.

•

Check production requires short lead times.

Xerox MICR printing systems reduce many of these concerns.
There is no need to store different types of preprinted forms, and
single pass printing eliminates many time constraints.

2-6

Generic MICR Fundamentals Guide

Paper facts

MICR applications have special paper, print, and finishing
requirements. Refer to your printer operator guide for a complete
list of supplies and options.
Refer to Helpful Facts about Paper for information on solving
printer problems relating to paper.

Paper guidelines
The paper that you use to print MICR documents must meet the
criteria for the Xerox MICR laser printer and the specifications
imposed by MICR industry standards. In addition, papers must
resist alteration and prevent duplication of negotiable
documents. They must support high print quality and feed
through the printers properly.
NOTE: Some banking authorities specify the type and weight of
paper that should be used for check printing in that country. It is
essential that only the specified paper be used.
Follow these guidelines for best results:
•

Understand check stock security requirements, and use
security features that do not degrade printer performance.

•

Do not accept delivery of paper or forms that are not reamwrapped in a moisture barrier.

•

Do not open paper reams until you are ready to load the
paper into the printer.

•

Store paper in the printer room for at least 24 hours before
using it. This allows the paper to stabilize to the temperature
and relative humidity of the room.

•

Do not allow the printer room to become excessively humid or
dry. This can cause a difference in moisture content between
the edges and center of each sheet of paper, and result in
feeding, image permanence, or image deletion problems.

Generic MICR Fundamentals Guide

3-1

Paper facts
•

Do not use cut-sheet check paper that was converted from
fanfold by the paper distributor. This conversion process can
result in dimensional inaccuracy, poorly cut edges, and
unacceptable paper curl.

MICR paper requirements
The following table summarizes Xerox’s recommendations for
papers that are used for MICR printing. Papers with the following
characteristics perform best in Xerox MICR printers.
Table 3-1. Xerox paper recommendations
Paper characteristics

Recommended for optimal printer and reader/sorter performance

Basis weight

24-pound/90 gsm

Sheffield smoothness

80 to 150

Grain direction

Parallel to the long edge of check or MICR document. Short grain direction
may be acceptable for personal, 6 inch/152 mm checks.

Moisture content

3.9 to 5.e per cent

Reflectance

60 percent minimum

Curl

Refer to instructions in your MICR printing system operator guide

Perforations

60 to 80 ties per inch

Metallic content

No ferromagnetic materials can be present in the paper.

Stiffness

For recommendations, refer to “Paper stiffness,” later in this chapter.

Cutting precision

+/- 0.030 inch/0.762 mm length
+/- 0.030 inch/0.762 mm width

Coating

Do not use paper containing clay or resin coatings.

Lamination

Do not use stock that is a combination of paper and plastic.

Preprinting ink

Must be heat resistant to approximately 400 degrees F/204 degrees C for laser
printing. Heat resistance varies according to manufacturer.

Size

Refer to instructions in your MICR printing system operator guide

Basis weight
Basis weight is an industry term for expressing the weight per
unit area of paper. Paper weight is generally expressed as grams
per square meter (gsm), a measure that makes it easy to
compare any two pieces of paper, even if the papers are of
different types, such as offset and index.

3-2

Generic MICR Fundamentals Guide

Paper facts
In the United States, paper weights are given as the weight of
500 sheets of paper of a particular size. The size of the basis
sheet, however, varies with the type of paper. This makes difficult
any comparison of weight between different types of paper. For
example, 50 pound xerographic bond is not the same as a 50
pound offset paper, and both are different from a 50 pound index
stock.
Xerox MICR printing systems produce the best quality and
highest throughput using the Xerox recommended 24 pound
(U.S. market) or 90 gsm xerographic paper. Lighter papers often
cause misfeeds, and heavier papers are more subject to jams
(although most Xerox printing systems can handle a wide range
of paper weights).
In multi-pass reader sorter processing, lighter weight papers
subject to frequent misfeeds and mechanical stresses, and are
not as reliable as 24 pound paper.
Sheffield smoothness scale
The smoothness of your paper can impact image quality. With
increasing roughness, the print quality of solids and halftones
degrades. Extremely rough paper does not properly accept
fused dry ink, which rubs or flakes off.
Rough papers require a higher density setting and more ink than
smooth papers to achieve the desired level of image darkness,
because surface irregularities must be filled in with ink.
Papers must measure 50 to 200 when they are measured by a
Sheffield smoothness instrument, in order to meet ANSI
standards. Higher numbers indicate rougher paper.
Xerox has conducted extensive image quality testing on
xerographic, bond, and offset papers. The smoother xerographic
and bond grade papers provide the best image quality. Xerox
recommends a Sheffield smoothness of 80 to 150.
If you use preprinted forms, check with your forms supplier for
the smoothness quality of the form before you make a bulk
purchase.

Generic MICR Fundamentals Guide

3-3

Paper facts
Grain direction
Paper properties are related to the grain direction. The grain of a
paper is the direction in which most of its fibers lie, as shown in
the following figure. Long grain papers are cut so that the fibers
are aligned with the long dimension of the cut sheet. Short grain
papers have the fibers aligned with the short dimension of the
sheet.
You can use 24 pound paper in either grain direction. If your
paper is lighter than 24 pound, use it only for documents in which
the grain is in the long dimension of the finished document. For
long grain MICR-processed documents, the minimum paper
weight is 20 pounds.
NOTE: 24 pound, long grain paper is recommended for MICR
printing.

Pulp fibers

Long grain sheet cut from
paper web
Paper web - made during
paper making process

Short grain sheet cut from
paper web
Paper making
process direction

Figure 3-1. Long and short grain
The following figure shows the relationship between long and
short grain documents and the MICR processing direction. The
shaded areas represent typical documents that would be cut
from these sheets for MICR processing.

3-4

Generic MICR Fundamentals Guide

Paper facts

11"

8.5"

11"

8.5"

Figure 3-2. Long and short grain documents
Moisture content
Too much moisture in paper causes excessive curl, jams,
degraded image permanence, and print quality problems. Too
little moisture causes static problems, which can lead to jams,
misfeeds, and difficulties in post-processing paper handling.
Papers with a nominal moisture content of 4.7 per cent perform
best in Xerox MICR laser printers. Offset and bond papers may
have a higher moisture content than xerographic papers.
Xerox brand papers have a maximum moisture content of 5.3
percent, with an average of 4.7 per cent. Several other MICR
bond papers have moisture content of less than 5.3 percent.
Preprinted papers must have a moisture content within these
limits after preprinting.
Reflectance
All MICR materials must meet a background reflectance
standard of 60 per cent minimum, as measured by equipment
having a CIE Photopic Spectral Response. Backgrounds
containing patterns, designs, logos, or scenes must meet
additional limits on the contrast of the preprinted areas. These
background reflectance standards were developed to permit
machines to read information on the check, such as the
convenience amount field.

Generic MICR Fundamentals Guide

3-5

Paper facts
Requirements for background reflectance are discussed in
chapter 4, “Document design.”
Curl
All papers curl to some degree. Excessive curl is one of the most
common causes of paper jams. Selecting a low-curl paper with
the proper moisture content makes a significant difference in the
productivity of your system. Refer to the operator guide for your
printer for paper curl recommendations specific to your printer.
Because the front and back surfaces of the paper, as determined
during the paper making process, differ slightly in their makeup,
one side is preferred as the side to image first. If you are using a
quality 24 pound/90 gsm paper intended for xerographic
purposes, the ream wrapper is marked with an arrow that
indicates the preferred printing side. Print on this side for onesided printing. For two-sided printing, print on this side first
(unless instructed otherwise in the operator guide for your laser
printer).
How you load preprinted paper is determined by the preprinting.
Preprinted forms should be produced so that their curl is
compatible with the requirements in your MICR printer operator
guide.
Perforation
When you use perforated paper, your objective is to have a
smooth, free-feeding sheet that retains sufficient beam strength
to prevent sheet fold-over, buckling, or jams.
If you use preperforated forms, consider the following factors:

3-6

•

Use 24 pound/90 gsm paper.

•

Use a perforation that lets the sheets retain as much stiffness
as possible. Reduced stiffness may result in jamming and
paper mutilation.

•

Perforations should be nine per inch.

•

All holes should be the same size.

•

The ratio of holes to paper (tie size) should be less than or
equal to 1:1. In other words, the tie size should be at least as
large as the hole size.

Generic MICR Fundamentals Guide

Paper facts
•

If you are using micro-perforations, be sure to have more than
60 ties to the inch.

•

Make sure that the perforation line is rolled sufficiently to
eliminate the underside bulge (debossment). Otherwise,
feeding and stacking may be unreliable and print deletions
may occur.

•

When paper is perforated, a ridge or dimple forms around the
holes. Make sure that the design and placement of the
perforation does not cause document edge irregularities.

•

Do not use puncture-type perforations that are not ironed
smooth. They prevent the stack from lying flat, which can
cause feeding problems and deletions. Use rolled
perforations instead.

•

Make sure that the perforation design and placement do not
cause document edge irregularities.

•

Make sure that die-cut perforated papers are free of paper
dust and chaff.

•

Avoid printing any text or forms data within 1/8 inch/3.2 mm of
any perforation.

•

For printers that use edge registration: Full-length perforation
that is parallel to the registration edge should not be closer
than 1.5 inches/37.5 mm to that edge.

Metallic content
Paper stock materials for MICR applications cannot contain
ferromagnetic particles.
Stiffness
Stiffness refers to the rigidity or bending resistance of the paper.
Thicker papers are usually stiffer. In general, 16 pound/60 gsm
and lighter papers are not as stiff as heavier stocks. They may
bunch up or wrinkle in the printer, causing jams and misfeeds.
Heavier papers, such as cover and index stock, may jam more
frequently and have more print quality defects (skips, blurs, and
deletions) due to their reduced ability to bend.
24 pound/90 gsm paper usually provides stiffness levels in the
range needed by the Xerox MICR laser printer and the proofing,
reader sorter, and remittance-processing systems used in
banking environments.

Generic MICR Fundamentals Guide

3-7

Paper facts
Stiffness is lower across the grain direction than in the grain
direction. Documents having the grain running parallel to the
short dimension of the paper require special consideration to
ensure adequate stiffness. Short grain MICR documents are
restricted to papers with a basis weight of 24 pound/90 gsm or
higher.
Cutting precision
Paper for MICR printing applications should be free of all defects
that could interfere with reliable feeding, such as edge-padding
and folded or bent sheets.
NOTE: Fan all paper before loading it.
The squareness of each sheet must be precisely controlled to
ensure optimum MICR band registration. The dimensions must
be controlled to ±.030 inch/0.762 mm.
Papers that have been converted from continuous form paper
present a risk of jams and poorly registered forms in a Xerox
MICR laser printer.
Xerox paper
To ensure reliability, Xerox has developed paper with the
optimum characteristics for xerographic printing. Every lot of
Xerox paper is tested at least three times:
1. At the mill by the manufacturer
2. In Xerox quality-assurance laboratories
3. In Xerox laser printing systems prior to shipment
Xerox 4024 Dual Purpose 24 pound paper is recommended for
MICR printing in the U. S. and Canada. This paper has been
extensively run on Xerox MICR laser printing systems. It closely
complies with all MICR paper specifications and is suitable for
printing MICR encoded documents that will be processed
through high-speed reader sorters.

3-8

Generic MICR Fundamentals Guide

Paper facts

Paper maintenance
The physical condition of your MICR paper is extremely
important. In addition to being free from holes, wrinkles, tears,
damaged edges, and foreign material, MICR paper must be
carefully maintained, both before and after printing.
Wrapping factors
Paper with a moisture content below 5.5 per cent is best for a
Xerox MICR laser printer. The moisture content must be uniform
within the ream, which should not be allowed to lose or gain
moisture during storage.
To best preserve paper and preprinted forms, use moisture-proof
ream wrappers, which maintain critical moisture balance.
Xerox paper is covered with a polyethylene laminate ream
wrapper. This material is the most effective in resisting the
transfer of moisture from the environment. Unlike wax laminate
wrappers, polyethylene does not bleed through the paper covers
when exposed to heat. Wax bleed-through can cause feeding
problems. Discard the top and bottom sheets if you suspect wax
contamination.
Storage factors
Xerox paper are packaged in protective heavyweight cartons,
which you can reuse for storage. These cartons are transported
on a wooden pallet that provides uniform support and protection
to the bottom layer of cartons. The cartons are protected with a
moisture barrier of plastic shrink-wrapping.

Generic MICR Fundamentals Guide

3-9

Paper facts
Temperature and humidity conditions
The temperature and humidity in the printer environment can
affect runability and print quality. Use the following guidelines for
the best MICR printing performance:
•

Optimum temperature and humidity range
– 68 to 76 degrees F / 20 to 14 degrees C
– 35 to 55 percent humidity.
Store all paper on a wooden pallet. Placing paper directly on
the floor increases moisture absorption.

•

If you move paper from a storage area to a location with a
different temperature and humidity, condition the paper to the
new environment before using it. The time you should wait
between paper storage and use is listed in the following table.
Table 3-2. Temperature conditioning chart
Temperature
difference

10° F

15° F

20° F

25° F

30° F

40° F

50° F

Number of boxes Hours Hours Hours Hours Hours Hours Hours
1

For example, if you want to move 10 cartons (boxes) from
your storage area at 55 degrees F to your printing room at 75
degrees F, (a change of 20 degrees), you should let the
cartons stand unopened in your printing room for at least 18
hours before use.

3-10

•

Store paper inside the original carton and ream wrappers
until shortly before use.

•

Reduce excessive curl by storing the paper in a dry
environment for several days.

Generic MICR Fundamentals Guide

Paper facts

Paper runability criteria
Use the following criteria to avoid paper jams and to assure high
image quality:
•

Use 24 pound/90 gsm xerographic or dual purpose MICR
bond paper. The paper should have the following
characteristics:
– Low moisture content (below 5.3 per cent)
– Built-in curl control
– Smooth surface (smoother than most offset or bond
papers)
– No mechanical defects
– Moisture-proof wrapping

•

Correct temperature and humidity are also important. Refer
to the “Temperature and humidity conditions,” earlier in this
chapter.

Your service representative can verify that the MICR printing
system is adjusted within design tolerances. If a paper runability
problem persists, consider changing:
•

The ream, carton, or request paper from a different lot

•

Your type, weight, or brand of paper

•

The conditions under which the paper is stored

•

The temperature or humidity of the printer environment

•

The time elapsed between unwrapping and printing

Generic MICR Fundamentals Guide

3-11

Paper facts
The following table is a troubleshooting guide for paper runability
issues.
Table 3-3. Paper runability issues
Malfunction

Possible causes

Repeated processor jams

•

Excessive curl

•

High moisture content in paper

•

Excessive paper smoothness

•

Bent corners

•

Predrilled paper plugs

•

Excessive moisture in printer or paper
storage environment

•

Paper not acclimated to printer environment

•

Poorly cut paper

•

Wrapper wax or glue on sheets

•

Low humidity in printer environment

•

Poorly drilled paper

•

Paper too porous

•

Poorly cut paper

•

Excessive curl

•

Excessive curl

•

High moisture content in paper

•

Excessive moisture in printer or paper
storage environment

•

Low humidity

•

Paper dust on static eliminator

•

Rough paper

•

Incorrect paper conductivity

•

Poorly cut paper

•

Paper too lightweight

•

Excessive curl

•

Wrapper wax or glue on sheets

•

Excessive paper dust

•

Dust from poor perforations

•

Wax or soap used on drill

Paper multi-feeds or skew feeds

Paper misfeeds

Jams in stacker bin

Sheets stick together in stacker

Poor copy quality

Leading edge of the paper tears

Spots on copy

3-12

Generic MICR Fundamentals Guide

Paper facts

Preprinted forms considerations
The combination of consistent data format and element location
makes preprinted forms useful in MICR applications. Additional
requirements for security features, either in the base paper stock
or in the preprinted form, come from the need to protect a
financially negotiable document.
You need to consider several factors related to ink and paper
when selecting a preprinted form for any type of laser printer.
Preprinted check stock must not offset (transfer from a printed
sheet onto other surfaces). Work closely with the forms vendor to
ensure that requirements are understood and met. Always test
the application on the appropriate printer before production
printing.
Inks
Choosing the correct ink is the first step in designing forms that
function well in Xerox printers. Inks for these forms must cure
well, must not be tacky, and must not offset. In choosing an ink,
you must consider the amount of heat and pressure to which the
forms will be exposed while passing through the printer. You
must also consider the dwell time–the amount of time that the
preprinted paper is subjected to those conditions.
Good performance has been reported with the following ink
types:
•

Oxidative inks: The following qualities are desirable in
oxidative inks:
– Non-volatile, cross-linkable vehicles
– Internal and surface-curing driers
– Minimal use of antioxidants
– No slip agents
– pH in the press fountain high enough to permit curing
NOTE: Oxidative inks can require several days to harden
satisfactorily.

•

UV cured inks: Inks that are cured using UV (ultraviolet) light
change immediately from liquid to solid upon exposure to an
intense UV light source.

Generic MICR Fundamentals Guide

3-13

Paper facts
•

Laser inks: Inks that are formulated specifically for use on
forms that will pass through laser printers are a recent
development that holds considerable promise. These inks
cure promptly (usually within 24 hours) and are formulated
with laser printer conditions as a design criterion. They can
be expected to reduce offsetting and other problems
encountered with other types of inks.
Laser inks may be oxidative, UV, or heat set types.

Another option is to use Xerox forms, whose performance is
guaranteed. The same guarantee should be expected of the
forms vendor chosen by the customer.
Security features
Checks and other negotiable require protection against
fraudulent use. Security features can be incorporated into the
base stock when the paper is made, or they can be part of the
preprinted form. These features should be chosen to achieve
sufficient document security without negative effects on printer
operation.
A secure document is protected against both duplication and
alteration. Security features should be selected to address each
of these aspects effectively when they are used in a MICR laser
printing system.
A detailed discussion of check security is contained in chapter 8,
“Security.”
Duplication detection
The most common security features for detecting duplication of
forms include:

3-14

•

Microprint: Extremely small type used to print a message or
phrase that is readable under magnification

•

VOID pantograph: A pattern of varying halftone screen
frequencies in the check background that causes the word
VOID to appear in the background of a copied check

•

Split fountain backgrounds: Continuous fade from one
color to another across the document

•

Microfibers: Tiny colored or UV treated fibers that are
incorporated into the base paper stock and are easily visible
under normal or UV illumination.

Generic MICR Fundamentals Guide

Paper facts
•

Watermark: A variation that is made in the opacity of the
paper during manufacturing. An artificial watermark is
typically a white ink image that is printed on the back of the
check.

•

Drop-out ink: Very low density ink that is used to print a
message, usually on the back of the check

•

Thermochromic ink: An ink that is used to create an image
that changes color when warmed by a finger

Alteration prevention
The most common security features for detecting alteration of
forms include:
•

Security backgrounds: Patterns printed in the check
background that show any attempt to alter the image.
Regular patterns are preferable; irregular patterns may
merge with altered areas.

•

Fugitive inks: Inks that run when they come in contact with
liquids

Application design
Intelligent application design can provide additional protection
against alteration.
•

In left- and right-fill fields, pad any open space with additional
characters. Asterisks (*) are recommended to fill in the
convenience amount field (the amount written in numerals).

•

Redundant data—duplicate information, such as the amount
written in both numbers and words—makes altering the valid
check data more difficult.

•

Fonts with large, wide-stroke characters are more difficult to
alter than small, narrow type faces.

Numbered stocks
Preprinting sequential numbers on the sheets of MICR stock is a
useful tool for tracking stock usage. Numbered stock is helpful
for determining the number of sheets that were used for a check
printing job, reconciling against the size of the job and the
number of sheets that were used but not issued as checks.
Following are some points to note for using numbered stocks:

Generic MICR Fundamentals Guide

3-15

Paper facts
•

To achieve reconciliation without substantial waste, always
use the stock sheets in the same order—lowest to highest—
so that the sequence remains intact.

•

Avoid gaps in the sequence.

•

Storing unused stock without wrapping may cause runability
problems the next time it is used.

•

The numbering order depends on how the paper is loaded in
the feeder tray. If the paper is loaded face up, the lowest
numbers must be at the top of the stack. If the paper is
loaded face down, the lowest numbers must be at the bottom
of the stack. For face down printing, either the paper must be
boxed face down or the paper boxes must be inverted before
the paper is used.

•

Synchronizing the sequential numbers with the check serial
numbers is not recommended because of the complexity it
adds to the production process. Operators are required to
input the starting sequence number, and the job must be
restarted any time a jam occurs.

Features to avoid
Some security features may either be ineffective or cause
damage to the printer. Before making a major forms investment,
always test new preprinted forms to verify that security claims
are delivered without printer impact.

3-16

•

Some security papers contain chemical indicators that
produce vivid dye images in areas where erasers, bleaches,
or chemical eradicators have been applied. These indicators
are intended for wet ink images and do not effectively protect
dry ink images. They may degrade image quality, reduce
document security, and severely impact printer reliability.

•

Another type of chemical treatment of the base stock
attempts to reduce the risk of alteration through improved
image performance. Some, but not all, of these treatments
improve permanence. There remains a risk of printer
contamination, with associated degradation in image quality,
reduction in image permanence, and potential printer
reliability impacts.

Generic MICR Fundamentals Guide

Paper facts
•

Many security features must be located in areas of the
document where the printer places critical information, such
as the payee name and the check amount fields. However, if
the feature interferes with the bonding of dry ink to paper,
poor image permanence results. This negates the value of
the feature and makes alteration harder to detect. If the
feature covers less than 20% of the paper surface, this risk is
reduced.

Generic MICR Fundamentals Guide

3-17

Paper facts

3-18

Generic MICR Fundamentals Guide

Document design

Although other applications are possible, a MICR document is
typically a negotiable document, very often a check. However, all
types of MICR documents must be produced in accordance with
the standards and methods that have been established for
checks, in order for the automated payment systems to process
them.

Check document content
A check is an unconditional order in writing that:
•

Is addressed by a person or legal entity to another person or
legal entity.

•

Is signed by the person giving it.

•

Requires the bank to pay, on demand, a sum of money, after
a specific date.

The design of a check should enable anyone to quickly and
easily enter and extract the necessary information.
A blank check normally has the characteristics that are
described in the following sections. An issued check has the
same characteristics, plus the variable data: payee, date,
amounts, and signature.
Security features
Security should be present on all negotiable documents to
protect against tampering and duplication. They may be
incorporated at the time the paper is manufactured or can be
part of the preprinted form, and a given sheet may include
features from both sources. Form production considerations are
discussed in chapter 3, “Paper facts.” Issues related to document
design are discussed in the next section.
For additional information on security paper and tampering
methods, refer to “Security” chapter.

Generic MICR Fundamentals Guide

4-1

Document design
Background printing
While MICR documents may be printed on white or pastel
colored paper, negotiable documents nearly always have some
sort of background—a scenic image, a logo, or a pattern. Fixed
form and variable information should print darker than this
background.
The background printing must not interfere with extraction of the
information that is required to process the completed check.
Industry standards have defined requirements for the following
areas that contain the necessary variable information:
•

MICR line

•

Convenience amount

•

Amount in words

•

Date

•

Payee

•

Signatures

In these areas, additional background printing limitations and
measurements apply. Tighter limits are placed on reflectance,
and contrast is defined in a localized manner that is more in
keeping with the way automated equipment detects check data.
New scanner-based test equipment is now required to evaluate
how a check design conforms to the new specifications.
Check issuers who do not print their own forms must require their
forms suppliers and application developers to adhere to check
background specifications.
Fixed information
The fixed data that appears on the face of either a personal or
business check is necessary for the proper processing of the
check.
Date line
The date is a required element on a check. It is written by the
issuer and represents the day on or after which the amount of
the check may be transferred. The date line should be in the
upper right corner of the check.
If the application produces a completed check, the date should
still be located in this area, but the actual line may be omitted.

4-2

Generic MICR Fundamentals Guide

Document design

Date check number,
Fractional Routing and Transit
Number area

Account Title area

Payee and Amount in Words area
Drawee Institution and
Memo area

Convenience Amount
area

Signature area

MICR clear band and MICR line area

Figure 4-1. Typical U. S. personal check document design
layout
Amount lines
The amount of the check is also required. In order to prevent
tampering, the amount should appear twice on the check. The
amount that is written in numerals is called the “Convenience
Amount,” while the amount that is entered as text is the “Amount
in Words.”
ANSI standards specify the location of the Convenience Amount
for all styles of checks, and this standard is followed throughout
the world. The area may be highlighted by the use of preprinted
boxes and must include a dollar symbol ($). For completed
checks, the box around the Convenience Amount field should be
retained to aid in locating this data.
NOTE: The Xerox MICR fonts contain a dollar symbol, which is
acceptable for all applications.
The area for the Amount in Words is normally located left of the
Convenience Amount, but may be above it or below it. For
completed checks, the line for entering the Amount in Words may
be omitted.
Payee line
The payee area of the check provides a line for the purpose of
entering the name of the payee. The line is often preceded by the
words “PAY TO THE ORDER OF.” For completed checks, this
line may be omitted, because the payee information is already
present.

Generic MICR Fundamentals Guide

4-3

Document design
Signature lines
The signature line or lines are located in the bottom right portion
of the check, above the MICR line. The signature area should be
located no lower than 8½ inches/216 mm from the bottom edge
of the check to avoid interference with the MICR information in
the clear band area.
The minimum clear band dimension for Xerox MICR printers is ¾
inch/19 mm, because the line printed by a Xerox MICR printer is
magnetic and therefore must be kept out of the MICR clear band
over the entire allowable registration range.
The signature lines may be omitted when a completed, signed
check is issued; however, the ¾ inch/19 mm clear area must be
retained. This clear area is measured from the lowest
descending stroke of the signature, because any incursion into
the MICR clear band can cause rejects or misreads.
Name of financial institution
The institution where the account is located is referred to as the
“payor institution.” The payor institution name and address is
generally printed in the lower-left section of the check, directly
below the Payee and Amount in Words area. If it is adjacent to
the MICR clear band, the institution name must be more than ½
inch/13 mm above the bottom of the check in a preprinted form,
or ¾ inch/19 mm above the bottom if the check is printed by a
Xerox MICR printer.
Memo line
A line is generally printed in the lower-left corner of the check,
below the payor institution name. This information also must be
positioned at least ½ inch/13 mm above the bottom of the check
on a preprinted form, or ¾ inch/19 mm above the bottom of a
check printed by a Xerox MICR printer.
Account title
The title of the account is normally printed in the upper-left
corner of the check, directly above the payee line. This area
provides the customer information, which could include address
and telephone number.

4-4

Generic MICR Fundamentals Guide

Document design
Check serial number
This number is usually printed in the upper-right corner of the
check. It is not a required element of the check, and is provided
as a convenience to the account holder. In most cases, the
check serial number appears a second time in the MICR line.
Fractional routing number
This number in fractional format is printed in the upper-right
corner of the check. It identifies the payor institution and is used
in routing the check through the banking system. A portion of the
routing number is also in the MICR line.
MICR line
The MICR line is the line of machine readable information that is
printed at the bottom of each check. Financial institutions are
dependent on the accuracy and integrity of the data in this line.
Unlike the fixed elements of the form, the MICR line must be
printed using magnetic ink and a special MICR font, such as
E13B or CMC7.

MICR line (clear band) format requirements
The format of the MICR line must conform to the standards set
by ANSI specifications. The MICR line is contained within the
clear band area, which is located at the bottom of the check.
By ANSI standards, the minimum size of the clear band is
defined as the bottom 5/8 inch/16 mm of the check document.
The clear band must not contain any magnetic material other
than MICR characters. Because the entire Xerox MICR
document uses the magnetic dry ink, make sure that no marks of
any kind (cut lines, signature letters, etc.), other than the MICR
line font characters, are printed in the clear band on either side of
the paper.
All MICR characters must be in a single line within the clear
band. In accordance with ANSI standards, the MICR line must
be positioned as follows.
•

Between 3/16 inch/4.8 mm and 7/16 inch/11.1 mm from the
bottom edge of the check

Generic MICR Fundamentals Guide

4-5

Document design
•

5/16 inch/7.9 mm from the right edge of the check, ± 1/16
inch/1.6 mm

•

Minimum of 1/8 inch/3.2 mm from the left edge of the check

The following figure illustrates the clear band dimensions for the
E13B and CMC7 fonts.

E13B
MICR clear band and
MICR band
dimensions
MICR band
3/16"
1/4"

5/8"

Clear
band

3/16"
± 1/16"
1/8" minimum
5/16"

CMC7
MICR clear band and
MICR band
dimensions
MICR band
4.8 mm

Clear
16 mm band

6.4 mm
4.8 mm
± 1.6 mm
4.0 mm minimum
7.9 mm

Figure 4-2. MICR clear band dimensions

4-6

Generic MICR Fundamentals Guide

Document design

Format specifications using E13B
The recommended clear band dimension for Xerox MICR
printers using the E13B font is 3/4 inch/19 mm, to provide for
tolerances of the printing and finishing systems, and to allow an
extra margin of safety between the clear band and the magnetic
ink on the rest of the check. If the clear band is not at the bottom
of the sheet, keep 1/8 inch/4 mm below the clear band free of
printing.
E13B character set
There are two types of characters in the E13B font: numbers and
symbols.
E13B numbers
The E13B font numbers are illustrated below:

E13B symbols
The E13B font has the following four symbols.
On-Us symbol

This symbol tells the reader sorter that the next few numbers
identify the account. Because the issuing institution determines
the content of the On-Us field, the bank branch on which the
check is drawn may also be indicated.
On larger business size checks, the On-Us symbol is also used
to define a field on the left end of the check. This optional field,
called the Auxiliary On-Us field, frequently contains a multiple
digit serial number.

Generic MICR Fundamentals Guide

4-7

Document design
Transit symbol

The two Transit symbols tell the reader sorter that the numerals
between these symbols are the routing number that identifies the
institution on which the check is drawn and where the document
should be sent for processing. Checks are not processed in
branch offices, but in central processing locations, which
ensures that documents take the shortest route and the shortest
processing time.
Amount symbol

The two Amount symbols tell the reader sorter that the numbers
between the symbols are the amount of the check in cents. You
seldom see this symbol or the Amount field when you are
developing an application, printing a MICR job, or servicing the
MICR printer. The amount is normally added later by the bank.
However, some customer applications may add the Amount field
while printing checks.
Dash symbol

The Dash symbol is sometimes used as a separator within the
On-Us Field, although reader sorter manufacturers discourage
its use because of detection problems. Some banks use the
Dash symbol to separate the bank branch number from the
account number.

4-8

Generic MICR Fundamentals Guide

Document design
E13B character design
All of the E13B characters are designed on a 7 by 9 matrix of
0.013 inch/0.33 mm squares (see figure 4-5.). The minimum
character width is four squares (or 0.052 inch/1.3 mm) for the
numbers 1 and 2. The maximum width is 0.091 inch/2.3 mm for
the number 8, 0, and four special symbols. All characters except
the On-Us and Dash symbols have a height of 0.117 inch/3 mm.
This does not correspond to an exact point size usually specified
for fonts, but is between 8 and 9 points.
The height of the On-Us symbol is 0.091inch/2.3 mm, and the
dash is 0.052 inch/1.3 mm. Both heights are multiples of the
basic 0.013 inch/0.33 mm unit.

0.091 in.
0.078 in.
0.065 in.
0.052 in.

For characters 0, 8, and symbols
For characters 4, 6, 9
For characters 3, 5, 7
For characters 1, 2

This is a 7 by 9 matrix of
0.013 inch/0.33 mm squares
0.117 in.

Note:
1. All characters are centered around a
horizontal center line.
2. All characters are right aligned.
3. Minimum height of right edges is
0.052 inch/1.3 mm.

Figure 4-3. E13B character matrix design
Field formats—E13B font
The MICR line contains up to 65 character positions. These
positions are numbered and grouped into five fields, which are
read from right to left.

Generic MICR Fundamentals Guide

4-9

Document design
1. Amount
2. On-Us
3. Transit
4. External processing code (optional)
5. Auxiliary On-Us (optional)
All checks have at least three of the fields (Amount, On-Us, and
Transit). Commercial checks may also have an Auxiliary On-Us
field, located on the left of the check. Some checks also have an
External Processing Code (EPC) digit, located between the
Transit and Auxiliary On-Us fields.
The Amount and Transit fields have a standardized content,
while the contents of the On-Us and Auxiliary On-Us fields can
vary to meet the individual bank requirements. The following
figure illustrates the placement of the four fields on a check in the
U. S.

Auxiliary On-Us field

Transit Number field

On-Us field

Amount field
(blank at time of printing)

Figure 4-4. MICR line fields

4-10

Generic MICR Fundamentals Guide

Document design
Document Specifications form
For accurate formatting of the entire MICR line, each bank
should provide a MICR Document Specifications form to identify
the proper contents of the various character positions. (Refer to
figure 4-4). The MICR Document Specifications form includes:
•

The account number, title, and address

•

General specifications regarding check size and format

•

The position of the control characters and digits that will be
entered into the routing field

•

The structure of the On-Us and Auxiliary On-Us symbols

•

General specifications regarding the quality control
procedures of the bank

Each MICR symbol, and the numbers or spaces between those
symbols, must be properly registered so that the fields do not
flow into one another.
The exact field structure depends on the national standards.
Field lengths may vary as a function of the national requirements
and even the detail usage of the symbols may be different. For
example, although Australia uses the same length and
bracketing structure for the Amount field as the U. S., their
“starts” are equivalent to the Transit field with a Transit symbol,
but they “close” with an On-Us symbol.
Even within the national standards, variation can exist within
fields. It is always best to identify the required field structure
through the use of the bank's MICR Document Specifications
form for a specific account.

Generic MICR Fundamentals Guide

4-11

Document design

Figure 4-5. MICR Document Specifications form (U. S.
example)
NOTE: In this example, X denotes blank spaces required by the
issuing bank.

4-12

Generic MICR Fundamentals Guide

Document design
Amount field
The Amount is the first field on the right, located between
character boxes 1 and 12. When this field is used, position 12
contains the Amount field symbol, and positions 2 through 11
contain the actual amount. The amount is right-justified, and all
unused positions to the left are filled in with zeros.
The Amount field is usually empty when the document is printed;
the amount is added later by the bank. However, some
applications may add the Amount field while printing checks.
On-Us field
The second field from the right is the On-Us field, located
between character boxes 14 and 31. It follows a blank space at
position 13, which is a separator from the Amount field.
The On-Us field includes variable information from the banking
institution, including the account number. It contains the On-Us
symbol, at position 14 and 31 or 32.
To the left of the On-Us symbol, reading right to left as the reader
sorter does, are the account number, the bank branch number,
and the check number. The check serial number is typically to
the right of the On-Us symbol. Since the issuing institution
determines the content of the On-Us field, the bank branch on
which the check is drawn on may also be indicated. The last
position is usually followed by a blank in position 32.
The Dash symbol is sometimes used as a separator within the
On-Us field. This is not recommended, however, because the
dash is difficult to detect.
Transit field
The Transit field is located between character boxes 33 and 43.
The Transit symbol is located at positions 33 and 43. On a check
having four fields, like the one in figure 4-3, this field is second
from the left. However, shorter checks (such as personal checks)
do not have an Auxiliary On-Us field. In this case, the Transit
field is the farthest left of the three fields. The Transit field, like
the Amount field, is right-justified, with all unused positions to the
left filled with zeros.

Generic MICR Fundamentals Guide

4-13

Document design
External processing code (EPC) field
The External Processing Code (EPC) field is an optional field
between the Transit and Auxiliary On-Us fields at position 44 or
45. When present, this field indicates that the document is
eligible for special processing.
Auxiliary On-Us field
The Auxiliary On-Us field is an optional field that is sometimes
used by the banks for additional processing information or high
value serial numbers. When it is present, it is the farthest left on
the check, between positions 45 or 46 through 65.
This field is not present on personal checks because of space
limitations. On business checks, it usually contains the check
serial number or accounting control information specific to that
account.
Field formats summary
The following table provides a summary of the MICR field
formats and character positions using the E13B font.

4-14

Generic MICR Fundamentals Guide

Document design

Table 4-1. MICR field formats—E13B
Field

Position

Description

Amount

1 to 12

Fixed field signifying the dollar value of the check.
Position:

On-Us

14 to 31 or
32

•

1 Opening amount symbol

•

2 to 3 Cents

•

4 to 11 Dollars (zero-fill to left)

•

12 Closing amount symbol

•

13 Space

Content is determined by each institution; generally contains the
account number. May optionally extend to include position 32. May also
contain the serial number, the transaction code, or both. The symbol
located nearest to the left edge of the document, must end more than ¼
inch/6.35 mm from the left edge of the document.
Position:

Transit

33 to 43

•

14 On-Us symbol

•

15 to 31 or 32 Generally contains the account number, and may
also contain the serial number, transaction code, or both.

•

31 On-Us symbol if not used to extend the field

•

32 Space, or On-Us symbol if the field was extended

Fixed field identifying the institution upon which the check is drawn.
Position:

External
Processing
Code (EPC)

44 or 45

Auxiliary On-Us 45 or 46 to
(optional)
65

•

33 Opening transit symbol.

•

34 Check digit. This number combined with the first eight digits
verifies the accuracy of the routing number in computer processing.

•

35 to 38 Institutional identifier (a four-digit check routing symbol).

•

39 to 42 Check routing symbol. The first two digits are the federal
reserve district for the institution. The third digit identifies the federal
reserve office (the head office or branch) or a special collection
arrangement. The fourth digit shows the state for the institution, or a
special collection arrangement.

•

43 Closing transit symbol.

External Processing code (EPC) field. If present, represents
participation in an authorized program that requires special handling or
processing in the collection system.
Content determined by each institution. Contains numbering,
transaction codes, and internal controls. Used only for checks longer
than 6 inches/152 mm). The right most symbol must start within ¼ inch/
6.35 mm of the Transit symbol farthest to the left.

Generic MICR Fundamentals Guide

4-15

Document design
Character alignment
The bottom edges of adjacent E13B MICR characters within the
same field are in alignment within:
•

± .007 inch/0.18 mm (CPA—Canada)

•

± .015 inch/0.38 mm (ISO—International)

•

± .030 inch/0.76 mm (ANSI—U. S. only)

Although this is a concern for impact printing, MICR characters
printed on laser systems are always properly aligned.
NOTE: The Amount field of the MICR line is not normally printed
by the laser printer, but is added by a proof machine at the bank
of first deposit. The proof machine, being an impact device, may
cause alignment errors.

CMC7 font
The CMC7 font is an alternative MICR font that has been
adopted in various countries throughout the world.
CMC7 numbers and symbols
The usage of the CMC7 special symbols generally parallels the
usage of the E13B special symbols. There are, however,
significant differences.

Figure 4-6. CMC7 MICR font character set

4-16

Generic MICR Fundamentals Guide

Document design
The CMC-7 font consists of 10 numeric characters (0-9), five
special symbols, and 26 alphabetic characters (A-Z). The five
special symbols are illustrated in the following figure:

Figure 4-7. CMC7 special symbols
S-1: Indicates the start of the bank's internal information
(account number, etc.). Although it serves a purpose similar to
the E13B On-Us symbol, it is not used in the CMC7’s equivalent
to the E13B Auxiliary On-Us field.
S-2: Identifies the start of the Amount field. Unlike the E13B
structure, this symbol is not used to terminate the Amount field.
The CMC7 Amount field terminates when the appropriate
number of digits (minimum 10, maximum 12, followed by a
blank) have been detected.
S-3: Used as the terminator for the bank routing information. It
also functions as the terminator of the check number field
(following a minimum of four digits, maximum of seven digits).
S-4: Not used. Although its structure is defined, this symbol
usually does not appear in the structure of the MICR line.

Generic MICR Fundamentals Guide

4-17

Document design
S-5: Indicates the routing number that identifies the institution on
which the check is drawn and where the document should be
sent for processing. This symbol is the equivalent of the E13B
Transit symbol. However, it is not used to terminate the bank
routing identification.
Character design
The CMC7 font differs from the E13B font in character height
and width. The height of all of the numeric characters is 0.112
inch/2.85 mm. Special symbols are 0.106 inch/2.70 mm. Unlike
the E13B font, the CMC7 characters all have the same width.
Each CMC7 character format consist of seven vertical strokes
separated by six spaces of 0.3 or 0.5 mm (referred to as short
and long intervals). Each character contains two long intervals
and four short intervals. Different permutations of the long and
short intervals identify each character.

Stroke width: The difference between the right
edge and the left edge of a stroke is 0.004 to 0.007
inch/0.10 to 0.19 mm.

Short interval:.3 mm. The distance between
the right edges of successive strokes is 0.0096 to
0.0144 inch/0.24 to 0.36 mm.
Long interval: The distance between the right
edges of successive strokes is 0.0176 to 0.0224 inch/
0.44 to 0.56 mm.

Figure 4-8. CMC7 stroke and interval dimensions
The fonts are optimized for each product. They are not
interchangeable between products.

4-18

Generic MICR Fundamentals Guide

Document design

MICR character spacing requirements
Reader sorters have timing limits that prevent them from
handling extreme variations in character spacing. The average
spacing requirement for MICR characters is 0.125 inch/6.4 mm
per character (8 characters per inch).
The MICR specifications have a tolerance on the 0.125 inch/6.4
mm spacing requirement of ± 0.010 inch/.3 mm. Specifications
also state that the accumulated error must not exceed field
boundaries, shown in table 4-1. MICR characters are right
justified and the numbers are read from right to left. This means
that you might need to pad the MICR line with leading blanks so
that the numbers start in the correct position.
Character spacing algorithm for 300 dpi
MICR printing systems print at 600 or 300 dots per inch. At 600
dpi, there are no issues with character spacing. 600 dpi can be
divided evenly by 8 characters per inch, resulting in 75 dots per
character.
However, 300 dpi, when divided by 8 characters per inch, results
in 37.5 dots per character. The system cannot print half a dot, so
it cannot print each character at exactly 8 characters per inch.
You can achieve an average of 37.5 dots per character by using
a proportional spaced font with a spacing algorithm that places a
space of one dot after every second character. In other words,
two characters of 37 dots are printed, followed by a one-dot
space, then the sequence is repeated. This algorithm is used
extensively in high volume printing installations.
Fixed pitch and proportional font spacing
The relationship between the input character and the output
character or space is shown for proportional spaced fonts in
table 4-3, and for fixed pitch fonts in table 4-4.
NOTE: The relationship between the input character and the
output character may differ slightly from these tables for some
Xerox MICR products. These differences are primarily found with
the revision control character (?) and the special symbols.

Generic MICR Fundamentals Guide

4-19

Document design
The following HP PCL escape sequences must be entered
exactly as shown to select the Xerox MICR fonts:
•

E13B:
&100(0U(s0p8.00h9.00v0s0b0T

•

CMC7:
&100(1U(s0p8.00h9.06v0s0b0T

NOTE: The PCL 5 font rotation commands are used to rotate
the E13B and CMC7 portrait fonts for landscape applications.
Table 4-2. PCL fixed pitch MICR font characteristics

4-20

File name

E13B-P.FNT

CMC7-P.FNT

Orientation

Portrait

Symbol set

Pitch

Fixed

HMI

8.00 CPI

Point

9.00

9.06

Style

Upright

Stroke weight

Type face

Line printer

Generic MICR Fundamentals Guide

Document design
Table 4-3. Character conversion and spacing of proportionally spaced MICR
fonts (LCDS printing only)
Input character Input code

E13B font

ASCII symbol

Printed result

Hex Value

(space)

CMC7 font
Dot width
37

Printed result

Dot width

(space)

dollar symbol

Transit symbol

S-1 symbol

;

Amount symbol

S-2 symbol

On-Us symbol

S-3 symbol

Dash symbol

S-4 symbol

(not used)

S-5 symbol

(space)

Amount symbol

(not used)

Dash symbol

(not used)

On-Us symbol

(not used)

Transit symbol

(not used)

On-Us symbol

revision control
character

Generic MICR Fundamentals Guide

4-21

Document design
Table 4-4. Character conversion and spacing of fixed pitch MICR fonts at 300 dpi
E13B font
Input character Printed result

4-22

CMC7 font
Dot width Dot width
@300 dpi @600 dpi Printed result

Dot width Dot width
@300 dpi @600 dpi

space

(space)

37.5

(space)

37.5

dollar symbol

37.5

dollar symbol

37.5

Transit symbol

37.5

S-1 symbol

37.5

;

Amount symbol

37.5

S-2 symbol

37.5

On-Us symbol

37.5

S-3 symbol

37.5

Dash symbol

37.5

S-4 symbol

37.5

(not used)

S-5 symbol

37.5

Amount symbol

37.5

(not used)

Dash symbol

37.5

(not used)

On-Us symbol

37.5

(not used)

Transit symbol

37.5

(not used)

On-Us symbol

37.5

On-Us symbol

37.5

revision control
character

37.5

revision control
character

37.5

Generic MICR Fundamentals Guide

Document design

Check size
The ANSI specified size limits for a check are shown in the
following figure.
Length:

6 inches/152 mm minimum
8.75 inches/222 mm maximum

Height:

2.75 inches/70 mm minimum
3.67 inches/93 mm maximum

6 inches/
152 mm

2.75 inches/
70 mm
Minimum size document
3.67 inches/
93 mm
Maximum size document

8.75 inches/
222 mm

Figure 4-9. Check size limits
Most personal checks in the U. S. use the minimum size
requirements. Commercial checks vary in size; however, most
are closer to the maximum requirements.
Although the above dimensions are limited to U. S. standards,
each national standards organization has established the
minimum and maximum size documents that are used in their
jurisdictions, shown in the following table. The bank's MICR
Document Specifications form usually provides the definitive
guide regarding the document sizes.

Generic MICR Fundamentals Guide

4-23

Document design

Table 4-5. Check dimensions summary chart
Country

Check dimensions

Notes

Australia

6.25’’ x 2.75’’/162 x 70 mm (min.)

Typically 8’’ x 3 5/8’’

8’’ x 3.66’’/203 mm x 93 mm (max.)
Bermuda

6.125’’ x 2.75’’

10.5’’ x 3.15’’ with stub

7.4’’ x 3.15’’
Brazil

175 mm x 80 mm

Typically 4 checks per 8.5 x 12’’
sheet if check has stub;
otherwise 4 checks per 7.25 x
12’’ sheet

Canada

6’’ x 2.75’’ (min.)

Typically 6 1/4’’ x 2 3/4’’

8.5’’ x 3.66’’ (max.)
France

175 mm x 80 mm

Check booklet: 225 mm x 80
mm, 102 mm x 175 mm, and
225 mm x 102 mm

Hong Kong 7’’ x 3.25’’
8.5’’ x 3.5’’
Italy

180 mm x 72 mm (min.)
260 mm x 72 mm (max.)

Spain

175 mm x 80 mm

175 mm x 100 mm with top stub

6.125’’ x 2.75’’/155 x 102 mm (min.) Typically 8’’ x 3’’
8.25’’ x 4’’/209 x 101 mm (max.)

USA

6’’ x 2.75’’ (min.)

Typical personal check:

8.75’’x 3.66’’ (max.)

6’’ x 2.75’’
Typical commercial check:
8.5’’ x 3.67’’

4-24

Generic MICR Fundamentals Guide

Document design

Other application considerations
Printing on a Xerox MICR printing system raises some additional
application considerations.
Two sided printing
Two sided (duplex) printing may be used in a MICR application,
but the forms design and the application structuring require care.
•

The reverse side of the clear band must not contain any
magnetic printing. The only magnetic printing that is
permitted in the clear band on either side of the sheet is the
MICR line.

•

The MICR line should be printed on the first imaged side of
the duplex sheet.

•

The endorsement area on the back of the check must be kept
free of any printing that would interfere with bank
endorsements.

NOTE: This information is applicable only if your system
supports duplex printing.
Perforations
If you are using perforated forms, the perforation must not
interfere with the clear band area. Therefore, it should not be
underneath the MICR line. Refer to “Perforation” in chapter 3,
“Paper facts,” for guidelines for using perforations.
Multiple-up printing
For a check printing operation, several check documents can be
printed on each sheet. This is called “multiple-up” or “multi-up”
printing, which means that one or more logical pages are printed
on one physical page. Perforated paper is often used to separate
the documents or they may be separated after printing by gangcutting or slitting the sheets.
The following figure shows some possible sheet layouts for
multiple-up printing.

Generic MICR Fundamentals Guide

4-25

Document design

Document

Stub Document
Stub Document

Document

Stub Document

Document

Stub Document
Four-up with check register

Three-up with no stub

Stub
Stub

Document
Stub

Document

Document
Two-up with stub

One-up with stub*

*The maximum check height is 3.67 inches/93 mm, or one-third
of an 8.5 by 11 inch/216 x 279 mm sheet.

Figure 4-10. Sheet layouts for 8.5 by 11 inch or A4 paper
A multiple-up format, however, raises the following application
considerations.
•

Avoid multiple-up applications in which the last sheet is only
partially filled.
Example: In a 3-up check application that will print 100
checks, the last page of the job prints only one check. This
would leave the remaining two checks on the form blank.
Blank checks on the last sheet are not acceptable.
Potential solutions include:
– Ensure there is always enough data to fill the last page,
with partial pages being “voided” by the data.
– Design more than one form when the correct form is being
selected for the final page by the software program.

•

4-26

Problems can occur when the sequence of the printed
application does not meet the requirements of the site
finishing equipment.

Generic MICR Fundamentals Guide

Document design
Example: A 3-up application is printed with checks numbered
1 through 6, in that order. After they are cut, three stacks of
finished checks are produced: the first with check numbers 1
and 4, another with numbers 2 and 5, and a third with
numbers 3 and 6. For this situation, the host application may
need to be adjusted to enable the proper sequence to be
maintained during finishing.
NOTE: For appropriate page sizes, refer to the printer
documentation.

Readability
When designing MICR documents, it is critical to remember that
the document acts as a vehicle to transfer money from one party
to another. The MICR document must clearly communicate the
information required to complete that transfer, without
interference from colorful backgrounds or confusing layout.
Digital image capture, processing, and storage for the entire
check make this requirement more important.
Work is in progress to make the digital image of a check legally
binding when captured and processed by banks. This is
necessary to permit truncation of the paper documents early in
processing and eliminate the cost of transporting the paper to the
issuing bank. Checks should be designed to be easily
interpreted when digitized into black and white images.
MICR documents are not the only documents in which
readability is a concern. Many payment processing systems are
designed to use an OCR-printed turnaround document to direct
a check based payment. In these cases, readability of the OCR
line may be compromised if the document is printed using
magnetic ink. The processing system detect checks by the
presence of magnetic ink and initiate an E13B font recognition
routine. If the turnaround document is magnetic, failure to read
would result. Therefore, MICR printers are not recommended
when an OCR font is used for data collection.

Generic MICR Fundamentals Guide

4-27

Document design

4-28

Generic MICR Fundamentals Guide

Document processing

The life cycle for a MICR document involves three types of
processing equipment:
•

Proof machine

•

Reader sorter

•

Repair station

Proof machine

The proof machine transfers the amount from the Convenience
Amount field to the MICR encoded Amount field. It prints the
Amount field onto the check using either a thermal transfer or an
impact ribbon printer. The proof machine may be manually
operated or automated using a scanner and character
recognition technology.

Reader sorter

The checks are then sent through a series of reader sorter
passes. The reader sorter inputs data from the checks, captures
each check image, endorses the checks, and sorts them
according to their destination.
The checks are separated into either “transit items” drawn on
other banks or On-Us items, drawn on the processing bank.
Transit items are segregated into different groups and may
receive several reader sorter passes, depending on the
destination.

Repair station

If an error occurs in the reader sorter, the document usually goes
to a repair station. Here, the MICR line is read both magnetically
and optically, with operator intervention in severe cases. A new,
corrected MICR line is applied to the check.
The final measure of the quality of the MICR document is how
well it passes through the automated payment processing
system.

Generic MICR Fundamentals Guide

5-1

Document processing

Proofing checks
All checks start automated processing in the Proof of Deposit
department. Check processing relies on a series of debits and
credits throughout the process to identify errors as close to the
source as possible.
The first step is to prove that the deposit is valid. A deposit slip is
balanced against the value of the items deposited with it. Errors
in MICR amount encoding or deposit ticket completion show up
as a failure to balance.
Amount determination errors
To encode the amount, an operator may read the check and
manually enter the amount, or an automated scanner may
capture and analyze an image of the check to determine the
correct MICR Amount field content. Poorly designed checks may
interfere with amount determination in the following ways:
•

Non-standard amount location

•

Amount value written too small or too large

•

Interference of check background design elements with
amount field identification

•

Lightly written check amounts

•

Use of colored inks that do not provide sufficient contrast

Whenever the value of the check cannot be quickly and
accurately determined, the cost of processing the item
increases. The balancing process continues throughout payment
processing, but the impact of check design most critical here.
Proofing equipment errors
Another potential problem in proof encoding is compatibility of
the laser printed check with the encoding equipment. For many
years, all proofing equipment used impact ribbon technology,
which proved to be stressful for matrix head reader sorters (see
next section).

5-2

Generic MICR Fundamentals Guide

Document processing
Non-impact ribbon technology offers higher encoding speed and
fewer matrix read processing issues. However, problems occur
with transfer of ink to the paper. Paper roughness must be
controlled. Also, for MICR laser printers, which apply a release
agent or oil to the fuser, the specified fuser agent must be used
and the metering system maintained according to Xerox
schedules.

Reader sorter function
Reader sorters are machines that read magnetic ink characters
that are printed using the E13B or the CMC7 fonts. Reader
sorters recognize the magnetic waveform of the character, its
magnetic pattern, its visual pattern (using OCR), or a
combination of these characteristics. Reader sorters can be
programmed to validate and sort by specified MICR line data
fields. They may also be capable of endorsing, microfilming,
imaging, and providing processing information in hardcopy.
How well the document passes through the reader sorter
depends of the following:
•

Document characteristics
– MICR line format and placement
– Print quality
– Magnetic signal strength of the image
– Paper characteristics.

•

Reader sorter characteristics
– Reader sorter type
– Setup adjustments
– Quality and quantity of operator maintenance.
– Operation of the reader sorter

•

Damage resulting from prior processing
– Handling damage
– Lead edge fluff

Generic MICR Fundamentals Guide

5-3

Document processing
Waveform generation
All types of reader sorters react to any magnetic material in the
clear band, intentionally placed on a document or not.
Reader sorters read from right to left and the magnetized ink
generates a waveform. The following figure illustrates the
process.

Figure 5-1. On-Us symbol waveform reading
First, the character is magnetized by the reader sorter. Then, as
the character passes the read head, edge A generates a change
in magnetic flux, producing peak A of the waveform. There is no
change in flux as the character between A and B passes the
head. As edge B passes the head, a change in flux is sensed
producing peak B of the waveform.
This continues through edges C, D, E, and F, producing the
entire waveform.

5-4

Generic MICR Fundamentals Guide

Document processing

Types of reader sorters
The following recognition technologies have been incorporated
into MICR reader sorter devices.
Waveform reader sorters
Waveform reader sorters measure the magnetic signal waveform
or pattern of the MICR character as the documents pass the
read head. Waveform reader sorters are often referred to as
“single slot” or “single gap” readers because the read head
contains one magnetically sensitive slot or gap, which covers the
height of the entire character string in the clear band. Each MICR
character that passes the read slot produces a waveform signal.
This signal is compared against the known waveforms of the
MICR character set to determine which character was read.
Waveform reader sorters are also called “DC readers,” because
they use a constant magnetic field to magnetize the characters.
Waveform reader sorters are generally low to medium speed
reading devices. The reject rates for these readers is slightly
higher than for matrix readers.
Matrix or AC reader sorters
Matrix readers use a series of small read heads that are stacked
in close proximity, each of which reads a small strip of the
character string. The segments of the MICR characters register
as binary magnetic flux transitions at each read head. These
pulses are combined and used to build a two dimensional bitmap
for each character. This bitmap is then compared to known
bitmap patterns to determine the identity of the character.
To simplify bitmapping, readings from groups of heads are
logically combined to produce a single value. This slightly
increases sensitivity to spots, but results in lower reject rates for
matrix readers.
Matrix readers are also called “AC readers,” because they use
an oscillating magnetic field to magnetize the characters. These
oscillations cause a series of waveform peaks in a character
stroke, which are recorded as a binary 1 in the bitmap image of
the character.

Generic MICR Fundamentals Guide

5-5

Document processing
Optical reader sorters
Optical readers typically use a light source and some type of
photosensitive matrix array to convert an image of the character
into a set of electrical signals. Optical readers that can interpret
the characters can be used to input data into an automated
reading system. They are frequently used in reject repair
equipment.
Dual read magnetic reader sorters
Some reader sorters use a dual read approach, in which two
read stations magnetize and read the entire clear band area of
the document independently.
The simplest dual read reader sorter uses two waveform
readers. Like single read waveform reader sorters, each MICR
character that passes through the read slot produces a
waveform signal at each read station. The waveforms are
compared against the known waveforms of the MICR character
set, using different algorithms and circuitry in each station, to
determine which character was read.
Another type of dual read reader sorter has one single slot
waveform read station and one matrix head read station. The
single slot reader compares the waveforms against the known
MICR character waveforms, and the matrix reader builds a digital
bit map for each character and compares that to known
character bitmaps.
With the dual read technology, the system compares the results
of the first head read with those of the second. If a character can
be interpreted by only one of the read stations, the successful
reader result is used. If neither read station properly identifies a
character, that character is rejected. Conflicting interpretations
between the two heads also causes character rejection.
An important aspect of reject rate diagnosis is understanding the
recognition mode used by a dual-read reader sorter. Processing
performance should be evaluated only in dual-read mode. Use of
diagnostic settings to turn off one of the read stations, or to reject
on either station independently, inflates the reported reject rate.

5-6

Generic MICR Fundamentals Guide

Document processing
Hybrid magnetic and optical reader sorters
Hybrid reader sorters use two read technologies:
•

Magnetic waveform recognition

•

Optical character recognition

Compared to other types, hybrid reader sorters have very high
accuracy rates, because they interpret and compare the results
produced by the magnetic waveform recognition and the optical
character recognition. If a character cannot be interpreted by
MICR waveform analysis, the system takes the results of the
optical recognition. In diagnostic situations, understanding the
recognition mode is important.
Another form of hybrid equipment, used primarily in lock box and
remittance processing, uses optical and magnetic recognition in
a fundamentally different way that can cause problems with
MICR documents. These reader sorters process an OCR printed
turnaround document, followed by a MICR printed check. They
identify a check by the presence of magnetic ink, then switch to a
MICR font recognition system. If the turnaround document is
printed with an OCR font but uses MICR ink, it may be
misidentified and rejected, although the OCR font is properly
printed.

Processing speeds
Reader sorters are available in a variety of sizes and processing
speeds. The smallest can fit on a desk top; the largest may be
the size of a mainframe computer. Performance may be
categorized as low, medium, or high speed.
The speeds may be defined as follows, based on the speed of
handling a 6 inch/152 mm long document:
Low speed: Process 100 to 750 documents per minute. These
machines are usually found in small banks or are used for
handling small volumes of checks. They use waveform
recognition.
NOTE: Proofing devices also process documents at these
speeds. Although these devices can operate in reader sorter
mode, they may not have automatic document handlers and
require manual hand feeding.

Generic MICR Fundamentals Guide

5-7

Document processing
Medium speed: Process 1,000 to 1,500 documents per minute.
These machines usually use waveform recognition, frequently
with dual or hybrid read.
High speed: Process 2,000 or more documents per minute.
These machines are typically found in larger banks,
clearinghouses, processing centers, etc. They generally use
matrix or dual read technology.

Paper handling by reader sorters
Reader sorters are designed to handle batches of check
documents of mixed sizes, weights, and conditions (pieces torn
away, creased, etc.), at high speed. This may result in reader
sorters handling documents somewhat roughly.
Documents may undergo from 10 to 20 separate passes through
reader sorters. If the leading edge of a check is damaged slightly
in one of these passes, repeated sorting can increase the
damage until the document no longer feeds properly. Because of
the high cost of handling misfeeds, check processors limit the
types of paper that can be used to print MICR documents.
Reader sorters typically use the following mechanisms to handle
MICR documents.
Hopper jogger
The hopper jogger is usually least stressful to documents. It
vibrates the documents to aid in aligning and separating them.
Separator
A picker belt forces the first document forward, while a restraint
system retards the remainder of the documents. The initial
shearing force and acceleration applied to the document is
generally followed by a deceleration as the document is fed into
a multiple-document detection station.
If the forces are too extreme, or the document is too weak, the
document could collapse, causing wrinkles. Wrinkles normally
appear in the Amount field.

5-8

Generic MICR Fundamentals Guide

Document processing
Aligner
Within the aligner, a series of wheels drive the bottom edge of
the document toward the back side of the reader sorter so that
the MICR line is in a predictable location. The wheels have a
series of plastic fingers that make contact with the back side of
the document and force it against the aligner drum.
Read/write heads
A wheel with a very short nap bristle brush on its surface presses
the document first against the write head, then against the read
head. In order to optimize the pressures for handling debossed
characters and folded documents, the head may be positioned at
a sharp angle. Material can be scraped off the document and
spread out by the bristled wheel pressing on the paper.
If the wheel is worn, the spreading or scraping processes could
be uneven, resulting in a lump of material being redeposited on a
later document.
NOTE: This process is typical only of IBM 3890 matrix reader
heads. Other reader sorters may differ in several details.
Item numbering and endorsing stations
After the document is read, belts carry it through item numbering
and endorsing stations.
If certain plates or document guides in these stations are
misaligned, document abrasion could occur here.
Microfilm or image capture unit
Optionally, the document may enter a microfilm or image
scanning unit. In the IBM 3890, the document is held to a plate
by a vacuum and driven by a toothed belt that is in the center of
the plate. The edges of the plate, the belt-slot, or the teeth may
be sharp enough to scrape the document surface.

Generic MICR Fundamentals Guide

5-9

Document processing
Sorter pockets
The document finally arrives at a diverter plate, which sends it
into the pocket that the reader sorter program selects based on
the MICR line data. The pocket has a pair of metal springs that
press the document onto the stack that is in the pocket.
If the pocket is empty, the document may impact against the rails
at the bottom of the pockets with greater than normal velocity.
Short-grain documents are especially vulnerable to leading edge
damage from this impact, and layers of paper may separate a
small amount on each pass. After multiple passes, this can
cause lead edge fluff.

Reject repair
If a MICR document cannot be read or is badly damaged in
processing, it goes to a reject repair station. Here, it is read
again, using low speed optical and magnetic read stations and
operator intervention when these read stations fail to recognize
all the characters. A similar process is also used for return
processing of rejected items.
After the correct MICR line encoding is determined, a repair strip,
encoded with the information that the processing bank requires,
is added to the bottom. In effect, a new MICR clear band is
added and encoded below the original one.

Figure 5-2. Check with reject repair strip

5-10

Generic MICR Fundamentals Guide

Document processing
If the document is badly damaged, or if the processing center
does not have an automated repair station, a document carrier
envelope may be used. This is a check-sized, translucent
envelope designed to fully enclose a check while adding a new
MICR clear band and encoding area at the bottom.
In most cases, processing banks do not encode the full MICR
line on transit items. Instead, they encode only the routing
number and amount information that they need in order to pass
the document on. This means that when the issuing bank
receives the repaired document, it must remove the repair strip
and repeat the repair process with all fields encoded.
The reject repair process results in the issuing bank incurring
costs for rejects on any bank’s equipment, and is a factor in any
MICR quality issues that the bank raises due to high reject rates.

Generic MICR Fundamentals Guide

5-11

Document processing

5-12

Generic MICR Fundamentals Guide

Quality control

MICR printing requires constant quality control. Special
equipment is required to produce quality documents that meet
the X9.27, X9.13, X9.7, and ISO 1004 specifications. You should
develop a formal quality control program to ensure that all check
printing specifications are met.
Key factors for producing good MICR documents include:
•

High-grade xerographic print quality

•

Good character uniformity when viewed with back lighting

•

Few or no defects

•

Good fusing

•

Good paper quality meeting xerographic and MICR
processing needs

•

Good forms design

•

Consistent printer maintenance

MICR documents should be printed only by operators who have
the proper knowledge and experience.

Print quality specifications
Banks use the following print quality specifications for MICR
characters:
•

Horizontal position

•

Vertical position

•

Skew

•

Character-to-character spacing

•

Character size

•

Voids or deletions

•

Extraneous ink or spots

•

Debossment

Generic MICR Fundamentals Guide

6-1

Quality control
•

Magnetic signal strength

These are the ANSI print specifications for MICR. Other
countries that use MICR have similar specifications.

Optical tools used to check MICR
Although MICR documents may appear satisfactory to the
unaided eye, the MICR tools are required to determine if a
document is within specifications.
MICR Gauge
The MICR Gauge lets you compare the location of Xerox MICR
printed information to industry standards. The Gauge is printed
on a thin sheet of flexible plastic, which is attached to the bottom
of a piece of hard plastic. Slip the document that you are
evaluating between the two pieces of plastic.

Figure 6-1. Example of a MICR Gauge

6-2

Generic MICR Fundamentals Guide

Quality control
Small Optical Comparator
The Small Optical Comparator also compares the MICR printing
to industry standards (see the following figure). Its main
difference from the MICR Gauge is that the Comparator’s
nominal 8x to 12x magnification and built-in measuring scales
enable you to measure printing characteristics that require
greater precision.

Measures character-to-character spacing

Measures
spots and
deletions

Measures character size

Measures character-to-character
vertical variation: measures skew

Figure 6-2. Small Optical Comparator

Magnetic testing equipment
Each MICR symbol and character has an ideal waveform and
nominal signal strength. Every MICR printing technology
modifies the waveform from the ideal in a different way, so that
the nominal MICR signal varies somewhat among the characters
and symbols. These are characteristics of the printing
technology and font design, and cannot be adjusted in Xerox
MICR printers. For this reason, the signal strength of the On-Us
symbol is used as the Xerox reference for the entire MICR line.

Generic MICR Fundamentals Guide

6-3

Quality control
MICR signal strength is the only magnetic specification in ANSI
standards. Magnetic testers are needed to identify magnetic
versus non-magnetic extraneous ink, and they can be useful in
interpreting waveform uniformity issues. All other standards use
optical dimensions and require optical or visual inspection.
MICR quality decisions cannot be based solely on magnetic test
equipment without regard to ANSI standard conformance
requirements. Refer to “Signal strength,” later in this chapter, for
information on signal strength test specifications.
NOTE: Due to calibration, design, and manufacturing
differences, signal strength readings from MICR testers vary to
some degree, even when they are set up correctly and in
calibration. These differences are caused partly by the different
MICR characteristics of the printing technology that is used and
partly by the magnetic read and write head design. If the test
equipment is not in correct calibration, there are very large
differences.

E13B calibration document
The E13B calibration document is used to determine if the MICR
tester is measuring the signal correctly. It provides a printed
MICR character (On-Us symbol) calibrated by the manufacturer.
The MICR character signal value, read by the master MICR
reader, has been written in the space provided (see the following
figure). All good calibration documents have the notation “WCC,”
reflecting calibration to the most recent ANSl standard.
Calibration documents without this notation should not be used
until their accuracy can be checked against a known good
document.

6-4

Generic MICR Fundamentals Guide

Quality control

WCC notation

Signal strength of On-Us symbol
below, as measured by a master
MICR Reader
On-Us symbol used to calibrate a MICR reader

Figure 6-3. Portion of E13B calibration document
The calibration document should be used once during each shift,
or just prior to reading the On-Us signal strength from any output
document. It may be used for a total of five hours in the MICR
reader. When it begins to wear out, the value of the signal
strength changes, and the document is no longer useful.

Testing sample documents
You should make every effort to detect problems in a MICR job
before the documents enter circulation.
•

Regularly monitor the printer output.

•

Regularly run test documents that simulate production jobs.

•

Thoroughly test all new MICR applications to detect design
flaws.

•

Take production samples while each MICR job is printing.

While a MICR job is running, operator inspection is required to
insure the quality of the output. This inspection should include
the following:
•

At start of job: Horizontal position, vertical position, voids,
spots, MICR line appearance, and MICR line content on at
least seven sheets

Generic MICR Fundamentals Guide

6-5

Quality control
•

Periodically (once for each filled output bin): Horizontal
position, vertical position, voids, spots, and MICR line
appearance

When a clinical test is running—which many banks require
before changing check production—the following additional
design factors should be checked to provide a representative
test:
•

The Xerox printing system should be adjusted to
manufacturer specifications and operator maintenance tasks
performed regularly per the manufacturer's recommendation.

•

Only paper stock that meets ANSI and Xerox requirements
should be used.

•

A large group of documents should be generated, several
thousand at a time.

•

Test documents must be fresh and undamaged.

•

The test application should mimic the live data, but its
appearance should not resemble a negotiable document. The
form should represent the correct document size, MICR line,
and a unique serial number for each document for
identification purposes.

•

The test application should be validated for skew, vertical
alignment, and character size. (Any change in job resources
may alter MICR quality parameters that do not normally vary.)

Specifications for testing
The following specifications apply only to MICR characters that
are printed within the clear band. Printing outside the clear band
area should follow standard xerographic specifications.
Note that most MICR line positional errors (horizontal, vertical,
skew, and character) are due to poor document design rather
than problems with the MICR printing system technology.
Horizontal position
To check horizontal positioning, place the check at the bottom of
the MICR Gauge with the right edge of the check lined up with
the right edge of the gauge. Place the right edge of the first
transit symbol on the left between the dotted lines in boxes 42
and 43 of the gauge (see the following figure).

6-6

Generic MICR Fundamentals Guide

Quality control

Acceptable MICR alignment
Right edge of Transit symbols

Maximum
allowable
tolerance

Ideal
horizontal
alignment

Minimum
allowable
tolerance

Unacceptable MICR alignment

Exceeds minimum
allowable tolerance,
too far to the right.

Exceeds maximum
allowable tolerance,
too far to the left.

Figure 6-4. Horizontal position check using MICR Gauge
•

If the right edge of the transit symbol is not between the
dotted lines in boxes 42 and 43, the entire MICR line is out of
horizontal adjustment (too far to the left or right).

•

If the MICR line is out of horizontal adjustment, but the rest of
the form is in the correct position, there is an error in the
software program.

•

If all printing on the entire document is out of horizontal
adjustment, there is probably a registration problem.

Several documents should be checked before action is taken.
Compare actual documents with prints of the diagnostic MICR
line test pattern to help isolate printer and application software
problems.
Vertical position
Check for the following types of vertical variation:
•

Vertical variation from character to character

•

Proper vertical placement of the entire MICR line on the
document, or line vertical variation

Generic MICR Fundamentals Guide

6-7

Quality control
The bottom edges of adjacent characters within each field
should not vary vertically by more than 0.030 inch/0.75 mm
(ANSI), 0.015 inch/0.381 mm (ISO), and 0.007 inch/0.18 mm
(CPA). Vertical variation occurs most often in the Amount field,
which indicates an impact printer problem.
Use the MICR Gauge to measure character-to-character vertical
position (see the following figure). Vertical variation from one
character to the next is seldom produced by a Xerox MICR
printing system unless the document has design problems.

Vertical character alignment section
Note the closer tolerance for
Canadian and International standards

Align bottom of MICR characters on
the document with center solid line

Vertical character alignment section enlarged

Figure 6-5. Vertical variation check using the MICR gauge

6-8

Generic MICR Fundamentals Guide

Quality control
The vertical position for the entire line is evaluated with the MICR
Gauge. To check the vertical position, line up the right edge of
the check with the right edge of the gauge, and place the bottom
edge of the check as far down as possible between the flexible
and the hard plastic on the gauge. Notice if the characters are
between the top and bottom lines of the character boxes. If the
characters appear too high or too low (see the following figure), a
software or a registration problem is indicated.

Entire MICR line too high

Entire MICR line properly centered vertically

Entire MICR line too low

Figure 6-6. MICR line vertical position
Skew
Skew is the rotational deviation of a character from the vertical
with reference to the bottom edge of the document. The
maximum skew or tilt of any character or line cannot be more
than 1.5 degrees either way, using the bottom edge of the
document as the horizontal reference.

Generic MICR Fundamentals Guide

6-9

Quality control
Character skew does not occur with Xerox printing systems.
However, line skew may occur if the paper skews when passing
through the printer or is poorly cut along the critical edge (see
the following figure).
Out of specification

Figure 6-7. Acceptable versus unacceptable line skew
(figures are exaggerated)
To check for line skew, follow these steps:
1. Place the document in the MICR Gauge. Place the document
so that the tops of all the MICR line characters touch the line
forming the top of the MICR line boxes, (shown in the
following figure).

MICR line boxes
Move document so the MICR characters
touch the top line of the MICR boxes

Top line of MICR boxes
Bottom of document

Figure 6-8. Line skew on the MICR Gauge

6-10

Generic MICR Fundamentals Guide

Quality control
2. Hold the document firmly so that it does not slip. The bottom
of the document should now bisect the vertical skew scales
below boxes 10 and 46. The scales are graduated in 0.5
degree divisions from 0 (not marked) to 2.5 degrees (also not
marked).
3. Write down, to the nearest degree, where the document
bisects the skew scales.
4. Subtract the smaller degree number from the larger. The
remainder is the degree of line skew.
Line skew in excess of 1.5 degrees may cause characters to be
out of the MICR vertical registration specification.
Character-to-character spacing
Character-to-character spacing is the distance from the right
edge of one MICR character to the right edge of the next. This
distance is 0.125 inch/3.175 mm with a tolerance of ±0.010 inch/
0.25 mm. Each character box on the bottom of the gauge is
0.125 inch/3.175 mm wide, as shown in the following figure.

Generic MICR Fundamentals Guide

6-11

Quality control

Figure 6-9. Character spacing
If it is possible to move the check so that all characters are within
a character box, place the right edges of as many characters as
possible at the right edges of their character boxes.
Look at the entire line and notice any characters whose right
edges are not touching the right edges of their boxes. These
characters are more or less than 0.125 inch/3.175 mm from their
next closest character.
To find out how much more or less the spacing is for a character,
follow these steps:
1. Bring the suspected character into the character box
containing the spacing tolerance zone, as shown in the
previous figure.
2. Line up the right edge of an adjacent character with the right
edge of an adjacent box.

6-12

Generic MICR Fundamentals Guide

Quality control
3. Look at the suspect character to see if its right edge falls
between the two dotted lines defining the spacing tolerance
zone.
If the right edge of the character falls outside the dotted lines, it is
outside the ±0.010 inch/0.25 mm leeway and is out of
specification. It is also too close to, or too far away from, the
character on its right. Additional tolerances are required between
the fields in the MICR line to account for multiple printing steps.
If a spacing problem occurs, verify that the job was written
correctly and that the correct MICR font was used. Small spacing
variations that accumulate over many characters affect MICR
readability as long as the MICR line field boundaries are not
violated. They are frequently the result of failure to properly
specify character spacing or improper use of the spacing
algorithm.
Voids
The absence of ink is called a “void” or “deletion.” Voids can be
generated by excessive paper dust, a hardware problem, or
excessive paper moisture. This problem occurs more often with
cold fusion xerography and ionography technologies than with
hot fusion based xerography (like Xerox MICR systems).
Voids must be contained within a 0.008 inch/0.2 mm square. An
exception is made for internal voids that extend over two or more
zones of characters, a zone consisting of 0.013 by 0.013 inch/
0.33 by 0.33 mm square. For such a situation, a void must fit
within a 0.010 by 0.010 inch/0.254 by 0.254 mm square. The
squares on the MICR Gauge can be used to test this.
Single voids that are long, narrow, and predominately horizontal
or vertical are called “needle” type voids. They are allowed in any
length, anywhere in the character, provided they do not exceed
0.002 inch/0.05 mm in width.
The combined areas of all voids in any vertical column or
horizontal row (nominally 0.013 inch/0.33 mm wide) must not
exceed 20 per cent.

Generic MICR Fundamentals Guide

6-13

Quality control

Single voids

Acceptable
Not acceptable

Trail edge deletion (Note: This depends on the check printing orientation.)

Figure 6-10. Examples of voids
Extraneous ink spots
Extraneous ink spots are unwanted bits of ink that result from
unavoidable splatter and smear of the magnetic printing inks.
These spots, which may be invisible to the unaided eye, can
affect the wave patterns of MICR characters, depending upon
their size, quantity, and position.
According to ANSI standards, any number of spots may be
present within the clear band, if they are contained in a 0.003 by
0.003 inch/0.08 by 0.08 mm square. Random spots that are
contained within a 0.004 by 0.004 inch/0.10 by 0.10 mm square
are also permissible, but they are limited to one spot per
character space and no more than five in any one field.
There is one exception to this rule. On the back side of the page,
any number of spots can be present within the clear band area, if
they do not exceed a 0.006 by 0.006 inch/0.15 by 0.15 mm
square.

6-14

Generic MICR Fundamentals Guide

Quality control
Xerographic ink spots can be larger than the ANSI specifications
because of the low ferromagnetic component of the dry ink. Also,
the xerographic soft spotting effect minimizes the signal pattern
defect.
The following table shows the Xerox MICR printing system
xerographic specification for extraneous ink or spots in the clear
band.
Any number of black spots

0.25 mm and smaller / 0.01 inch

Total 16 black spots per page 0.25 mm – 0.40 mm* / 0.01 inch – 0.016 inch
One black spot per page

0.40 mm – 0.50 mm / 0.016 inch – 0.02 inch

No black spots

0.50 mm or larger / <0.02 inch

*No more than one spot per 6 by 3 mm / 0.25 by 0.125 inch area is allowed if
the spot is greater than 0.01 inch/0.25 mm in size.

Examples of extraneous ink or spots are illustrated in the
following figure.

Generic MICR Fundamentals Guide

6-15

Quality control

Figure 6-11. Examples of extraneous ink spots

6-16

Generic MICR Fundamentals Guide

Quality control
Signal strength
Signal strength or level is the relative ability of magnetic ink
characters to generate a signal in an electromagnetic sensing
device. The signal strength is a percent of a nominal value for
each character. The ANSI specification is 50% to 200% of the
nominal specified peaks signal for each character.
NOTE: Under normal conditions, the signal strength of a Xerox
MICR printing system does not require measurement unless
some degradation of MICR quality is observed during inspection.
Information on MICR signal level measurement is provided here
for those customers who have access to magnetic signal
strength test equipment.
As a document passes over the read head of the reader sorter,
the magnetized particles in the MICR ink cause a flux change
within the windings of the read head, changing the output
voltage. This voltage passes through an amplifier and is
translated into readable signals that can be recognized and input
to a computer. Each MICR character has a nominal signal
strength and wave shape. If the level is either too high or too low,
the reader sorter is not able to properly identify the characters.

Generic MICR Fundamentals Guide

6-17

Quality control
The following table identifies the signal level tolerances for all of
the MICR characters. These standards are required by ANSI
standards; tolerances for other standards might vary.
Table 6-1. Signal level tolerances
Character

Peak
number

Minimum
(50%)

Nominal
(100%)

Maximum
(200%)

130

260

170

105

210

170

105

210

105

210

105

210

150

105

210

165

330

dash

3 and 5

134

transit

105

210

amount

1 and 5

140

On-Us

3 and 5

100

200

Example: A dash symbol has a nominal signal level of 67. If a
signal level reading of 65 is taken of this symbol, the result would
be 97% ((65 ± 67) x 100 = 97%), which is an acceptable
specification range.
Distortions of the waveforms can be caused by a MICR character
that is noticeably skewed, by extraneous ink spots, or by a void
that exceeds specifications.
The following figure shows a graphic display of the magnetic
footprint for each MICR character. The number above a
waveform peak is the nominal signal strength value. The
waveforms shown here are for ideal characters.

6-18

Generic MICR Fundamentals Guide

Quality control

Figure 6-12. E13B characters and waveforms

Generic MICR Fundamentals Guide

6-19

Quality control
Debossment and embossment
Debossment is the depression of the paper surface caused by
printing pressure. It is commonly associated with letterpress and
impact printing technologies, and is not produced by xerographic
printing. However, when the bank adds the amount to the
Amount field, unacceptable debossment could result at that
point.
The maximum depression allowed is 0.010 inch/0.03 mm. The
amount of debossment is determined by measuring the distance
between the lowest point of each encoded character and the
maximum reading obtained from the surrounding paper within
that character space on the same horizontal plane.
Embossment refers to an image extending above the surface of
the paper. This can occur in xerographic printing as well as in
letterpress and impact printing.
The maximum allowable embossment is 0.0006 inches/0.02
mm. The amount of embossment is determined by measuring
the distance between the highest point of each encoded
character and the minimum reading obtained from the
surrounding paper within that character space on the same
horizontal plane.

6-20

Generic MICR Fundamentals Guide

Quality control
Summary of ANSI standards
Parameter

Specifications

Format

•

Right edge of first or right symbol must be 0.0625 inch/15.87 MICR Gauge
mm ±0.0625 inch/7.937 mm from the edge of the paper.

•

All E13B characters must be within 0.25 inch/6.35 mm
horizontal printing band.

•

0.625 inch/15.87 mm clear band must be free of magnetic ink
other than E13B font.

Character spacing •
•

Testing tool

Distance between right average edge of adjacent characters MICR Gauge and
Comparator
must be 0.125 inch/3.175 mm ±.010 inch/0.254 mm.
In other, or adjoining fields, minimum space between right
average edge of adjacent characters must be no less than
0.115 inch/2.92 mm.

Vertical alignment Bottom edge of adjacent characters must not vary vertically more MICR Gauge
than 0.030 inch/0.381 mm.
Character or line
skew

Must be no more than ±1.5 degrees with respect to the bottom
reference edge.

MIRC Gauge and
Comparator

Character
dimension

•

Average edge tolerance must be ±0.005 inch/0.0381 mm
from nominal dimension.

Comparator

•

Minimum width of horizontal bars must be no less than 0.011
inch/0.330 mm.

•

Irregularities about the average edge may extend ±0.0035
inch/0.089 mm from nominal edge dimension.

•

Sum of edge present in 0.0015 to 0.0035 inch/0.038 to 0.089
mm zone shall not exceed 25% of total edge.

•

Voids are acceptable if contained in 0.008 by 0.008 inch/0.2 Comparator
by 0.2 mm square.

•

Voids are acceptable in double zones if contained in 0.010 by
0.010 inch/0.254 by 0.254 mm square.

•

Total area of all voids must be less than 20% of the area of
the line.

•

Voids 0.002 inch/0.051 mm by any length, vertical and
horizontal, are acceptable.

Character edge
irregularities

Voids

Extraneous ink
(Front)

Comparator

Spots contained in 0.003 by 0.003 inch/0.08 by 0.08 mm area are Signal level tester
acceptable in any amount.
Spots contained in 0.004 by 0.004 inch/0.10 by 0.10 mm area are Comparator
limited to one character space totaling no more than five per field.

Extraneous ink
(Back)

Spots contained in 0.006 by 0.006 inch/0.15 by 0.15 mm square, Signal level tester
or equivalent area, are acceptable.
and Comparator

Debossment/
embossment

•
•

Signal strength

Measure is limited to 0.001 inch/0.03 mm depth measured
from face of document.

Microscope with an
oblique light or
electronic probe
Measure is limited to 0.0006 inch height, measured from the with a tip of 0.004
face of the document.
inch/0.10 mm radius

Relative signal strength of any character may vary -50% to
+200% of nominal signal level.

Generic MICR Fundamentals Guide

Signal level tester

6-21

Quality control
Additional performance considerations
The following printing problems also can prevent the reader
sorters from identifying a MICR character.
Dry ink slivers
Dry ink slivers are caused by a sharp point or edge gouging the
characters. This gouging could occur at a number of different
places within a reader sorter.
Damaged or ragged characters
Damaged or ragged characters may prevent the reader sorter
from identifying a MICR character. If the damage is random and
infrequent, it may be due to a paper grain defect. Consistently
ragged characters may be caused by a failed dry ink cartridge, or
the need for machine service.
Character damage may also occur if the paper is sharply
creased or folded before printing or during reader sorter
processing.
Crayoning
Crayoning results when material collects on a write or read head
and is redeposited on a following document. Frequent
occurrence may indicate a defective reader sorter pressure
brush. Other possible causes include out-of-adjustment print
density, fusing, or a poor choice of paper.

Operational maintenance
The performance of any mechanical device, whether a highspeed reader sorter or a Xerox printing system, depends on how
well it is set up and maintained. Refer to the reference manual
for your product to find out how to avoid possible problems.

6-22

Generic MICR Fundamentals Guide

Quality control

Quality measurements: magnetic versus optical
If a MICR quality issue arises, it should be visible on the printed
document. Even signal strength problems can be seen if prints
are compared. Low signal characters are thin and poorly formed;
high signal characters are fat and usually surrounded by
xerographic background.
Occasionally, problems are reported by test equipment, but no
problem is visible. This is usually due to improper use of
intelligent magnetic test equipment, which evaluates optical
specifications using magnetic waveforms. Equipment vendors
are aware of the limitations of their products, and therefore
recommend visual inspection of suspected characters. Some
users, however, misinterpret these findings as specifications
failures. It is important to understand the differences between
optical and magnetic measurements and why all ANSI standards
for MICR character dimensions can be evaluated optically only.
Magnetic testing equipment usage
MICR signal strength is measured magnetically, along with
uniformity and spots, and is specified numerically as 50 to 200
per cent of nominal. Waveform uniformity is not specified
numerically, but as an indicator for visual inspection. Spots are
categorized as magnetic or non-magnetic, because different size
allowances apply.
No other specifications are measured magnetically. Any MICR
failures other than signal strength must be confirmed optically.
The following parameters are commonly flagged, but are not
specified magnetically:
•

Character dimensions (±0.003 inch/0.076 mm tolerance)
– MICR font dimensions are defined from an “average
edge” in the straight portion of a stroke. Waveform-based
measurements include the corners, which make magnetic
dimensions narrower than average edge separations.
Mathematical waveform models of perfect characters
show that this can be as large as 0.0013 inch/0.033 mm,
which is nearly half the tolerance.
– Magnetic edge gradients vary with printing technology.
When combined with different MICR tester designs, this
variation was shown in a 1993 study to be nearly as large
as the dimensions of the character strokes.

Generic MICR Fundamentals Guide

6-23

Quality control
– Waveforms measure only vertical stroke locations, while
optical standards apply also to horizontal strokes. Some
recognition technologies do not use waveforms, relying
on locations of both horizontal and vertical strokes in a
two-dimensional matrix.
– MICR test equipment precision is limited by digitizer
resolution. The minimum encoding interval limits the
precision of a single measurement. In Xerox’s RDM MICR
Qualifier GTs, this interval is 0.00104 inch/0.026 mm—
one-third of the tolerance.
– Digital MICR font designs are optimized for recognition
performance in the full range of equipment used in check
processing. As a result, some characters—typically the 4
and the 6—are frequently flagged for character width.
Fonts could be changed to eliminate these flags, but bank
rejection rates would be higher if the font were optimized
to meet magnetic dimensional limits imposed by MICR
tester manufacturers.
NOTE: Excessive or persistent dimensional flags may
indicate a real problem, which must be verified by optical
inspection.
•

Character-to-character spacing (±0.010 inch/0.254 mm
tolerance)
– Character spacing controlled by the font varies cyclically
by a small amount: ±0.00167 inch/0.042 mm (1/600)
every other character at 300 DPI.
– In LCDS data streams, a spacing algorithm is required to
prevent accumulation of errors.
– Any variation beyond this, or any adjacent characters
shifting in the same direction, indicate a problem.
The best way to check for character spacing issues is to
inspect the entire MICR line in the Position and Dimension
Gauge, to see if characters remain a consistent distance from
their cell boundaries. If one character is aligned to its cell
boundary, all characters should be very close to theirs. Any
cumulative change in character spacing that reaches the
±0.010 inch/0.124 mm tolerance level should be investigated
as a potential application or machine problem, even though it
is not an ANSI specification failure.
Using the MICR Position and Dimension Gauge to check
registration is a basic task that the operator performs at the
printer whenever checks are being printed.

6-24

Generic MICR Fundamentals Guide

Quality control
•

Character placement (0.125 inch/3.175 mm interval)
– MICR line registration is controlled by the right edge of a
single Transit character that is nominally 5.625 inches/
142.89 mm from the reference edge.
– Transport speed calibration accuracy, speed variations,
and document slippage over this distance contribute to
errors in MICR tester measurements of horizontal MICR
line placement.
– MICR testers can not measure vertical MICR line
placement.
NOTE: These errors and limitations never occur with a MICR
Position and Dimension Gauge.

Optical testing equipment usage
The majority of automated optical MICR test equipment is aimed
at document design, for which stringent limitations on density
and contrast require sophisticated analysis. With different
analysis software, this optical test equipment can be used to
evaluate E13B font characters optically. However, there are
some issues to consider before accepting it as a replacement for
a MICR reticle on an eye loupe.
•

The optical test equipment does registration, character
spacing, and character alignment well, because these
tolerances—0.0625 inch/1.588 mm, 0.010 inch/0.254 mm,
and 0.020 inch/0.508 mm respectively—are within the
resolution limits of all scanners. However, MICR dimensional
tolerances are ±0.0015, so the measuring device would
require twice this resolution to sense the tolerance. This
requires a 0.0008 inch/0.02 mm spot size and a 1200 dpi
sampling rate. It may be argued that the tolerance is 0.003
inch/0.076 mm—the sampling rate of a 300 dpi scanner; but
that is a cumulative tolerance for the two sides of a stroke. A
300 dpi scanner can evaluate only 0.0066 inch/0.168 mm
tolerances well.

•

All dimensions are referenced to the “average edge,” defined
as the line that bisects any edge noise so that half the black
area is on each side. The eye does this well, but automated
scanners do not have the processing advantages of an eye.
They need to resolve the edge noise due to the Yule-Neilsen
effect, which causes an unresolved object to appear darker
than the amount of ink coverage would predict.

Generic MICR Fundamentals Guide

6-25

Quality control
•

When the results are displayed, the use of a template with
highlighted “bad areas” does not indicate if there is a
specification failure due to edge void and edge irregularity
allowances. The dimensions of the template may be limited
by screen resolution. An accurate report tells you which
parameter is suspect and how likely it is to be out of spec.
The operator must then make the final judgment.

Recommendation
Automated test equipment is a valuable tool for highlighting
areas that require close inspection. This inspection must be
performed by a trained inspector who understands the limitations
of both MICR specifications and test equipment. A judgment call
is required to identify real problems from automated flags, call for
a second sample to verify the consistent nature of the problem,
or simply recognize a printing technology characteristic that
warrants little further attention.
A trained inspector using a MICR gauge and Small Optical
Comparator can make all MICR quality judgments when MICR
signal strength is not available.

6-26

Generic MICR Fundamentals Guide

Problem solving

MICR problem investigations take different forms, depending on
the nature of the problem, the availability of actual problem
documents, and the willingness of the parties involved. Timely
problem identification and resolution is especially important for
products covered by the MICR Quality Guarantee.

When problem solving is required

New accounts
If the customer is opening a new account or validating a new
check issuance system, banks frequently request sample checks
for quality inspection and to verify MICR performance in a test
environment, before negotiable checks are circulated. Reject
rate investigations are less complicated at this stage because
the rejected documents are not negotiable and the parties are
already involved in document testing. When rejected characters
can be identified and studied, the reason for their rejection is
frequently obvious.
Existing applications
When an existing check application has an elevated reject rate,
the analysis is more difficult for the following reasons:
•

Issued checks are negotiable and contain real customer data;
banks and customers may be unwilling to part with them.

•

Banks typically track rejection rates by account, resulting in a
one to two month lag between printing and reports of
problems.

•

Banks that receive checks with correction strips are reporting
rejections from another bank, earlier in the check processing
system. Therefore, rejected characters cannot be identified.

Generic MICR Fundamentals Guide

7-1

Problem solving
•

The customer may issue checks from a single account that
uses multiple printers. These printers may not all be Xerox
printers and they may be located in different cities.

•

The account holder may possess a blank check book order
for years before using all the checks.

Possible misinterpretations
In some cases, no reject rate problem exists, but the bank or
customer feels that there is a MICR quality problem. If a problem
exists, it can be identified using the diagnostic procedures
described in the product service documentation and the quality
tools discussed earlier in this guide. However, the customer may
have misinterpreted a quality control evaluation or used
aggressive requirements beyond ANSI standards.

Problem solving process
MICR problems are usually identified through one of the
following:
•

Problem notification from the bank or other financial
institution

•

Returned documents with correction strips

•

Errors discovered by internal quality control, within the
internal operation

For internal errors, operators should follow the visual inspection
procedures described in the “Quality control” chapter.
For problems that result in returned documents or calls from
financial institutions, a detailed and structured analysis should be
performed. This analysis involves:

7-2

•

Gathering information from the bank

•

Collecting the rejected documents

•

Verifying authenticity of rejected documents

•

Correlating rejected characters to factors that may have
caused the rejection

•

Verifying effectiveness of corrective measures

Generic MICR Fundamentals Guide

Problem solving
A structured approach is required to discern which of the many
sources is actually responsible for a high reject rate. The
following flow chart illustrates the steps.

Problem reported

Reported from bank

From
reviewing
returned
checks

Gather information
Obtain rejected checks

From
internal QC
or
operators

Refer to
Document
Design and
Quality Control
chapters

Collect reject rate
information

Compare reject rates to expected reader sorter rates

Inspect documents

Analyze reader sorter
report, if available

Determine cause

Sorter

Printer

Bank
problem

Follow
problem
solving
steps

Operator training

Retrain and improve
procedures

Problem corrected

Application software

Correct check design

Unknown

Monitor better to
isolate problem

Technical support
involvement required

Success

Figure 7-1. Problem solving flowchart

Generic MICR Fundamentals Guide

7-3

Problem solving
Determining the problem source
You must identify the source of the problem before you can
implement corrective actions. For document quality problems,
you can best identify the cause by examining the rejected
document and determining the most likely reason for rejection.
However, rejected documents may not be available, or they may
not show any printer or application-related issues.
Reader sorter
If the problem resides with one of the processing banks,
verification requires the cooperation of the bank. Testing the
document in another reader sorter, preferably of the same make
and model, shows if a particular piece of equipment is at fault.
For amount encoding errors, different encoder ribbon batches
and part numbers can help to isolate the problem. You should
also investigate the effect of base paper stock and the
preprinting of forms.
Printer
If the printer is the cause of the rejection, you can verify this by
examining the rejected documents or MICR quality control
samples. Use the service documentation as your diagnostic tool
to conduct a thorough quality inspection using the methods and
tools described earlier. If a problem has been traced to the
printer, but no corrective measures can be identified, escalate
the problem to the next level.
Operator training
The operator often has the first opportunity to detect poor MICR
quality. Operators should be familiar with all aspects of printer
operation, paper loading, application features, job requirements,
and MICR quality control procedures. The operator should
identify and rectify problems such as image registration, gross
defects, and poor print quality before running a MICR job. If a
problem cannot be corrected, place a service call rather than
issuing MICR documents that are of questionable quality.

7-4

Generic MICR Fundamentals Guide

Problem solving
Application software
Any application change should be reason for a thorough
inspection. Although new applications must be thoroughly tested
before MICR documents are issued, subtle application changes
can have an impact on MICR document performance. Some
problems, such as a new authorized signature that extends into
the MICR clear band, are easy to detect. Others, such as a
MICR font change, may require sophisticated tools to identify. If
the change coincides with a reject rate problem, you should
revert to the prior version for testing.
Unknown cause
When the cause of a rejection rate problem cannot be
determined, or the initial corrective actions prove ineffective, a
dual approach is indicated. Additional attention to printing and
processing details may uncover the cause. In addition, institute
an active reader sorter testing program to replicate the problem
under controlled conditions. You should also closely examine the
four areas of investigation discussed earlier in this chapter.
Reader sorter testing
Reader sorter qualification testing must occur under a controlled
set of circumstances for accurate results. The results from a
single reader sorter test can vary significantly, depending on:
•

Printing conditions

•

Reader sorter model

•

Adjustment of the reader sorter

•

Statistical design of the test

A valid qualification test should meet these conditions:
•

The reader sorter is adjusted to manufacturer specifications
and is cleaned regularly by the operator according to the
manufacturer's recommendation.

•

Process a large group of documents, several thousand at a
time.

•

Acquire reject performance data for the particular reader
sorter that is used for the test.

•

Fan documents before placing them in the reader sorter for
each pass.

Generic MICR Fundamentals Guide

7-5

Problem solving
•

Process documents through the reader sorters a minimum of
20 passes.

•

Use more than one reader sorter of the same model, if
available.

•

Retain a control batch of the test deck from processing in
case there is a need for later runs.

•

Remove jammed and rejected documents from further
processing.

Interpreting test results
Reader sorters typically provide the following information:
•

Reader sorter ID

•

Date of print run

•

Total volume read

•

Number or percentage of rejects

•

Complete item listing of characters read

•

Reject summary with ID codes

The reader sorter reject rate is the critical indicator of quality for
the batch of documents that are printing. In order to know
whether test results are good or bad:
•

Know the average performance. Keep adequate records for
individual machines performance, including maintenance
records and run information.

•

Interpret the reject rate properly. Documents are rejected not
only for visual or magnetic defects, but also for other
considerations that are not related to document quality (such
as jams or misfeeds).

•

Make sure that the rejects are correctly analyzed. Rejects
that are not caused by print quality must be removed prior to
any calculations.

•

Consider the operating characteristics of the reader sorter.
More rejects occur under the following conditions:
– Using single slot readers
– Near the beginning of a run
– On short runs
– On uncirculated documents

7-6

Generic MICR Fundamentals Guide

Problem solving
Questions to consider
When analyzing the results from a batch of documents that were
tested in a reader sorter, you must ensure that the returned
documents correspond to the reported rejects. You should ask
the following questions:
•

What is the reject rate?
This varies depending on the reader sorter that was used. It
is based on documents and defined for each pass through
the reader sorter. It is not based on field or character rejects.

•

How was the rate calculated?
Improperly oriented items such as blank sheets, pages
inserted upside down or backwards, paper handling rejects,
and Amount field rejects should not be used in the
calculation.

•

Are jams counted as rejects?
Many systems log several items as rejects each time a jam
occurs. This is often misunderstood by those who use the
reader sorters. Identify and remove jams from the calculation.

•

Are multifeeds counted as rejects?
Documents may stick together, causing multifeeds. This is
common with paper that was cut by a guillotine cutter, or with
perforated paper that is torn in groups. Multifeeds often
produce sequential clusters of failures, which are usually
read when the set is resubmitted. You must determine if any
rejects are due to multifeeds and remove them from the
calculation.

•

Are numerical calculations correct?
Make sure that the conversion to a percentage was made
correctly. Improper truncation and slipped decimal points are
common errors.

•

Were rejects resubmitted?
In general, rejects should not be resubmitted as part of the
basic run. Reentering rejects distorts the actual reject rate. It
may be useful to show that most rejects are read successfully
on the next pass.

•

Was the batch large enough?

Generic MICR Fundamentals Guide

7-7

Problem solving
A statistically significant test to detect a 0.5 per cent rejection
rate can be achieved with 2,000 to 3,000 documents. (The
test case should not be less than 200 documents.) If the test
set is too small, it may be biased by the fact that reader sorter
performance is poorer when the machine is starting up than
when it has been operating steadily for some time.
•

Are there characters that appear more often as the reason for
rejection?
Although a reject rate based on character failure is not
generally significant, a specific character may be causing the
problem. Check to see if a certain character is driving the
reject rate, and if failure occurs when the character is in a
particular position in the document.

•

Are the rejects clustered by field?
If multiple rejects occur in a particular field, a mechanical
problem may exist in the printer or the reader sorter.

•

Is there a pattern to where the rejects occur?
Rejects can appear in the document consecutively, in groups,
or randomly. Look for a pattern; for example, the same
character, the same field, or appearance after every certain
number of sheets.

•

How do the rejects compare with accepted documents?
Check to see if the rejects have been improperly cut, or if any
other difference is obvious.

•

Are all documents accounted for?
At the end of a run, the number of accepts plus the number of
rejects should equal the total number of documents
submitted.

•

What is the sorter type and location?
If there are problems, it may be useful to know what type of
sorter was used. If possible, obtain the following information
for reference and machine identification purposes: sorter
type, model number, user ID, and serial number.

7-8

Generic MICR Fundamentals Guide

Problem solving
•

Is there a hardcopy report from the reader sorter?
In many cases, a hardcopy report is not available from the
reader sorter. Obtaining a printout from a test run is possible,
but many runs present little data other than the problem
documents. A report listing all items, or an exception report
listing only the rejects, are critical tools in determining the
reason for the reject problem.

•

Are the reader sorter performance expectations realistic?
Xerox MICR documents meet ANSI specifications for reader
sorter performance. However, actual reject rates vary greatly,
depending on paper types, the reader sorters used, printer
maintenance, and reader sorter hardware conditions.

•

What is the reject rate significance?
The expected reject rate for reader sorters is between 0.5
and 3 per cent. You should investigate for causes if this rate
suddenly increases.

Expected reject rates
There is no ANSI reject rate specification. However, the
expectation for high-speed reader sorters is a reject rate below
0.5 per cent for unprocessed documents in good condition.
Xerox MICR documents are expected to be rejected less than
0.5 per cent on the first pass in high speed reader sorter tests.
(This standard varies according to the country.) However, since
financial documents are processed by reader sorters that are not
directly under your (or Xerox’s) control, output quality may vary.
Reject rates vary with:
•

Printing conditions

•

Reader sorter model

•

Adjustment or maintenance of the reader sorter

•

Check batch size

Reducing reject rates
To keep the reject rate as low as possible, do the following:
•

Adjust the Xerox MICR printer to specification.

•

Use the current release of the E13B or CMC7 MICR font.

Generic MICR Fundamentals Guide

7-9

Problem solving
•

Load Xerox 4024 Dual Purpose, 24-pound paper (or a high
quality equivalent).

•

Verify that the bank regularly adjusts and cleans the reader
sorter to the specifications set by the manufacturer.

•

Make sure that the reject rate is based on a statistically valid
number of documents and reader sorters. The 0.5 per cent is
the average of a large number of documents. A reject rate for
a small batch (for example, 500) may vary greatly. Use the
following guidelines:
– Use a batch of 3000 to 10,000 documents.
– Sort continuously, not in bunches.
– Use several sorters of the same model, not a single unit.
NOTE: The 0.5 percent expectation applies to the first
pass through a typical high speed reader sorter working
with fresh and unsorted documents.

7-10

•

Use normal document sizes.

•

Ensure that the paper grain of the finished documents is
compatible with the reader sorter mechanical requirements
(normally long grain).

•

Avoid jams by making sure that the reader sorter is in good
working order and operates in optimal environmental
conditions.

Generic MICR Fundamentals Guide

Problem solving
The following table identifies typical problems that are
associated with different reject rates. Note that the source of the
problem can include the reader sorter itself.
Table 7-1. Problems indicated by different reject rates
If the reject rate is:

Look for:

Marginally high (1.0 to 3.0 per cent) •

High (3.0 to 9.0) per cent

Type of sorter and normal sorter variation

•

Sorter testing methods (for example, long or short runs)

•

Miscalculation of reject rate

•

Printout not properly interpreted

•

Printer quality control procedures not followed (for example,
paper and dry ink cartridge loading, maintenance, etc.)

•

Out of specification for spots

•

Image quality out of specification

•

Paper stock impacts

•

Amount field encoding by bank

•

Low signal strength

•

Low density characters

•

Document handling problems (for example, uncirculated
documents can cause misfeeds). Fresh, smooth, perfectly
stacked documents such as newly produced and cut test
documents are much more difficult to separate than slightly
rumpled, jumbled, or used documents.

•

Intrusion into clear band (front or back)

•

Sorter document handling problems

•

Sorter read and write problems

•

Document cutting problems

•

Forms creation problems

•

Extreme vertical misregistration of MICR line

Catastrophic (10.0 to 100 per cent) •

Wrong font

•

Spacing algorithm improperly used

•

Sorter software incompatibility:
–

Wrong header cards

–

No amount field

–

Incorrect MICR line codes

•

Gross finishing errors

•

Sorter malfunctions

Generic MICR Fundamentals Guide

7-11

Problem solving
Inspecting documents
Always check for obvious problems first.
•

Make sure that you are looking at the right documents.

•

Check for the following:
– Correct font
– MICR clear band intrusion
– Correct vertical or horizontal position of font
– Correct format (for example, was the Amount field printed
twice—by you and the bank?)
– Document damage (folds, tears, edge damage)
– Smears on the MICR line, or crayoning

Correct font placement or format
Always use a MICR font. Ask yourself the following questions:
•

Was a non-qualified font purchased and installed from a
source other than Xerox?

•

Is the font in the correct position?

•

How was the positioning determined?

•

Has the positioning been modified by a font editor?

•

Was the information about the MICR line content and
structure obtained directly from the bank, or was an old
document used as a model? Either the hardcopy directions
may be wrong, or the old model document may be obsolete.

MICR character defects
Check the MICR characters for the following:

7-12

•

Voids

•

Spots

•

Density loss

•

Trail edge deletion

•

Dry ink depletion

•

Wear

Generic MICR Fundamentals Guide

Problem solving
Document damage
Even subtle damage can ruin a document. Characters may be
cut by sharp edges within the reader sorter. If there are wrinkles
in the document, the reader sorter may be causing its own
errors. Leading edge damage in the reader sorter is a common
problem with short-grain documents.
Check to find out if the paper stock was damaged in some way
before it went through the laser printer. Damage can include
spots, weak areas in the paper, and creases. If possible, obtain
quantity samples of the stock to assess its quality before a print
run.
Excessive ink smears
Abrasion should be negligible in a well adjusted reader sorter.
However, at speeds of up to 400 inches per second, treatment
may be rough enough to abrade paper. If there are many
smears, investigate the following causes:
•

Stock incompatibility

•

Paper surface too rough or too smooth

•

Paper moisture content too high

•

Poor dry ink adhesion to the paper

Since the reader sorter operation is usually not under the
supervision or control of the check issuing agency, ask the
proper agency to investigate the document-to-head pressure
(either the read or the write head) in the reader sorter.
Paper size and characteristics
Make sure that the paper requirements for both the printer and
the reader sorter are met.
MICR line format
Check for the following in the MICR line:
•

Is there anything unusual about the content or intended
position of the MICR line?

•

Are the MICR line content and position correct?

•

Are there any dependencies between the MICR line and the
reader sorter control documents?

Generic MICR Fundamentals Guide

7-13

Problem solving
Job history or results
Ask the following questions:
•

Is this the first time that this job has been run?

•

What happened on the other occasions?

•

Is the current result an exception?

Compare the documents with previous samples
Keep a record of base information and samples of previously
printed jobs to help isolate and resolve recurring problems. Keep
in mind that reader sorter operation is usually not under the
supervision or control of the check issuing agency.
•

Does the bank printing appear in the same location on the
checks? Note the placement of the “endorsement” printing
from the bank.

•

Were the checks sorted upside down or backwards?

•

Was the machine serviced immediately after this check run?
An accurate dated record of base information may indicate
this.

Analyzing reader sorter printout
Obtain a copy of the reader sorter reject report from your bank, if
it is available. Also, ask the bank to provide definitions of all
status and error codes that are used in the reject report. When
analyzing the report, ask the following questions:
•

Does the printout correspond with the job in question?
There could be a mismatch between the report and the
documents.

•

What is the reject rate?
Find out how the reject rate was calculated, by asking these
questions:
– Were paper handling rejects and Amount field rejects
subtracted from the total?
– Were blank sheets and documents that were inserted
upside down or backwards removed from the total?
(These items may not produce recognizable characters.)

7-14

Generic MICR Fundamentals Guide

Problem solving
•

Where in the document do the rejects occur?
Determine if they appear consecutively, in groups, or
randomly:
– Is there a pattern to these rejects? For example, are they
the same character, the same field, or do they regularly
appear after a certain number of sheets?
– Does this pattern suggest that the dry ink cartridge may
be defective by repeating the cycle?

•

Is there an obvious pattern to rejects related to character or
position?
Inspect to see if a certain character seems to be causing the
problem. Does a character fail often if it is in a particular
position in the document?

•

How are blank, backwards, or upside down documents
indicated?
Find out if there is a special code for these items, or if they
are treated as other types of rejects. Are they completely
missing from the report, or do they appear garbled?

•

Are all the documents accounted for?
At the end of a print run, the number of accepts plus the
number of rejects should equal the total number of
documents that were submitted. If they do not, ask the
following questions:
– Did some of the documents disappear or jam?
– Did the system add something?
– Did the operator reenter additional documents?

Test patterns: alternative to reader sorter testing
Reader sorter testing requires the cooperation of the issuing
bank, and it addresses only problems with the bank’s processing
equipment. If appropriate reader sorters are not available, you
must rely on analysis of print samples to identify potential quality
issues and determine corrective actions for problem machines.

Generic MICR Fundamentals Guide

7-15

Problem solving
All Xerox MICR printers incorporate MICR diagnostic test
patterns. These forms combine the needs of service diagnosis
and call closeout with MICR problem analysis and escalation.
You may want to use separate test pattern files to verify
individual PostScript, PCL, and LCDS fonts. The MICR line on
these forms is in the correct format for reader sorter testing. On
the test pattern that is accessed through diagnostics, additional
image elements are incorporated to provide insight into potential
MICR problems. All of the MICR quality control and diagnostic
procedures described in this guide can be performed on these
documents.
The use of these test patterns with advanced MICR test
equipment permits very sophisticated analyses, validating all
magnetic waveform characteristics against established
expectations. Problem escalation should always include these
print samples, to facilitate quick identification of problems.

Verifying problem resolution
Unlike print quality or paper handling problems, MICR quality
problems require some vigilance, even after the source has been
identified and the problem resolved to the satisfaction of the
customers and their bank. Bank reconciliation processes and
check cashing policies may require a month or more for the full
benefit of corrective actions to be seen. In the case of blank
check books, the old stock may take years to deplete. Depending
on the severity of the problem, you may need to take a proactive
approach to ensure that MICR performance issues have been
resolved.

7-16

Generic MICR Fundamentals Guide

Security

The success and security of MICR printing depends on the
implementation of security procedures, document security
features, and commitment by the customer.

Xerox printing systems security
Security in the laser printing environment refers to features that
prevent unauthorized access to privileged data or forms that are
not intended for general use.
To determine the degree of security that you need, you must
evaluate the present risk and the value of what will be protected.
Although any printing system may handle sensitive material, a
MICR printing system is of special sensitivity, because outputs
often include negotiable documents.
The key to security of a Xerox MICR printing system is to control
access to critical and sensitive files, and to keep track of the
legitimate use of these files through audit procedures. The
critical files vary depending on check printing application
implementation. The most common are the MICR fonts, logos,
check forms, and the check print file.
NOTE: The available security and audit features may vary
depending on the printer and controller configuration. You must
consider your equipment capabilities when assessing your
security needs. Periodic review is highly recommended,
especially if equipment capabilities are upgraded or major
system elements change.
Many techniques are available to protect checks and other
valuable documents after printing. No security method provides
absolute protection, but any feature that makes a check harder to
alter or reproduce is desirable if it does not impair the production
and automated processing of the document.

Generic MICR Fundamentals Guide

8-1

Security
Important characteristics of a good security system are:
•

Restricted access to printing capabilities

•

Protection of the system software and key files

•

Establishment of a complete and unalterable audit trail.

•

Use of document security features that protect against both
alteration and duplication

Physical security
The primary aspects of physical security for the Xerox MICR
printing systems include the following.
Restricting physical access

Access to printing
system

The most important security feature is control of access to check
printing facilities and to the MICR printing system. If access is
sufficiently limited, you may not need to consider further security
procedures. However, as usage increases, the number of people
who need access to the printer also increases.
Therefore, the first step in implementing any sort of security
process must include a means of controlling the group of people
who have access to the printing system, as well as limiting what
they can bring to, or remove from, the printer environment.
For a higher level of security, the following is recommended:

Access to media

8-2

•

Install alarms on all doors to at least indicate if they are
opened.

•

Do not admit visitors unless they are properly screened by
authorized managers.

•

Provide proper escorts and do not allow free access to any
visitor.

A Xerox MICR application consists of a combination of fonts,
logos, signatures, and forms. One way to secure these files is to
place them on media that can be physically secured. When
these application resource files are located on the host
computer, host access control is needed.

Generic MICR Fundamentals Guide

Security
Securing paper stocks
The ability of the Xerox MICR printing system to print a form,
signature, logo, and MICR line on a check at the same time as
the variable data eliminates the security problems resulting from
keeping a supply of preprinted checks in storage.
However, because security paper is one of several resources
used to print the checks, securing the paper stock is a wise extra
precaution. Paper should be kept in locked storage, in sealed
boxes, with each ream separately wrapped and sealed.
Employees should not be permitted to take security paper from
the building unless they are cleared by a security officer.
The amount of paper brought out of storage for printing can be
used as an audit cross check against the number of sheets that
are printed. After the checks are printed, the stacked documents
should be carefully secured, because loose sheets are
susceptible to pilfering. Numbered stock helps control check
stock, but it increases job complexity.
Storage and disposal

Equipment

It is important that you regularly inventory and monitor the
equipment used to manufacture and process checks. If you are
selling equipment, you should sell or place it with reputable firms
(for banking purposes). If you are discarding equipment, first
make sure that the castings are broken up and that it cannot be
used. Always keep the serial numbers and disposal records for
at least ten years.

Checks and
materials

Follow these guidelines for storing and disposing of checks and
printing materials:
•

Keep printing supplies, such as paper and ink, in secure
storage areas.

•

Inventory unprinted reams and rolls of paper and preprinted
standard stock check bodies on a regular basis.

•

Shred or incinerate all spoiled documents.

•

Shred all unprinted security paper waste before recycling.

•

Store the plates used to print documents in secure areas, and
make them useless before scrapping them.

•

Do not permit employees to take anything in or out of secured
areas without authorization.

Generic MICR Fundamentals Guide

8-3

Security
Responsible presence
The key to security in any document generation process is an
individual or group that is responsible for safeguarding the
printing process. For critical applications, the auditing operation
has this responsibility. In small organizations, the printer operator
may be responsible for security.
You can create a higher security level by combining physical
security with a responsible individual or group when the system
and supplies are not secured. Thus, two persons can have
responsibility for the printing facility, by either dual key access to
the media or knowing a password to access the data files and
run the print job.
Software security
Software security focuses on restricting access to key files to
authorized individuals.
Many software features provide different levels of protection,
from class level logon control to automatic deletion of files at
completion of a print job.
NOTE: Internal audit features vary depending on the printer and
controller configuration. You must consider your equipment
capabilities when assessing your auditing needs. Refer to your
printer customer documentation for information on the security
and auditing features that are available to you, and the
processes for enabling them.
Logon levels
Several Xerox MICR printers provide some level of logon or
password security as standard or an option. Many systems have
a logon level at which the user files can be restricted from all of
the other levels so they cannot be edited, deleted, or used by
other jobs.
Memory
Fonts, logos, graphics, and other resource files may need to be
restricted from other users. Even if these resources are
adequately protected, unauthorized access could be obtained
through the residual contents of font memory or disk storage.

8-4

Generic MICR Fundamentals Guide

Security
If your system does not clear the contents of font memory, you
can clear it by the following methods:
•

Downloading a set of data that uses all available memory

•

Powering the printers on and off

•

Using special font utilities

The print file should also be cleared.
System commands
Some Xerox MICR printers provide a series of system
commands that control access and presence of files.
Audit control processes
The primary audit function for Xerox MICR printers is to identify
the processes or procedures that could compromise control of
valued items. The auditor then finds ways to stop that loss of
control.
You can maintain an audit record by doing the following:
•

Create an audit control worksheet to account for each page.

•

Keep a record of information that is compiled by the operator
and other responsible personnel.

•

Maintain a job log, including completed and failed jobs, paper
jams, and system restarts.

Accounting information
When print jobs are processed by the printing system, the
system software accumulates and saves usage data.
This information may be printed on the printer or transcribed for
analysis by the host computer.
Paper jams
Reduction of jams depends on proper machine adjustment,
paper quality, and storage and loading of supplies. The important
item to consider is the clearing of jams.

Generic MICR Fundamentals Guide

8-5

Security
The operator captures and accounts for all jam scrap and makes
sure that no missing or duplicate checks result from the jam. The
audit process works only if all of the sheets in the jam are
discretely identified. These sheets should be considered part of
the output for the job until the auditor is satisfied that the job has
successfully completed.
Note that some pages may not have been properly fused in the
printer. Careless handling of jam scrap could contaminate good
output.
Samples
You may need to sample pages during a MICR print run. Some
form of sample output is needed to verify the continued quality of
the MICR characters.
You can obtain samples during printing by the following methods.
Sample button

Using the Sample button or key involves a significant security
risk. If the MICR documents are not negotiable or if the print
facility is highly secure, it may be an acceptable method. Any
extra copies must be voided. You might prefer to have the
Sample button disabled.
On most printers, pressing the Sample button generates an extra
print of the current page. If your system does not produce this
extra print, you must ensure that each item is returned to its
appropriate location in a serialized print stream.
Sampling whenever output is removed from the printer provides
an easy method of evaluating output quality without disturbing
the job order.
NOTE: Inline sample prints may not available, depending on the
printer and controller configuration.

Printing a test
pattern

8-6

A test pattern should be printed at designated intervals,
especially at the beginning of a job. You can direct the printed
test pattern to a different tray or use colored paper to distinguish
it from the rest of the output. The application program should be
designed so that an electronic form with the word “VOID” is
merged with these pages.

Generic MICR Fundamentals Guide

Security

Tampering methods
There are several methods by which data on a check may be
altered. The security papers on which negotiable documents are
printed are designed to thwart these forms of tampering.
Chemical tampering
Many inks can be affected by particular chemicals, making
chemical alteration of checks possible. These chemicals could
be some combination of solvent and bleach. Certain inks can be
bleached without materially affecting the paper stock. Other inks
can be selectively removed without affecting the rest of the
image.
Select check stocks that contain materials that make altering the
printed transaction information difficult. For example, if ballpoint
pens will be used to complete the check, the paper should
contain indicators for ballpoint ink solvents. If organic dye based
inks, which are susceptible to bleaching, will be used, select
papers containing a bleach indicator. (Because dry ink images
are encapsulated in a plastic resin, they are almost impossible to
bleach.)
Check stock must also remain compatible with the MICR printing
system on which it is used. Some chemical security features can
damage printer subsystems. A marginally effective security
feature could actually degrade overall document security.
Mechanical tampering
Mechanical alterations include erasing, picking ink out of a
document, and scraping to remove sections of the original
document. The part of the image that is removed is replaced with
a section that looks similar. Mechanical alterations are often
attempted on xerographic images.
Ways to discourage this kind of alteration include:
•

Repeating critical information at several locations on the
document. This turns a simple change of vital information into
an extensive modification of large areas of the document.

Generic MICR Fundamentals Guide

8-7

Security
•

Selecting checks with a structured background pattern. This
type of background accentuates the pattern change that
results from tampering. Random check backgrounds may
camouflage damage due to alteration.

•

Using “fugitive” inks, which run when a solvent is applied. A
water soluble ink shows any attempt to loosen and remove
paper fibers attached to a dry ink image.

Modifying printed checks
The ease with which a tamperer can modify an image, either
chemically or mechanically, depends on how intertwined the
printing inks are with the fiber of the paper with which the inks
have been in contact.
The following printing technologies react in different ways to the
different tampering methods.
Lithographic printing
Lithography is difficult to modify. The inks are liquid when applied
and soak into the fibers of the paper. The flow of the ink through
the paper fibers makes the edges of the characters indistinct.
If a nonabsorbent paper is used, or a paper with an ink hold-out
layer, the image may sit on the top layer of the paper, making it
easy to erase. The deeper the ink soaks into the paper, the more
paper fibers must be disturbed to remove the ink, and the more
noticeable the alterations are.
Impact printing
The two types of impact printing are letterpress and ribbon ink
transfer.
•

Letterpress: This method is not recommended for printing
variable data required for check applications.

•

Ribbon transfer: This process involves either fabric or mylar
ribbons.
– The fabric ribbon ink is semi-liquid. An example is a fabric
typewriter ribbon or printer ribbon that leaves ink on your
hands when you touch it.

8-8

Generic MICR Fundamentals Guide

Security
Fabric ribbon inks also soak into and around paper fibers.
How much the inks soak in depends on how new the
ribbon is. As the ribbon is reused, ink levels are depleted
and the image does not bond as much to the paper. At
this point, the image is easier to remove. Some images
printed with fabric ribbon are impossible to remove, while
others can be removed with a damp finger.
– A mylar ribbon is used only once. It carries a waxy or
jelled layer of ink that is designed to transfer completely to
the paper when struck with enough force. The result is a
transferred image that bonds well to the paper.
Mylar ribbon ink is not as liquid as the ink on a fabric
ribbon. Some of the ink from the impact printed image
penetrates into the paper, but the ink sits higher on the
page fiber than it does with a lithographic image.
Generally, the waxy nature of the mylar ribbon inks resists
bleaches.
Altering an impact printed image has different results, depending
on the nature of the inks and the pressures that are used. In
some cases, mylar ribbon images bond so poorly to the paper
that they can be removed with sticky tape. With enough pressure
and the proper inks, the image can bond well, but it is still
vulnerable to picking tools.
Cold pressure fix
Cold pressure fix is used by some non-impact printers. Dry ink is
fused to the paper by pressure alone. The image bonds poorly to
the paper, but it is relatively well compacted and bonded to itself.
The dry ink rests on the surface of the paper and is highly
bonded only to the top layer of paper fibers. The image may be
picked away without leaving much residue.
Xerography
Xerography is a printing process that uses heat and pressure to
melt and fuse thermoplastic dry ink to the paper. The pressure
applied during fusing forces the dry ink into the paper.
This process makes the ink very difficult to remove without
detection. A xerographic dry ink image is also difficult to alter
chemically, because the colorant material is well protected by its
plastic binder.
Even in a well-designed printing system, some factors affecting
the dry ink to paper bond remain under user control.

Generic MICR Fundamentals Guide

8-9

Security
•

Excessive paper moisture causes poor heat transfer due to
the energy dissipated driving off the water.

•

Preprinted backgrounds with high ink coverage prevent
contact of dry ink to paper, which is a prerequisite of a bond
between them.

Either problem can make a dry ink image easier to remove.
Preventing tampering
Document tampering can not be eliminated completely; however,
you can strongly discourage it by making it more difficult.
The quickest and most cost-effective methods of preventing
check falsification include the following:
•

Use a printing process that provides firm bonding between
ink and paper. Avoid factors that interfere with the bonding
process.

•

Use a secure check stock that works with the printing
process, compensating for its vulnerabilities without
interfering with its capabilities.

•

Use redundant data for critical fields—a statement of the
check amount, for example, provided in both numeric and text
versions.

A traditional check protection method uses multiple fields to
indicate the payable amount. This amount can be written as a
numeric field and a text string. The text amount field provides
good protection, but it requires advance planning for forms
design and for host application programs.
The small, compressed fonts of the Xerox MICR laser printer
allow multiple lines and can fill the requirement for the multiple
language statement. For example, Canada requires English and
French.
If you use a multiple approach, remember that the text string is
considered the legal amount field. The numeric field takes
second place in legal precedence.
The ability of the Xerox MICR laser printer to use special fonts, or
fonts on a special background field, makes check modification
very difficult. However, these fonts and background also make
check processing more difficult. For this reason, industry
standards now require light backgrounds and clearly readable
numbers for automated processing. Use of a legal amount
provides protection against amount alteration.

8-10

Generic MICR Fundamentals Guide

Security
Safety papers
Safety papers have a background that makes alteration easily
visible. Scenic backgrounds or a repetitive pattern, such as a
logo, are some examples. Safety papers that consist only of a
patterned background are not foolproof.
Many financial documents are produced on a base paper, on
which a safety pattern is printed using stable inks. These inks do
not have the same sensitivity to chemical or mechanical erasure
as true safety inks. They are used because they look better and
are easier to print with. However, documents printed on these
papers are much easier to alter than those printed on true safety
paper.
Overprints
Overprints consist of a pattern or a scene that is printed over all
or parts of a printed document. Overprinting may be combined
with a texturing process. The varied colors and the texture make
it very difficult to modify the characters under the overprint
without affecting the overprint itself. However, overprinting adds
a step, which can make the check production process much
slower.
Textures
Textures can be printed on a form before the data is printed, or
applied with an overprint afterwards.
One type of preprinted texture is called “intaglio.” An intaglio
surface is created using a “male and female” die set. The
engraving is usually fine and the production cost of the final
documents can be high. Intaglio is a popular method used for
travelers' checks.
A problem with intaglio is that the surface is abrasive and can
cause problems for the reader sorter manufacturers. In addition,
attempts to place a dry ink image on a textured surface can
result in image deletions and distortions.

Generic MICR Fundamentals Guide

8-11

Security
Amount limit statements
An example of an amount limit statement is “NOT VALID FOR
MORE THAN $xxx DOLLARS.” The “$xxx” may be stated
alphabetically or numerically. Both ways offer protection because
two areas of the document must be altered.
Some countries may require that the statement be printed in
more than one language. The Xerox printing system allows
selection of small or compressed fonts to create space for the
statements on the document.
Amount in Words fields
One of the safest protection methods is the use of multiple fields
that indicate the payable amount. For example, the payable
amount can be printed once as a numeric field and once as a
text string. Most handwritten checks use this protection
technique.
Machine-produced checks often do not use multiple amount
fields. One reason is the difficulty in deciding on an appropriate
text string for larger amount values.
The text Amount field requires advance planning for forms
design and for the application program. Using small,
compressed fonts allows for multiple lines and statements.
NOTE: The text string is considered the legal amount field, and
takes legal precedence over the numeric amount field, which is
the convenience amount.

Preventing check duplication
Like check tampering, document duplication can not be
eliminated completely. In fact, there are legitimate reasons for
check duplication, including image capture by banks for
automated processing or audit purposes and copies of personal
checks for third party reimbursement. However, checks are not
duplicated for the purpose of transferring funds.
Several features can be built into a check to make the task of
check duplication more difficult, without hindering legitimate
duplications.

8-12

Generic MICR Fundamentals Guide

Security
Microprint
Microprint is extremely small text that, unmagnified, looks like
part of the check design. When magnified, it is a readable text
message. Microprints are very effective in preventing check
duplication because of their small image size.
Like safety patterns, microprints are usually applied using
conventional wet ink technologies before the stock is used in the
MICR printing system.
Microprints are typically used as check borders, signature or
memo lines, or as part of the endorsement control areas on the
back of the check.
Watermarks
Watermarks are images that appear to be part of the paper and
which are visible only under special viewing conditions. True
watermarks are paper structure deformations that are built into
the paper stock during the manufacturing process. They are
most easily seen when the paper is held up to the light. Artificial
watermarks are light colored inks that look like part of the paper
unless viewed at an angle. True watermarks are expensive and
frequently make MICR encoding difficult. Artificial watermarks
are commonly used on the back side of the check, in the
endorsement area.
Drop-out print
Drop-out print is an imagewise pattern printed with light gray ink
and a very light halftone screen. The image is visible under close
inspection, and it can not be copied.
Drop-out print is frequently applied to the back of the check with
the words “genuine document” spelled out in reversal script.
When held at arms length, the words appear as light areas on a
slightly dark background. Drop-out print can also be used on the
face of the check as part of a check border or in place of a VOID
pantograph (refer to “VOID pantograph,” later in this chapter).

Generic MICR Fundamentals Guide

8-13

Security
Dataglyph™
Dataglyph is a new technology that permits duplicate encoding
of all variable data in a covert but machine readable form.
Dataglyphs appear to be shaded areas. Under close
examination, patterns of left and right tilted diagonal lines can be
seen. When they are scanned and properly interpreted, these
diagonal lines form a code that conveys a message.
VOID pantograph
VOID pantograph is a background printing technique that uses a
variation in halftone screen frequencies or ink colors to spell out
the word “void” on the face of the check. The word is invisible on
the original document, but when the document is duplicated,
“void” appears in several places across the face of the duplicate.
In recent years, this device has become less popular due to its
negative impact on those who have legitimate reasons for
duplicating checks. Its effectiveness has also degraded due to
improvement in color duplicating systems that permit the
pantograph to be duplicated intact.

Avoiding counterfeit and stolen checks
The other side of the transaction process is represented by the
checks a business issues to pay its obligations and employees.
Failure to recognize and adequately address the risk inherent in
the activity can result in larger losses than would be suffered by
occasionally accepting a bad check from a customer. The
principal threats include alterations, embezzlement, stolen
checks, and counterfeits.
Alteration
Alterations may occur when a criminal steals a check and
changes the amount, the payee information, or both, and then
cashes or deposits the check. To guard against this, follow these
guidelines:

8-14

Generic MICR Fundamentals Guide

Security
•

Use a check that is protected. Many checks are printed on
paper that has a chemical coating or has chemicals in its
internal composition that react visually when solvents are
applied or erasure is attempted.

•

Avoid using correctable typewriter ribbons. The same
feature that let you easily remove typing mistakes enables a
criminal to change the information on a check.

•

Enroll in a positive pay program. Many banks offer this
type of program to commercial accounts. The account holder
must give the bank a list of all checks issued each day by
serial number and amount. The bank enters this information
in a database, and the amount and serial number are
compared to the list each time a check clears. If the
information does not match, the bank notifies the account
holder and refuses payment until authorization is received.
Positive pay does not prevent payment of a correct amount to
a different payee, or honoring of a duplicate check that
arrives before the legitimate one.

Embezzlement
Embezzlement involves an employee writing checks for fictitious
invoices, overpays invoices and then intercepts refunds, issues
payroll checks to nonexistent employees, overpays employee
accomplices, or underpays bills and pockets the difference. To
protect against embezzlement, use the following guidelines.
•

Separate duties. Assign responsibility for issuing checks and
depositing receipts to different employees.

•

Tighten procedures. Establish systems to positively
associate payments with invoices. Using checks with
duplicate copies can be helpful.

•

Reconcile statements promptly. Balance the accounts as
soon as you receive the bank statement and canceled
checks. Compare all issued checks to the current invoice file,
and all deposits to the current receivables file. Ideally, this
should be done by a third party that does not issue checks or
deposit receipts.

•

Perform audits. Inspect the status of all accounts at frequent
but irregular intervals.

Generic MICR Fundamentals Guide

8-15

Security
Stolen checks
Blank checks may be removed from the premises by employees,
delivery personnel, service technicians, customers, emergency
personnel, or burglars. Missing checks may not be noticed
immediately. In some cases, checks are intentionally thrown
away without secure disposition. Stolen checks that are
successfully passed are the responsibility of the account holder,
and the losses are usually not recovered. Guard against stolen
checks by doing the following:
•

Secure the check supply. Make sure that all blank checks
are stored in a secure place. Limit access to checks to a
small number of authorized employees.

•

Secure the environment. Limit check writing to an area that
unauthorized individuals cannot access, or schedule check
writing when no one else is in the area.

•

Examine checks thoroughly. If an unauthorized entry
occurs, such as during a burglary, fire, or medical emergency,
make sure that no unissued checks are missing.

•

Enroll in a positive pay program. This program is effective
against stolen checks because unlisted serial numbers are
caught by the bank and are not paid.

•

Dispose of outdated check stock in a secure manner,
preferably by burning or shredding.

Counterfeits
With high quality duplicating and printing equipment readily
available, individuals with no training or experience can create
presentations and reports that have a very professional
appearance. Office copiers, color copiers, and computercontrolled laser printers are used in check counterfeiting. Like
stolen checks, counterfeits that pass through the payment
system are often the responsibility of the account holder, and not
the bank. This is especially true when the check can be easily
reproduced, or account reconciliation procedures do not ensure
prompt discovery of the counterfeit.
Consider the following when planning for a counterfeit protection
program:

8-16

Generic MICR Fundamentals Guide

Security
•

Select a good check design. Review the design features
that are effective against counterfeiting. Consult with the
security officer at your bank and with your check supplier
when considering specific protections.

•

Install reconciliation procedures. Make sure that accounts
are posted promptly, and that bank statements are balanced
immediately upon receipt. Inspect all checks in the statement
to ensure that counterfeits are included.

Cost considerations
Some methods of preventing alteration and duplication are
costly. Intaglio surfaces are probably the most effective and the
most expensive. Overprinting is somewhat less expensive, but
there are hidden costs in terms of speed of operation, damaged
documents, and operational problems.
The most popular protection method is safety paper. If the
applications design permits its use, a safety paper is one
reasonable way to protect a document against modification.
The most inexpensive and effective method for protecting
documents is by printing controlled information in a way that
makes it difficult to alter. If information can be printed more than
once, a tamperer would have difficulty making the changes look
the same.
An effective combination of methods uses the following:
•

A printing process that provides a good bonding between the
ink and the paper

•

A font that is difficult to alter for the areas of the document
that need protection but are not intended for machine
readability

•

A redundant statement of the check amount

•

Use of at least two security features on the check, one to
address alteration and another to address duplication

Generic MICR Fundamentals Guide

8-17

Security

8-18

Generic MICR Fundamentals Guide

References

Standards documentation
The following references are for both domestic and international
check standards.
Table A-1. Domestic check standards
Domestic standard

Number

Publication date

Bank Check Background and Numerical Convenience Amount
Field

ANS X9.7

1988; Revised 1999

Specifications for Placement and Location of MICR Printing

ANS X9.13

1990; Revised 1999

Paper Specifications for Checks

ANS X9.18

1993; Revised 1998

Print and Test Specifications for Magnetic Ink Printing (MICR)

ANS X9.27

1988; Revised 2000

Check Carrier Envelope Specifications

ANS X9.29

1992; Revised 1998

Specification for Bank Deposit Tickets

ANS X9.33

1999

Specification for Electronic Check Exchange

ANS X9.37

1994; Revised 2001

Check Correction Strip Specification

ANS X9.40

1994; Revised 1998

Financial Image Interchange Architecture Overview and System
Design Specification

ANS X9.46

1997

Creating MICR Document Specification Forms

ANS X9.47

2001

Fraud Deterrent Icon Standard

ANS X9.51

1999

Specifications for Check Endorsements

ANS X9.53

1996

Specification for Universal Interbank Batch/Bundle

ANS X9.64

2001

Table A-2. U. S. MICR Industry Guidelines
Domestic standard

Number

Understanding and Designing Checks

ASC X9/TG-2 1990; Reaffirmed 1995

Quality Control of MICR Documents

ASC X9/TG-6 1995; Revised 2000

Check Security Guideline

ASC X9/TG-8 1995

To Aid in the Understanding and Implementation of Financial
Image Interchange

ASC TG-15

Generic MICR Fundamentals Guide

Publication date

1998

A-1

References
Table A-3. Significant international check standards
International standard

Number

International Standards Organization MICR Printing Specifications ISO 1004 - 1995
Australian Banks Payment Association

ABPS # 3 R2 ABPS # 11 R3

Association for Payment Clearing Services (UK)

APACS Standard 3

Canadian Payments Association MICR Printing Standards and
Specifications

CPA 006

Instructions for ordering U. S. standards
The ANSI standards are available electronically and in hardcopy.
You may order them from the following sources:
Ordering online
You can obtain ANSI standards documentation and information
from the following web sites:
ANSI standards catalog:
http://x9.org/catalog.html
ANSI standards documents:
http://webstore.ansi.org/ansidocstore/dept.asp?dept_id=80
Ordering hardcopy
You can order the standards by phone, fax, or mail as follows:
American National Standards Institute (ANSI)
11 West 42nd Street, 13th Floor
New York, NY 10036
Attn: Customer Service
Phone: (212) 642-4900
Fax:
(212) 302-1286

A-2

Generic MICR Fundamentals Guide

References
Standards development process information (U. S. only)
For information on joining the U.S. standards development
process, contact:
Associate Director, ASC X9 Secretariat
c/o American Bankers Association
1120 Connecticut Avenue N.W.
Washington, D.C. 20036
Phone: 1-202-663-5284
Fax: 1-202-663-7554

Generic MICR Fundamentals Guide

A-3

References

A-4

Generic MICR Fundamentals Guide

Glossary

ABA
AFNOR

aligning edge
alignment

American Bankers Association or Australian Bankers
Association
L'Association Francoise de Normalisation (AFNOR). Paris-based
organization like the APACS. Standards authority for CMC-7
(NFZ 63-001).
The lower edge of the check when its face is viewed.
The relationship between the bottom edge of a character and the
bottom edge of its adjacent right character. Also known as
vertical alignment.

amount field

The character positions within the MICR line of a check which
contains the amount of the check.

amount symbol

Special MICR character to separate the amount field from the
next adjacent field.

ANSI

American National Standards Institute. Supervises the
accreditation of US standard development committees.

APACS

Association for Payment Clearing Services. An organization
similar to ABA, but with standards setting authority for banking
systems in the U.K. (Used to be known as CLCB.)

auxiliary domestic
field

Area to the left of the MICR encoded BSB field. Also called the
“auxiliary serial field.”

auxiliary On-Us
field
auxiliary serial
field

An optional data field within the MICR line of a check which
contains information determined by the individual bank.
See auxiliary domestic field. (Australia)

average edge

An imaginary line (vertical or horizontal) through the ragged
edge of a magnetic ink character. The measurements relating to
spacing, dimension, and alignment are made from one specified
average to another.

background

The basic color (pattern) of a document, as distinct from the lines
and information printed on it. (See fugitive background.)

bank check

A draft drawn by a bank on itself, or by one bank against funds
deposited to its account in another bank, and payable
immediately on demand.

Generic MICR Fundamentals Guide

Glossary-1

Glossary
basis weight

The industry term for expressing the weight per unit of paper.
Generally defined as the weight of a given size sheet in pounds
per ream (usually 500 sheets) or grams per square meter (g/m2).
For banking papers, this is normally the weight in pounds of 500,
17 by 22 inch/432 by 559 mm sheets.

batch header

The process control documents (usually serially numbered) that
precede a batch of items to be entered for processing.

BFD

Bank of First Deposit

black band
document

Typically a batch separator document or other control document.
(See batch header.)

bond paper

A grade of printing paper where strength, durability, and
permanence are essential requirements. Bond papers are either
rag or sulfite bonds. Used for letterheads, business forms,
checks, etc.

brightness
bristol paper

BSB field
BSB symbol

The whiteness of a paper
A stiff, heavyweight paper with a softer surface than index and
very receptive to ink. Ideal for high-speed folding, embossing, or
stamping.
The Australian Bank/State/Branch field is an area in the MICR
line which provides the routing information for the document.
The Australian special MICR character to separate the BSB field
from the next adjacent field.

calibration
document

A document with a known magnetic strength character used to
calibrate magnetic readout equipment.

character space/
position

The position or space where a magnetic ink character (digit or
symbol) appears in the MICR line. Only one character is
permitted in a character space; each space or position in the
MICR line is numbered.

Character-tocharacter spacing
check

Distance between adjacent characters, measured from the right
edge of one character to the right edge of the adjacent character.
Any negotiable payment document written against an account
maintained by a financial institution for the transfer of a dollar
amount from one party to another.

check digit

A digit, usually the first digit read in the transit field, that can be
computed from the other digits in a field. The check digit is used
as a validity check of the total field.

check routing

The denominator of a fraction (located in the top right corner of a
check), which appears on checks drawn on all Federal Reserve
member banks. The numerator of the fraction is the ABA transit
number.

Glossary-2

Generic MICR Fundamentals Guide

Glossary
check truncation

The conversion of the information on a check into some form of
electronic recording after it enters into the processing system.
The process is called truncation because the physical
processing of the check is cut short.

chipping

The removal of Xerox MICR LPS toner in reader/sorters, which is
due to wear and tear stresses placed on the image by these
processing devices.

CLCB

Committee of London Clearing Banks. Formally an organization
similar to ABA, but with standards setting authority for banking
systems in the U.K. (Replaced by APACS.)

MICR clear band

A horizontal band on a document that extends upwards 5/8-inch
(0.625-inch/15.87-mm) from the bottom edge of the document
containing the MICR line. Sometimes referred to as the MICR
band, although the definitions are different (see MICR band).

clearinghouse

CMC7
code line, MICR

A voluntary association or corporation that acts as a medium
through which banks in some areas exchange items drawn on
each other and make settlements.
A font used in magnetic ink printing
The .25-inch (6.35-mm) high region centered in the clear band
that contains the MICR characters. Also known as the MICR
“band”.

convenience
amount

The value of the check expressed in numbers.

convenience
amount

An area above and below the convenience amount

clear area
comparator
correspondent
bank
cover stock
CPA

crayoning

Scan band held clear of printing that would interfere with the
convenience amount.
An special optical tool to measure MICR character dimension
and positional attributes.
A bank that maintains an account relationship or exchanges
services with another bank.
A heavyweight paper available in white or colors, designed for
use as covers on booklets, etc.
Canadian Payments Association. An organization,
headquartered in Ottawa, having standards setting authority for
banking systems in Canada equivalent to APACS in the U.K.
A smudging of the MICR line on documents, commonly
associated with the IBM 3890 reader/sorter.

Generic MICR Fundamentals Guide

Glossary-3

Glossary
curl

cut sheet paper
DACS
DDA
debossment

The distortion of paper built in when paper is manufactured and
placed on large rollers before being cut into sheets. Effect is
intensified when paper is exposed to heat, pressure, moisture,
and drying. A major cause of paper handling problems in
printers.
Paper that has been cut into sheets 11- by 17-inches (279- by
432-mm) or smaller.
Document Audit and Control System
Direct deposit account
The sunken impression of a printed character on a paper
document. Debossment is caused on the face of a document by
impact processes that may use an excessive amount of pressure
to imprint the character on the document. Debossment that is in
excess of .001-inch in depth may cause a significant decrease in
the measured magnetic signal level of the affected MICR
characters. (See embossment.)

dimension

The shape of a character measured within the space that it
occupies.

document

One or more recorded or printed pages forming a logical whole.

dot
domestic field

domestic symbol

An area on the check where information relevant to that bank
only (e.g., bank account number) is encoded. Sometimes
referred to as the On-Us field or serial field. (Australia)
Special MICR character to separate the domestic field from the
next adjacent field. Sometimes referred to as the On-Us field or
serial symbol. (Australia)

dry ink

A fine black powdered substance used by printers to form
images on the printed pages. Also called “toner” or “dry imager.”

duplex

Printing that occurs on both sides of the paper.

duplicator paper
E13B

Glossary-4

A unit of measurement representing the smallest unit of image
placement (also referred to as “spots”).

An extremely smooth paper, highly resistant to liquids, for use in
spirit (alcohol) duplicating machines.
The type of font used in magnetic ink printing. Use of the term
E13B generally implies both the character shape as well as the
magnetic aspects of the printing. It consists of ten numeric
characters and four symbols.

Generic MICR Fundamentals Guide

Glossary
embossment

The raised impression of a printed character on a paper
document. Embossment is caused on the back side of a
document by impact processes that may use an excessive
amount of pressure to imprint the character on the document.
(See debossment.) Also termed with the type of non-impact
printing.

encoding

1. Imprinting MICR characters on checks, deposits, or other bank
documents. 2. The magnetized recording of data on the
magnetic strip on a bank card.

extra auxiliary
domestic field

Area on the check where information is relevant to the bank only.
Commonly used for a serial number in deposit transactions. Also
called “extra auxiliary serial field.” (Australia)

extra auxiliary
serial field

See extra auxiliary domestic field. (Australia)

extraneous ink

Magnetic ink or other ink not intentionally printed which is
located within the clear band.

felt side

During manufacturing of paper, the pulp mixture is poured onto a
screen so that the liquid drains out, leaving only the pulp, which
dries to form the paper. The side of the paper that is exposed
(away from the screen) is called the felt side. This side has a feltlike texture with more short fibers and sizing that the opposite
(wire) side.

ferromagnetic

Having characteristics of substances with magnetic properties
resembling those of iron. MICR systems use a ferromagnetic dry
ink.

field

A specified portion of the MICR line that is limited to a set of one
or more characters that may be treated as a unit of information.

fillers

Compositions used to fill in the pores in paper to improve
smoothness, opacity, and affinity for ink. Clay is often used as a
filler.

fine-sort

The sorting of a group of documents into a particular sequence
for the next processing step. The fields that are sorted are
usually some portion or all of the On-Us, transit, or auxiliary OnUs fields.

finish

The final coating or surface of a paper. May be rough or smooth,
glossy or dull, etc.

font

A collection of characters with a consistent size. Refers to the
printer's internal fonts, or fonts stored in optional font cartridges
and soft font diskettes.

Generic MICR Fundamentals Guide

Glossary-5

Glossary
fugitive
background

A special print pattern, usually incorporating numerous
repetitions of the bank's corporate logo, found on check
documents. The pattern reacts chemically or physically if the
document is tampered with, thus providing some measure of
security over whatever information is overprinted onto the
pattern.

fuser

The area of the laser printer where the image is permanently
fixed to the paper by heat or by heat and pressure.

fuser oil

High-purity refined silicone oil used as an external release agent
in fusers to keep paper from sticking to the fuser roll.

grade

Degree of brightness of paper. The higher the brightness, the
lower the grade number.

grain

On a sheet of paper, the direction in which most fibers run. Long
grain papers have most of their fibers run parallel to the long
side; while in short grain papers the fibers run parallel to the
short side.

grammage

Term for expressing paper basis weights in Australia and Europe,
which is the weight in grams of a square meter of paper. Also
called grams per square meter (g/m2 or gsm).

hole plugs

The circular pieces of paper residue produced from punching
holes (for binding purposes) in paper.

home bank

The bank from which a check (or other MICR document) has
been drawn upon.

housekeeping

The regular operator cleaning and maintenance procedures for
mechanical devices (such as the LPS printer module and reader/
sorters) which manufacturers deem necessary for optimum
machine performance.

host

The source of data, or the input device, for the printer. Could be a
personal computer or a mainframe.

image

A process of digitization of all or a portion of the document. The
digitized image might be used to enhance the microfilming
process, or it might be used for storage, transmission, or
electronic printing of the document (e.g., as part of the account
owner's statement).

intaglio printing

Glossary-6

The printing process commonly used for travelers checks and
other security documents. This process produces a noticeably
raised surface of ink, and in doing so places quite severe
stresses on the paper. Getting MICR encoding to properly fix
onto intaglio printed documents, by any technology, is quite
difficult.

Generic MICR Fundamentals Guide

Glossary
ionographic
printer
ISO
item numbering

A printer that forms images by directing an array of negative ions
onto a drum. After dry ink is attracted to the charged areas of the
drum, the image is fused to the paper by cold pressure.
International Organization for Standardization
A number that is applied as a part of the sorting process. The
number is usually linked to the microfilm sequence and is used to
located the appropriate microfilm image during document
research.

label stock

Adhesive-backed sheets of paper that may be applied to a
variety of surfaces and may be used for mailing addresses,
identification or price tags, etc. Sheets may be backed with
pressure-sensitive adhesive or dry gum. Label sheets may be
uncut or divided into any number of individual labels.

landscape

Landscape orientation refers to printing across the length of the
page, as opposed to portrait orientation which prints across the
width of the page. The term “landscape” is derived from pictures
of landscapes, which are usually horizontal in format.

legal amount

The value of the check expressed in text. If this value differs from
the convenience amount, the legal amount prevails.

laser printer

A non-impact xerographic printer that uses a laser beam to form
images on a photoreceptor. The images are then fused to paper
by heat and pressure. Xerox calls their laser printers Electronic
or Laser Printing Systems (EPS or LPS).

leading edge

The right edge of a check, which is the first edge of the
document to feed into a reader/sorter and is most susceptible to
damage.

logo

The name of a company or product in a special design; used as
a trademark in advertising.

magnetic ink

Usually printer ink to which iron oxide particles have been added.
On Xerox MICR printing systems, it is the dry ink with magnetic
characteristics.

mailer

Specialized product incorporating glued margins, cross gluing,
and carbonizing or carbonless coating so that both the outside
address and insert can be printed simultaneously.

Matrix reader/
sorter

Reader/sorters that use a number of read heads, which in turn
replicates the character read in terms of a matrix. An example of
this type of device is the IBM 3890.

MICR

Acronym for Magnetic Ink Character Recognition. It consists of
magnetic ink printed characters that can be recognized by highspeed magnetic and/or optical recognition equipment.

Generic MICR Fundamentals Guide

Glossary-7

Glossary
MICR band

1. The .25-inch (6.35-mm) high region centered in the clear band
that contains the MICR characters. 2. The MICR characters
printed in the MICR band.

mimeo paper

An extremely rough, porous paper. Its high absorbency makes it
ideal for the mimeograph printing process, which uses a stencil
through which ink is pressed.

moisture content

A physical property of paper. High moisture content causes curl,
jams, and poor fusing; low moisture content causes static
problems, leading to increased jams and misfeeds.

multi-up printing

The printing of more than one document per physical sheet of
paper. For example, the printing of three checks per page (e.g.,
3-up in portrait).

mylar

OCR

offset printing

offsetting

On-Us field

A polyester film used to reinforce the edges of Xerox 3-hole
drilled, reinforced-edge paper. The bording material for impact
ribbon inks.
Optical Character Recognition. A technique for reading a font
optically. The font can be an OCR font, the E-13B, or others
depending on the capabilities of the hardware. OCR may refer to
the technique, the machine, or any aspect related to the
technique or machine.
A printing process where an image formed on a metal plate or
other type of master, is transferred (offset) to a rubber blanket,
then transferred again to paper.
The process of ink from one printed sheet rubbing off or marking
the next sheet as it is leaving the printer. Also refers to a printer
or copier delivering printed sheets to an output station and
stacking a specified number of sheets slightly to the left or right
of the previous set.
A U.S. data field in the MICR line of a check reserved for bank
use. It usually contains information such as the customer
account number or other bank specified information. Also
referred to as the “domestic field” and “serial field.”

opacity

Degree of show-through of print on a sheet from the back side to
the front, or from one sheet to another. High opacity paper is
difficult to see through.

orientation

Choice of printing portrait (vertically) or landscape (horizontally).

pantograph

A printed pattern of a logo or art creating a decorative
background containing hidden images when duplicated. Usually
intended as an anti-alteration feature of the document.

Glossary-8

Generic MICR Fundamentals Guide

Glossary
paper dust

As saw dust is to wood, paper dust is to paper. It is made up of
loose paper fibers and other residues which naturally accrue to
paper. Controlling paper dust is a serious issue for the Xerox
MICR printing system in terms of extraneous ink spots.

peaks & valleys,
waveform

Represent the “highs” and “lows,” or in the magnetic waveform
signal patterns of the MICR characters.

perforated paper

Paper pierced with one or more rows of small holes to permit
easy tearing off or separating into sections.

permanence

Also called “archival property.” A measure of how long a sheet
will last without becoming excessively brittle and yellow. The
permanence of a sheet is directly related to its acidity. Also refers
to the degree of adhesion of an image to the paper and the
ability of a MICR image to retain its human and machine
readability over the normal life cycle of a check.

personalization

The relatively recent concept in MICR printing for including nonMICR variable data on the documents (e.g., council rate notices
with MICR encoded deposit slip attachments. (UK))

phantom

Any light image placed on a document, usually for decorative
purposes. The subject is intended to be printed or written over
and is generally lightened by means of screening.

pigments

Substances used to produce color or different degrees of
whiteness in paper. Sometimes pigments are coated on papers,
which can cause contamination problems in printers.

photoreceptor

pH
porosity
portrait

In laser printers, a drum or belt device with a light-sensitive
coating, which converts an optical image into a latent
electrostatic image on its surface.
Chemical measurement of level of acidity or alkalinity in paper or
other substances.
Measurement of the ability of air to pass through a sheet of
paper.
Refers to the printing across the width of a page (letter style).
This is the opposite of landscape orientation, which is printing
across the length of the page. The term portrait is derived from
portraits of people, which are usually vertical in format.

post-encoding

Amount field encoding of deposited items prior to the receipt by a
bank.

predrilled paper

Paper having two or more holes drilled along one edge, for use in
ring binders or notebooks.

pre-encoding

Amount field encoding of deposited items prior to the receipt by a
bank.

Generic MICR Fundamentals Guide

Glossary-9

Glossary
preprinted forms
print density

proof department
proof machine

psi
rag bond

reader/sorter

Forms that have been previously printed which can be run
through a printer in order to add variable data to them.
Print density refers to the relative darkness of print on the page.
Very dense print appears totally black. Less dense print looks
lighter, and solid filled areas may not be totally black.
The bank department that sorts, distributes and checks (or
proves) all transactions arising from the bank operations.
Equipment that simultaneously sorts items, records the dollar
amount for each sorted group and balances the total to the
original input amount.
Pounds per square inch. Unit used to measure amount of
pressure.
A type of paper containing a large percentage of cotton fiber.
Such papers are extremely strong and durable, with an
attractive, rich-looking appearance.
An automated MICR document processing machine that
performs a number of functions, including:
Magnetizes the MICR characters and senses the electrical
signals generated by the subsequent passage of the characters
under a read head.
Decodes the signals, identifies the characters and validates the
field structures.
Separates valid documents from invalid or unreadable
documents and further separates the acceptable documents into
groups.
May optionally endorse and microfilm each document.

read head

The sensing device in reader/sorters that picks up the magnetic
signals of E-13B characters. These are converted into electrical
pulses and subsequently interpreted by the reader/sorter's
processor.

reflectance

The relative brightness of an illuminated paper surface. The term
may have several interpretations, depending if it is a function
reference to human perception, microfilm, or other image
sensing equipment.

registration

The printing of variable data so that it fits correctly into areas
provided for it on preprinted forms.

reject repair
system

High-speed equipment that can simultaneously read, repair, and
reenter previously rejected checks back into the check
processing system.

Glossary-10

Generic MICR Fundamentals Guide

Glossary
ribbon encoding

routing number
safety paper
serial field

The use of conventional computer impact printing technology for
MICR encoding, using a print chain with the E13B characters on
it and a special ribbon impregnated with magnetic material.
A numbering system that identifies the issuing bank.
Bond paper having a surface design and/or hidden warning
indicator to identify any attempt at fraudulent alteration.
See domestic field. (Australia)

serial number

Often used to refer to the sequential check or document number
found in the auxiliary domestic and extra auxiliary domestic
fields. (Australia)

serial symbol

See domestic symbol.

Sheffield
Smoothness

A device for measuring the roughness or smoothness of a paper.
Higher numbers indicate rougher papers.

signal level/
strength

The current (or equivalent voltage) produced by a magnetic ink
character in a reader/sorter or signal reader. Each character has
a nominal peak signal level (designated in the ANSI
specification), as well as an acceptable signal level range. This is
also called “signal strength.”

single-slot reader
sorters

See waveform reader sorters.

sizing

Resin that is added to papers during manufacturing to increase
the paper's resistance to liquid penetration. Also helps prevent
feathering or fraying.

skew

Allowable tilt or angle of a character, to the left or right, measured
with respect to the bottom edge of the document.

smoothness
stiffness

The degree of continuous, even finish on paper.
The degree to which paper resists bending.

substance

The weight in pounds of a ream of paper cut to 17 by 22 inch/432
by 559 mm standard size for business papers. Similar to basis
weight of other types of paper.

surface strength

Term indicating how well fibers and chemicals are bonded to the
surface of a paper. Papers with low surface strength may release
fibers and particles in the printer, causing machine
contamination.

symbol

tensile strength

An E13B character separating the fields or separating digits
within a field. U.S. symbols are amount, On-Us (domestic),
transit, and dash.
A measure of paper's resistance to tearing.

Generic MICR Fundamentals Guide

Glossary-11

Glossary
texture
TAPPI

trailing edge

The composition and feel of the surface of a paper, such as
rough or smooth.
The abbreviation for the U.S. Technical Association of the Pulp
and Paper Industry which develops standardized test procedures
for various properties of paper.
The left edge of a check when its face is viewed.

transit number

The U.S. Federal Reserve System and drawee bank
identification information

transit routing
symbol

A U.S. Federal Reserve district number that controls the routing
of a check through the banking system.

turnaround
documents
void

Any type of transaction requiring the recapture of data.
The absence of ink within the specified outline of the printed
MICR character.

void pantograph

A pantograph that produces the word “void” or other warning on
a copy of the original.

warrant

A form of draft, which in itself is not negotiable, that can be
converted into a negotiable instrument. Warrants are considered
“cash items” by banks.

waveform reader
sorter

A device which interprets MICR characters by measuring their
magnetic waveforms. These were the first type of MICR reading
devices used. An example model of this device is the NCR 6780.
These devices are also known as “single slot reader sorters.”

wire side

During manufacturing of paper, the pulp mixture is poured onto a
screen so that the liquid drains out, leaving only the pulp, which
dries to form the paper. The side of the paper that is against the
screen is called the wire side. This side has a more pronounced
grain, fewer short fibers and less sizing than its opposite (felt)
side. Xerography prefers printing on this side of the paper.

wrap pattern

A MICR test printing pattern used for ribbon encoding to check
for possible wear and tear in the print chain.

write head

The device in reader/sorters that magnetizes the ink printed in
the clear band area of a MICR document.

Xerographic bond
paper

Glossary-12

Paper specifically designed to work in xerographic copiers, and
laser and ionographic printers. They are generally smoother than
other types of bonds.

Generic MICR Fundamentals Guide

Glossary
Xerography

An imaging process used in copying and printing, where a
photoreceptor (usually a drum or a belt) is electrically charged.
Mirrors or a laser beam then remove the charge from selected
sections of the photoreceptor that are not to be imaged.
Afterwards, dry ink is attracted to the charged areas, forming the
image to be printed.

Generic MICR Fundamentals Guide

Glossary-13

Glossary

Glossary-14

Generic MICR Fundamentals Guide

Index

Symbols
$ symbol 4-3
Numerics
24 pound paper
Xerox Dual Purpose 3-8
300 dpi
character conversion table 4-22
A
ABA 1-2, 1-5
abrasion 7-13
AC readers
see matrix reader sorters
access
files 8-4–8-5
media 8-2
printing facilities 8-2
account
number 4-7
title 4-4
accounting 8-5
algorithm for 300 dpi character spacing
4-19
aligner, reader sorter 5-9
alignment, character
E13B 4-16
alteration prevention 3-15
of check amount 8-14–8-15
amount
determination errors 5-2
limit statements 8-12
lines on checks 4-3
symbol 4-8
Amount field 4-13
errors in 5-2
multiple 8-12
using multiple 8-10

Generic MICR Fundamentals Guide

Amount in Words field 4-3
tampering prevention 8-12
ANSI standards 1-3
check size 4-23
clear band 4-5–4-6
Convenience Amount field 4-3
documentation A-1
ink spots 6-14
magnetic specification 6-4
MICR line format 4-5–4-6
print quality 6-1
signal strength 6-4
summary table 6-21
applications
problem solving 7-5
applications, MICR
designing for security 3-15
types 2-1–2-3
audit control processes 8-5–8-6
accounting 8-5
maintaining an audit record 8-5
paper jams 8-5
Australia
national standards 4-11
Auxiliary On-Us field 4-14
B
background
avoiding tampering 8-8
printing on checks 4-2
reflectance 3-5
security 3-15
split fountain 3-14
band registration, optimum 3-8
bank of first deposit 1-8
basis weight, paper 3-2–3-3

Index-1

Index
C
calibration document 6-4–6-5
characters
alignment 4-16
damaged 6-22
dimensions
CMC7 font 4-18
E13B font 4-9
E13B set 4-7
padding 3-15
ragged 6-22
spacing between 6-11–6-13
spacing requirements 4-19–4-22
vertical positioning 6-8
checks
account title 4-4
alteration prevention 8-14–8-15
Amount lines 4-3
background specifications 4-2
commercial
fields 4-10
counterfeit 8-14–8-17
creating 1-11
date line 4-2
design layout 4-3
disposal 8-3, 8-16
document content 4-1–4-5
duplication 8-12–8-14
fixed data on 4-2–4-5
issuing 2-2
life cycle 1-6–1-9
manufacturing 2-1
Memo line 4-4
MICR line 4-5
Payee line 4-3
payor financial institution 4-4
printing capabilities 1-5–1-6
processing procedure 1-6–1-9
production cycle 1-9–1-10
proofing 5-2–5-3
protective coating 8-15
repairing 5-1
role of issuer 1-11
routing number 4-5
security features 4-1
serial number 4-5

Index-2

Signature lines 4-4
size 4-23–4-24
summary by country 4-24
stolen 8-16
storage 8-3
theft prevention 8-16
truncation 2-1
chemical tampering 8-7
clear band
dimensions 4-4, 4-7
format 4-5–4-6
CMC7 font 1-3, 4-16–4-18
character dimensions 4-18
numbers and symbols 4-16–4-18
S symbols 4-16–4-18
coating, protective 8-15
cold pressure fix printing
tampering 8-9
commands
security 8-5
Comparator 6-3
concerns, user 2-5–2-6
Convenience Amount field 4-3, 8-12
costs
security 8-17
counterfeit
checks 8-14–8-17
protecting against 8-16–8-17
crayoning 6-22
curl, paper 3-6, 3-10
cutting paper 3-8
D
damaged characters 6-22
dash symbol 4-8, 4-13
Dataglyph
preventing duplication 8-14
date line on checks 4-2
DC readers
see waveform reader sorters
debossment 6-20
deletions
see voids
deposit slip 5-2
differences, MICR system 2-5
disk storage, securing 8-4

Generic MICR Fundamentals Guide

Index
disposal
checks 8-3, 8-16
equipment 8-3
diverter plate 5-10
Document Specifications form 4-11–4-12
documents
inspecting 7-12–7-14
turnaround 2-2
see also checks
drop-out
ink 3-15
print
preventing duplication 8-13
dry ink slivers 6-22
dual read reader sorters 5-6
duplex printing
see two sided printing
duplicate information
for security purposes 3-15
duplicate information for security purposes
8-10
duplication detection 3-14–3-15
duplication prevention 8-12–8-14
Dataglyph 8-14
drop-out print 8-13
microprint 8-13
VOID pantograph 8-14
watermarks 8-13
dwell time 3-13
E
E13B font 1-2, 4-7–4-16
character dimensions 4-9
character set 4-7
format specifications 4-7–4-15
numbers 4-7
symbols 4-7–4-8
edge registration 3-7
embezzlement, protecting against 8-15
embossment 6-20
encoding equipment
see proofing equipment
endorsing stations, reader sorter 5-9
enhancements to printing systems 2-5
environment
paper 3-10

Generic MICR Fundamentals Guide

printing 3-1
EPC
digit 4-10
field 4-14
equipment
disposal 8-3
magnetic testing 6-3–6-4
proofing
errors 5-2–5-3
errors
amount determination 5-2
proofing equipment 5-2–5-3
escape sequence for font selection, HP
PCL 4-20
F
fabric ribbon
tampering 8-8–8-9
fanfold paper 3-2
fanning paper 3-8
features to avoid 3-16–3-17
ferromagnetic particles 3-7
fields
Amount 4-13
Auxiliary On-Us 4-14
EPC 4-14
formats, E13B font 4-9–4-16
summary 4-14–4-15
multiple Amount 8-12
On-Us 4-13
Transit 4-13
using multiple to prevent tampering
8-10
files
restricting access to 8-4–8-5
fixed data on checks 4-2–4-5
fixed pitch fonts 4-19–4-22
characteristics 4-20
fonts
CMC7 1-3, 4-16–4-18
compressed 8-10
countries where used 1-4
E13B 1-2, 4-7–4-16
fixed pitch 4-19–4-22
character conversion at 300 dpi
4-22

Index-3

Index
characteristics 4-20
OCR 1-3
problem solving 7-12
proportional 4-19–4-22
characteristics 4-21
security 3-15
selection
HP PCL escape sequence 4-20
tampering prevention 8-10
format
E13B specifications 4-7–4-15
field
E13B font 4-9–4-16
summary for E13B font 4-14–4-15
MICR line 4-5–4-6
forms
Document Specifications 4-11–4-12
financial 2-3
preprinted 3-13–3-17
inks 3-13–3-14
security features 3-14–3-17
printing 2-3
fractional routing number
see routing number
fugitive inks 3-15, 8-8
G
Gauge, MICR 6-2
using 6-6–6-11
grain, paper 3-4
guidelines, paper 3-1
H
history 1-2–1-5
hopper jogger, reader sorter 5-8
horizontal positioning
testing 6-6–6-7
HP PCL escape sequence for font
selection 4-20
humidity 3-1
paper environment 3-10
hybrid reader sorters 5-7
I
image capture unit, reader sorter
see microfilm unit

Index-4

impact printing
ribbon 5-1
tampering with 8-8–8-9
ink spots, extraneous 6-14–6-16
inks
drop-out 3-15
for preprinted forms 3-13–3-14
fugitive 3-15
laser printing 3-14
low density 3-15
oxidative 3-13
smears 7-13
tampering methods 8-7
thermochromic 3-15
UV cured 3-13
inspecting documents 7-12–7-14
intaglio 8-11
ionography 2-4
item numbering stations, reader sorter 5-9
J
jams, paper
and the audit process 8-5
L
laminate
ream wrapper 3-9
laser printing inks 3-14
letterpress printing 2-4, 8-8
lithographic printing
tampering with 8-8
logon levels 8-4
M
magnetic specification, ANSI 6-4
magnetic testing equipment 6-3–6-4
usage 6-23–6-25
vs optical 6-23–6-26
maintenance
operational 6-22
paper 3-9–3-11
matrix reader sorters 5-5
mechanical tampering 1-5–1-6, 8-7–8-8
Memo line on checks 4-4
memory, securing 8-4
metallic content of paper 3-7

Generic MICR Fundamentals Guide

Index
MICR Gauge 6-2
using 6-6–6-11
MICR line 4-5
format 4-5–4-6
illustration 1-1
position 4-5–4-6
symbols on 4-7–4-8
vertical positioning 6-9
MICR process, Xerox 2-3
microfibers 3-14
microfilm unit, reader sorter 5-9
microprint 3-14
preventing duplication 8-13
modifying printed checks 8-8–8-10
moisture, paper 3-5
multiple-up printing 4-25–4-27
mylar ribbon, tampering 8-9
N
non-impact printing 2-4
thermal ribbon encoding 2-4
numbered stocks 3-15
numbers
CMC7 font 4-16–4-18
E13B font 4-7
O
OCR font 1-3
processed by hybrid reader sorters 5-7
readability 4-27
offset lithography 2-4
On-Us 1-8, 1-9
field 4-13
symbol 4-7
operator tasks
inspecting samples 6-5
maintenance 6-22
problem solving 7-4
optical quality tools 6-2–6-3
optical reader sorters 5-6
optical testing equipment
usage 6-25–6-26
vs magnetic 6-23–6-26
ordering standards A-2
overprints
tampering prevention 8-11

Generic MICR Fundamentals Guide

oxidative inks 3-13
P
padding, character 3-15
paper
basis weight 3-2–3-3
care
see paper maintenance
characteristics, recommended 3-2–3-8
table 3-2
converted from fanfold 3-2
curl 3-6, 3-10
cutting precision 3-8
environment 3-10
grain 3-4
guidelines 3-1
handling by reader sorters 5-8–5-10
jams and the audit process 8-5
loading 3-8
maintenance 3-9–3-11
metallic content 3-7
moisture content 3-5
perforations 3-6–3-7
preferred printing side 3-6
preprinted 3-13–3-17
reflectance 3-5
runability 3-11–3-12
safety 8-11, 8-17
security 8-3
smoothness 3-3
standards 3-2–3-8
stiffness 3-7
storage 3-1, 3-9
storing 8-3
weight 3-2–3-3
wrapping 3-9
Xerox
24 pound 3-8
Xerox brand 3-8
Payee line on checks 4-3
payor financial institution 4-4
perforated papers 3-6–3-7
multiple-up printing 4-25
with clear band 4-25
positioning
horizontal 6-6–6-7

Index-5

Index
MICR line 4-5–4-6
vertical 6-7–6-9
positive pay 8-15, 8-16
preprinted forms 3-13–3-17
paper curl direction 3-6
pressure, cold
tampering 8-9
print file, clearing 8-5
print quality specifications 6-1
printer problem solving 7-4
printing
checks 1-5–1-6
impact
tampering with 8-8–8-9
lithographic
tampering with 8-8
multiple-up 4-25–4-27
technologies 2-4
printouts, analyzing 7-14–7-15
problem resolution, verifying 7-16
problem solving
in existing accounts 7-1–7-2
in new accounts 7-1
misinterpretations 7-2
process 7-2–7-16
flowchart 7-3
runability issues 3-11
when required 7-1–7-2
problem source, determining 7-4–7-5
processing speeds 5-7–5-8
proof machine 5-1
proof of deposit
department 5-2
operation 5-2–5-3
proofing checks 5-2–5-3
proofing equipment errors 5-2–5-3
proportional fonts 4-19–4-22
characteristics 4-21
protecting checks 8-15
Q
quality
control factors 6-1
printing of MICR characters 6-1
tools to check 6-2–6-3

Index-6

R
read/write heads, reader sorter 5-9
readability 4-27
reader sorters
analyzing printouts 7-14–7-15
dual read 5-6
function 5-1, 5-3–5-4
hybrid 5-7
in check life cycle 1-8
matrix 5-5
optical 5-6
paper handling 5-8–5-10
problem solving 7-4
processing speeds 5-7–5-8
testing 7-5–7-9
interpreting results 7-6
types 5-5–5-7
waveform 5-5
waveform generation 5-4
reflectance, paper 3-5
registration
optimum band 3-8
reject rates 7-1
expectations 7-9–7-11
reducing 7-9–7-10
types of problems signified by 7-11
reject repair 5-10–5-11
repairing checks 5-1
restricting files 8-4–8-5
on media 8-2
ribbon encoding
impact 2-4, 5-1
non-impact 2-4, 5-3
ribbon transfer printing
tampering with 8-8–8-9
ribbons
correctable 8-15
routing number 4-5
CMC7 font 4-18
runability, paper 3-11–3-12
issues summary table 3-12
problem solving 3-11
S
S symbols, CMC7 font 4-16–4-18
safety papers 8-11, 8-17

Generic MICR Fundamentals Guide

Index
Sample button 8-6
sample documents
inspecting 6-5–6-6
sample printing
maintaining security 8-6
security
access
files 8-4–8-5
media 8-2
printing system 8-2
characteristics of a good system 8-2
clearing print file 8-5
cost effectiveness 8-17
designing applications for 3-15
features
checks 4-1
in Xerox laser printing systems 8-1–8-6
logon levels 8-4
memory and disk storage 8-4
papers 8-3, 8-11
preprinted forms paper
preprinted
security features 3-14–3-17
responsible employee 8-4
system commands 8-5
with sample prints 8-6
with test patterns 8-6
separator, reader sorter 5-8
serial number of check 4-5
Sheffield smoothness scale 3-3
signal level
see signal strength
signal strength
testing 6-17–6-19
Signature lines 4-4
single gap readers
see waveform reader sorters
single slot readers
see waveform reader sorters
skew 6-9–6-11
checking 6-10–6-11
slivers, dry ink 6-22
Small Optical Comparator 6-3
smears, ink 7-13
smoothness, paper 3-3
sorter pockets, reader sorter 5-10

Generic MICR Fundamentals Guide

source of problem, determining 7-4–7-5
spacing, character 4-19–4-22
testing 6-11–6-13
specifications for testing 6-6–6-22
speeds, reader sorter processing 5-7–5-8
split fountain backgrounds 3-14
spots, ink 6-14–6-16
squareness of cut paper 3-8
standards
documentation A-1
ordering A-2
paper 3-2–3-8
summary 6-21
Stanford Research Institute 1-2
stiffness, paper 3-7
stolen checks
avoiding 8-14–8-17
protecting against 8-16
storage
checks 8-3
paper 3-1, 3-9, 8-3
strokes
CMC7 characters 4-18
summary of ANSI standards 6-21
symbols 1-1
amount 4-8
CMC7 font 4-16–4-18
dash 4-8, 4-13
E13B font 4-7–4-8
On-Us 4-7
transit 4-8
T
tampering 8-7–8-12
chemical 8-7
mechanical 1-5–1-6, 8-7–8-8
modifying printed checks 8-8–8-10
preprinted forms 3-15
prevention 8-10–8-12
amount limit statement 8-12
overprint 8-11
safety papers 8-11
textures 8-11
using multiple fields 8-10
technologies
MICR printing 2-4

Index-7

Index
temperature
paper environment 3-10
test patterns
maintaining security 8-6
using for quality control 7-15–7-16
testing
equipment, magnetic 6-3–6-4
horizontal positioning 6-6–6-7
inspecting documents 7-12–7-14
magnetic equipment
usage 6-23–6-25
magnetic equipment vs optical
6-23–6-26
optical equipment
usage 6-25–6-26
reader sorters 7-5–7-9
interpreting results 7-6
sample documents 6-5–6-6
signal strength 6-17–6-19
specifications for 6-6–6-22
using test patterns 7-15–7-16
vertical positioning 6-7–6-9
text Amount field
see Amount in Words field
textures, background
tampering prevention 8-11
thermal ribbon encoding 2-4, 5-1
thermochromic ink 3-15
tools, quality checking 6-2–6-3
training, operator
problem solving 7-4
Transit
field 4-13
symbol 4-8
troubleshooting
see problem solving
truncation, check 2-1
turnaround documents 2-2
two sided printing 4-25

V
verifying problem resolution 7-16
vertical positioning
testing 6-7–6-9
VOID pantograph 3-14
preventing duplication 8-14
voids 6-13–6-14
W
watermarks 3-15
preventing duplication 8-13
waveform
generation 5-4
reader sorters 5-5
testing 6-17–6-19
testing equipment 6-3
weight, paper 3-2–3-3
wrapping, paper ream 3-9
X
xerography 2-4
tampering 8-9–8-10
Xerox MICR printing systems 2-3
benefits 2-3
fuser agent 5-3
Xerox MICR process 2-3
Xerox paper 3-8
Xerox printing systems
benefits 2-5

U
ultraviolet
see UV
UV
cured inks 3-13
microfibers 3-14

Index-8

Generic MICR Fundamentals Guide

Source Exif Data:

File Type                       : PDF
File Type Extension             : pdf
MIME Type                       : application/pdf
PDF Version                     : 1.6
Linearized                      : Yes
Page Mode                       : UseOutlines
XMP Toolkit                     : 3.1-701
Producer                        : Acrobat Distiller 5.0.5 (Windows)
Create Date                     : 2002:12:16 22:36:07Z
Modify Date                     : 2008:03:24 13:25:47-04:00
Metadata Date                   : 2008:03:24 13:25:47-04:00
Creator Tool                    : FrameMaker+SGML 5.5.6p145
Format                          : application/pdf
Title                           : MICRFund.book
Document ID                     : uuid:28da15c5-9747-43db-82d0-4053f65d61e7
Instance ID                     : uuid:8fe76845-cabd-4093-b341-0f184aa0b71f
Page Count                      : 172
Creator                         : FrameMaker+SGML 5.5.6p145

EXIF Metadata provided by EXIF.tools

Xerox MICRFund If Not Then 701P22140

Navigation menu

Versions of this User Manual:

Views

Navigation