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

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Table of contents
Index
- Symbols
- Numerics
- A
- B
- C
- D
- E
- F
- G
- H
- I
- J
- L
- M
- N
- O
- P
- Q
- R
- S
- T
- U
- V
- W
- X

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

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.

Generic MICR Fundamentals Guide iii

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

Manufacturing checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1

Issuing checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2

Issuing turnaround documents . . . . . . . . . . . . . . . . . . . . . . . . . . 2-2

Printing financial forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3

Xerox MICR printing systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3

MICR printing technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-4

Printer technical optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5

Typical MICR printing concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5

3. Paper facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1

Paper guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1

MICR paper requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2

Basis weight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2

Sheffield smoothness scale . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-3

Grain direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-4

Moisture content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5

Reflectance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-5

Curl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-6

Perforation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-6

Metallic content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7

Stiffness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7

Cutting precision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-8

Xerox paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-8

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iv Generic MICR Fundamentals Guide

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

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Generic MICR Fundamentals Guide v

Field formats summary . . . . . . . . . . . . . . . . . . . . . . . . . 4-14

Character alignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-16

CMC7 font . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-16

CMC7 numbers and symbols . . . . . . . . . . . . . . . . . . . . . . . . . . 4-16

Character design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-18

MICR character spacing requirements . . . . . . . . . . . . . . . . . . . . . . . . 4-19

Character spacing algorithm for 300 dpi . . . . . . . . . . . . . . . . . . 4-19

Fixed pitch and proportional font spacing . . . . . . . . . . . . . . . . . 4-19

Check size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-23

Other application considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-25

Two sided printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-25

Perforations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-25

Multiple-up printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-25

Readability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-1

Optical tools used to check MICR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-2

MICR Gauge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-2

Small Optical Comparator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-3

Magnetic testing equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-3

E13B calibration document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-4

Testing sample documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-5

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vi Generic MICR Fundamentals Guide

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

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Generic MICR Fundamentals Guide vii

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

Table of contents

viii Generic MICR Fundamentals Guide

A. References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-1

Standards documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1

Instructions for ordering U. S. standards . . . . . . . . . . . . . . . . . . . . . . . . A-2

Ordering online . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-2

Ordering hardcopy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-2

Standards development process information (U. S. only) . . . . . A-3

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

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

Generic MICR Fundamentals Guide ix

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.

Introduction

x Generic MICR Fundamentals Guide

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 1-1

1. 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

Overview

1-2 Generic MICR Fundamentals Guide

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:

• 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

Overview

Generic MICR Fundamentals Guide 1-3

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.

Overview

1-4 Generic MICR Fundamentals Guide

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

Overview

Generic MICR Fundamentals Guide 1-5

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.

Overview

1-6 Generic MICR Fundamentals Guide

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.

Overview

Generic MICR Fundamentals Guide 1-7

Figure 1-2. Life cycle of a check

Overview

1-8 Generic MICR Fundamentals Guide

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.

Overview

Generic MICR Fundamentals Guide 1-9

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.

Overview

1-10 Generic MICR Fundamentals Guide

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.

Overview

Generic MICR Fundamentals Guide 1-11

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.

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.

- - - - - Printing functions - - - - -

Check

issuer

Check

issuer

Background

Form and border

Amount and payee

MICR line and serial number

New areas of

responsibility

Old areas of

responsibility

Manufacturer

Overview

1-12 Generic MICR Fundamentals Guide

Generic MICR Fundamentals Guide 2-1

2. 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.

Environment

2-2 Generic MICR Fundamentals Guide

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.

Environment

Generic MICR Fundamentals Guide 2-3

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 pre-

printed 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.

Environment

2-4 Generic MICR Fundamentals Guide

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.

Environment

Generic MICR Fundamentals Guide 2-5

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.

Environment

2-6 Generic MICR Fundamentals Guide

• 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.

Generic MICR Fundamentals Guide 3-1

3. 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 ream-

wrapped 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.

Paper facts

3-2 Generic MICR Fundamentals Guide

• 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.

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.

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

Paper facts

Generic MICR Fundamentals Guide 3-3

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.

Paper facts

3-4 Generic MICR Fundamentals Guide

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.

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.

Pulp fibers

Paper making

Paper web - made during process direction

Long grain sheet cut from

paper web

paper making process

Short grain sheet cut from

paper web

Paper facts

Generic MICR Fundamentals Guide 3-5

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.

11" 11"

8.5"

Paper facts

3-6 Generic MICR Fundamentals Guide

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 one-

sided 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:

• 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.

Paper facts

Generic MICR Fundamentals Guide 3-7

• 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.

Paper facts

3-8 Generic MICR Fundamentals Guide

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.

Paper facts

Generic MICR Fundamentals Guide 3-9

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.

Paper facts

3-10 Generic MICR Fundamentals Guide

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.

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.

• 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.

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

14 8 11 14 17 24 34

55 9 12 15 18 25 35

10 8 1418222738 51

20 11 16 23 28 35 38 67

40 14 19 26 32 38 54 75

Paper facts

Generic MICR Fundamentals Guide 3-11

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

Paper facts

3-12 Generic MICR Fundamentals Guide

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

Paper multi-feeds or skew feeds • Poorly cut paper

• Wrapper wax or glue on sheets

• Low humidity in printer environment

• Poorly drilled paper

• Paper too porous

Paper misfeeds • Poorly cut paper

• Excessive curl

Jams in stacker bin • Excessive curl

• High moisture content in paper

• Excessive moisture in printer or paper

storage environment

Sheets stick together in stacker • Low humidity

• Paper dust on static eliminator

Poor copy quality • Rough paper

• Incorrect paper conductivity

Leading edge of the paper tears • Poorly cut paper

• Paper too lightweight

• Excessive curl

Spots on copy • Wrapper wax or glue on sheets

• Excessive paper dust

• Dust from poor perforations

• Wax or soap used on drill

Paper facts

Generic MICR Fundamentals Guide 3-13

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.

Paper facts

3-14 Generic MICR Fundamentals Guide

•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:

•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.

Paper facts

Generic MICR Fundamentals Guide 3-15

•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:

Paper facts

3-16 Generic MICR Fundamentals Guide

• 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.

• 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.

Paper facts

Generic MICR Fundamentals Guide 3-17

• 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.

Paper facts

3-18 Generic MICR Fundamentals Guide

Generic MICR Fundamentals Guide 4-1

4. 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.

Document design

4-2 Generic MICR Fundamentals Guide

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.

Document design

Generic MICR Fundamentals Guide 4-3

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.

Account Title area Date check number,

Fractional Routing and Transit

Number area

Payee and Amount in Words area Convenience Amount

area

Signature area

Drawee Institution and

Memo area

MICR clear band and MICR line area

Document design

4-4 Generic MICR Fundamentals Guide

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.

Document design

Generic MICR Fundamentals Guide 4-5

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

Document design

4-6 Generic MICR Fundamentals Guide

• 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.

Figure 4-2. MICR clear band dimensions

1/8" minimum

Clear

band

5/8"

5/16"

± 1/16"

MICR band

3/16"

1/4"

E13B

MICR clear band and

MICR band

dimensions

4.0 mm minimum

Clear

band

7.9 mm

± 1.6 mm

MICR band

4.8 mm

6.4 mm

CMC7

MICR clear band and

MICR band

dimensions

4.8 mm

16 mm

Document design

Generic MICR Fundamentals Guide 4-7

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.

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4-8 Generic MICR Fundamentals Guide

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.

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Generic MICR Fundamentals Guide 4-9

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.

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.

0.091 in.

0.078 in.

0.065 in.

0.052 in.

0.117 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

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.

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4-10 Generic MICR Fundamentals Guide

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.

Figure 4-4. MICR line fields

Amount field

(blank at time of printing)

On-Us fieldAuxiliary On-Us field Transit Number field

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Generic MICR Fundamentals Guide 4-11

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.

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4-12 Generic MICR Fundamentals Guide

Figure 4-5. MICR Document Specifications form (U. S.

example)

NOTE: In this example, X denotes blank spaces required by the

issuing bank.

Document design

Generic MICR Fundamentals Guide 4-13

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.

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4-14 Generic MICR Fundamentals Guide

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.

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Generic MICR Fundamentals Guide 4-15

Table 4-1. MICR field formats—E13B

Field Position Description

Amount 1 to 12 Fixed field signifying the dollar value of the check.

Position:

•1 Opening amount symbol

•2 to 3 Cents

•4 to 11 Dollars (zero-fill to left)

•12 Closing amount symbol

•13 Space

On-Us 14 to 31 or

32 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:

•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

Transit 33 to 43 Fixed field identifying the institution upon which the check is drawn.

Position:

•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)

44 or 45 External Processing code (EPC) field. If present, represents

participation in an authorized program that requires special handling or

processing in the collection system.

Auxiliary On-Us

(optional) 45 or 46 to

65 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.

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4-16 Generic MICR Fundamentals Guide

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

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Generic MICR Fundamentals Guide 4-17

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.

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4-18 Generic MICR Fundamentals Guide

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.

Figure 4-8. CMC7 stroke and interval dimensions

The fonts are optimized for each product. They are not

interchangeable between products.

Stroke width: The difference between the right

edge and the left edge of a stroke is 0.004 to 0.007

Short interval:.3 mm. The distance between

the right edges of successive strokes is 0.0096 to

Long interval: The distance between the right

edges of successive strokes is 0.0176 to 0.0224 inch/

inch/0.10 to 0.19 mm.

0.0144 inch/0.24 to 0.36 mm.

0.44 to 0.56 mm.

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Generic MICR Fundamentals Guide 4-19

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.

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4-20 Generic MICR Fundamentals Guide

The following HP PCL escape sequences must be entered

exactly as shown to select the Xerox MICR fonts:

• E13B:

<ESC>&100<ESC>(0U<ESC>(s0p8.00h9.00v0s0b0T

•CMC7:

<ESC>&100<ESC>(1U<ESC>(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

File name E13B-P.FNT CMC7-P.FNT

Orientation Portrait Portrait

Symbol set OU 1U

Pitch Fixed Fixed

HMI 8.00 CPI 8.00 CPI

Point 9.00 9.06

Style Upright Upright

Stroke weight 0 0

Type face Line printer Line printer

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Generic MICR Fundamentals Guide 4-21

Table 4-3. Character conversion and spacing of proportionally spaced MICR

fonts (LCDS printing only)

Input character

ASCII symbol

Input code

Hex Value

E13B font CMC7 font

Printed result Dot width Printed result Dot width

(space) 20 (space) 37 (space) 37

! 21 (space) 1 dollar symbol 37

$ dollar symbol 37 dollar symbol 37

030037037

131137137

232237237

333337337

434437437

535537537

636637637

737737737

838837837

939937937

: 3A Transit symbol 37 S-1 symbol 37

; 3B Amount symbol 37 S-2 symbol 37

< 3C On-Us symbol 37 S-3 symbol 37

= 3D Dash symbol 37 S-4 symbol 37

> 3E (not used) -- S-5 symbol 37

A 41 (space) 1 (space) 1

B 42 (space) 2 (space) 2

C 43 (space) 4 (space) 4

D 44 (space) 8 (space) 8

E 45 (space) 16 (space) 16

F 46 (space) 32 (space) 32

G 47 (space) 64 (space) 64

X (space) 37 (space) 37

Y (space) 38 (space) 38

a Amount symbol 37 (not used) --

d Dash symbol 37 (not used) --

o On-Us symbol 37 (not used) --

t Transit symbol 37 (not used) --

z On-Us symbol 37 On-Us symbol 37

? revision control

character 37 revision control

character 37

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4-22 Generic MICR Fundamentals Guide

Table 4-4. Character conversion and spacing of fixed pitch MICR fonts at 300 dpi

Input character

E13B font CMC7 font

Printed result Dot width

@300 dpi Dot width

@600 dpi Printed result Dot width

@300 dpi Dot width

@600 dpi

space (space) 37.5 75 (space) 37.5 75

$ dollar symbol 37.5 75 dollar symbol 37.5 75

0 0 37.5 75 0 37.5 75

1 1 37.5 75 1 37.5 75

2 2 37.5 75 2 37.5 75

3 3 37.5 75 3 37.5 75

4 4 37.5 75 4 37.5 75

5 5 37.5 75 5 37.5 75

6 6 37.5 75 6 37.5 75

7 7 37.5 75 7 37.5 75

8 8 37.5 75 8 37.5 75

9 9 37.5 75 9 37.5 75

: Transit symbol 37.5 75 S-1 symbol 37.5 75

; Amount symbol 37.5 75 S-2 symbol 37.5 75

< On-Us symbol 37.5 75 S-3 symbol 37.5 75

= Dash symbol 37.5 75 S-4 symbol 37.5 75

> (not used) -- -- S-5 symbol 37.5 75

a Amount symbol 37.5 75 (not used) -- --

d Dash symbol 37.5 75 (not used) -- --

o On-Us symbol 37.5 75 (not used) -- --

t Transit symbol 37.5 75 (not used) -- --

z On-Us symbol 37.5 75 On-Us symbol 37.5 75

? revision control

character 37.5 75 revision control

character 37.5 75

Document design

Generic MICR Fundamentals Guide 4-23

Check size

The ANSI specified size limits for a check are shown in the

following figure.

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.

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

Minimum size document

Maximum size document

3.67 inches/

93 mm

2.75 inches/

70 mm

6 inches/

152 mm

8.75 inches/

222 mm

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4-24 Generic MICR Fundamentals Guide

Table 4-5. Check dimensions summary chart

Country Check dimensions Notes

Australia 6.25’’ x 2.75’’/162 x 70 mm (min.)

8’’ x 3.66’’/203 mm x 93 mm (max.)

Typically 8’’ x 3 5/8’’

Bermuda 6.125’’ x 2.75’’

7.4’’ x 3.15’’

10.5’’ x 3.15’’ with stub

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.)

8.5’’ x 3.66’’ (max.)

Typically 6 1/4’’ x 2 3/4’’

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

UK 6.125’’ x 2.75’’/155 x 102 mm (min.)

8.25’’ x 4’’/209 x 101 mm (max.)

Typically 8’’ x 3’’

USA 6’’ x 2.75’’ (min.)

8.75’’x 3.66’’ (max.)

Typical personal check:

6’’ x 2.75’’

Typical commercial check:

8.5’’ x 3.67’’

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Generic MICR Fundamentals Guide 4-25

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 gang-

cutting or slitting the sheets.

The following figure shows some possible sheet layouts for

multiple-up printing.

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4-26 Generic MICR Fundamentals Guide

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.

• Problems can occur when the sequence of the printed

application does not meet the requirements of the site

finishing equipment.

Stub

Document

Stub

Document

Stub

Document

Stub

Document

Three-up with no stub

Four-up with check register

One-up with stub*Two-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.

Document design

Generic MICR Fundamentals Guide 4-27

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.

Document design

4-28 Generic MICR Fundamentals Guide

Generic MICR Fundamentals Guide 5-1

5. 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.

Document processing

5-2 Generic MICR Fundamentals Guide

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).

Document processing

Generic MICR Fundamentals Guide 5-3

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

Document processing

5-4 Generic MICR Fundamentals Guide

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.

Document processing

Generic MICR Fundamentals Guide 5-5

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.

Document processing

5-6 Generic MICR Fundamentals Guide

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.

Document processing

Generic MICR Fundamentals Guide 5-7

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.

Document processing

5-8 Generic MICR Fundamentals Guide

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.

Document processing

Generic MICR Fundamentals Guide 5-9

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.

Document processing

5-10 Generic MICR Fundamentals Guide

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

Document processing

Generic MICR Fundamentals Guide 5-11

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.

Document processing

5-12 Generic MICR Fundamentals Guide

Generic MICR Fundamentals Guide 6-1

6. 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

Quality control

6-2 Generic MICR Fundamentals Guide

• 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

Quality control

Generic MICR Fundamentals Guide 6-3

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.

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.

Measures character-to-character

vertical variation: measures skew

Measures character size

Measures character-to-character spacing

deletions

spots and

Measures

Quality control

6-4 Generic MICR Fundamentals Guide

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.

Quality control

Generic MICR Fundamentals Guide 6-5

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

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

Quality control

6-6 Generic MICR Fundamentals Guide

• 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).

Quality control

Generic MICR Fundamentals Guide 6-7

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

Right edge of Transit symbols

Unacceptable MICR alignment

Acceptable MICR alignment

Maximum Ideal Minimum

Exceeds maximum

Exceeds minimum

allowable tolerance,

too far to the right. allowable tolerance,

too far to the left.

allowable

tolerance

horizontal

alignment allowable

tolerance

Quality control

6-8 Generic MICR Fundamentals Guide

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.

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

Vertical character alignment section

Vertical character alignment section enlarged

Align bottom of MICR characters on

Note the closer tolerance for

the document with center solid line

Canadian and International standards

Quality control

Generic MICR Fundamentals Guide 6-9

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.

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.

Entire MICR line too high

Entire MICR line properly centered vertically

Entire MICR line too low

Quality control

6-10 Generic MICR Fundamentals Guide

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).

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).

Figure 6-8. Line skew on the MICR Gauge

Out of specification

MICR line boxes Move document so the MICR characters

Top line of MICR boxes

Bottom of document

touch the top line of the MICR boxes

Quality control

Generic MICR Fundamentals Guide 6-11

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.

Quality control

6-12 Generic MICR Fundamentals Guide

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.

Quality control

Generic MICR Fundamentals Guide 6-13

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.

Quality control

6-14 Generic MICR Fundamentals Guide

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.

Single voids

Not acceptable

Acceptable

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

Quality control

Generic MICR Fundamentals Guide 6-15

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.

Examples of extraneous ink or spots are illustrated in the

following figure.

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.

Quality control

6-16 Generic MICR Fundamentals Guide

Figure 6-11. Examples of extraneous ink spots

Quality control

Generic MICR Fundamentals Guide 6-17

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.

Quality control

6-18 Generic MICR Fundamentals Guide

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.

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.

Table 6-1. Signal level tolerances

Character Peak

number Minimum

(50%) Nominal

(100%) Maximum

(200%)

0 1 78 130 260

1 2 51 85 170

2 1 63 105 210

3 1 51 85 170

4 3 63 105 210

5 1 63 105 210

6 5 63 105 210

7 1 45 75 150

8 4 63 105 210

9 1 99 165 330

dash 3 and 5 40 67 134

transit 3 63 105 210

amount 1 and 5 42 70 140

On-Us 3 and 5 60 100 200

Quality control

Generic MICR Fundamentals Guide 6-19

Figure 6-12. E13B characters and waveforms

Quality control

6-20 Generic MICR Fundamentals Guide

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.

Quality control

Generic MICR Fundamentals Guide 6-21

Summary of ANSI standards

Parameter Specifications Testing tool

Format • Right edge of first or right symbol must be 0.0625 inch/15.87

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.

MICR Gauge

Character spacing • Distance between right average edge of adjacent characters

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.

MICR Gauge and

Comparator

Vertical alignment Bottom edge of adjacent characters must not vary vertically more

than 0.030 inch/0.381 mm. MICR Gauge

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.

• Minimum width of horizontal bars must be no less than 0.011

inch/0.330 mm.

Comparator

Character edge

irregularities • 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.

Comparator

Voids • Voids are acceptable if contained in 0.008 by 0.008 inch/0.2

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.

Comparator

Extraneous ink

(Front) Spots contained in 0.003 by 0.003 inch/0.08 by 0.08 mm area are

acceptable in any amount. Signal level tester

Spots contained in 0.004 by 0.004 inch/0.10 by 0.10 mm area are

limited to one character space totaling no more than five per field. Comparator

Extraneous ink

(Back) Spots contained in 0.006 by 0.006 inch/0.15 by 0.15 mm square,

or equivalent area, are acceptable. Signal level tester

and Comparator

Debossment/

embossment • Measure is limited to 0.001 inch/0.03 mm depth measured

from face of document.

• Measure is limited to 0.0006 inch height, measured from the

face of the document.

Microscope with an

oblique light or

electronic probe

with a tip of 0.004

inch/0.10 mm radius

Signal strength Relative signal strength of any character may vary -50% to

+200% of nominal signal level. Signal level tester

Quality control

6-22 Generic MICR Fundamentals Guide

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 high-

speed 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.

Quality control

Generic MICR Fundamentals Guide 6-23

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.

Quality control

6-24 Generic MICR Fundamentals Guide

– 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.

Quality control

Generic MICR Fundamentals Guide 6-25

• 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.

Quality control

6-26 Generic MICR Fundamentals Guide

• 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.

Generic MICR Fundamentals Guide 7-1

7. 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.

Problem solving

7-2 Generic MICR Fundamentals Guide

• 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:

• 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

Problem solving

Generic MICR Fundamentals Guide 7-3

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.

Figure 7-1. Problem solving flowchart

Operator training Application software Unknown

Printer

Sorter

Problem reported

Reported from bank

Gather information

Obtain rejected checks

From

reviewing

returned

checks

Compare reject rates to expected reader sorter rates

Inspect documents

Determine cause

Success

Problem corrected Technical support

Bank isolate problem

Correct check design

Retrain and improve

problem procedures

involvement required

Monitor better to

Collect reject rate

information

Analyze reader sorter

report, if available

From

internal QC

operators

Refer to

Document

Design and

Quality Control

chapters

problem

solving

steps

Problem solving

7-4 Generic MICR Fundamentals Guide

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.

Problem solving

Generic MICR Fundamentals Guide 7-5

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.

Problem solving

7-6 Generic MICR Fundamentals Guide

• 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

Problem solving

Generic MICR Fundamentals Guide 7-7

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?

Problem solving

7-8 Generic MICR Fundamentals Guide

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.

Problem solving

Generic MICR Fundamentals Guide 7-9

• 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.

Problem solving

7-10 Generic MICR Fundamentals Guide

• 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.

• 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.

Problem solving

Generic MICR Fundamentals Guide 7-11

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) • 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.

High (3.0 to 9.0) per cent • 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

Problem solving

7-12 Generic MICR Fundamentals Guide

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:

• Voids

• Spots

• Density loss

• Trail edge deletion

• Dry ink depletion

•Wear

Problem solving

Generic MICR Fundamentals Guide 7-13

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?

Problem solving

7-14 Generic MICR Fundamentals Guide

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.)

Problem solving

Generic MICR Fundamentals Guide 7-15

• 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.

Problem solving

7-16 Generic MICR Fundamentals Guide

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.

Generic MICR Fundamentals Guide 8-1

8. 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.

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8-2 Generic MICR Fundamentals Guide

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:

• 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.

Access to media 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.

Security

Generic MICR Fundamentals Guide 8-3

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.

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8-4 Generic MICR Fundamentals Guide

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.

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Generic MICR Fundamentals Guide 8-5

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.

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8-6 Generic MICR Fundamentals Guide

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 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.

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Generic MICR Fundamentals Guide 8-7

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.

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8-8 Generic MICR Fundamentals Guide

• 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.

Security

Generic MICR Fundamentals Guide 8-9

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.

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8-10 Generic MICR Fundamentals Guide

• 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.

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Generic MICR Fundamentals Guide 8-11

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.

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8-12 Generic MICR Fundamentals Guide

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.

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Generic MICR Fundamentals Guide 8-13

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).

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8-14 Generic MICR Fundamentals Guide

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:

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Generic MICR Fundamentals Guide 8-15

•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.

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8-16 Generic MICR Fundamentals Guide

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 computer-

controlled 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:

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Generic MICR Fundamentals Guide 8-17

•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

Security

8-18 Generic MICR Fundamentals Guide

Generic MICR Fundamentals Guide A-1

A. 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 Publication date

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 1998

References

A-2 Generic MICR Fundamentals Guide

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

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

References

Generic MICR Fundamentals Guide A-3

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

References

A-4 Generic MICR Fundamentals Guide

Generic MICR Fundamentals Guide Glossary-1

Glossary

ABA American Bankers Association or Australian Bankers

Association

AFNOR L'Association Francoise de Normalisation (AFNOR). Paris-based

organization like the APACS. Standards authority for CMC-7

(NFZ 63-001).

aligning edge The lower edge of the check when its face is viewed.

alignment 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 An optional data field within the MICR line of a check which

contains information determined by the individual bank.

auxiliary serial

field 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.

Glossary

Glossary-2 Generic MICR Fundamentals Guide

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 The whiteness of a paper

bristol paper A stiff, heavyweight paper with a softer surface than index and

very receptive to ink. Ideal for high-speed folding, embossing, or

stamping.

BSB field The Australian Bank/State/Branch field is an area in the MICR

line which provides the routing information for the document.

BSB symbol 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-to-

character spacing Distance between adjacent characters, measured from the right

edge of one character to the right edge of the adjacent character.

check 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

Generic MICR Fundamentals Guide Glossary-3

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 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.

CMC7 A font used in magnetic ink printing

code line, MICR 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 Scan band held clear of printing that would interfere with the

convenience amount.

comparator An special optical tool to measure MICR character dimension

and positional attributes.

correspondent

bank A bank that maintains an account relationship or exchanges

services with another bank.

cover stock A heavyweight paper available in white or colors, designed for

use as covers on booklets, etc.

CPA Canadian Payments Association. An organization,

headquartered in Ottawa, having standards setting authority for

banking systems in Canada equivalent to APACS in the U.K.

crayoning A smudging of the MICR line on documents, commonly

associated with the IBM 3890 reader/sorter.

Glossary

Glossary-4 Generic MICR Fundamentals Guide

curl 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.

cut sheet paper Paper that has been cut into sheets 11- by 17-inches (279- by

432-mm) or smaller.

DACS Document Audit and Control System

DDA Direct deposit account

debossment 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 A unit of measurement representing the smallest unit of image

placement (also referred to as “spots”).

domestic field 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)

domestic symbol 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 An extremely smooth paper, highly resistant to liquids, for use in

spirit (alcohol) duplicating machines.

E13B 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.

Glossary

Generic MICR Fundamentals Guide Glossary-5

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 felt-

like 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 On-

Us 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.

Glossary

Glossary-6 Generic MICR Fundamentals Guide

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 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.

Glossary

Generic MICR Fundamentals Guide Glossary-7

ionographic

printer 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.

ISO International Organization for Standardization

item numbering 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 high-

speed magnetic and/or optical recognition equipment.

Glossary

Glossary-8 Generic MICR Fundamentals Guide

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 A polyester film used to reinforce the edges of Xerox 3-hole

drilled, reinforced-edge paper. The bording material for impact

ribbon inks.

OCR 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.

offset printing 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.

offsetting 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.

On-Us field 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

Generic MICR Fundamentals Guide Glossary-9

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 non-

MICR 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 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.

pH Chemical measurement of level of acidity or alkalinity in paper or

other substances.

porosity Measurement of the ability of air to pass through a sheet of

paper.

portrait 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.

Glossary

Glossary-10 Generic MICR Fundamentals Guide

preprinted forms Forms that have been previously printed which can be run

through a printer in order to add variable data to them.

print density 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.

proof department The bank department that sorts, distributes and checks (or

proves) all transactions arising from the bank operations.

proof machine Equipment that simultaneously sorts items, records the dollar

amount for each sorted group and balances the total to the

original input amount.

psi Pounds per square inch. Unit used to measure amount of

pressure.

rag bond A type of paper containing a large percentage of cotton fiber.

Such papers are extremely strong and durable, with an

attractive, rich-looking appearance.

reader/sorter 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

Generic MICR Fundamentals Guide Glossary-11

ribbon encoding 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.

routing number A numbering system that identifies the issuing bank.

safety paper Bond paper having a surface design and/or hidden warning

indicator to identify any attempt at fraudulent alteration.

serial field 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 The degree of continuous, even finish on paper.

stiffness 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 An E13B character separating the fields or separating digits

within a field. U.S. symbols are amount, On-Us (domestic),

transit, and dash.

tensile strength A measure of paper's resistance to tearing.

Glossary

Glossary-12 Generic MICR Fundamentals Guide

texture The composition and feel of the surface of a paper, such as

rough or smooth.

TAPPI The abbreviation for the U.S. Technical Association of the Pulp

and Paper Industry which develops standardized test procedures

for various properties of paper.

trailing edge 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 Any type of transaction requiring the recapture of data.

void 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 Paper specifically designed to work in xerographic copiers, and

laser and ionographic printers. They are generally smoother than

other types of bonds.

Glossary

Generic MICR Fundamentals Guide Glossary-13

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.

Glossary

Glossary-14 Generic MICR Fundamentals Guide

Generic MICR Fundamentals Guide Index-1

Index

Symbols

$ symbol 4-3

Numerics

24 pound paper

Xerox Dual Purpose 3-8

300 dpi

character conversion table 4-22

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

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

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

Index-2 Generic MICR Fundamentals Guide

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

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

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

Index

Generic MICR Fundamentals Guide Index-3

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

Xerox MICRFund If Not Then 701P22140

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