MICR LASER CHECK PRINTING
In excess of 60,000,000,000 (billion) checks are written annually in the United States. Each of these checks uses Magnetic Ink Character Recognition (MICR) symbology and are read multiple times by electronic sorters in various banks during the check clearing process. Bank accounts are accessed, funds credited or withdrawn, or even moved based upon the MICR characters imprinted at the check bottom. MICR characters identify bank, account number, and dollar amount data.
In the past, MICR documents were preprinted. Once printed with MICR information, the MICR check form became a negotiable banking document and this prepared check stock was then stored in a secure, locked facility to protect against loss or tampering attempts. As checks were required for payroll or accounts payable, the preprinted check forms were obtained from the security area, loaded into the impact printer, aligned on the printer, printed, and then returned to the secure storage area. Check reconciliation not only accounted for the checks issued, but also for the checks used to align the impact printer, and for other spoiled checks created from paper jams or malfunctions in the printing process.
Desktop publishing with laser printers has obsolesced that process. Every business, both major corporation and small business, can now create a negotiable check from a blank piece of security paper, on site, in minutes, at any location(s) they require. This process greatly reduces both the document check cost and the associated labor involved in the check issuance process.
The "MICRization" process that permits check creation consists of four items. These are:
- MICR Laser Printer
- MICR Laser Toner Cartridge,
- PCMCIA & Security Cartridges
- Security Safety Paper Check Processing Software
MICR Laser Printer
A MICR laser printer is first and foremost a laser printer. A voltage adjustment is generally made to the printer in order to properly adhere (fuse) the MICR toner to the blank safety paper stock form. A MICR Laser Printer should have the tested capability of producing the number of checks (duty cycle) with a consistent and durable MICR line to conform with the ANSI Standards X.9. (ABA)
MICR Laser Toner Cartridge
MICR toner is a specially formulated mixture (by model of printer) of standard laser toner, combined with ferrous iron oxide. An American Banking Association standard (X9B) requires that the MICR laser printer "fuse" the MICR toner onto the check paper to withstand a minimum of a 30 pass document sort process while the check is cleared through the banking system. Not all printers have the capacity to adhere the MICR toner to achieve that processing standard. Some printers achieve dropout after a specific number of checks have been produced and the results are failed processes within the banks transaction processing.
Banks are now levying charges against companies whose checks fail to meet the ABA standard. A tested and guaranteed MICR printer is critical to the check printing process. Security is provided by some printers in that the printer is rendered inoperative unless a MICR toner cartridge is inserted into the printer. A security cartridge or PCMCIA card containing the digitized logo, signature(s), and MICR (E13B) font can be inserted when checks are run and removed when the check run is completed for additional security.
Security Paper
The "blank paper" that becomes the physical check is actually "blank safety paper." Much less expensive, and considerably more secure, the blank safety paper is highly resistant to check fraud by overt document tampering by photocopying, chemical or other physical document modification attempts.
Software Program
The arrangement of the variable data on the check form, the digitized logo, the signature(s) and the MICR line is controlled by the software program. The ACOM EZPayManager software programs work with all financial software applications be they mainframe, mid-range system, or PC's (networked or stand alone.) In addition to less cost per check, labor expended in the "post check processing" associated with impact printers is completely eliminated. There is no decollating of multiple part checks, no bursting of the checks, no signature stamp signing process, no security "lock up" of MICR numbered check stock or signature stamp. Checks are produced in a single pass from blank paper with a user designated number of copies, under ACOM software and security control.
The software provides for the creation of the placement of variable data with the logo and signature(s) required. Multiple, unlimited checking accounts, easy change of signatures, logos, bank address and account number information plus postnet bar code for mailing are additional features. Manual checks are provided for and a series of audit and transaction reports with date, check number and dollar amount selections are included.
ACOM also provides a user "report generator" as a standard feature and a multi-level matrix security system that controls program features and print access to meet the needs of the largest corporation to the smallest business. If a high volume of checks is required in a short timeframe, ACOM software can optionally drive up to four printers simultaneously from a single program software copy. Positive Pay processing (check fraud prevention deterrent) capability with your bank is an available feature If desired, ACOM can also provide "post net" addressing and a printer direct to mailbag "post processing" environment. MICR printers, MICR toner supplies, security paper, digitization processes for signatures and logos, and feature rich software with multiple options are supported by ACOM, your "single source," total solution provider.
