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Confused about MICR Laser Check Printing?
Below are 10 of the most frequently asked questions of ACOM and the answers.
WHAT IS MICR?
The term "MICR" (Magnetic Ink Character Recognition)
refers to the MICR line of 65-character line of numbers and
special characters that appear at the bottom of every check.
The MICR line is grouped into four fields (from right to left)
for dollar amount, On-Us (Account- Number), Transit, and
auxiliary On-Us fields. These fields are used in the
automated check clearing processing by financial
institutions. ANSI and ABA standards apply to the MICR line
data and field positioning.
WHAT MAKES A MICR LASER PRINTER
DIFFERENT FROM A NORMAL LASER PRINTER
Multiple standards are required by the banking industry for
MICR printing:
- The MICR laser printer must conform to the ANSI X.9
standards for MICR printing.
- MICR laser printers are either built or general laser
printers are modified and adjusted to conform to the six
ABA developed standards.
- Normal laser printers conform only to user readability
preferences, while MICR laser printers must conform to
electronic MICR durability, uniformity, numeric
placement and font standards.
- Secure removable USB drives
hold the fonts, company logos, signatures and other
information needed to print checks.
WHAT IS THE DIFFERENCE BETWEEN LASER
TONER AND MICR TONER?
MICR toner contains an iron oxide that permits the "bank
line" information of a check to be read by electronic bank
processing equipment. MICR toner is similar to standard
laser printer toner, but requires a 50% to 60% iron oxide
additive content to meet ANSI specifications for readability
standards.
WHO SETS MICR STANDARDS
The American National Standards Institute (ANSI), sets very
precise standards for the dimensions, location, shape,
permanence and signal strength of MICR characters.
Companies whose checks do not conform to these
standards may be charged fees by their bank if their checks
are rejected by poor MICR quality on the check form. (ANSI
Standard X9 –3, 7, 13, 18, 27 and TG/2)
SHOULD I BE CONCERNED ABOUT
CHECK FRAUD?
Yes! According to the Chief of the FBI's Financial Institution
Fraud Unit, "…the serious and growing problem of check
fraud has become the crime of the 90's…" and well beyond.
According to recent studies, more than 500 million checks
are forged annually, with losses totaling more than $10
billion, and growing at a rate of about 2.5% annually.
You pay for "fraud loss" through increased service fees with
your bank and through increased prices with your vendors.
You can pay significantly more if your company becomes a
victim.
Check fraud does not just happen to the "other guy."
Businesses, both large and small, have fallen prey to fraud
perpetrators. However, prevention safeguards against check
fraud can be easily enacted by your firm (see ACOM’s
publication entitled “Check Fraud, The UCC, and You”).
WHAT ARE THE COMPONENTS OF A MICR
LASER CHECK SYSTEM?
The essential components of a MICR Laser Check System
include:
- MICR laser printer that is capable of sustaining a check
creation that conforms to the ANSI X.9 standards is
required. These standards govern the placement of the
MICR line, and stress the consistency and durability
conformance that is required for the composition of the
MICR font and its application on the check.
- MICR toner that is designed and tested for the printer
being used, is a must. All laser printers do not function
alike in a MICR environment. The MICR toner must be
of sufficient composition to ensure readability of the
MICR line, and the printer must be capable of applying
the MICR line to withstand the multiple-pass-sortprocessing
standard of the ABA.
- Security cartridge or PCMCIA port is suggested so that
the signature, logo and font information contained on
these items which can be removed from the printer and
safely stored in a secure environment.
- Blank security-check stock is required (which is blank
paper stock with security features). Security paper is
fraud resistant to tampering and forgery. The paper is "engineered" with physical printing, features, and fiber
composition in the document itself to create a secure
check issue document.
- Check-creation software is also required. The software
should be:
- “Easy to use”
- Able to easily interface with the available
hardware and financial application software of
the user.
- Highly structured security system to control
software access
- Equipped with post-processing features such as
positive pay for bank-client fraud prevention
processing.
- Modular with the ability to easily add new
features when required.
HOW IS A CHECK PRINTED FROM BLANK
SECURITY PAPER?
MICR laser printing has the capability to imprint all
information on the check, including the MICR line, your
digitized signature, and all other variable information. The
same stock of blank safety paper can be used for any
number of bank accounts. The MICR printer applies the
data to the check with magnetic toner that enables the "MICR line" to be read by bank processing equipment.
WHAT ARE THE BENEFITS OF A MICR LASER
CHECK SYSTEM?
Most users cite the following as the main benefits of
converting to MICR printing:
- MICR Laser check processing provides a much higher
level of security than does non-MICR laser processing
on impact printer systems.
- Cost reductions, due to the elimination of the inventory
and control of pre-printed check stock, and the
associated reduction in labor-intensive activities, such as
check decollating, bursting, check signing and other
post-processing operations.
- A MICR Laser check is created in a single step process.
A blank piece of security paper becomes a complete
check with variable payee data, signatures and logos,
bank identification, and an electronically readable MICR
line.
- Increased flexibility to add, change or delete new bank
accounts on demand.
- Decreased exposure to check fraud by adding the
processing benefits of banking positive pay systems,
deemed by experts to be the most effective methods for
deterring check fraud.
WHAT DOES ACOM SUPPLY THAT
DISTINGUISHES IT FROM OTHER VENDORS?
ACOM is a "Single Source" solution vendor. One call to
ACOM can provide you with a complete turnkey solution.
ACOM customers tell us that our "single source" approach
saves them time, money and confusion, since they only have
to go to one place for:
- Hardware (printers and post-processing equipment)
- Software
- Installation
- Training
- Supplies
- Tech Support
Running host-resident in the Windows or IBM iSeries
(AS/400) operating environments, ACOM's EZPayManager
Suite is an electronic payments and MICR laser check
processing solution that enables users to generate corporate
payments from a single software application. Using
electronically stored form templates, users can send
payments electronically through the banking systems ACH
network, or print checks on a MICR-enhanced secure laser
printer (a single pass through the printer generates all the
corporate information, logos, amounts and signatures).
ACOM's EZPayManager is compatible with all financial
management software systems, ranging from legacy and
general business systems such as Oracle Financial
Applications, and JD Edwards, to specialized vertical
packages such as WLT (healthcare) and PDS (payroll).
ACOM's integrated payment solutions provide
unprecedented security, efficiency and control in
disbursement-processing operations.
Elements of ACOM's Total Solution include:
- EZPayManager check-creation software; with add-on
modules for:
- Electronic Payments and Direct Deposit (via ACH)
- Electronic Remittances (via e-mail, e-fax, F-EDI, and
Web Forms)
- Electronic Archiving of payments and remittances
- Check Fraud Alert – which enables you to send
positive pay files electronically to your bank
- MICR Laser Printer(s)
- Post-processing equipment for folding and sealing
- Blank security check stock (including watermarks,
void pantographs, micro-printing, toner grip, and
sequential numbering)
- Consumables (including MICR toner engineered to the
specifications of each printer, fusers, etc.)
- Toll-free tech support
ACOM has been in business since 1983, and currently has
more than 3,000 active customers.
HOW CAN I REVIEW ACOM SOFTWARE &
ACQUIRE FURTHER INFORMATION ON MICR
FOR MY COMPANY?
ACOM has a unique demonstration capability for prospective
clients. We can arrange a remote "on-line" demonstration
for you and your staff to review and evaluate our software.
Via our remote communications facility you can actually
review the software with your staff as it runs. Our staff
personnel are “MICR experts” and can provide you with
answers to other questions you may have.
We can also provide you with a detailed cost justification
analysis specifically for your business operation. The cost
justification analysis is developed from a short survey form
that is sent to you. When prepared and returned to ACOM,
the custom survey will be processed for your site. There is
no charge for this service and you can determine a realistic,
actual projected return of investment of implementing a
MICR laser check system for your company.
For more information about ACOM’s solutions:
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