MICR and Associated Technology
The Sort-A-Matic system included 100 metal or leather dividers numbered 00 through 99. Each check was placed in the corresponding divider by the first two numbers of the account. When the process was complete, the checks were grouped by account number.
Magnetic Ink Character Recognition (MICR) was developed to utilize the benefits of computer technology in the banking industry. Prior to the use of a MICR line, check sorting by account number was a manual process. Two systems were previously used to handle the large numbers of checks processed in the banking industry: Sort-A-Matic and Top Tab Key Sort.
Under the Top Tab Key Sort system, small holes punched at the top of the checks indicated the digits. A metal “key” was inserted through the holes to separate all of the checks with the same value in the first digit, and this step was repeated for each digit until all the checks were sorted.
Stanford University and Bank of America were the first to successfully use computers to sort and match checks.
The Development of the MICR Font
The MICR font was developed by Stanford University in conjunction with Bank of America and approved by the American Banking Association.
The letter E indicates the fifth version considered. The number 13 is derived from the 0.013-inch module construction used for stroke and character width.
MICR Readers
Three types of machines are used to read MICR characters. The two that read the characters magnetically are referred to as MICR readers. The third machine is an Optical Character Recognition (OCR) reader.
E-13B characters are printed with toner containing iron oxide, which is capable of being magnetized. MICR readers transport the checks containing the E-13B magnetic characters past a magnet, thereby magnetizing the iron oxide particles. The magnetized characters then pass under a magnetic read head. The magnetic field (flux pattern) caused by the magnetized characters generates a current in the read head. The strength and timing of this current allows the reader to decipher the characters.
Magnetic readers come in two types: single track (single gap or split scan) and multiple track (matrix or pattern) readers.
Single-Track Reader Characteristics
Single track uses a read head with one gap to detect the magnetic flux pattern generated by the MICR character. When a magnetized E-13B printed character moves across the narrow gap of the read head, the electric voltage caused by the magnetic flux from the character generates a waveform unique to each character.
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