What does the acronym MICR refer to?

The acronym MICR refers to Magnetic Ink Character Recognition. This technology is primarily used in the banking industry for the processing of checks. MICR allows machines to read the characters printed on checks using magnetic ink, which is crucial for ensuring accurate and efficient processing in automated systems.

The significant advantage of using MICR is that the characters can be read quickly and reliably, even if the check is damaged or marked. The magnetic properties of the ink help machines to differentiate between specific characters, enhancing the accuracy of financial transactions and reducing the risks associated with manual data entry.

This technology has become standard in check processing, playing a vital role in the speed and security of bank operations, such as clearing checks and processing payments. Understanding MICR is essential for bank tellers, as it underpins many of the automated systems they will encounter in their day-to-day tasks.