MICR – Magnetic Ink Character Recognition
Magnetic Ink Character Recognition is a character recognition technology used by the majority of banks while their cheques. The technology uses magnetic ink for printing the code, which is usually present at the bottom of the cheque.
A typical MICR code may contain the following details :
- Cheque Serial Number
- Account Number
- Branch or city code of a bank
- Transaction code
Why to use MICR Technology
Magnetic Ink Character Recognition Technology makes use of Magnetic Ink which usually consists of iron oxide. It makes the system read the characters even when it is overwritten, stamped or marked.