TROY Group MICR Basics Handbook - Manual (Page 5)

Section 1 Understanding MICR
MICR Basics Handbook -- Document #50-70300-001 Rev. C
1-1
Introduction
Welcome to the world of MICR (Magnetic Ink Character Recognition) printing! Your TROY MICR
Printer is the best choice for MICR printing because, while others manufacture MICR printers as a
sideline, TROY specializes in the design and manufacturing of high-quality MICR products. In this,
ending its fourth decade manufacturing MICR products, TROY continues to be the premier choice for
MICR encoding and financial document printing. This handbook provides information for using MICR
to print checks and other financial documents.
Reference Documents
For additional details on MICR and IRD (Image Replacement Document) specifications and guidelines,
refer to the following publications:
• (United States): “Understanding and Designing Checks – ANSI X9/TG-2” document published
by X9-Secretariat, American Bankers Association. This publication has additional check
standards including detailed ordering information.
• (International): ISO-1004 standards document
• Information on formatting and printing of Image Replacement Documents (IRDs) is described in
the American National Standard for Financial Services X9. 100-140-2004 Specification and is
available on the ANSI (American National Standards Institute) web site (
www.ansi.org ).
Year 2000 Compliance
All TROY products (including software and firmware options) are designed to operate without date data
processing and will operate reliably without interruption into the 21st Century. If you have additional
questions regarding TROY products or the Year-2000 Compliance, please contact a TROY representative
at (800) 332-MICR (6427).
What is MICR Printing?
MICR is an acronym for Magnetic Ink Character Recognition. MICR technology uses magnetically
chargeable ink or toner to print the numbers and special characters on the bottom of checks or other
financial transaction documents. The numbers usually include the account number from which the money
will be drawn, the identification number, and routing and transit of the check for the bank where the
account resides. MICR technology is used in the banking industry in many countries because it allows
very fast and reliable document processing.
MICR History
In the 1950s, the demand for data processing created a need for a mechanized method of check
processing. United States banks, bankers, machine manufacturers, and check processors formed several
committees to suggest solutions. The ultimate result of these committees was adoption of the E-13B
Magnetic Ink Character Recognition in 1958 by the American Bankers Association (ABA).
This E-13B system uses specially shaped characters, which are printed on the bottom of bank documents.
Soon after, almost all checks produced in the United States and many other nations, were magnetically
encoded with E-13B characters.
Much of the E-13B information was then accepted by the American National Standards Institute (ANSI)
and incorporated into several specifications for MICR printing. Today these specifications are made
available by ANSI, which defines, in detail, the formation of the E-13B characters, MICR line placement,
the components of the MICR line, and other components of a bank check. Some of this information is
also provided in this handbook. For more information, please refer to the ANSI document titled,
“Understanding and Designing Checks – ANSI X9/TG-2”.