Magnetic Ink Character Recognition (MICR)
Definition - What does Magnetic Ink Character Recognition (MICR) mean?
Magnetic ink character recognition (MICR) is a character-distinguishing technology that makes use of special magnetized ink. It is largely used in banks and other organizations where security is a high priority. Important documents such as checks and vouchers are printed using magnetic ink. A laser printer with MICR toner can print magnetic ink.
Techopedia explains Magnetic Ink Character Recognition (MICR)
The information found at the bottom of the checks containing the check number, sort number and account number is usually printed in magnetic ink. When a document (such as bank checks and drafts) containing this magnetic ink is to be processed, it is passed through a machine which magnetizes the ink, and then special character information is extracted and translated in the form of characters. MICR provides a protected and fast technique of scanning and processing information. The use of MICR can increase security and protection as well as reduce the risk of loss due to identity theft crimes.