Magnetic Ink Character Recognition (MICR)
MICR is a technology used to verify the authenticity and legitimacy of paper documents, especially checks. It utilizes magnetic ink and special characters to create a line of information that can be read by machines. It is difficult to alter, providing a secure method of handling checks.
This technology has been crucial in streamlining check processing, enhancing security, and improving efficiency in the banking industry. Despite the move towards digital payments, checks are still widely used in many parts of the world.
MICR remains an important technology for ensuring the security and integrity of check payments. It not only reduces the risk of fraud but also helps in automating the processing of checks, which can be a significant cost savings for banks and other financial institutions.