FUNDAMENTALS OF COMPUTER

Detailed explanation-1: -Magnetic ink character recognition readers are the primary tool used for check sorting, processing and validation. When scanning a document such as a check, MICR readers magnetize the ink and detect the MICR characters.

Detailed explanation-2: -It is an online image-based cheque clearing system where cheque images and Magnetic Ink Character Recognition (MICR) data are captured at the collecting bank branch and transmitted electronically eliminating the actual cheque movement.

Detailed explanation-3: -Magnetic Ink Character Recognition (MICR) Line Magnetic ink character recognition (MICR) is a technology used primarily to identify and process checks. The MICR on a check is the string of characters that appears at the bottom left of the check.

Detailed explanation-4: -MICR readers are the primary tool for cheque sorting and are used across the cheque distribution network at multiple stages. For example, a merchant will use a MICR reader to sort cheques by bank and send the sorted cheques to a clearing house for redistribution to those banks.

Detailed explanation-5: -As the check enters the scan path, the magnetic ink passes over a magnet in the scanner to “charge” the ink before it passes over the MICR read head. The MICR read head is a device built into the scanner designed to read the magnetic signal emitted by the MICR ink characters on the check.