MICR: an
Inexpensive RX to Practitioner Pain;
Software for Magnetic Ink Character Recognition Printing
Magnetic ink character recognition printing
software--better known as MICR--addresses some major pain points for accounting
professionals by enabling them to just print their own firms' checks and to print payroll
or accounts receivable checks for clients. Keeping track of pre-printed check stock is the
pain, and the more types of checks that you need to print, the greater the inconvenience.
MICR printing lets you use blank safety stock, as it prints
the entire check, including the signatures if you wish, in one pass through the printer.
In fact, you could probably print the check on plain paper, except that safety stock makes
it much more difficult to alter a printed check. This capability lets you use the same
check stock for all of your clients, and for all of your check printing needs.
In turn, this can save you big bucks on pre-printed checks,
and eliminate the hassle of managing different checks for various clients.
To some extent, MICR has become mainstream. Many of the top
payroll programs include MICR check printing capabilities as a standard feature or as an
add-in option. Other check producing applications, such as accounts payable, also offer
MICR capabilities.
However, the MICR applications offered as options with
other types of software may be very expensive, or not well implemented. That leaves room
for the vendors reviewed here.
When MICR was originally developed in the 1950s, magnetic
ink was a new technology, and banks, clearing houses and the Federal Reserve system made
huge investments in technology to accommodate the automated clearing and routing system.
The magnetic check readers used in this process are expensive, and many banks are loath to
replace any equipment that still works.
At the same time, the current state of the art is optical,
not magnetic. Optical check readers are easier to maintain, more accurate and faster. They
are, unfortunately, also expensive, so banks are replacing the old magnetic check readers
with optical units only as budgets permit, and needs dictate.
Whether optical or magnetic readers are used in a
particular bank, the MICR line itself is still the same. It contains routing and transit
numbers, and account information for the checking account that will be charged for the
check.
The check number and amount is keyed onto the MICR line as
the check is processed, not when it is generated. The MICR font and special character set
is well defined, as is the placement and positioning of these characters on the check. As
long as these definitions are followed, an optical reader will accurately read a correctly
generated check.
For magnetic readers, the toner must have a specified
degree of magnetism. Standard laser toner may provide this degree, since it is made from
powered iron oxide in a plastic binder. Special MICR toner, however, is guaranteed by the
vendor to provide the magnetic characteristics necessary to be read by a magnetic reader.
The acronym, magnetic ink character recognition, pretty
much spells out why this technology hasn't really taken off. The character recognition is
not the problem. Today's graphic-oriented computers and printers have no trouble
whatsoever printing the unique fonts that the MICR application requires.
It's the "magnetic ink" part of the equation
that's the problem. Many small firms and clients simply don't want to have to go out and
buy a new laser printer just so they can find the requisite magnetic ink toner cartridges
for it. To a large extent, off-the-shelf magnetic ink cartridges are limited to just a few
mainstream (and expensive) laser printers.
If you are thinking of using a personal laser printer in
the $200-to-$300 price range, your options are much more limited However, Productivity
Systems, the vendor of the VersaCheck products, does offer a line of MICR toner cartridges
for lower-cost laser printers.
One solution is to forgo using special magnetic ink
altogether. The Federal Reserve clearinghouses have widely switched to optical check
reading machines, which don't care whether the ink on the check is magnetic. Plain laser
toner or inkjet ink works fine.
Many major bank chains have also replaced their magnetic
check reading systems with optical ones. Optical systems are the better choice, as they
are easier to calibrate, need less ongoing adjustment, and are much less prone to
misreading the check.
Unfortunately, many smaller local banks have yet to switch.
New equipment is expensive, and if the older MICR readers still do the job, most banks
will put off changing for as long as possible. That could be costly to businesses whose
checks are not printed with magnetic ink, when they need to clear checks through a local
branch not set up for optical check reading.
You can check with the manager of your branch to see if the
branch (and the bank as a whole) has switched to optical equipment. Even if they have, you
can still wind up getting nailed if the checks have to pass through other banks and
branches that don't have optical readers.
Eventually, the entire check-clearing path will be optical.
Until you are sure, there are two approaches to take. If the number of checks you need to
print is relatively small, consider magnetic inkjet ink. This is a relatively new
development, and the industry has mixed opinions on how effective these replacement
cartridges are.
We tested checks produced with the VersaInk magnetic ink
inkjet cartridge with several local retail stores that use magnetic check readers. This
cartridge is available for numerous inkjet printer models, and has magnetic particles that
are suspended in the ink, giving normally nonmagnetic inkjet ink magnetic characteristics.
Another approach is to find a local toner refill provider
who can refill the cartridge for your specific laser printer with magnetic toner. Some
refill companies will provide this service; although, if the refiller doesn't get a lot of
call for MICR toner, they are unlikely to stock it just for you.
Vendor information:
SecureCheck nX2
AcuPrint Technologies
6359 Paseo Del Lago, Suite 400
Carlsbad, Calif. 92009-1309
(800) 652-2877
www.acuprint.com
Price: $2,999.
CheckMagic
CheckMagic
P.O. Box 707
Burlington, Mass. 01803
(800) 394-9367
www.checkmagic.com
Price: $19.95 (manages up to 10 bank accounts); $69.95 (Professional version, provides 999
bank accounts).
CheckMaster2002
CheckMaster Corp.
4058 Johnson Dr.
Oceanside, Calif. 92056
(760) 940-9528
www.checkmaster.com
Price: $359 (single-user version for QuickBooks or Peachtree).
Create-A-Check LE Piracle
438 East 200 South, Suite 300
Salt Lake City, Utah 84111
(800) 621-5720
www.createacheck.com
Price: $695.
VersaCheck Platinum 2003
G7 Productivity Systems Inc.
P.O. Box 27495
San Diego, Calif. 92198
(800) 303-2620
www.g7ps.com
Price: $89.
Check Factory v. 2
Trans-Micro Inc.
7700 NW 135th Street
Reddick, Fla. 32686
(800) 749-2335
www.trans-micro.com
Price: $299 (Windows version).
Copyright 2003 Gale Group, Inc. ASAP
Copyright 2003 Thomson Financial Inc. Accounting Today September 8, 2003,
BYLINE: Ted Needleman, former editor of Accounting Technology, is a consultant and
freelance writer based in, Stony Point, N.Y. |