# MICR: What Is a Magnetic Ink Character Recognition Line?

![Magnetic Ink Character Recognition Line (MICR): The strip of characters on a check that identifies the account, routing, and check number.](https://www.investopedia.com/thmb/vurrGlWTgwRq9MK9ar6Guv34E6Y=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/magnetic-ink-character-recognition-line-micr.asp-final-c3b56eb1b2f645fe9f05484ffc198eb8.png)

*— Investopedia / Paige McLaughlin*

> **Definition**
>
> A magnetic ink character recognition (MICR) line is the unique series of characters printed on a check that indicates the bank routing number, account number, and check number, enabling automated processing and preventing fraud.

## What Is a Magnetic Ink Character Recognition (MICR) Line?

Magnetic ink character recognition (MICR) is a technology that banks use to identify and process checks. The MICR line is the string of characters that appears at the bottom left of the check, consisting of the bank routing number, the customer's account number, and the check number.

It is called a magnetic ink character recognition line in reference to its anti-fraud printing technology, originally developed in the 1950s. The numbers of the MICR are printed using magnetic ink and unique fonts that make it harder to forge checks.

### Key Takeaways

*   MICR enables machines to read magnetic ink, improving check processing efficiency.  
    
*   The MICR line on checks includes a routing number, account number, and check number.  
    
*   MICR technology helps prevent fraud with tamper-proof ink and unique fonts.  
    
*   Developed in the late 1950s, MICR is globally used for financial document security.

## Understanding the Functionality of MICR Lines

MICR lets computers quickly read and record information from printed documents like checks. In this case, that information is a check number, [routing number](https://www.investopedia.com/terms/r/routing_transit_number.asp), and [account number](https://www.investopedia.com/terms/a/account-number.asp).

The [American Bankers Association](https://www.investopedia.com/terms/a/aba.asp) (ABA) developed the system in the late 1950s, and the American National Standards Institute later recognized it as an industry standard.

The MICR number, often mistaken for the account number, is printed with magnetic ink just above the check's bottom. The magnetic ink allows a computer to read the characters even if they have been covered with signatures, cancellation marks, bank stamps, or other marks.

MICR lines enable automatic check-clearing at central processing systems. They're also designed for easy human readability for clear communication of check info.

The numbers typically use one of two special fonts: E-13B or CMC-7. Both are used worldwide, with the E-13B used primarily in North America, Australia, and the United Kingdom. The CMC-7 font is mainly used in Europe and parts of South America.

## The Role of MICR Scanners in Check Processing

Every check sent is processed by a [clearinghouse](https://www.investopedia.com/terms/c/clearinghouse.asp), bank, or both. They validate the check and finalize the transaction, deducting the correct amount from one account and crediting it to another. A single check may be processed several times at different banks and Federal Reserve Centers.

Part of that process is reading the identifying information on the check. The MICR line mechanized that process. A scanner, or reader-sorter computerized machine, processes the information magnetically printed on the checks, including the routing number, account number, and check number.

During clearing, checks may be scanned several times at high speeds. According to Troy Group, a producer of MICR-adapted printers and related products, a single reading takes less than 1/1000ths of a second.

> **Important**
>
> MICR is the reason checks are so uniform in their format. The layout of the check and the position of the data on it must be rigidly placed so that machines can read them.

## Expanding Applications of MICR Technology

While magnetic ink character recognition was first used to print information on checks, the technology has been adapted to other applications.

A variety of financial documents in the United States are encoded with MICR technology. Credit card invoices, direct mail, coupons used for [rebates](https://www.investopedia.com/terms/r/rebate.asp), and negotiable orders of withdrawal (NOWs) may also use the technology.

## Advantages of MICR: Streamlining and Security

One of the benefits of the magnetic ink character recognition line is its ability to facilitate the use of a routing number to process checks and deduct the payment amounts. A routing number or routing transit number is a nine-digit numerical code that banking and other financial institutions use to clear funds and process checks.

The routing number identifies the bank branch that holds the account from which funds are to be drawn. Wire transfers and [direct deposits](https://www.investopedia.com/terms/d/directdeposit.asp) often rely on routing numbers as well.

### Detecting Fraud

Combating fraud is a constant battle in the financial services industry. The definition of fraud is an intentionally deceptive action that is designed to provide the perpetrator with an unlawful gain. A range of fraud types exists, including [tax fraud](https://www.investopedia.com/terms/t/tax-fraud.asp), credit card fraud, [wire fraud](https://www.investopedia.com/terms/w/wirefraud.asp), securities fraud, and bankruptcy fraud.

The magnetic ink character recognition line makes some forms of financial fraud harder by using tamper-proof magnetic ink and unique fonts. Thus, MICR makes it difficult to alter checks.

Check altering generally entails changing the payee's name, the amount of the check, or both. Section 3-407 of the [Uniform Commercial Code](https://www.investopedia.com/terms/u/uniform-commercial-code.asp) (UCC), a set of business laws regulating financial contracts, breaks down the term alteration even further, with nine articles dealing with separate aspects of banking and loans.

For instance, a fraudster may attempt to cash a photocopied check through a teller at a bank branch. The photocopied MICR line immediately alerts the teller that the check is fake.

Since MICR technology helps detect and prevent fraud, banks and other financial institutions use it to minimize losses.

> **Fast Fact**
>
> The routing number, account number, and check number combine to create a unique identifier for each check.

## What Is a MICR Number?

A magnetic ink character recognition line (MICR) is a line of characters on a check printed with a unique ink that allows the characters to be read by a reader-sorter machine. The introduction of the MICR reader-sorter process allowed check processing to be automated while making it more difficult to counterfeit checks.

## How Is MICR Used in Banks?

The MICR system has been in use since the late 1950s. It was a notable improvement because it allowed for the mechanization of check processing while making it more difficult to commit check fraud. Banks around the globe adopted the system.

This is why the format of bank checks is so uniform. It has to be in order for the readers to read the MICR numbers.

## What Is MICR Data on a Check?

The string of characters at the bottom left of a check identifies the bank branch from which it is issued, the payer's account number, and the account holder's check number in a consecutive series.

From left, the line displays the following information:

*   The nine-character routing number that identifies the bank branch
*   The 12-character account number that identifies the payer
*   The four-character check number that indicates which check in a series that the account holder has used.

It looks like this: 000000000 000000000000 0000

## The Bottom Line

Magnetic ink character recognition was developed to solve two big problems: The processing of checks had to be mechanized, and fraud had to be made more difficult.

Its three components, including a routing number, an account number, and a check number, together create a unique identifier that associates each check with the person who signed it. The use of special ink and fonts make these checks harder to forge, and also easier for a computer to read. While the technology has spread worldwide, it has also been adapted in different countries to meet local language and banking needs.

> **Article Sources**
>
> 1.  American Bankers Association. "[1950-1974: A History of America’s Banks and the ABA](https://www.aba.com/about-us/our-story/aba-history/1950-1974)."
>     
> 2.  American National Standards Institute. "[MICR Specifications for Checks in ASC X9 Standards](https://blog.ansi.org/2020/01/micr-specifications-checks-ansi-x9-standards/)."
>     
> 3.  Digital Check. "[Battle Of The MICR Fonts: Which Is Better, E13B Or CMC7](https://www.digitalcheck.com/battle-micr-fonts-better-e13b-cmc7/)?"
>     
> 4.  Troy Group. "[MICR Basics Handbook](https://s3.us-east-2.amazonaws.com/suppliesnetwork/imagesxt/2017/140159/Resources/MICR_Basics_Handbook.pdf)," Page 6.
>     
> 5.  TechTarget. "[What Is MICR](https://www.techtarget.com/searchsecurity/definition/MICR)?"
>     
> 6.  19th General Court of the Commonwealth of Massachusetts. “[Section 3-407: Alteration](https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter106/Article3/Section3-407).”
>     
> 7.  Relyco. "[History of MICR—Magnetic Ink Character Recognition](https://www.relyco.com/blogs/relyco/history-of-micr-magnetic-ink-character-recognition)."