Xerox 6180N Generic MICR Fundamentals Guide - Page 18
Generic MICR Fundamentals Guide - laser printer
UPC - 095205425307
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Overview 1-8 1. The check printer (1) produces a blank check that will be completed later. This check includes the static data that is needed for a negotiable document: • Financial institution name and address, issuer name and address, check form, company logo, etc. • The MICR line, containing the account and routing information that is needed to process the check • Other audit, account, and report information as required by the customer 2. The customer (2) adds the transaction information-payee, amount, and date-and authorizes the funds transfer with a signature. NOTE: When using a MICR laser printer, steps 1 and 2 may happen simultaneously. 3. The completed check is transferred to the payee (3), who deposits it in the bank of first deposit (BOFD). The payee may receive the check in person, by mail, or through a third party. A third party check may require a second endorsement. 4. Deposits (4) are made in several ways: through a teller, using an automated teller machine (ATM), using a drop box, or through a postal lock box. Deposited items are accompanied by a deposit ticket that lists and totals the items and identifies the payee account. This is the entry point for the automated payment processing system. 5. The BOFD encodes the amount of the check in the MICR line (5) and balances the check against the deposit ticket to verify that the correct amount is being credited to the payee account (proof of deposit). 6. MICR documents that are printed on a Xerox MICR printing system are usually corporate paychecks, stock dividend checks, etc. After printing, these type of documents require additional processing using a high-speed device called a "reader sorter." The reader sorter identifies each magnetized character and symbol of the MICR line using logical analysis algorithms of the electronic wave patterns that the characters produce. In the "capture pass," checks are read in a reader sorter for the first time (6). At this time, they are sorted into checks drawn on the BOFD, known as "On-us items" (8), and checks drawn on other banks. Generic MICR Fundamentals Guide