Xerox 6180N Generic MICR Fundamentals Guide  - Page 24

Environment Issuing checks The most common use of MICR printing systems is the process of obtaining check stationery from the manufacturer and encoding it with MICR information. Most businesses regularly issue checks in at least two of the following categories. • Payroll checks • Accounts payable checks • Dividend checks • Benefit checks • Drafts • Warrants • Negotiable orders of withdrawal Issuing turnaround documents Turnaround documents refer to any type of volume transaction, whether negotiable or not, that requires data capture. Familiar examples of turnaround documents are: • Credit card invoices • Insurance payment booklets • Instant rebate coupons Turnaround documents are also used in remittance processing, which is a procedure for handling items returned with a payment. MICR encoded turnaround documents enable organizations to cut their resource and equipment costs. For example: 1. A bank card company MICR encodes an account number on the bill and remittance slip that is sent to the customer. 2. The payment is returned with the remittance slip. When the bank card company receives the check and payment slip, the two documents are visually checked to see that the amounts are the same on both. 3. The documents are processed by a MICR reader sorter, which reads magnetic ink characters. 2-2 Generic MICR Fundamentals Guide