Xerox 6180N Generic MICR Fundamentals Guide  - Page 4

Table of contents

iv

Generic MICR Fundamentals Guide

Paper maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9

Wrapping factors

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9

Storage factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9

Temperature and humidity conditions

. . . . . . . . . . . . . . . . . . . 3-10

Paper runability criteria

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-11

Preprinted forms considerations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-13

Inks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-13

Security features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-14

Duplication detection . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-14

Alteration prevention

. . . . . . . . . . . . . . . . . . . . . . . . . . . 3-15

Application design

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-15

Numbered stocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-15

Features to avoid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-16

4.

Document design. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1

Check document content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1

Security features . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1

Background printing

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2

Fixed information

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2

Date line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2

Amount lines

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3

Payee line

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3

Signature lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-4

Name of financial institution . . . . . . . . . . . . . . . . . . . . . . . 4-4

Memo line

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-4

Account title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-4

Check serial number

. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5

Fractional routing number

. . . . . . . . . . . . . . . . . . . . . . . . 4-5

MICR line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5

MICR line (clear band) format requirements . . . . . . . . . . . . . . . . . . . . . 4-5

Format specifications using E13B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7

E13B character set . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7

E13B numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7

E13B symbols

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7

On-Us symbol . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-7

Transit symbol . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8

Amount symbol . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8

Dash symbol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-8

E13B character design

. . . . . . . . . . . . . . . . . . . . . . . . . . 4-9

Field formats—E13B font . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-9

Document Specifications form . . . . . . . . . . . . . . . . . . . . 4-11

Amount field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13

On-Us field . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13

Transit field

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-13

External processing code (EPC) field

. . . . . . . . . . . . . . 4-14

Auxiliary On-Us field

. . . . . . . . . . . . . . . . . . . . . . . . . . . 4-14

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Section	Page
Table of contents	3
Introduction ix	3
1. Overview 11	3
2. Environment 21	3
3. Paper facts 31	3
4. Document design 41	4
5. Document processing 51	5
6. Quality control 61	5
7. Problem solving 71	6
8. Security 81	7
A. References A1	8
Glossary Glossary-1	8
Index Index-1	8
Introduction	9
About this guide	9
How to use this guide	10
1. Overview	11
A brief history	12
Why MICR?	15
Check printing capabilities	15
Check processing procedure	16
Production cycle of a check	19
Changes in check creation role	21
2. Environment	23
Types of MICR applications	23
Manufacturing checks	23
Issuing checks	24
Issuing turnaround documents	24
Printing financial forms	25
Xerox MICR printing systems	25
MICR printing technologies	26
Printer technical optimization	27
Typical MICR printing concerns	27
3. Paper facts	29
Paper guidelines	29
MICR paper requirements	30
Basis weight	30
Sheffield smoothness scale	31
Grain direction	32
Moisture content	33
Reflectance	33
Curl	34
Perforation	34
Metallic content	35
Stiffness	35
Cutting precision	36
Xerox paper	36
Paper maintenance	37
Wrapping factors	37
Storage factors	37
Temperature and humidity conditions	38
Paper runability criteria	39
Preprinted forms considerations	41
Inks	41
Security features	42
Duplication detection	42
Alteration prevention	43
Application design	43
Numbered stocks	43
Features to avoid	44
4. Document design	47
Check document content	47
Security features	47
Background printing	48
Fixed information	48
Date line	48
Amount lines	49
Payee line	49
Signature lines	50
Name of financial institution	50
Memo line	50
Account title	50
Check serial number	51
Fractional routing number	51
MICR line	51
MICR line (clear band) format requirements	51
Format specifications using E13B	53
E13B character set	53
E13B numbers	53
E13B symbols	53
On-Us symbol	53
Transit symbol	54
Amount symbol	54
Dash symbol	54
E13B character design	55
Field formats—E13B font	55
Document Specifications form	57
Amount field	59
On-Us field	59
Transit field	59
External processing code (EPC) field	60
Auxiliary On-Us field	60
Field formats summary	60
Character alignment	62
CMC7 font	62
CMC7 numbers and symbols	62
Character design	64
MICR character spacing requirements	65
Character spacing algorithm for 300 dpi	65
Fixed pitch and proportional font spacing	65
Check size	69
Other application considerations	71
Two sided printing	71
Perforations	71
Multiple-up printing	71
Readability	73
5. Document processing	75
Proofing checks	76
Amount determination errors	76
Proofing equipment errors	76
Reader sorter function	77
Waveform generation	78
Types of reader sorters	79
Waveform reader sorters	79
Matrix or AC reader sorters	79
Optical reader sorters	80
Dual read magnetic reader sorters	80
Hybrid magnetic and optical reader sorters	81
Processing speeds	81
Paper handling by reader sorters	82
Hopper jogger	82
Separator	82
Aligner	83
Read/write heads	83
Item numbering and endorsing stations	83
Microfilm or image capture unit	83
Sorter pockets	84
Reject repair	84
6. Quality control	87
Print quality specifications	87
Optical tools used to check MICR	88
MICR Gauge	88
Small Optical Comparator	89
Magnetic testing equipment	89
E13B calibration document	90
Testing sample documents	91
Specifications for testing	92
Horizontal position	92
Vertical position	93
Skew	95
Character-to-character spacing	97
Voids	99
Extraneous ink spots	100
Signal strength	103
Debossment and embossment	106
Summary of ANSI standards	107
Additional performance considerations	108
Dry ink slivers	108
Damaged or ragged characters	108
Crayoning	108
Operational maintenance	108
Quality measurements: magnetic versus optical	109
Magnetic testing equipment usage	109
Optical testing equipment usage	111
Recommendation	112
7. Problem solving	113
When problem solving is required	113
New accounts	113
Existing applications	113
Possible misinterpretations	114
Problem solving process	114
Determining the problem source	116
Reader sorter	116
Printer	116
Operator training	116
Application software	117
Unknown cause	117
Reader sorter testing	117
Interpreting test results	118
Questions to consider	119
Expected reject rates	121
Reducing reject rates	121
Inspecting documents	124
Correct font placement or format	124
MICR character defects	124
Document damage	125
Excessive ink smears	125
Paper size and characteristics	125
MICR line format	125
Job history or results	126
Compare the documents with previous samples	126
Analyzing reader sorter printout	126
Test patterns: alternative to reader sorter testing	127
Verifying problem resolution	128
8. Security	129
Xerox printing systems security	129
Physical security	130
Restricting physical access	130
Securing paper stocks	131
Storage and disposal	131
Responsible presence	132
Software security	132
Logon levels	132
Memory	132
System commands	133
Audit control processes	133
Accounting information	133
Paper jams	133
Samples	134
Tampering methods	135
Chemical tampering	135
Mechanical tampering	135
Modifying printed checks	136
Lithographic printing	136
Impact printing	136
Cold pressure fix	137
Xerography	137
Preventing tampering	138
Safety papers	139
Overprints	139
Textures	139
Amount limit statements	140
Amount in Words fields	140
Preventing check duplication	140
Microprint	141
Watermarks	141
Drop-out print	141
Dataglyph™	142
VOID pantograph	142
Avoiding counterfeit and stolen checks	142
Alteration	142
Embezzlement	143
Stolen checks	144
Counterfeits	144
Cost considerations	145
A. References	147
Standards documentation	147
Instructions for ordering U. S. standards	148
Ordering online	148
Ordering hardcopy	148
Standards development process information (U. S. only)	149
Glossary	151
Index	165
Symbols	165
Numerics	165
A	165
B	165
C	166
D	166
E	167
F	167
G	168
H	168
I	168
J	168
L	168
M	168
N	169
O	169
P	169
Q	170
R	170
S	170
T	171
U	172
V	172
W	172

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Xerox 6180N Generic MICR Fundamentals Guide - Page 4