Xerox 6180N Generic MICR Fundamentals Guide  - Page 12

Overview A brief history Originally, checks were processed manually. However, by the mid-1940s the banking system became inundated with paper as society grew more mobile and affluent. Finding a means of handling the growing number of paper documents became vital to bankers. The banking and electronics industries searched for a standard process that could be used in all banks throughout the country. In the mid-1950s, the first automated processing of checks was initiated. The system that is now known as MICR was developed by the Stanford Research Institute, using equipment designed by the General Electric Computer Laboratory. The E13B MICR font was also developed. The specifications for producing the E13B font using magnetic ink were accepted as a standard by the American Bankers Association (ABA) in 1958. In April 1959, the ABA issued Publication 147, The Common Machine Language for Mechanized Check Handling. Deluxe Check Printers had the task of translating the specifications into a working process. By the end of 1959, Deluxe successfully produced checks using magnetic ink. In countries throughout the world there are groups that set standards and dictate the design specifications for document encoding, processing equipment, and quality criteria for MICR printing. Some of these are: • American Banking Association (ABA) • American National Standards Institute (ANSI) • United Kingdom-Association for Payment Clearing Services (APACS) • Canadian Payments Association (CPA) • Australian Bankers Association (ABA) • International Organization for Standardization (ISO) • France-L'Association Francaise de Normalisation 1-2 Generic MICR Fundamentals Guide