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Done By: Nimit, Brian, Dennis


MICR (magnetic ink character recognition) is
a technology used to verify the legitimacy or
originality of paper documents, especially
during checks.
For a check to be used as a valid payment instrument, two things
must be present: an identifier for the issuing bank and the
customer's account number at that financial institution. MICR
encodes this information into magnetic ink and prints it on the
bottom of the check where it can be quickly and easily read by
automated check sorting machines. When a check is processed, it is
passed through machines where a magnetic sensor reads the ABA
routing and account numbers, creates an electronic record of the
check, and forwards it on to the originating financial institution for
Where is the MICR used
Reading of checks in banks.
Reading Credit Cards
Airline tickets
Insurance premium receipts
Deposit tickets

What are the advantages of using OMR
A fast method of inputting large amounts
of data up to 10,000 forms can be read
per hour depending on the quality of the
machine used.
Only one computer needed to collect and
process the data.
OMR is much accurate than data being
keyed in by a person.

What are the Challenges faced when using MICR?
MICR readers are expensive to purchase.
Damaged cheques cannot be read.
The printing of MICR is time consuming.
MICR characters are limited to only 14

How does MICR differ from OMR or OCR?
Characters are of a
unique font
Is a fraud prevention
technology mainly used
by banks.
Most organizations are
unable to use MICR
because it is limited to the
financial industry

Characters can be hand
written or typed.
Allows companies to
process more information
than previous manual
Is a wide ranging
technology in use by
schools, businesses and
government institutions.

Social or ethical issues associated with the use of MICR?
Reliability: Data may be unreliable if it has been entered incorrectly
or if it becomes outdated. The reliability of the MICR machines,
software and data determines the confidence in their value.
Security: Data lacks integrity when it has been changed accidentally
or tampered with. Examples of data losing integrity are where
information is duplicated in a relational database and only one copy
is updated or where data entries have been maliciously altered.
In the third world they are mostly used in banks and still not even in
some rural branches.
The introducing of MICR led to the terminating of many human work
counterparts who would otherwise be doing the processing.