What is the full form of MICR?
A method known as MICR (magnetic ink character recognition) is used to confirm the validity or authorship of paper documents, particularly checks. On the original documents, specific characters are printed using special ink that reacts to magnetic fields. Magnetic characters can include information that has been encoded.
Using MICR can improve security and reduce some sorts of crime's financial losses. Suppose a document has been tampered with, such as a fake check made on a color copier. In that case, the magnetic-ink line may either not react to magnetic fields or provide an error code when scanned by a machine intended to read the data in the magnetic characters. If the MICR reader detects a pattern of faulty check writing by the account owner, even a valid check may be refused. Retailers frequently use MICR readers to reduce their exposure to check fraud. The technology is also used by businesses and government organizations to expedite the sorting of papers.