Also called: Magnetic Ink Character Recognition, MICR line, MICR code, MICR number
What MICR is
MICR stands for Magnetic Ink Character Recognition. It refers to the special characters printed along the bottom of a check and the technology that reads them. In the United States, those characters use the E-13B font and magnetic ink or toner. The line typically carries the bank routing number, the account number, and the check number. The layout and exact fields can vary, so MICR is not one universal account-number format.
MICR is built for paper checks, not credit or debit card transactions. It does not set an interchange rate, add a network assessment, or represent a processor markup on your card-processing bill.
MICR helps banks read checks. It does not explain your card-processing fees.
How the MICR line is read
A MICR reader detects the magnetic signal and character shapes, then sends the numbers to a computer for check handling. That lets bank equipment sort and process checks without relying only on a person to read each line. Branch and lockbox equipment can compare magnetic and optical reads; remote and mobile deposits read the check image optically.
A missing or faulty magnetic signal, or numbers that do not match the account records, can cause a check to be misread or require extra handling. MICR helps automate reading, but it does not prove that a check is genuine or that the account has funds.
Where you encounter MICR
You will see MICR when your business receives, deposits, or prints paper checks. On a check you receive, the line is at the bottom. If your business prints checks, the MICR characters need the correct font, placement, and magnetic signal so bank equipment can read them.
Check 21 took effect in October 2004 and made a properly prepared substitute check, a paper reproduction of a check image, the legal equivalent of the original. Check processing can use images, but the MICR information remains useful for identifying and routing the payment.
What MICR means for your costs
MICR has no direct effect on your card-processing rates, and it does not appear as a card-processing fee on your merchant statement. The research for this entry identifies no standard MICR fee or merchant cost. If a statement lists a charge you do not recognize, do not assume it is a MICR fee just because your business handles checks.
For check operations, the practical concern is accuracy. Compare the printed routing and account numbers with your bank records when setting up check stock, and confirm that the check number is readable. A bad line can slow check handling or lead to processing trouble, while careful printing and review can prevent avoidable errors.
What you can actually change
Frequently asked questions
What does MICR stand for?
MICR stands for Magnetic Ink Character Recognition. It describes the machine-readable characters printed along the bottom of checks and the technology that reads them.
Is a MICR number the same as a routing number?
No. The MICR line typically contains the routing number, account number, and check number. The routing number identifies the bank, while the MICR line combines several fields used to handle the check.
Does MICR affect my credit card processing fees?
No. MICR is used to read and process paper checks. It does not set card rates or appear as a standard card-processing charge on your merchant statement.