TROY Group MICR Basics Handbook - Manual (Page 10)

Section 1 Understanding MICR
MICR Basics Handbook -- Document #50-70300-001 Rev. C
1-6
Item Description
1 - Check Number This is the customers sequential check number.
2 - Fractional Routing Area The fractional routing numbers numerator is a bank identification code and its
denominator is the Federal Reserve district transit symbol.
3 – Payee The payee is the person or organization to whom the check is made payable.
4 – Date The date is usually the date approved for payment.
5 - Convenience Amount Field Provides an area to express the check value in numerals.
6 - Legal Amount Area This is the negotiable amount of the check expressed in text.
7 – Signature The signature can be hand-signed or digitized.
8 - Bank Name, Address, Logo This is the name and address of the account’s bank.
9 - Account Holders Name,
Address, Telephone
Account holder’s information.
Your Bank’s Concerns
Producers of MICR-encoded documents must meet ANSI document preparation standards. Depending on
where a check is deposited, it will probably be processed a number of times in multiple banks and Federal
Reserve centers. It will be sorted and tabulated with thousands of other checks on reader/sorter
equipment designed to read MICR characters at high speed. If it does not meet the requirements
established for MICR printing, your check may be rejected by a reader/sorter, and the institution handling
your check will have to process it manually. Manual processing costs the bank additional money and it
has become common for the bank to charge the customer for rejected checks. If your checks are rejected,
the bank may require you to correct the problem and you may be subject to a manual processing fee for
each rejected check.
The Bank Specification Form
The primary guide describing the proper contents of the MICR line is provided by the Bank Specification
Form. A sample of a simplified typical specification form is shown in the document entitled,
“Understanding and Designing Checks – ANSI X9/TG-2”.
Usually, the specification form is the vehicle for the financial institution to provide the definition of the
proper contents of the MICR line to its customer. This form, or a related document, is to be used to
convey any information regarding the approval requirements for check formats, and to specify any
document testing procedures that may be required.
You can consult your bank and request a copy of their bank specification form (MICR printing
specification). Most banks have these forms available for customers who wish to print their own checks
or have custom checks printed. Additionally, most banks will be happy to look over your check layout
and help you make any necessary corrections so that your financial transaction documents will flow
smoothly through the clearing system.
Where to Get More Help with MICR
TROY strongly recommends that you acquire the ABA documents describing the proper design of checks
and placement and use of the MICR line. A complete list of ANSI specification documents on MICR
printing is contained in the document titled, “Understanding and Designing Checks – ANSI X9/TG-2”.