FED101 - The Life of a Check
Introduction | Checking Accounts | MICR | Float | Check 21 | Debit/ATM | Technology
 
 
MICR
 

The bottom of each check is encoded with a unique series of numbers called a magnetic ink character recognition (MICR) line.  The sorting machine reads the MICR to capture the following:

  1. routing number of the financial institution (your bank)
  2. account number
  3. check number
  4. dollar amount of the check. 

The Fed makes a copy of the MICR and uses this for the crediting and debiting of accounts.