National Check Professional (NCP) Certification Practice Test

What does Magnetic Ink Character Recognition (MICR) utilize?

1. Special ink designed to track checks

2. Standard E-13B font for encoding

3. A paper type that glows under UV light

4. Barcodes for automatic recognition

The correct answer is: Standard E-13B font for encoding

Magnetic Ink Character Recognition (MICR) utilizes a specific font known as the E-13B font for encoding the characters on checks and other financial documents. This font is specifically designed for machines to read the information accurately, ensuring efficient processing of checks in the banking system. The MICR line, typically located at the bottom of checks, comprises numbers that represent the bank account, the receiving institution, and the check number, all printed using magnetic ink that can be read by MICR readers. While special inks are involved, the primary mechanism of MICR lies in the encoding format, relying on the standard E-13B font to ensure uniformity and reliability in machine processing. The other options, such as special inks for tracking checks, paper that glows under UV light, and barcodes, do not accurately describe the core function of MICR technology, which is centered on this magnetic coding system. Understanding the significance of the E-13B font in the MICR process is crucial for comprehending how checks are processed and verified in the financial sector.