National Check Professional (NCP) Certification Practice Test

Where can the MICR encoded amount be found on a check image?

1. In the top left corner

2. On the back of the check

3. In the bottom right hand corner under the drawer's signature

4. In the memo line

The correct answer is: In the bottom right hand corner under the drawer's signature

The MICR (Magnetic Ink Character Recognition) encoded amount is located in the bottom right-hand corner of a check image, right under the drawer’s signature. This positioning is intentional as it allows for easy readability by both machines and individuals. The MICR line typically includes the check number, account number, and routing number, but the encoded amount is specifically placed in this area to streamline processing during electronic check clearing. Other common placements for information on a check, such as the top left corner where the payer’s information might be found, or the memo line where payees often note the purpose of the payment, do not hold the MICR encoded amount. Additionally, information found on the back of the check is typically unrelated to the processing of payment amounts and serves different documentation purposes. Thus, the bottom right corner is the standardized location for the encoded amount, validating the choice given.