MICR-Encoded Technology

Ensure the authenticity of cheques
December 3, 2019 by
MICR-Encoded Technology
OERP Canada, Dan Iacobescu

Magnetic Ink Character Recognition (MICR) is a technology that was invented for the purpose of being able to verify the legitimacy or originality of cheques and other paper documents. It consists of a special ink that is used to print characters sensitive to magnetic fields on the original documents.

MICR numbers on a cheque

Does this look familiar?

This technology has been in continuous use by financial and banking institutions in Canada for over four decades and specifications surrounding this technology are outlined within Standard 006 by the Canadian Payments Association (CPA).

The following images highlight the technology itself, as per the Canadian Payments Association:

1. Breakdown of MICR segments

MICR segments breakdown

2. Quality assurance specificationsAcceptable margin of error for MICR numbering

We here at OERP improved the cheque report within Odoo to assist companies that have the need to print cheques with MICR technology. Here's an example, seen encircled in red, as part of a printed cheque through Odoo:

Odoo cheque example

On top of this, we added the company's information, bank and branch information, bank id, transit and account number, so you no longer need a pre-printed cheque. This is particularly useful in a multi-company situation. Contact us to find out more.

We strive to make Odoo a great fit for any Canadian organization. Thanks for reading, and catch you on the next blog!

- OERP Team

MICR-Encoded Technology
OERP Canada, Dan Iacobescu December 3, 2019
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