Yes! Recently, the Federal Reserve made numerous changes to Regulation CC, but the requirements have not changed. Checks and Substitute Checks (IRDs) are legally required to include a magnetic code line in order to be treated as a "cash item" for processing in the U.S. Payment System.

MICR (pronounced micker or miker) is an acronym for "Magnetic Ink Character Recognition" and is used to describe the characters and symbols at the bottom of a check. These characters consist of specially designed, standardized fonts that are printed with ink or toner that contains magnetic material.

As checks travel through the check processing system they pass through large machines called reader/sorters. Reader/ sorters identify the magnetic toner and, depending on the individual magnetic strength, it will recognize each character. These magnetic numbers and characters translate into "fields".

It is a requirement that the fields on all checks be printed with MICR toner to ensure they can be efficiently processed. If the routing and account numbers are printed on a check with standard toner, the check will be rejected and the issuer will be subject to a fine per item rejected.

MICR numbers conform to a strict specification set forth by both the American Bankers Association (ABA) and the American National Standards Institute (ANSI). These standards are periodically reviewed by the Accredited Standards Committee (ASC) X9 Financial Services (a committee given the responsibility of establishing and maintaining standards of MICR). Rosetta Technologies is a standing member of the ASC X.9B Committee on Paper Payment Systems.

Utilizing a MICR printer has many advantages over a standard laser printer with pre-printed check stock:

• Because MICR printers print the MICR line directly onto the paper, they use blank check stock. This eliminates the expenses, inefficiencies and risk associated with purchasing, storing, distributing and tracking pre-printed check stock.
• Printing on blank check stock ensures that your checks will not become outdated, like they could with pre-printed stock. For instance, if your company changed locations, or the bank account number changed, or the logo was updated, the pre-printed check stock would have to be destroyed.
• MICR printers can print documents for all types of MICR and standard office applications such as loan coupons, depository transfers, starter checks, etc. Many companies utilize MICR for different types of applications that would require different pre-printed check stock and forms.

While it is possible to use a MICR toner cartridge in a standard printer, we strongly recommend against it. Because the MICR specifications are so rigid and a fee is imposed if the requirements are not met, choosing to print checks with a standard printer is a risky choice.

There is an intricate process that goes into re-engineering a standard printer for MICR application. The end result is a printer with additional quality assurance and security features that are geared specifically for printing MICR documents. These include:

• E-13B Font: Rosetta Technologies creates this font for each individual printer, which ensures the highest achievable readability of MICR characters.
• CMC7 Font: This font was designed specifically for use with Rosetta Technologies' MICR printers to produce the highest achievable readability of MICR characters.
• Low Toner Warning and Auto Stop: This feature senses toner level remaining in a cartridge, warns user of a low condition, and automatically stops printing when the toner reaches a level that could adversely impact MICR readability.
• Paper Tray Locks: These locks make it impossible to access a paper tray containing check stock or other sensitive paper without a key.
• Datastream Encryption: This feature sends secure, encrypted data from the host. The data is then received and decrypted by the printer. This helps to combat check fraud because it makes it impossible to intercept the print stream data.

In addition, Rosetta Technologies MICR printers include originally manufactured MICR toner. The toner and it's cartridge or bottle is developed for each individual MICR printer. The MICR toner is formulated to ensure the printer's engine performance, high print quality, excellent toner yield, and long fuser life.

Lastly, all Rosetta Technologies' MICR printers include a MICR Quality Guarantee. The guarantee protects against fees imposed by banks for MICR performance or quality issues when the printer is used in conjunction with approved MICR toner and check stock and is continuously maintained under an approved Rosetta Technologies' service plan.

Yes, the type and quality of the paper you use is paramount to the long-term performance of your printer. Proper paper storage, handling and usage will contribute to trouble-free operation.

Current ANSI Standards X9.18, approved by the ABA, specifies that if 24 pound (90g/m2) paper is used (the recommended weight), then the grain direction used for checks may be either direction. Additional requirements to meet all current banking specifications are:

• Sheffield smoothness between 120 and 150
• Moisture content of 4.5%
• Moisture-proof package wrapping
• Avoid use of cut-sheet paper made from fan-fold stock
• No ferromagnetic material contained in paper

Rosetta Technologies' check stock, as well as other approved check stock, have been tested for use in all Rosetta Technologies' MICR printers and is included in the MICR Guarantee.