Choosing Check Printers

Archive for the ‘FAQ’s’ Category

Each year, about 65,000,000,000 are written. As a common method of payment making in the US, safeguarding business checks and personal checks against check fraud is very important to keeping your money where it should be. In order to protect such incidents, developing and keeping strong internal control of your checks as should be a priority.

Businesses should always use check stock with security features to prevent fraud. This can include having check stock with watermark features, multi-colored backgrounds that make duplication complicated or pantograms, although there are many more other features out there. Another way businesses can help prevent check fraud is to keep blank checks locked in a secure place. That way, there’s only very few people (the one(s) with the key(s)) who would be able to access the blank checks. Official signatures for the check writing should also be limited to as few people as possible in which the bank will know whom is an authorized signer and whom is not. However, businesses should also consolidate the check writing function so there is only a limited access to the check stock. That leaves less room for forgetting to lock the check stock because of excessive uses and such. Using internal controls such as separating the check writing and account reconcilement functions also helps eliminate because of a “check and balance” union. Other steps to limit exposure to check frauds are to reconcile accounts daily, setting separate accounts depending on payments (i.e. lower payments in one account, high payments in another account, setting limits), and using automated pay systems to help locate potential fraudulent materials.

By using these measures, you can help keep fraudulent checks on bay. However, these items aren’t an all-inclusive list. Remember, you bank and check supplier can also provide you with advice on how you can limit fraud checks.

So you may be wondering…what’s the difference between a MICR laser printer and a regular laser printer? Due to banking industry standards, a MICR laser printer has much more security features that are installed to the standards of The American National Standards Institute (ANSI). Generally, MICR laser printers are built to include the six standards that ANSI requires of to become an MICR printer. However, normal laser printers can also be modified to include the MICR features to be become MICR labeled.

Regular printers are usually only corresponded to readability preferences of users. MICR printers, on the other hand, has to conform with other facets including electronic MICR durability, uniformity, font standards and numeric placements. MICR also has special font cartridges and PCMCIA cards holding fonts, logos, signatures and other information for check printing on their systems that can be removed if wanted.

In using a MICR Printer, a MICR Toner would be recommended for use as well. As MICR printers and general laser printers differ, so does the toner for each one. Although general laser printer toner and MICR printer toners are similar in many aspects, the MICR toner contains a ferrous iron oxide that enables the bank check clearing system to read the information on the check. As an ANSI standard, the iron oxide addition is usually about 50% to 60% of its contents.

With MICR standards set by the ANSI, it’s very important that using a MICR printer and toner will follow such guidelines. The electronic bank clearing system can usually detect such differences if the standard guidelines aren’t being used. Many times, in this case, a bank can refuse the check or charge the payee an additional fee due to the poor MICR quality on the check.

To protect against check fraud many financial institutions and other similar companies such as banks or accounting firms embrace certain business process that manage the identity of official checks, and other documents of expenditure that are given to the clients. Most of the time these extra steps in protection do come with additional expenses. The processed do add extra cost all over the place; the process also is very difficult and can lead to office tribulations.

A very long time ago and perhaps even today companies did and still do such activities like pay roll manually. What this means is that the staff spends less time with the customers. This process can and will institute human error and maybe even fraud. In the end this means that time was indubitably wasted on research, merging and auditing.

When there are too many different departments working on manual check processing time that is being wasted becomes a big factor. The manual check work includes approving, logging and check and document tracking. There is no authority figure to watch over each one of the check processing departments, the most important department that should absolutely be watched over is the payment-processing department. Tracking and purchasing checks and forms is a very costly department to have because they are extremely open to abuse to employees.

Is any special toner required to print checks?

No, at least technically anyway. A legal check doesn’t even actually have to be a check; it could just be a piece of paper that states that a certain amount is due for a certain person with an account number and financial institution of where the amount can be drawn. However, in all situations, this probably wouldn’t work as all financial institutions have requirements for the checks they’ll accept.

Many times, using a magnetic ink is preferred since it can help deter fraud. Retailers and many financial institutions will use a MICR reader which will detect if a check has this magnetic font on it. If the check is read with a low strength, many will reject the check as a possible fraudulent check.

How can I make sure that a fraudulent check isn’t excepted?

Although there is no surefire way to keep a fraudulent check from entering your business, there are a few measures that you and your company can take to try and avoid this. Some suggestions would be to have security fonts on your checks, keeping a good check stock and training your employees about such matters and how to look out for fraudulent checks. Another way to keep YOUR employees from such situations is the offer them positive pay.

What kind of paper-based security features would most likely work best?

The following is a list of general guide for check stock security features:

Artificial Watermarks – White on white printing generally on the back reveals words or patterns when held at an angle. You should state on the front of the check that this feature is present. Watermarks don’t show up when copied.
Laid Lines – Unevenly spaced background lines that make cut and paste alterations difficult.
Void Pantograph – Background printing of the word VOID or COPY which appears on photocopies. Some paper suppliers offer enhanced versions of pantographs which provide protection from the latest in color copier technology.
Chemical Additives – If an ink eradicator (bleach, acetone, etc.) is applied to the document, either the word VOID appears, or the eradicator creates a permanent stain.
Numbered Check Stock – Sequential numbering printed in dye that penetrates to the reverse side of the check can be used to verify authenticity. This number may or may not relate to the check serial number. This also provides for inventory control of blank check stock.

However, this should not limit your consideration for other features as these features aren’t an all-inclusive list. For more help, getting consultation with a local paper supplier may help.

What elements of a check are legally required?

All checks should include 1) The date the check is written, 2) The amount of the check, 3) The Payee (Person whom the check is made out to), 4) Signature of the paying person, and 5) the financial institution name.

Can the kind of check stock I use really make a difference?

Absolutely! The quality of the MICR documents you use is very dependent on the type of paper that’s used. Besides harming the adhesion of toner, a poor quality paper is more likely to get jammed in the bank read/sorter that used in getting the checks processed.

For a list of better paper stock to use for your check printing, the following would do well:
-24 lb. bond paper with a taber M.D. 2.5 and C.D. 1.1 minimum
-Paper with a rougher surface (of course, keep it within the base printers’ specifications for best toner fusing)
-Long or short paper grain. Overall performance in the banks reader/sorters is best when the grain direction is left to right when viewing the check.
-Micro-Perf (20 or more cuts per inch) perforations
-A moisture content between 4.7% and 5.5%. Storage conditions have a large effect on the final moisture content of most papers. Your check stock should be stored in a cool, dry and stable environment (which should also be secure, not to mention) The protective wrappings should not be removed until just prior to using.
-The use of paper-based security features such as void pantographs and laid lines is also recommended as fraud deterrents.

I want to learn more about MICR. Are there any special places where I can get more information?

There are a few places where you can obtain MICR information including conferences, and banking industry issues by American Bankers Association, research, conferences and publications by Bank Administrative Institute and at American National Standards Institute. Other businesses where you can find out more is at X9, a business that develops and publishes consensus technical standards for financial services, which is accredited by the American National Standards Institute.

Can I use recycled cartridges?

The MICR toner cartridge industry has a wide range of suppliers with a few number of firms that adopt stringent cartridge and MICR toner quality control measures. However, most vendors use inferior toner formulations and poor quality cartridges that can cause damage to your printer and print poor quality MICR documents.

MICR toner contains iron oxide which over time can eat away at toner cartridge components. With recycled cartridges, you can run the risk of damaging your printer, printing poorly and wasting money if the proper parts of the recycled cartridge is not properly replaced.

Poor quality toners will also tend to flake or smear in the reader/sorter equipment used by financial institutions to process checks, in which they may charge your extra fees.
Using recycled MICR toner cartridges would not be recommended as all MICR toner cartridges aren’t made equally with the same quality and care. To make sure you’re getting quality cartridges, check with your supplier by asking the following questions:

-What check reader/sorters have you used to verify durability of the MICR toner?

-What are the expected character signal strength readings throughout the life of the cartridge?

When buying an MICR Check printer for your business, you shouldn’t just pick the first one you see where the site says their MICR check printers are great and high quality. Not all check printers are made the same. Every manufacturer will always try to tell you that theirs is the best so first of all, you should do a bit of researching and comparison shopping yourself. When you find that you are ready to make the purchase, you should also make sure to ask and keep the following questions in mind.

First of all, will the new MICR check printer be easy to use? Make sure it’s user friendly before taking the plunge. The MICR check printer should not only be easy for you to use but for your staff who operates on it easy to use as well. You should also consider if there’s going to be a considerable amount of time put into training your staff to use it. If it will take up a lot of time, it’d probably be better to pass. You should also check to see that security is offered on all the components of the new system. Another feature that you’d probably really appreciate on your new MICR check printer would be its scalability, in which would make it easy for you to add on more features and functions in the future such as updates if need be. In getting your new equipment, you’ll also want to check the reliability and flexibility of the printer as you don’t want to get one that’s not compatible with your current system (if you weren’t planning to redo your whole system) and you’ll want a vendor that will be willing to be flexible with what they offer and what you need (i.e. customizing).

Although not on the actual printer itself, you also shouldn’t overlook the check printer company itself. Make sure the business will be both readily and able to help you with any technical issues if there are any problems that occur. The customer service of the company should also not only be courteous and attentive to you but be able to provide you with information you need on their products. A problem customer service team could mean no help in the future if anything was to happen to your check printer. Finally, read the guarantee! Check the warranty and see if the company offers any sort of “satisfaction guarantee”. Most likely, the companies that truly believe their products are high-quality will offer a much more bigger “guarantee package”.

Many businesses and banks depend on specialized check printers to print out checks that will be secure in order to avoid check scams and fraudulent checks. Since checks are still numerously written by many people, the market for checks are still in high demand, and therefore, the check printing business is demanded highly as well. It would be inefficient for banks and businesses to buy such check printing software and equipment just for the function of printing checks for their members, employees and customers. Therefore, they usually will order these checks with specialized check printing businesses in order to save time, money spent on check printing equipment, software and labor. Overall, this, in turn, makes businesses and financial institutions more able to work efficiently.

Many financial institutions depend on these check printers to provide their customer with quality checks. In this day and age in which check writers now like to personalize their checks and checkbooks, check printers are innovating their checks and checkbooks with personalized “artwork” and such to provide flexibility and options for the financial institutions as well as for the customers and members of financial institutions.

With check frauds on the rise, other bank and check innovations have also developed special methods to help prevent fraudulent checks. This includes a special font that has a magnetic ink/toner in which a computer system is able to read the font at high speeds in order to pull information about the payee account and financial institution and such to verify that the check is really coming from an actual account. This process is known as MICR and is used by everyone in the check printing business in order to ensure safety in checks.