MICR is an acronym for Magnetic Ink Character Recognition. It is the automation concept used by the banking industry. Every check has a unique style of numbers and symbols printed on the bottom in special ink with magnetic properties.This allows checks to be machine read and then routed by high-speed equipment.
MICR is also our brand name. Incorporated in New York State in 1969 as MICR Data Systems, Inc., and now a division of Check Printers, Inc., our name has evolved into just "MICR" -- synonymous with quality, first-rate service, efficiency and cost-effective products.
What are Flexi-Cheks?
Flexi-Cheks allow you to transfer funds from your customer's bank account to your company bank account on the day the money is due. This means that you won't spend days or weeks waiting for payment, and your customer has a fast, reliable way to pay. Pre-authorized checks are simply payments your customers have authorized your company to collect directly from their checking accounts. It is as simple as having a booklet of post-dated checks.
How long has pre-authorized checking existed?
Pre-authorized checking has been used for over 60 years. It was started in the 1930s by insurance companies to collect premiums. Today it is used by thousands of different companies to collect recurring payments.
Who is using pre-authorized checking?
Thousands of companies in many different industries are using pre-authorized checking instead of traditional billing. Any business that deals with a customer on a recurring basis can use pre-authorized checking. MICR's pre-authorized checking service is priced competitively to make it cost-effective for companies of any size.
There are 16 billion recurring payments each year (source: American Bankers newspaper, 8/13/97). Your company could be one of the many receiving them who should be using pre-authorized checking.
Why use pre-authorized checking?
Pre-authorized checking is on the rise among U.S. businesses today. It represents significant benefits to both companies and consumers that guarantees its continuing growth.
What are the benefits of using pre-authorized checking?
There are many, many benefits to using this service. You receive payments on the day they're due and your accounts receivable are always zero, which means that you can predict your cash flow accurately. Due to the eliminated paperwork and logistics, your administrative costs are also lower. Plus, using this service inspires loyalty among your customers.
How simple is pre-authorized checking?
It's very simple. Your customer signs a one-time pre-authorized payment form, which you forward to his or her bank.
Why would my customers want to pay me by pre-authorized checking?
They save time, effort and money by not having to write a check and mail the payment to you. They are also sure of establishing a good credit rating with you by always paying on time.
What if my customer's check "bounces"?
It's no different than any other check that gets returned for insufficient funds.
How can I encourage my customers to use pre-authorized checking?
Some companies establish a two-tier pricing system to provide an incentive, charging one rate for those who pay by pre-authorized check and a higher rate for traditional billing.
Can MICR's pre-authorized checking system be used by telemarketers?
No. We aren't equipped to process single-payment checks. Our system is designed for recurring payments requiring a signed authorization form.
Why can't I print my own checks?
Pre-authorized checking requires a special check printed with magnetic ink under strict quality control standards. The banking system will reject checks that do not meet these standards. MICR has the reputation, with over 30 years' experience, for exceeding these standards. You can be assured your MICR pre-authorized checks will be accepted by banks.
