Check Encoders: New Technology Capabilities Take Convenience a Step Further

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Electronic methods of payment are common among consumers these days with cards being a primary choice. New options have greatly reduced the usage of checks, but not fazed them out completely. Banks must still process many personalized paper documents each day with encoders and scanners making the job a little easier. The Federal Reserve has reported that almost eighty percent of non-cash transactions from 2001 to 2010 were accomplished by electronic transfer. Banking locations still need a way to increase settlement security of paper payments. A check encoder uses sensors to detect the document and then runs it through a series of roller assemblies. Software assists with check positioning so a hammer can strike the paper thus imprinting a set of uniform magnetic characters for reading. These characters, proceeding from right to left, supply information regarding the paying institution as well as the individual account. Businesses use a magnetic reader to verify funds at time of purchase to limit collection situations. Financial institutions are implementing specific scanners to form a digital image of these documents for simplified transfer, reduced paper, and faster transaction time.

Bank Check Scanners: How Are They Applied to Deposit Settlement?

Encoders have greatly decreased the time it takes to complete these financial transactions. Magnetic character imprinting allows information to be read by a bank check scanner for sharing among multiple locations including clearing houses, traditional financial institutions, and commercial retailers. MICR technology is the driving force behind imprinting and processing equipment used by the banking industry. Proprietary fonts are required to allow for global usage and supply additional protection to consumers. Iron oxide used for imprinting allows the characters or numbers to be imbedded in a paper document. This chemical makeup prevents the information from wearing off or being damaged during processing or usage. Blank checks are provided to individual or business customers with the imprinted information. They are then deposited to a financial institution upon usage, thus requiring a way to verify the information before completing processing.

Bank check scanners are an easy method for completing fund verification or deposit tasks. Financial institutions previously had to perform initial teller operations, finish necessary back-end procedures, bundle the checks, and then send them to their central repository location. New technology makes the process much easier by allowing a digital image of the payment to be created by the teller or back-end personnel. Once the image has been stored, it can quickly be sent to the appropriate channels without having to deliver or mail the paper document. Banks can improve processing times, store less paperwork, and are capable of offering better service to customers. Check encoders started this shift in financial processing by allowing tellers to complete deposits or withdrawals based on the account data shown on the document. The addition of magnetic characters transformed transaction handling in all areas of paper payment usage. Original machines were difficult to use; however, numerous technological advances have delivered sophisticated imprinting and reading devices for simplified paper transaction management. Models offered today are compact, reliable, and fast. These changes have enhanced financial processing as well as increased the conveniences being offered to consumers.

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