Secure MICR Printer
User’s Guide
ST9720 Secure MICR
Printer
User’s Guide
Source Technolog i es , LLC
2910 Whitehall P ar k Drive
Charlotte, NC 28273
Phone: 1.800.9 22.8501
Fax: 704.969.7 595
www.sourcetech.com
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
Copyright
Copyright
Copyright ©2013 by Source Technologies, LLC. All rights reserved.
No part of this document may be reproduced or utilized in any form or by any means,
electronic or mechanical, including photocopying, recording, or by any information
storage and retrieval system, without permission in writing from Source Technologies,
LLC.
Published in the United States of America by:
Source Technologies, LLC
2910 Whitehall Park Drive
Charlotte, NC 28273
Author: Source Technologies, LLC
Notice
This manual serves as a reference for a Source Technologies’ secure MICR printer.
This manual should be used as a reference for learning more about MICR technology
and developing MICR printing applications. This guide was produced to assist IS
technicians and engineers in the integration of Source Technologies’ programmed
printers with their custom MICR applications. The guide also contains information on
MICR related error messages that post to the operator panel.
To the best of our knowledge, the information in this publication is accurate: however,
neither Source Technologies, LLC nor its dealers or affiliates assume any responsibility
or liability for the accuracy or completeness of, or consequences arising from, such
information. Changes, typos, and technical inaccuracies will be corrected in subsequent
publications. This publication is subject to change without notice. The information and
descriptions contained in this manual cannot be copied, disseminated, or distributed
without the express written consent of Source Technologies, LLC. This document is
intended for informational purposes only. Mention of trade names or commercial
products does not constitute endorsement or recommendation for use by Source
Technologies, LLC. Final determination of the suitability of any information or product for
use contemplated by any user, and the manner of that use is the sole responsibility of
the user. We recommend that anyone intending to rely on any recommendation of
materials or procedures mentioned in this publication should satisfy himself as to such
suitability, and that he can meet all applicable safety and health standards.
All trade names or products used in this manual are for identification purposes only and
may be trademarks or registered trademarks of their respective companies.
Document Number: SP1001UG
Revision: A
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
Table of Contents
Table of Contents
1. MICR Overview ....................................................................................................... 2
The Check Clearing System ........................................................................................ 2
MICR Printing Standards in the United States Today .................................................. 2
2. MICR Check Design ............................................................................................... 4
General Features of Check Design.............................................................................. 4
Position and Dimension Gauge ................................................................................... 4
Design Elements in Detail ........................................................................................... 4
Data Elements ............................................................................................................. 5
3. Quality Issues ......................................................................................................... 9
Printer Features ......................................................................................................... 10
MICR Toner ............................................................................................................... 10
MICR Check Stock .................................................................................................... 10
4. Security Issues ..................................................................................................... 12
5. MICR Features ...................................................................................................... 14
MICR Mo d e ............................................................................................................... 14
MICR Fonts ............................................................................................................... 14
Secure Fonts ............................................................................................................. 14
MicroPrint .................................................................................................................. 14
Bi-Directional Feedback ............................................................................................ 15
Resource Storage ..................................................................................................... 16
MICR Me n u ............................................................................................................... 16
Entering MICR Mode ................................................................................................. 17
MICR Mode Commands ............................................................................................ 18
DES and AES Decryption .......................................................................................... 22
Custom Character Conversion Command ................................................................. 24
MICRpoint Feature .................................................................................................... 25
6. Host Programming Features and Examples....................................................... 27
Hex Transfer ............................................................................................................. 27
Escape Character Translation ................................................................................... 31
7. Audit Trail Reports ............................................................................................... 33
Report Details ........................................................................................................... 33
Audit Trail Menu ........................................................................................................ 33
Audit Location ........................................................................................................... 33
Audit Record Sorting ................................................................................................. 33
Overlay ...................................................................................................................... 33
Sum Field 4 ............................................................................................................... 33
Print Audit Report ...................................................................................................... 34
8. Error Messages .................................................................................................... 43
Appendix A: E13B MICR Font Mapping ..................................................................... 47
Appendix B: CMC7 MICR Font Mapping .................................................................... 48
Appendix C: Secure Numeric Font Mapping ............................................................. 50
Appendix D: ICR Secure Numeric Font Mapping ...................................................... 53
Appendix E: MICR Mode Command Summary .......................................................... 54
Appendix F: Audit Report Command Summary ........................................................ 55
Appendix G: PJL Based MICR Commands ................................................................ 56
PJL MICRJOB ........................................................................................................... 56
Fonts and Secured Resources .................................................................................. 57
PJL Unlock Sequence ............................................................................................... 57
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
PJL Re-Lock Sequence ............................................................................................. 57
PJL Re-Lock Sequence With A New Password Value ............................................... 57
PCL Font Call Commands ......................................................................................... 58
MICR Font Note ........................................................................................................ 58
PJL MICR Command Example .................................................................................. 59
PJL Unlock Sequence ............................................................................................... 59
PCL Initial Set-Up ...................................................................................................... 59
PCL Macro Call ......................................................................................................... 59
PCL Font Calls, Positioning Commands and Variable Print Data .............................. 59
PJL Re-Lock Sequence ............................................................................................. 60
Appendix H: Accounts Payable .................................................................................. 61
Photoconductor Kit Replacement Guide…………………………………………………63
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
1. MICR Overv iew
MICR Overview | 1
MICR stands for Magnetic Ink Character Recognition. All MICR documents have a MICR
line with numbers and symbols printed in a unique MICR font with magnetically
chargeable ink or toner. Each character of the MICR font has a unique waveform when
sensed magnetically. Financial institutions and the Federal Reserve use the MICR line to
identify and sort checks. The high-speed automated processing of checks and other
financial documents depends on the accuracy and the integrity of the data printed in the
MICR line. Your new Source Technologies Secure MICR Printer is specifically designed
to produce high quality MICR documents.
The Check Clearing System
The Check Clearing for the 21st Century Act (Check 21) was signed into law October 28,
2003. Prior to Check 21, checks traveled through the bank’s high speed reader/sorter
equipment an average of near seven times in the Check Clearing process. Some checks
could be read up to 30 times or more by these machines.
In today’s environment high and low speed check readers can capture a picture or
image of the check allowing for images to be exchanged between financial institutions,
the Federal Reserve, and other clearing houses. This new law, Check 21, defines what
is called a “Substitute Check”, and removed barriers that existed in converting physical
checks to check images for clearing. The original physical check can now be truncated
by the first institution that converts the check to image. The original check can now be
destroyed.
United States and International MICR Standards still require the printed MICR line
information to be of the highest quality and durability, and be printed with magnetic ink or
toner. Additionally, issues related to check fraud continue to place high importance on
print quality. For these reasons, the quality and durability of information printed with
Source Technologies’ Secure MICR Printers remains a key new product development
criterion.
MICR Printing Standards in the United States Today
Congress established the Federal Reserve System (FRS) in 1913. Today most
commercial banks in the United States belong to the FRS. Many other depository
institutions provide banking and checking account services to the public. These other
institutions, such as some credit unions, savings and loan associations and non-member
banks, are not formally part of the FRS. However, they have access to the payment
services it provides and are subject to many of the FRS regulations.
In 1958, because of the explosive growth of check usage, the American Bankers
Association selected the E-13B MICR font and the MICR system as the technology for
high-speed check processing. Today, check standards are determined by the Accredited
Standards Committee X9AB Payments Subcommittee of which Source Technologies is
a voting member. The latest versions of the standards and technical guidelines are
available from:
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
2
Hardcopy: Softcopy:
MICR Overview | 1
Global Engineering Documents X9 Electronic Bookstore
Phone 800-854-7179 or 303-397-7956 www.X9.org - click ESS
Fax 303-397-2740 www.ansi.org - click ESS
global@ihs.com or
http://global.ihs.com http://webstore.ansi.org
The key standards that address check documents are as follows:
ANSI X9.100-160 Specifications for Placement and Location of MICR Printing
ANSI X9.100-10 Paper Specifications for Checks
ANSI X9.100-20 Print and Test Specifications for Magnetic Ink Character Recognition
ANSI X9.100-30 Optical Background Measurements for MICR Documents
ANSI X9.100-110 Document Imaging Capability
For those with an interest or need there are also US standards that address Deposit
Tickets, Check Endorsements (the back of the check), image interchange file formats,
and other MICR areas.
Users of our Secure MICR Printers are not required to have access to the above
standards. Our Technical Support staff maintains current knowledge of the standards
and changes that affect the check industry in the US and other countries with unique
requirements.
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
3
2. MICR Check Design
MICR Check Design | 2
General Features of Check Design
To be a legal and negotiable document, the necessary data elements required on a
check are the date, amount, payee name, payer’s bank name, and payer’s signature.
Other elements included in a good check design are: the amount in words, account title,
check serial number, fractional routing number and MICR line.
A good check design contains security features and is formatted to be easily read by
both machines and the human eye. If the format is complicated, the depositor, bank
employee or reader/sorter machine may make an error in reading the data.
Position and Dimension Gauge
A MICR position and dimension gauge, like the one available from Source Technologies
(part number 205-1000MGE or 220-M1027-34, is an important tool for use in designing
checks. During check design, check your output against this gauge to determine if the
data elements (date, amount, payee name, payer’s bank name, and payer’s signature)
are correctly positioned on your document.
Design Elements in Detail
Paper
The ideal paper for check production is 24 to 28 lb. laser bond. Source
Technologies’ MICR lab has tested paper stock from most major manufacturers
and has compiled a list of products that produce superior results. Contact your
sales representative for this information. For a fee, Source Technologies will test
your paper for proper MICR adherence and check reader/sorter performance.
There are also many security features available to aid in the overall security of
your MICR documents. Please refer to Chapter 5, Security Issues, for more
information on check stock specifications and security features.
Size
The size of check documents must be:
6.00 inches to 8.75 inches in length
2.75 inches to 3.66 inches in height
We recommend standard 8.5" X 11" letter size stock or 8.5" X 14" legal size
stock for proper feeding through your ST Secure MICR Printer. The number of
checks per page is determined by your application. Custom size stock other than
letter or legal can be done with proper planning and application programming
within the paper size specifications for the base printer.
MICR Clear Band
The MICR clear band is an area at the bottom of the check where the MICR line
prints. No other magnetic printing should appear in this area on both the front
and back of the document. The clear band is an area 0.625 (5/8) inches high
from the bottom of the check running the entire length of the check. Exact MICR
line placement in this area is very important. Please refer to Figure 3.1 for more
information on MICR line placement.
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
4
Data Elements
MICR Check Design | 2
Date
The date is a required data element for a check. It represents the day upon which
or aft er which the tr ansfer of the check amount may take place. The date is
usually placed in the upper right portion of the check so it does not interfere with
the convenience amount field. The common format is Month, Day and Year,
however, the military format of Day, Month and Year is also acceptable.
Amount
The amount of the check is a required data element for negotiation. The amount
usually appears at least twice on the check. The amount printed in numbers is
called the convenience amount. The amount printed in words is sometimes
refer red to as the lega l amount; t his is the amount that applies if there is a
difference between the two amount fields. The amount may also be printed a
third time on the check in a secure font, intended to make alteration of the
amount field difficult. Please refer to Chapter 6 and Appendix B for information on
Source Technologies’ Secure Numeric Font.
Convenience Amount
The convenience amount location is specified in ANSI X9.100-110. The basic
location is illustrated in Figure 3.1. Since this amount can be machine scanned,
its location and design should be kept within the specifications. The amount
beginning with the dollar sign should be left justified within the scan area with
numbers spaced normally to the right. The dollars and cents should be
separated by a decimal point with the cents printed in the same size font as the
rest of the field. Embedded commas should not be used. The convenience
amount background should have good reflectance so it does not interfere with
optical scanning.
The convenience amount should be printed in a simple, fixed pitch font. We
recommend our ICR Secure Numeric Font (see Appendix C). It was designed to
be easily read by image capture equipment and is also a fraud deterrent. A fixed
pitch courier font, or if available, OCR-B, are also acceptable fonts to print the
convenience amount.
Note: The Source Technologies’ Secure Numeric Font (see Appendix B)
should not be used in the convenience amount since it is not a machine
readable font.
Amount in Words
The amount in words (sometimes called the legal amount) is normally located
either above or below and to the left of the convenience amount. The area for
the amount in words should be entirely filled to make alterations difficult. The
amount should start at the far left of the line with the words placed immediately
adjacent to each other. The cents need not be written out. They may be
expressed as a fraction (60/100), and should be placed immediately to the right
of the dollar amount and followed by a line or other space filler to inhibit
alteration.
Example: One hundred forty-four and 62/100---------------DOLLARS
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
5
Given the available area on the document, you may need to use a smaller font
MICR Check Design | 2
when printing larger value amounts.
Payee Area
The payee is a necessary data element for a negotiable document. The payee
area is generally to the left side of the document either above or below the
amount in words. It is often preceded by the words “Pay to the Order Of.” The
payee data should not enter the MICR clear band which extends 5/8 of an inch
above the bottom of the check. Some financial institutions have established
specific print requirements for the Payee Name and optional address. Consult
your bank for details on their print requirements.
Signature Area
A sign ature is a requir ed data element for a negotiable document. The signature
or signatures authorize the bank to honor the check; therefore, it must match the
bank’s records. The signature area should be beneath the convenience amount
area but the signatures should not enter the convenience amount area or the
MICR clear band. This is especially true if you print the signature with MICR
toner.
Drawee Institution Name
The name of the institution where the maker’s account is located is referred to as
the drawee institution. The bank’s name, city, and state are required.
Account Title
The account title is normally printed in the upper left corner of the check. It
includes the name of the account holder and other information such as
addresses, telephone numbers, and logos. The data in the title should be legible
and sufficiently complete so that if the MICR data account number is destroyed,
the drawee institution can refer to the account title in order to trace the account
number.
Memo Line
This line is located in the lower left quadrant of the check, and is not required.
Data printed here does not contain any legal significance. Printing in this area
with magnetic toner should not extend downward into the MICR clear band which
is 5/8 of an inch above the bottom of the check.
Check Serial Number
The check serial number is generally printed in the upper right quadrant of the
check. Although the check number is not required for the check to be negotiable,
the account holder and financial institution use these numbers to reconcile
statements and execute stop payments. The check serial number should also
appear a second time in the MICR line, and these numbers should match. The
number of digits in the check serial number is controlled by the financial
institution and the MICR line format. Consult your banking institution for their
requirements.
Fractional Routing Number
The fractional routing number should be printed in a fractional format in the upper
right quadrant of the check. This number is assigned to identify the Federal
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
6
MICR Check Design | 2
Reserve District and drawee institution. Consult with your bank for the proper
routing number and format for each of your accounts.
MICR Line
Accurate high-speed processing of your checks by financial institutions is
enabled by the accuracy and integrity of the data in the MICR line. Refer to
figure 3.1 for the location of the following MICR line fields. The MICR line is read
from right-to-left with position one being the right most position proceeding to
position sixty-five on the left. The MICR line must be printed at exactly eight
characters per inch.
Auxiliary On-Us Field—Positions 65 to 45
This field usually contains the check serial number for commercial size checks
and possibly account control information. It is bounded by On-Us symbols
. It is not included on personal, small size checks.
External Processing Code (EPC) Field—Position 44
This one digit field is position 44 of the MICR line. This field is usually left
blank. The use of this field is reserved and is controlled by the ASC X9AB
Standards Committee.
Routing Field—Positions 43 to 33
The routing field is bounded by Transit symbols in positions 43 and 33. It
contains fixed format i nformation about the drawee institution. Consult with
your bank for the specific data field to be placed here for each of your
accounts.
On-Us Field —Positi ons 32 to 14
The On-Us f ield contains the makers’ account number. The structure and
content of this field is left to the drawee bank. On personal checks this field
also contains the check serial numbers. The On-Us field may not consist of
more than 19 characters. An On-Us symbol must appear immediately to
the right of the account number.
Blank Field—Position 13
Position 13 is always left blank.
Amount Field—Positions 1 to 12
The amount field is the right most field in the MICR line. It remains blank until
it is printed by the bank of first deposit. When the check enters the banking
system, the bank of first deposit encodes this field from data in the
convenience amount field. It will be bounded by Amount symbols .
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
7
Figure 2.1: Sample Check
MICR Check Design | 2
A. Serial Number: Must be in the upper right corner and match the serial number in the
MICR line (see D for further explanation).
B. Fractional Routing Transit Number: Should be in the upper right corner and must
match the routing transit number in the MICR line with the exception of the state
prefix number (ex. 66 = NC, 67 = SC, 64 = GA, etc.) and the preceding zeros.
C. Bank Name, State, City: The bank logo is optional. Name of bank, city and state
where the account will be assigned/opened are required fields.
D. Aux On-Us (46-55): This is a required field if the customer desires services offered
by the bank which require a serial number. The serial number format is controlled by
the payer’s bank. A & D should match.
E. Routing Number (34-42): Designates the Federal Reserve district and financial
institution. Each city, state or region that the bank serves has a unique institution
identifier. IMPORTANT: positions 35-42 are the Routing Numbers; position 34 is the
check digit.
F. Account Number: This is a unique number assigned to the customer’s account.
G. Optional Serial Number: Used for personal accounts (checks only). This should be
a 4-digit, zero-filled field that matches the serial number in the upper right corner.
H. Convenience Amount Area: should be in the general location shown above in the
diagram. The illustrated box in the diagram is optional and if used, should conform
to ANSI X9.100-110. A single vertical stroke dollar sign is required.
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
8
3. Quality Issues
Quality Issues | 3
A high quality MICR document can be read by bank reader/sorter equipment many times
with no readability issues and does not result in damage to bank equipment. This quality
is the result of a well-designed printer, an originally manufactured MICR toner and highquality check stock.
MICR Printing Supplies
The ST9720 Secure MICR Printer has two user replaceable MICR components relative
to printing MICR documents. Both components must be MICR capable units and be
installed in the printer as a paired set.
MICR Cartridge
There are two size versions of the ST MICR cartridge. A new printer ships with a
5K or 5,000 page yield cartridge. Both 5K and 12K versions can be ordered for
replacement. The cartridge yield is based on printing pages at an average print
coverage of 5% in continuous printing mode. The yield claim has been certified
by the procedures governed by the international standard ISO 19752.
Print applications that are more transactional and averaging near 5% coverage
but nearer to a 1 to 3 page average print job, will see yield nearer to 85 to 95% of
the stated yield. When the printer alerts the user that 0 pages remain and a new
cartridge is needed, the cartridge is empty.
MICR Imaging Unit or IU
The imaging unit contains a majority of the components needed to transfer an
image to paper. The unit also contains a Refuse Bin f or st oring any waste toner
cleaned from the photoconductor or OPC. In terms of component wear and
waste capacity, the IU useful life should be near 40K or 40,000 pages or sides
assuming some duplex printing. The 40K is based on an average print coverage
of 5% and an average print job size of three pages or page sides. Lower actual
average print coverage and/or a larger average page count per job may increase
the useful life of the IU. Higher actual average print coverage above 5% and/or a
smaller average page count below three will shorten the useful life. Internally, the
printer automatically adjusts unit alarms or replacement alerts based on the
actual printing factors. If the actual print averages extend the useful life beyond
the 40K page forecast, the printer will not exceed 60K due to wear OPC factors.
The printer will stop printing and request a new unit.
Interchanging MICR and non-MICR Components
For non-MICR print jobs the MICR cartridge and IU can be replaced with
standard Lexmark components. Both units must be swapped as a pair. A
“mismatched cartridge and imaging unit” error will occur if only one component is
swapped. Extra care should be taken with protecting components from damage
when not installed in the printer. All internal end-of-life tracking informati on is kept
separate for all components in the printer and matched to the appropriate
component serial numbers.
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
9
Quality Issues | 3
Printer Features
Your secure MICR printer is equipped with some features to ensure high-quality MICR
documents.
Paper Type
When the printer senses the presence of a Source Technologies’ MICR toner
cartridge, internal operating points that affect the print engine and fuse grade are
optimized for MICR documents and the MICR toner. For the optimum MICR
quality we recommend that the printer paper trays with check paper have the
Paper / Texture / Weight settings set to Bond / Rough / Heavy. See the base
printer’s User’s Guide regarding paper tray settings.
Print Density
For optimum MICR quality and maintaining compliance to the check printing
standards, the Print Density should be set to density 8, the default value, when
printing MICR documents.
MICR Toner and Imaging Unit (IU) nearing end-of-life
Internal alarms are set to alert the end user that the print cartridge or IU is
approaching the end of useful life and will require replacement soon. The alarms
are set to 10% and 5% life remaining for the cartridge and IU respectively. See
the base printer’s User’s Guide for custom alarm alternatives. See Section 9 of
this manual for information on the relative messages displayed.
MICR Toner and Imaging Unit end-of-life
When the toner cartridge or the IU is determined to be at end-of-life, the printer
will stop printing. To continue printing, a new cartridge or IU will need to be
installed. See Section 9 for information on the relative messages displayed.
MICR Toner
Use only Source Technologies’ MICR toner when printing MICR documents. It is
specifically engineered to print quality MICR documents with your printer. The printer’s
MICR toner sensor is designed to work with the Source Technologies’ MICR toner
cartridge to prevent printing checks with regular toner present.
Source Technologies does not recommend the use of refilled or remanufactured MICR
toner cartridges. Refilled cartridges may result in expensive printer repairs and bank
check reject fees due to an inferior MICR toner formulation.
MICR Check Stock
Check stock has a significant impact on the resulting quality and security of your MICR
document. Here are a few features that should be considered when selecting a check
stock. Please see Chapter 5: Security Issues for more information on check stock
security features.
Quality
Quality MICR check printing with your Source Technologies’ secure MICR printer
requires check stock that matches the printer’s requirements. Source
Technologies can supply paper specifically made for our printers. If you wish to
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
10
order check stock from other suppliers, please show the following requirements
Quality Issues | 3
to your sales representative. We will test other suppliers’ paper for a nominal fee.
Layout
Layout your check design before any paper is purchased or layout your design to
existing check stock. Keep perforations, orientation, special logos and any color
elements in mind. The printer can print just about anything as long as it is black.
Weight
We recommend 24 lb. - 29 lb. paper.
Stiffness
We recommend Taber M.D. 2.5 and C.D. 1.1 minimum.
Smoothness
For best toner fusing, we recommend rougher surfaces within the base printers’
specifications, and the Paper Specifications for Checks, X9.100.10. We
recommend a smoothness range of 150 to 200, Sheffield.
Paper Grain Direction
When using 24 lb. - 29 lb. bond paper we generally support either long or short
paper grain. Overall performance in the bank’s reader/sorters is best when the
resultant grain direction is left to right when viewing the check.
Perforations
All perforations in the stock should be Laser-Cut or Micro-Perfs (20 or more cuts
per inch). Larger perforations can produce excessive paper chaff and result in
damage to the toner cartridge. Perforations should be ironed by the paper
supplier to reduce nesting and potential double-feeding.
Moisture
The paper moisture content should be between 4.7 and 5.5%. Storage conditions
have much to do with the final moisture content of most papers. Store your check
stock in a cool, dry, environmentally stable and secure area. Protective
wrappings should be removed just prior to use.
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
11
4. Security Issues
Security Issues | 4
Printing negotiable documents from blank paper on desktop MICR laser printers makes
security a top priority for any company embarking on a desktop check printing project.
Combating fraud is a moving target. As soon as a new weapon is developed, malicious
forces are at work to devise workarounds to it. Good security programs integrate
hardware, software, your employees, processes, and your financial institution into a
secure check production system. The ultimate liability for fraudulent documents rests
with the banks and their customers, and there can be many vulnerable points throughout
the overall system. Customers must have systems designed and documented to show
“Ordinary Care and Good Faith Effort” is in place to avoid liability. In the past, financial
institutions generally credited corporations when fraud was discovered. Today,
regulations attempt to define who may have been negligent in the transaction and put
the liability on that party or parties. If a fraudulent occurrence can be traced to a
corporation’s lack of security procedures or the design of their negotiable documents,
the regulations will protect the banks, or at best case the loss will be shared.
The following internal and external security measures will help minimize your risk of
check fraud.
1. Stay abreast of current check fraud methods and the latest in fraud detection.
Many financial institutions offer seminars to educate corporate clients.
2. Financial institutions should train tellers to look at the check, not the person
presenting the check. The check, not the person, is the item that must be
verified.
3. I ncor porat e security features into your base check stock and utilize printed
security features that address both alteration and counterfeiting of original
items. We have found the following check stock security features to be of
merit:
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. True watermarks are valuable but more
costly.
Laid Lines - Background lines that make cut and paste alteration difficult.
These are normally on the back of the check.
Fuse Enhancing Additive - Coatings or additives to the paper that improve
the bonding of toner to the paper. This helps prevent altering of critical data
such as the amount, or payee name.
Chemical Additives - If an ink eradicator (bleach, acetone, etc.) is applied to
the document, 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.
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
12
Security Issues | 4
This also provides for inventory control of blank check stock. This number
should not be linked or be equal to the check serial number due to the
potential of double feeding in laser printers.
Note: These features serve as a general guide for check security. You
should not consider these features as an all-inclusive list. We
recommend consulting with your paper supplier for any additional
comments or suggestions.
4. Firm s accepting checks should be aware of damaged MICR lines.
Intentionally damaging the MICR line can increase the time necessary to
process an item, giving the forger enough time to leave town. Discoloration
could be an indication of alteration as well.
5. Safeguard check stock paper, and limit access only to necessary employees.
6. When generating final negotiable items:
• The document always includes the amount value in words
• The document should not include information that limits the value
range, i.e. “Not valid over $500.” This only guides the fraudulent
attempt. Use your application software to detect out of range items
• All levels of hardware and software password protection should be
utilized
7. Unders t and and approve the security procedures of your check stock
suppliers to safeguard stock in their custody.
8. Consider “Positive Pay” check services from your financial institution. You
should provide the check number, check date, dollar amounts, and
sometimes the payee name to your bank when checks are issued. The bank
will match these values and alert you to mismatches before clearing the
check to your account. Financial institutions should encourage full
participation of corporate clients.
9. Move methods of fraud detection to the item’s point of entry into the clearing
system. For example, low cost readers can detect low magnetic strength in
the MICR line which is a good indication of attempts to copy an original.
10. Review and document your internal negotiable document printing procedures.
Investigate employee backgrounds before assigning security authority. Split
the responsibilities. For example, an accounts payable production/security
officer should not also balance the account.
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
13
5. MICR Features
MICR Features | 5
Source Technologies’ secure MICR printers are designed to allow both general office
document printing and secure MICR document printing. You may print a variety of
conventional jobs with regular Lexmark toner using all of the printer features available
such as network printer utilities. Source Technologies’ printers support multiple printer
languages (for example - HP’s PCL5 & PCL6, PostScript Level 2 emulations). The
MICR features require the PCL5e print data stream. Source Technologies has designed
features to enhance these printers with MICR mode specific operation that allows you to
securely print high-quality negotiable documents.
MICR Mode
Your secure MICR printer has two operational states: normal and MICR mode. When the
printer is in normal printing mode, your MICR resources cannot be accessed. Once the
printer enters MICR mode your secure resources become available and the printer
begins the process of confirming readiness to print a negotiable document. There are
two conditions which must be met before MICR mode is activated:
The correct password command must be received by the printer from the
software application prior to printing any MICR documents.
If the front panel combination lock feature is activated, the correct eight digit
combination must be entered from the front panel.
MICR Fonts
The E-13B and CMC7 MICR fonts reside in the printer. Examples of these fonts are in
the Appendix of this manual. They can only be accessed after MICR mode is activated
by your software. A MICR toner cartridge must be present to print the MICR fonts.
Secure Fonts
Source Technologies has designed two fonts: Secure Numeric Font and ICR Secure
Numeric Font. These are resident in your printer as well. Examples of these fonts are in
the Appendix of this manual. Like MICR fonts, these secure fonts can only be accessed
after MICR mode is activated by your software.
• The ICR Secure Numeric Font is designed for the convenience area of your
check. It can be read by the imaging equipment used by many financial
institutions.
• The Secure Numeric Font should not be used in this area since the reverse
image aspect of this font prevents it from being read by this equipment.
We recommend using both of these fonts on your checks as they are designed to deter
check fraud.
MicroPrint
Your secure MICR printer also contains the MicroPrint font. MicroPrint is text less than
.010” tall. It can easily be read with a magnifying glass but appears to be a solid line to
an unaided eye. This font provides protection against reproduction by most scanners
and copiers because they cannot successfully print the tiny letters.
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
14
Most check printers use this font in the signature area of their preprinted checks. We
MICR Features | 5
recommend using this font to help deter check fraud. The text in this font can either be
fixed, such as the name of your organization, or it can be variable, such as the check
amount and payee name. The use of variable text provides an additional method of
protection against check counterfeiters.
Use of the “MP” designate symbol, to identify the line as MicroPrint, is optional. The
MicroPrint font only contains alphanumeric characters. Punctuation marks and spaces
are ignored by this font and do not print.
Bi-Directional Feedback
Your secure MICR printer can provide MICR status messages to the check printing
application. This feature is valuable in a networked environment with multiple printers or
with users utilizing a print er located in another area. The application can get information
on MICR settings such as toner cartridge type (MICR or regular), locked trays (which
trays are locked to non-MICR applications), resident fonts/macros and audit trail
settings. The printer can send the application MICR error messages such as “load MICR
toner.”
When the printer receives the “@PJL INFO STVARIABLES” command it will report all
MICR variables to the host. The MICR variables can also be seen by accessing the
printer’s front panel menu. Select Reports > Menu Settings page. The second page of
this menu shows the current MICR variable configuration.
If USTATUS DEVICE=On, the printer will report PJL error 40020 for any MICR error
which causes the printer to go off-line. It will appear in this format:
@PJL USTATUS DEVICE
CODE=40020
DISPLAY=”MICR Password Error Press Go”
ONLINE=FALSE (formfeed----HEX 0C)
The code will always be 40020, only the display line will change to indicate the specific
error.
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
15
Resource Storage
MICR Features | 5
Check-related resources, such as form overlays and signatures, are stored in your
printer with unique identification numbers. ID numbers must be less than 32767.
Number 5001 is reserved for the Audit Trail overlay. Your secure MICR printer has two
areas where you may store these resources: flash and RAM memory.
The ST9720 secure MICR printer has 256 megabytes of resident flash memory. It is
user-managed and its resources can be designated as “secure” or “unsecure.” Secure
resources are loaded to flash with the STL command and have ID numbers greater than
or equal to 10000. They can only be accessed by using the STP command when the
printer is in MICR mode. Unsecure resources do not require a password and should be
assigned an ID number less than 10000. Resources stored in flash memory are not
deleted when the printer is powered off. Flash memory is required for all audit trail
features.
Storing resources in RAM is also an option. Resources in RAM are deleted when the
printer is powered off or reset. For this reason, check-related resources may need to be
loaded frequently. Resources stored in RAM cannot be password protected.
We recommend storing all check-related resources in secured flash memory.
MICR Menu
Your secure MICR printer contains a front panel menu specific to MICR applications.
The complete menu is as follows:
Option Card Menu > MICR Menu
Security Lock – Future Feature
Audit Menu
Audit Location - Flash/Disk
Record Sorting
Overlay
Sum Field 4
Print Report
Setup Menu
Hex Transfer
Density Control
MICRpoint
PDF 417 Processing
Demo Menu
MICR Font Demo
Starter Checks
Accounts Payable
Cashier’s Check
Use the menu button on the front of your printer to toggle through the menu options. To
select an option press the select (√) button. An item is selected when it has a checkmark
after it.
The Security Lock option allows the user to activate and set a front panel combination
for additional security. This feature prevents a user from printing checks without the
Source Technologies, LLC ST9720 Secure MICR Printer User’s Guide
16
Loading...