What does MICR stand for in banking technology?

MICR stands for Magnetic Ink Character Recognition. This technology is primarily used in the banking industry to facilitate the processing of checks and other documents. It utilizes special magnetic ink that allows the characters printed on checks to be read by magnetic sensors, enabling automated processing. This system enhances efficiency and accuracy in financial transactions by minimizing the risk of errors that may occur with manual check handling.

The use of magnetic ink ensures that the characters can be reliably recognized by machines, even in cases where the print is smudged or otherwise distorted. This capability is crucial for batch processing of checks, where speed and precision are vital.

In contrast, the other options do not accurately describe the established technology used in banking. They either introduce incorrect terminology or refer to concepts that do not pertain to the specific function and application of MICR in financial technology.