What type of information does a check reader process?

A check reader primarily processes MICR (Magnetic Ink Character Recognition) information on checks. MICR consists of the special ink and characters printed on the bottom of a check, which includes critical details such as the bank routing number, account number, and check number. This information is formatted in a way that allows check readers to quickly and accurately capture the data, facilitating the electronic processing of checks.

Using a check reader is essential for automating the handling of checks in various settings, such as banks or point-of-sale transactions, enabling quicker processing times and reducing the likelihood of errors compared to manual entry methods. The MICR line's design ensures that even when checks are handled frequently, the critical data remains scannable, maintaining the efficiency and integrity of check processing systems.