Canadian Checkbook MICR Format

In order to facilitate the trade in the financial industry in Canada, the Canadian Checkbook MICR has been created. With this format, transactions in federally insured banks can be processed more efficiently and in a shorter period of time, since the time of conversion of the paper check is less than a minute. It is very much similar to the United States Federal Reserve Cheque Book that is used worldwide.



The MICR technology allows any type of financial institution to process the transactions of federally insured bank accounts, including cheques and cashier's checks. The use of this checkbook is advantageous in various ways. It reduces the processing time of the transactions of cheques and cashier's checks by a considerable margin, as it converts the incoming paper currency into a verified electronic form within a few seconds. This also reduces the possibility of errors in interpreting the values or data.

When converting a check into a MICR file, the values on the face of the check are not shown, but only the numeric portion of the check. Hence, for recording the transaction, the banking software must be equipped with a feature that can extract the associated check value from the MICR code. The conversion process is not complete without converting the check into an E check format, since the magnetic stripes of an E check cannot be read by most of the MICR check converting equipment.


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