Read a Canadian Cheque MICR

 If you have ever received a Canadian cheque, you know how important the MICR line is. This identifies the account number, which may be two or three digits, or it may be as long as six digits. In Canada, this type of encoding is becoming more common. In addition, the MICR line indicates the bank branch where the account was opened and where the funds were transferred to. These numbers are unique to every single cheque, and the same pattern is used to identify a particular cheque.



To identify a Canadian cheque, you must first locate the number on the top right corner of the cheque. In some cases, the number is only two or three digits long. However, you may find cheques with six digits. The MICR line of a Canadian check is always five digits long, and it is located directly above the bank's institution and transit numbers. A Canadian personal check is always composed of only three tiers of ten - the first tier is the account number. The final ten byte is the MICR code.

Besides the MICR line, the cheque also has another element known as the memo line. This identifies the reason for payment. If you are paying an interior decorator, for instance, you would write the payment as payment for office renovation. The MICR line helps the payee and payer remember the transaction and helps resolve any legal disputes that may arise. The MICR line is just one of the many components of a Canadian cheque.

Comments

Post a Comment

Popular posts from this blog

How to Write a Cheque For Cash

Image
  If you want to cash a check, then you'll need to know how to write a cheque properly. In this guide, you'll learn how to write a cheque the right way. Whether you're sending money to a friend or a business, you should always write the recipient's name on the check. If you don't know the company's name, then you should look up its name online. To avoid incurring non-sufficient funds charges, be sure to write the amount you're paying on the right side of the check. The dollar amount must be written out in words, although cents can be written numerically. Be sure to sign the check, and keep it safe. Here's a guide to writing a cheque. It's easy to do , even if you're not a great writer. First, you need to write the correct amount. You can write the amount in two places. The first location is next to the recipient's name. You need to include the full name of the person in the enclosed box next to the recipient's name. If there is a differe...
Read more