Why is number preprinted on computer checks?

Oops. Missing word there. The sentences should say "Why do computer checks have the check number pre-printed on them?"

Your bank is interested in the check number too. It is encoded in the MICR ink across the bottom, and they report it to you by number, and keep it in their records that way (microfilm for example). I doubt the bank wants it to be a random number.

Ah.... I did not know that.

However, when I make an online payment to Allstate Insurance they make me give them a check number. So I just make one up. Hasn't caused a problem with the bank yet.

I'm not sure why Allstate asks for that, since every other online transfer I do with other companies does not require a check number.

What about VersaCheck? I've never used it but doesn't it essentially print each check from scratch? The forms are blank until your printer prints the account number, amount, check number, etc? Right? And it's not printing in MICR ink, I would assume? Just asking.

Versacheck now recommends using MICR ink and they sell it.

For a while there was a movement to sort checks optically. I've been away from the field for quite some time, but that seems to have been abandoned and it appears that MICR encoding and sorting remains the standard. If you print a Versacheck (as I have) without MICR encoding then the bank, or in some cases a business, will have the check rejected when they sort their batch of checks and your check will be hand encoded. If your checks or images of your checks are returned to you you will see a strip of tape affixed to the check where the MICR encoding was added.

Usually the MICR encoding will be done accurately and your bank routing number, account number, check number, and check amount will all be properly encoded. On rare occasions one of those numbers may be miscoded and then chaos results. The particular type of chaos depends on which field is miscoded.

Preprinted checks are so inexpensive, and we write fewer than a dozen checks a year these days, so I've stopped using the Versachecks.

Bernie

Also, pre-printing the check number provides a control mechanism to tell if a check is missing/stolen/etc.

Right. Speculation on that topic was in my OP.

When you get your bank statement back (or check online) does the check number you made up appear next to the payment to Allstate? I suspect it does. I'm guessing it has to do with how Allstate implements their payments- they may actually print a check for your payment and mark it "signature on file."

Also I think the idea is for you to record the next check # in the register of your checkbook with the payment to Allstate and then void the paper check since it won't be used. I don't think the back cares what the number really is. We rarely use paper checks and don't even try to keep the paper register current. If I need a check, I usually can't find the checkbook anyway so I grab a pack checks from the supply and steal one. The numbers are out of order and strange, but since the bank can display an image of the check via their web site we can keep it straight in Quicken.

I don't know anyhting about VersaCheck, but if it prints your account # and the bank routing number on the check I can't see how they could get away without using MICR ink.

Yes, it does. I usually give the allstate checks a five-digit number since all of my checks (both computer checks and the regular checkbook checks) are four-digit jobs. That way I'm sure I'm not duplicating a number.

Well... I don't do that.

I'm much like you in that regard. And besides, I do so much via online transfers now that I rarely use checks. My debit card has taken the place of my checkbook in supermarkets etc. When I do need a check, I use a computer check And those pretty much have to be used in numerical order anyway.

I suspect that VersaCheck assumes the user will take appropriate precautions: including using MICR ink where necessary.

I believe some banks/check-processors will not require the MICR ink ... but I think it is a bad bet to rely on that.

I used to use Checkmagic to do my own checks - here's the website:

. Some info they currently have concerning MICR:

The American Bankers Association (ABA) has set the standards for the shape and size of the special characters that are printed at the bottom of your checks. These encode check routing and other information that allows your check to be read and processed by the automatic equipment throughout the banking system. It is this equipment and its high-speed readers that let the banking system process millions of checks each day. These special characters are called MICR (Magnetic Ink Character Recognition) characters because they were originally designed to be printed in a special magnetic ink and read using magnetic sensors in the banks' machinery. However, almost all banks (more than 90%) now use optical sensors (OCR -Optical Character Recognition) to read your checks. This means that the banks' equipment can read the MICR characters as long as they are printed clearly and accurately, with magnetic or standard ink or toner.

-- ------------------------------------------------------------- Regards -

- Andrew

I have seen numerous discussions on some accounting e-mail & news groups recommending that until 100% of the banks switch over to the optical sensors that we should continue to use the MICR ink if we are printing our own checks. One never knows when you might be sending a check to someone who does banking in that 10% group.