A Concise Guide to MICR and Associated Technologies, Business

The Sort-A-Matic system included 100 metal or leather dividers numbered 00 through 99. Each check was placed in the corresponding divider by the first two numbers of the account. The sorting process was then repeated for the next two digits of the account number, and so on. When the process was complete, the checks were grouped by account number.

Under the Top Tab Key Sort system, small holes punched at the top of the checks indicated the digits. For instance, the first hole indicated the value of the first digits (0, 1, 2, 3...) A metal "key" was inserted through the holes to separate all of the checks with the same value in the first digit, and this step was repeated for each digit until all the checks were sorted.

Both of these systems worked, but they were time-consuming. With the advent of the computer and its movement from the laboratory into the business world, a sorting and matching task seemed ideal. Stanford University and Bank of America were the first to successfully use computers to sort and match checks. They developed what is now known as MICR.

The Development of the MICR Font
The MICR font was developed by Stanford University in conjunction with Bank of America and approved by the American Banking Association. The font is known as the E-13B font. E-13B has a total of 14 characters: ten specially designed numbers (0 through 9) and four special symbols (Transit, Amount, On-Us, and Dash).

The letter E indicates the fifth version considered. The letter B indicates the second revision of that version. The number 13 is derived from the 0.013-inch module construction used for stroke and character width. This means that all character widths, both horizontal and vertical, are in multiples of 0.013 inches ranging from 0.052 to 0.091. The significance of this will be explained more thoroughly later in this article.

MICR Readers
Three types of machines are used to read MICR characters. The two that read the characters magnetically are referred to as MICR readers. The third machine is an Optical Character Recognition (OCR) reader.

E-13B characters are printed with toner containing iron oxide, which is capable of being magnetized. MICR readers transport the checks containing the E-13B magnetic characters past a magnet, thereby magnetizing the iron oxide particles. The magnetized characters then pass under a magnetic read head. The magnetic field (flux pattern) caused by the magnetized characters generates a current in the read head. The strength and timing of this current allows the reader to decipher the characters.

Magnetic readers come in two types: single track (single gap or split scan) and multiple track (matrix or pattern) readers.

Single-Track Reader Characteristics
Single track uses a read head with one gap to detect the magnetic flux pattern generated by the MICR character. When a magnetized E-13B printed character moves across the narrow gap of the read head, the electric voltage caused by the magnetic flux from the character generates a waveform unique to each character.

Multi-Track Reader Characteristics
The multiple track reader employs a matrix of tiny, vertically aligned read heads to detect the presence of the magnetic flux pattern. The small individual read heads slice across the character to detect the presence of magnetic flux. This sensing of magnetic flux over time produces a unique matrix pattern for each character.

An OCR reader does not use magnetic properties to detect the E-13B characters. Instead, it uses a scanner to detect the amount of light reflected from the character and the amount of light reflected from the background. A photocell column detects the presence of the dark area of a character.

Waveform Theory
The readers move and read documents from right to left. The right-hand edge of the character, as a result, is the first to cross the read head. Analysis of the signal level created by reading the character 0 will help explain this in greater detail.

As the character moves from right to left under the read head, the gap detects the magnetism of the first right-hand edge (edge 1). This results in the increase in magnetism and a positive peak is created (peak 1). As soon as the right-hand edge moves beyond the read head gap, no new magnetism is found, and thus the wave form returns to the zero signal level.

At the second edge, the vertical read head detects a drop in magnetism, which results in a -110 signal level at peak 2. Again the waveform returns to zero until the next portion of the inner ring of the character is detected. At this point (peak 3), an increase in magnetism (+110) is indicated. Finally, the outer portion of the character is read, resulting in a negative peak (peak 4) of -130.

The placement of the vertical edges must occur in increments of 0.013 inches from the first right-hand edge. There are five characters that have two positive and two negative peaks similar to the character 0 and also appear in a positive-negative-positive-negative format. They are 0, 2, 4, 5, and the transit character, which are differentiated from one another by the horizontal location of the peaks in the waveforms. The peaks do require different amplitudes, but ANSI standards allow them to vary from 50% to 200% of the nominal amplitudes (Canadian standards allow them to vary from 80% to 200% of the nominal amplitudes). This is why the placement of the waveform is so important and why the characters are shaped unusually.

What Affects the Signal Level?
Signal level can vary based on a number of factors. The amount of iron oxide (concentration) that is present in the character will affect the signal level. This is a function not only of the toner itself, but also of how it is laid on the paper and the pile height, which can be controlled by numerous other cartridge components (i.e., "hot" OPCs).

The taller the vertical edge of the character, the taller the peak (either positive or negative). A vertical edge that is not regular and/or not vertical will result in a reduction in the amplitude of the peak and will flatten the peak out.

Keys to proper waveform detection are:

• All peaks in a character's waveform must be detected. The reader sorter must know that the peak is there.
• The peak must be located at or near its anticipated location.
• No significant "extra" peaks can be present.
• There cannot be wide variations in the signal levels of peaks within a character.

What to Look for in MICR Printers and Consumables
Printers that are used for MICR printing must have a unique MICR font that is modified to suit the unique printer engine, and it must be modified to the pixel level to match the magnetic toner provided for that printer. This is essential to ensure the correct waveform, dimension, and signal strength when a check is printed with the correct MICR characters. In addition, the MICR font must meet ABA-X9 standards to ensure acceptance of your checks by banking institutions.

The magnetic MICR toner that you choose must be specifically designed for the particular print engine in the printer. Ensure the toner has been thoroughly tested for consistent signal readings, image permanence and uniformity, and excellent edge acuity. Toner coverage must be solid with no extraneous toner lay down.

OEM cartridges are always a safe (but more expensive) bet. If you buy a "compatible" brand, ensure it has a new OPC drum, new primary charge rollers (PCRs), a new black velvet magnetic sleeve, and new image wiper blades. The hopper system must be filled with high-quality, low-abrasion MICR toner.

The vendor you choose should use the latest and most advance MICR test equipment, such as a Verifier and Golden Qualifier to conform to ANSI X9 Standards. It is also recommended that the systems exceed U.S. and Canadian check printing standards.

8:37 AM   by Unknown ·   0

Get The Fundamentals Right, Business

To succeed in business on the Internet, or in the off-line world, requires an understanding of the fundamentals of business and using them to your advantage. In this article, I will outline what I consider the fundamentals of business success are.

Believe in Your Product or Service
First, you need to believe in your product or service. If you don't believe in it, you will have a great deal of difficulty selling your product or service to other people. You also need to have confidence in your ability to provide and promote your product or service. An old saying sums this up best by stating: "All things are possible to he who believes".

Aptitude for the Business
Secondly, you need to have an aptitude for the business. You will also need the motivation to acquire at the very least basic skills and experience before you start your business. If you were to set yourself up as a web designer but did not have any skills or training in this area, then you will almost certainly fail. However, if you are employed as a bookkeeper and you enjoy the job, then setting up your own bookkeeping service would be a sensible choice with a greater chance of success.

Be Responsible
Thirdly, you need to be responsible to your customers. This is achieved by only making commitments you can keep and by not engaging in misleading or dishonest advertising. If you want to build long-term success in your business, then you need to develop long-term satisfied customers. When their needs are being satisfied, customers are at their happiest.

Aim for High Quality
The next principle is that you need to have a high quality product or service. This will be your best advertisement. Inferior quality products usually generate poor customer satisfaction. A dissatisfied customer can be very dangerous for your business. Usually they tell on average about fourteen other people who will then be disinclined to buy your product or service based on the experience of that one dissatisfied person. Therefore, always aim for a top quality product or service.

Make a Profit
However, it is not enough to have a top quality product or service. You also need to have a product or service that will generate enough income to cover all your business expenses and give you a satisfactory wage. A friend of mine once said that business is only about two things: satisfying customers and making a profit. A simple statement but very true.

Sufficient Start-up Capital
You also need to have access to enough cash to set up and run your business, and enough income to meet your private expenses during the start-up phase. A major problem with many home and small businesses is that they fail to have enough money available to ensure their success. There is nothing more discouraging than having a great idea, getting it started on a shoestring, not being able to expand due to cash shortages and seeing a competitor come along and steal your market.

Start Small
Another fundamental principle of home business success is that you start small. This will enable you to minimize your overheads until you are confident of your success in the marketplace. For many of you, this would mean starting part-time while retaining your full-time income source. When you can, expand your business into a full-time venture. This is a great way of minimizing the risk of failure.

Be Well Organized
Successful businesses are well organized. They have a system for keeping track of expenditure and earnings. This level of organization in your business will help to ensure that you are providing your customers or clients with a top quality product or service. It will also ensure that you have enough information available to maximize your profitability and to satisfy your legal requirements for record keeping.

Be Prepared
Preparation is another key ingredient in your business success. This preparation will include being aware of the regulations and laws affecting small and home business. Armed with this knowledge, you should not have any nasty surprises from unintentional violations of the law.

Have a Business Plan
Finally, successful businesses have developed a comprehensive business plan. This is their road map to success. It tells them where they are going and how they are going to get there. There are a number of good resources about business planning on the Internet. Here are some:
www.bplans.com
www.businesstown.com/planning/creating.asp
www.bizplanit.com/vplan.htm

Conclusion
It has been said that genius is one percent inspiration and ninety-nine percent perspiration. The same can be said about business success. Without having the fundamentals in place, a great business idea will usually fail. Set yourself up for success by considering each of the points raised in this article.

8:36 AM   by Unknown ·   0

Linear Income vs. Residual Income: Knowing the Difference Will Change Your Life!, Business

If you don't know the differences between linear income and residual income, then you definitely need to spend five minutes and read the remainder of this article. Knowing the difference will change the way you think, in return, changing the decisions you make and ultimately change your life from this day forward. 

These income concepts are what divide the rich and the poor, the wealthy and the struggling middle-class, the knowledgeable and the ignorant. Linear income and residual income are the two ways that people make money in the world. This article will show you which income concept is best, or let's just say, preferable.

First off, let's address what is understood to be linear income. Employees, independent contractors, and self-employed business owners make up the linear income bracket. Linear income earners are only paid for the specific time expended, or paid directly proportional to the number of hours invested in their job. Linear income earners must be physically present or "clocked in" to get their paycheck.

Now here's the biggie! Linear income earners cannot leverage their time and efforts. Leveraging is what creates the wealthy/rich social class, and the absence of leveraging is what creates the middle to impoverished social classes. I will discuss leveraging in depth when we talk about residual income earners.

Linear income earners can be fired or "down-sized" at any time. For example, an employee could be the perfect worker within their company. But now a bigger and better company has bought out (acquire and merge) the smaller company, and the bigger company now "downsizes" several workers of the original company. What's sad in this situation is you were the perfect employee, but because you were working for the wrong company at the wrong time, you are now out of a great job with great benefits. You have no control whatsoever of the situation.

In addition, in the linear income bracket, the height of your success is determined by your boss, not you. You have very little control of your achievement within the company that employs you. You must work and hustle in an effort to be recognized as valuable to the company, but only for your superior to get the credit for your work and hustle while you remain in your current position. That sucks doesn't it!

If you're self-employed, you do have control of your personal achievement which is great, right? Now tell me this, what happens to your business if you're in a car accident and/or hospitalized, and it takes you three months to reach full recovery? Because you're self-employed, you'll more than likely miss that money!

Let me ask this question. As a linear income earner, can you pass your job down to your children or grandchildren? I don't know too many jobs that allow you to do that. And even in the corporate world, in order to be promoted, your superior either has to be promoted or demoted.

In summary, linear income earners have little control of their success, they live paycheck to paycheck, they can be fired at any time, they cannot pass their job down as an inheritance, and they are participants of the "dog eat dog" world which thrives on the destruction of co-workers' and superiors' reputation in order to receive promotion.

Now, the alternate income bracket is the residual income earmer. I'll let you decide which the better of the two is. 

Residual income earners consist of business owners, network marketing associates, and investors. Their income continues to be generated after the initial effort of building the business has been expended. Residual income earners don't worry about "clocking in," they can be absent for periods of time and still see consistent income from their business. As a residual earner, you could be in the shower, in the hospital, or in the Bahamas, and you'll still see checks in the mail or direct deposit transactions on your bank statement. Doesn't that sound like fun!

Remember when I mentioned the word "leveraging" earlier? Leveraging is basically using someone else's time and money to benefit you. Now wait just a second. I know that sounds very harsh and cruel but think about it first. Isn't your boss leveraging your efforts? When I put it that way, you start to get the picture of how this concept separates the wealthy from the not so wealthy.

A residual earner's income stems from their business or businesses. They are the boss; they have total control of their business's success and achievement. Wouldn't you like to be in that position if you aren't already? With your own business, you can pass it to your children, and they can pass the business to their children in return, you are leaving a family legacy. You are able to leave your children with a ready-made pipeline of income versus working your job, retiring, and leaving your kids with nothing but debt.

With a residual income business such as a network marketing (multi-level marketing) business, you benefit only by helping others to be successful. I personally don't know of too many instances where corporate employees are helping others they work with to become successful.

The two major separations between linear income earners and residual income earner's is the linear-minded people work, scrap, and hustle for money. Most are only after a quick paycheck. Residual-minded people work, scrap, and hustle for freedom. By freedom I mean, freedom with their time, freedom with their lives, and freedom with their finances.

So which would you rather be? Would you rather be the linear individual living from paycheck to paycheck, no control over your success, unable to spend quality time with your children, and always sick because you have dreams and goals but are unable to achieve them? Or would you rather be the residual individual who possesses full control of their life, spends quality time with their kids regularly, is able to leave an inheritance for the future, doesn't have to sit on their goals and dreams, and can show others how to do the same?

I'll leave it up to you!

Now I would not explain those two concepts without providing a means to crossover from the linear mindset to a residual mindset.

http://www.payitforward4profits.com/dlturner3183

Check out the website above. This company will provide you with free information and they will simply introduce you to the most prominent and successful businesses that you can build out of your home and/or online. Aligning with this program will make the transition from linear income to residual income a smooth one. 

If you want something you never had, you have to do something you've never done, period!

8:34 AM   by Unknown ·   0

Identity Theft of your Limited Company, Business

The UK registry at Companies House provides a useful service for limited companies. In addition to incorporating and dissolving companies they also maintain the national register. This involves the recording and storing of data relating to all UK incorporated companies and LLP's. Historically most records were updated by the submission of manual forms. This would include the submission of company accounts, change of address forms and forms appointing new company officers as well as many other documents. Whilst this system has served a purpose for many years it is far from secure as signatures are not checked and changes are implemented without further checks.

Identity fraud has increased over recent years, which meant that the previous system at Companies House was open to serious abuse. Companies have found their records have been updated without their knowledge. Individuals can masquerade as company officers, open bank accounts and enter into fraudulent contacts. It has been too easy for too long for businesses to be deceived and for companies to be hijacked

However, Companies House has now introduced some basic protective measures that limited companies in the UK can adopt. Firstly they have introduced 'WebFiling'. This is an electronic online filing system. It allows companies to make changes to their company details online. Instead of posting forms to Companies House changes can now be made in minutes online. To increase security there are two simple security procedures used. A security 'authentication code' is issued for each company and users require a security code to access the software.

The second security improvement is that users can sign up for Companies House 'PROOF' service. This means that they will no longer accept manual paper forms to make changes to your company records. This stops the opportunist from simply completing forms and posting them to Companies House. Any paper forms will require further authorisation from existing officers.

Whilst these two points should reduce identity theft companies can also 'monitor' their companies filing. This does not literally require daily monitoring of Companies House. For a small fee of £0.50 per annum Companies House will inform you by email every time a document if filed at Companies House for your company. This includes manual and electronic filing. This means that you can double check all changes made to your company without leaving your desk.

These three simple to implement measures should help protect the future identity of your limited company. Not only will you have piece of mind but you will save your company time and money by filing online. 

8:32 AM   by Unknown ·   0

Company Seal that Deal – Literally!, Business

A company seal is a device commonly supplied by Company Formation Agents when registering new companies for clients. The company seal offers a way of embossing documents with the company name and number as a way of sealing the document. This seal is often used in place of signatures of the authorised representatives of the company.

In the UK, Prior to the Companies Act 1985, a company seal was legally binding on a company when a document such as a contract or share certificate was embossed by the seal. Since the Companies Act 1985 (and subsequent amendments) were introduced the company seal was no longer a legal requirement of a limited company. Instead a company can effectively seal a document with the signature of two company officers, typically a director and secretary of the company.

Although this change in law in the UK would appear to make the company seal a redundant item they are still widely used today. The company seal still has great importance in other countries and many UK companies doing business overseas will often need to seal a document to complete a contract or agreement.

How does it work
The company seal is actually an embosser as opposed to a stamp that would contain ink of some form. When the seal is pressed onto paper it creates a raised impression of the information contained within the two dies.

The company seal has two dies containing the information to be embossed on to paperwork. One die will have a raised impression and the other die will have the inverted image of this information. You simply insert a piece of paper between the two dies and press the lever, or squeeze the plier, and the two dies come together creating a raised impression on the paper of the information contained on the dies.

This embossing process is a simpler alternative to more traditional seals which involve using wax and a stamp. Wax would be heated and melted onto a document which is then impressed with the stamp containing engraved information. The engraved information would create an impression in the wax and therefore seal the document. As it is not practical to heat wax in many situations the company seal offers a simple alternative by impressing directly into paper.

If you wish to obtain a wax effect from a company seal you can use self adhesive wafers which are designed to look like wax. The wafer is simply placed on the paper before embossing, then emboss in the centre of the wafer and the raised image is more defined as would occur with a wax seal. Company seal wafers are typically supplied in red (to look like wax) or gold.

Various types of company seal
Company seals are available in two formats.

The cheapest seal is a plier type seal which has two dies, one on each side of the plier. As the plier is squeezed, with paper between the pincers, the two dies come together and emboss the paper. This plier type company seal offers an economical and portable way of sealing documents but is limited in its reach from the edge of paperwork and is unable to emboss a satisfactory image into thicker paper.

The more robust option is the lever type company seal. This seal has one die on its base and a second attached to lever above the base. Paper is inserted over the base and the lever is compressed thus embossing the paper. As the force created by the lever is much greater than the plier type seal the lever company seal can emboss thick paper and card. Lever company seals are available in various finishes so can be kept on a desk adding a professional look to your work environment.

Who uses company seals
Company seals are still widely used by limited companies in the UK to emboss the company name and number on important documents. Although not legally required they do give a professional finish to important contracts and certificates.

Professionals such as Notary Publics and solicitors also use them to seal documents they have signed with their name and often a unique logo.

Anyone can use a company seal and it does not have to contain information relevant to a company, this is just the most common use.

Where to obtain a company seal
The most common supplier of company seals in the UK are company formation agents as it goes hand in hand with company formation services. A plier type company seal containing just text (no logo) can be obtained for less than £20.

8:31 AM   by Unknown ·   0

Working the Room and how to do it, Business

Let's cover an area of working the room with which people often struggle... the actual moving around the room. Disengaging with one group and breaking into groups. Finally I will cover the bridge process and explain the importance of the follow up after we have met new people.
Perhaps you have recently had a chance to meet people at a business networking event or social event, a conference, or seminar and have taken the opportunity to go up to someone standing alone. The problem comes when you wish to extricate yourself from this person but don't know how to go about it. Here let me give you some practical ideas. If you are both fellow guests at a function you don't owe it to this person to spend the rest of the evening with them. Think about it for a moment, the chances are that this person wishes to move on as much as you do but like you they simply don't wish to offend or cause any embarrassment.
You can do one of three of things:

• After you have finished speaking you can simply say "Well, Jo, it's been great meeting you, enjoy the rest of the evening. Please excuse me as I promised to go and talk to Gerry over there".
• You could say, "I'm going to get another drink, would you like to come?"
• The coward's way out is "Please excuse me, I need to go to the loo!" and make sure you move well away from the person.

Whichever you use please do it with respect, integrity and politeness. Good manners is essential when working the room and is good business; bad manners brings no business.

The important aspect here is to move around the room with or without your new found friend. Again can I remind you that if your conversation is dry, they too probably want to be off working the room as well. You are doing them a favour by using your superior business networking techniques

Using the second idea of moving to the bar is an opportunity to park the person with someone else or for them to park you. It's rare both of you will be at an event where you don't know anyone so moving to the bar usually has the desired effect. When you do bump into someone you know even though you are a guest at an event act as a host. Don't just say "Hi Lou this is Jo" and leave it there. You have been chatting to Jo for some time and you obviously know Lou ... so play host. Say something like this, "Lou let me introduce you to Jo who I've just met this evening. He has a fascinating business selling sand to Middle Eastern Companies and, Jo, Lou here and I have been friends for years. He runs a business helping growing exporters raise finance from people who are looking for high-risk high return opportunities". These introductions are designed to get the two of them to talk quickly and with ease and reassurance. Who knows what may happen. You just might have created some potential for both of them? Business networking isn't just about what you can do for yourself, it's about what you can do for others. If you help someone, they will remember you when they hear of someone who needs your services. This of course makes it so much easier for you to move on and meet other people. This exercise is what I call parking. Like your car do it carefully, watch all angles and don't hit anything!

So now you have a parked Jo with Lou you have freshened up your drink. You look around the room and you see clusters of people or groups chatting to each other.

"Help... What do I do next?"

It's easy. Work the room! Look for a group of three people and move over to the edge of the circle. As you are moving towards the group, look at the faces of the people and decide who seems to be the most welcoming. Stand opposite that person at the edge of the group and smile. I can assure you the following will happen. The person you have smiled at will smile back and one or both of the other people will turn towards you and both will take one step to the side making a space for you. When you first do this, it's not easy. I'm not pretending it is but it always works. Ask in a gentle voice "Good evening please may I join you"? Again I have to tell you, you will not be rejected. The chances are someone will put their hand out and introduce themselves. I often play a game at the start of a business networking seminar or prior to a sit down meal by asking my newfound friend if they would allow me to use them as a Guinea Pig. I get them to go up to people they don't know, try out what I have just said and it always works. I do this simply to ensure that whenever I write about the matter or speak about it at the presentations and seminars I deliver that I feel confident in the advice I give.

Once you have successfully joined a group, don't change the subject matter and wait for them to start asking you questions. Bear in mind again, the chances are these people are from the same business or have known each other for a long time but haven't got the self-confidence to break away and meet new people... So you are a big relief for them!

When you are in a group, you will know the time to move on, instinct will tell you. I don't need to. So go to the top of this article and remember the tips about working the room.

8:27 AM   by Unknown ·   0