What you will need and the pros and cons:
Printing
your own checks can make sense or cents. Businesses and
people alike are learning that there are cost and time benefits
compared to buying pre-printed forms through a bank or printing
company. We will discuss what it takes to print your
own check documents and if it makes “cents” for
you.
Printing your own checks requires several things: Software,
MICR Font (this may or may not be included in your software
package) MICR toner, Blank Check Stock, MICR Placement Gauge
and a Laser Printer.
Software: Choosing a software program
can be tricky. If
you are a single user operating out of your home or a small company, there
are several basic programs available through on line companies or big box office
supply stores. It is important to find a solution that enables
you to print the check in one pass and meets your check writing needs. Popular
accounting programs such as Peachtree or Quickbooks require that you buy pre-printed
checks encoded with the MICR line however there are software interface solutions
available that can enable you to print the document in one pass For the larger
company, it may not be as simple. Larger companies typically operate
out of more complex computer systems or have multiple accounts or accounting
tiers. These larger users typically need to purchase a custom software
package that is written to their specifications. These packages may be
costly up front but over time absorbed as a small cost of doing business.
MICR Font: Ever wonder what those futuristic characters
and numbers were at the bottom of your checks? Those characters comprise
a MICR font, or Magnetic Ink Character Recognition font. This is the
font the ABA (American Banking Association) requires on check documents so
a bank’s readers/sorters can read your checks. This font must also conform
to the ANSI X.13 standards which are rules that call for proper MICR line placement
and size, which lends to consistency and durability of the MICR font as it
is applied to the check. Unfortunately it is not a standard Windows font. Most
check writing software packages include this font within the software application
but on rare occasions it is necessary to purchase the font separately. It
is available as a piece of hardware installed into a laser jet memory slot
(this requires some programming skills) or as a downloadable Windows True Type
or DOS font.
MICR Toner: Bank scanners are sensitive pieces of equipment
and check documents can be scanned over 30 times in its journey from bank to
bank. MICR toner is specially formulated with magnetic properties so
the bank scanners can read the document and it must withstand being scanned
repeatedly. There are companies that claim to carry MICR ink for inkjet
printers however it is unreliable technology. Magnetic particles are
heavier and sink to the bottom of the inkjet cartridge causing unreliable MICR
strength on check documents. Ink is also not as sturdy and may not withstand
being scanned 30 times. MICR toner is the golden standard for MICR printing. There
are not enough magnetic properties in regular toner and it would be a gamble
to print without a MICR toner.
Blank Check Stock: The most obvious requirement for
printing your own checks is blank check stock. It is recommended that
you use 24 pound secure check stock made specifically for laser jet printers. Laser
printers can handle various media sizes but check stock is typically 8 ½ x
11 inches, just like a normal piece of paper (there are legal forms available
as well). Check stock is perforated to allow for easy check and stub
tear off. The check itself can be located on the top, middle, bottom
or in multiples on the piece of paper. The program you are using determines
what check layout you need and it is always wise to contact your software vendor
to determine the exact measurements of the form, measured from top to perforations
to bottom. Security and fraud prevention is a huge issue and it is recommended
that you purchase a stock that has anti-fraud measures such as a copy void
pantograph, multi-color back ground, watermark on the back and a signature
box. Economy stock if up front cost is an issue but you are risking a
larger cost should your checks become compromised by an experienced check forger/scammer
MICR Placement Gauge: This is a tool which looks much like
a ruler that helps you determine if your MICR line is aligned in accordance
with ABA and ANSI banking standards. Depending on the manufacturer of
the gauge you either insert the check between a plastic sheath and backer or
you place the clear gauge over the check document to analyze the MICR line
placement accuracy. The most common reason why checks are rejected is
the MICR line is not in the right location on your check document. Two
common mistakes are the line itself is in the wrong location due to incorrect
character placement or that there is printing other than the MICR line within
the bottom 5/8” band from the bottom of the check up. This tool is most
effective for those who have written their own check writing programs or with
programs that allow you to move the MICR line horizontally or vertically.
Laser Printers: Most vendors supply MICR toner for HP and
Lexmark brand laser printers. MICR toner is formulated based on a printer engine
and not all printer engines are alike. Toner that works in a HP 4000 may or
may not work in a HP 1012. As a result, companies that carry MICR toner pick
printers where there is a high demand as there are cost and time factors associated
with developing each MICR toner formula. It is very difficult to find
MICR toner for printers not made by HP or Lexmark. If you are buying
a laser printer for the sole purpose of printing checks, it is wise to first
check if toner is available before you purchase the printer.
PROS: Printing your own checks can save you money. The
initial cost is high as you have to invest in all the equipment and consumables
mentioned above but over time, if your check volume is high enough, the costs
will dip dramatically over buying pre-printed checks. Determining whether
or not your check volume would substantiate a switch from pre-printed checks
would take some number crunching and a long term forecast. Pre-printed
checks typically run anywhere from 7 to 15 cents per check. If your check
volume is high enough, printing your own checks can be 5 cents or lower.
If you or your company pays out of separate accounts for different
business functions, printing your checks on an as needed basis
prevents waste and frustration. If your printer eats
a bunch of pre-printed checks, they are forever gone and cannot
be reproduced causing an interruption in your check number
sequence. If you print your own checks, you can stay within
check sequence by just reprinting the checks you lost while
your printer malfunctioned. The same can be applied to
any type of user error in printing checks. You never
have to go to the supply closet sorting through different accounts
to find the checks you need to write either. If you or your
company moves or changes banks, you can just change the information
within your program instead of having to order new checks which
also reduces waste. Some programs can store signatures which
also saves time, no more chasing down the president or CEO
for his/her signature! Basically, printing your own checks
is more efficient for those with multiple accounts.
Printing your own checks allows for more security. By
having a dedicated printer and password protected computer
not accessible by the company network, you have a reduced risk
of inside fraud by an employee. Some companies go so
far as having a check printing room that can be locked when
not in use. You can select who has access to this computer/room
much easier than monitoring a supply closet full of live checks.
CONS: Printing your own checks can be costly up front. If
you are just getting started in business or if you are considering printing
your own personal checks, your check volume may not be high enough to warrant
the initial expense of getting started or long term expense of supplies. Printing
your own checks also requires a basic knowledge of computers and program technology
that you may not possess and it may end up being more hassle than it is worth. You
also need a good knowledge of banking standards as there are very precise rules
for where the MICR line needs to be located on your checks. Without that knowledge,
you risk rejecting several or hundreds of checks which can lead to costly bank
fees. It takes time, money and knowledge to get started which may not be something
you can afford.
Careful analyzing of your business or personal check writing
needs will help you determine if printing your own checks is
right for you.
