Difference between OCR and MICR

OCR and MICR are character recognition systems that turn printed text into electrical signals, which are then finally converted into electronic documents. The main distinction between both technologies is that OCR is used to read any printed text. In contrast, the MICR is used for a more particular function, such as reading cheque information printed in a certain typeface in banks.

In this article, you will learn about the difference between OCR and MICR. But before discussing the differences, you must know about OCR and MICR with their advantages and disadvantages.

What is OCR?

OCR is an abbreviation for "Optical Character Recognition". It is a mechanical-electronic process that converts photos into machine-encoded text. It aids in identifying text stored in images and is also utilized to differentiate between handwritten and printed documents. It enables a system to recognize characters automatically by utilizing optical technology. Most OCR systems simply recognize numbers, and only a few may understand the full alphanumeric range. OCR is used to enter data into a computer system for processing automatically. Initially, OCR was employed to decode petroleum credit card and sales drafts. It recognizes the purchaser by using the credit card account number. OCR technology may easily read any standard form or document containing repeating variable data.

Advantages and Disadvantages of OCR

There are various advantages and disadvantages of OCR. Some main advantages and disadvantages of the OCR are as follows:

Advantages

1. OCR data could be read with a high degree of accuracy. Flatbed scanners are quite accurate and can generate images of good quality.
2. It is quite faster than manually entering data into the system.
3. A paper-based form is frequently converted into an electronic form that is simple to store or send by mail.
4. The advanced version of OCR may recreate tables, columns, and websites.
5. OCR data is processed quickly. The large amounts of text are frequently inputted quickly.

Disadvantages

1. These systems are much mostly costly.
2. The quality of the ultimate image varies from the quality of the initial image.
3. All documents must be carefully reviewed and manually corrected.
4. The image created necessitates a large amount of space.

What is MICR?

MICR is an abbreviation for "Magnetic Ink Character Recognition". It is a type of character recognition technology that is mostly utilized in the banking industry to speed up the processing and approval of cheques and other documents. MICR encoding (MICR line) is often seen at the bottom of cheques and other vouchers. It contains the bank code, cheque number, cheque amount, document type indicator, bank account number, and a control indicator. The format of the bank code and bank account number varies by nation.

MICR readers may scan and read data directly into a data-collecting device using this technology. Unlike barcodes and comparable technologies, MICR characters are easily read by people. MICR-encoded documents may be processed quickly and more precisely than traditional OCR-encoded documents.

Advantages and Disadvantages of MICR

There are various advantages and disadvantages of the MICR. Some main advantages and disadvantages of the MICR are as follows:

Advantages

1. It provides more security than OCR technology because printed characters may not be manipulated.
2. MICR data is processed quickly.
3. There is no manual input, and errors are decreased.
4. It is complex to create the document.
5. Despite rough handling, the MICR data may be read with excellent precision.

Disadvantages

1. It may only recognize 10 digits and 4 special characters.
2. It is a more costly method of data entry.
3. MICR does not employ alphanumeric characters. Only certain characters are readable.

Key Differences between the OCR and MICR

There are various key differences between the OCR and MICR. Some main differences between the OCR and MICR are as follows:

1. OCR technology converts any type of text into an electronic document. In contrast, the MICR differs from OCR in that it only scans the special character.
2. MICR is primarily utilized in the finance industry and banks to prevent fraud caused by the use of counterfeit cheques and demand drafts. On the other hand, OCR has a far broader application and is employed in various industries.
3. Any type of ink may be utilized to print the OCR scannable content. In contrast, MICR ink is magnetic and composed of iron oxide.
4. The fonts of text you scan from an OCR might vary and take on any shape. In contrast, the particular type of fonts used for MICR is E-138 and CMC-7.
5. There is no such constraint connected with the OCR typeface if the appropriate software is used. In contrast, the MICR typeface has a constraint in that only 14 characters are utilized, which includes 0-9 numbers and special symbols.
6. OCR doesn't always necessitate secure methods of scanning and processing data. In contrast, the MICR needs a secure technique for scanning and processing data.
7. OCR data is less reliable than MICR data. In contrast, MICR data is more reliable than OCR data.
8. OCR may scan handwritten text. In contrast, MICR cannot scan handwritten text.

Head-to-head comparison between OCR and MICR

Here, you will learn the head-to-head comparisons between OCR and MICR. The main differences between OCR and MICR are as follows:

Conclusion

The OCR and MICR are both character recognition technologies. MICR scans and processes the data very quickly and securely manner. It is mostly utilized in banks. On the contrary, OMR may be utilized in many applications, including building a searchable scanned book, invoice imaging, automated data processing and data entry, Captcha, converting handwritten scans to computer-readable text, and search engine. As a result, there aren't many security concerns with the OCR application. However, OCR aids in creating an electronic document from printed text.