Encoding

What is Encoding?

Encoding meaning in finance or banking terminology / glossary / dictionary is:
The process used to imprint or inscribe MICR characters on checks, deposits, and other financial instruments. [Magnetic Ink Character Recognition (MICR) is a character-recognition technology adopted mainly by the banking industry to facilitate the processing of checks. Each check in encoded at the bottom with the dollar amount of the check. If that information is entered incorrectly, there is an encoding error.]

 

reference: Dictionary of Banking Terms and Phrases helpwithmybank.gov

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