How must the MICR information be captured by the merchant for a Point-of-Purchase Entry?

For a Point-of-Purchase (POP) entry, the Magnetic Ink Character Recognition (MICR) information, which includes essential data from the check such as the account number and routing number, must be captured electronically. This is because electronic capture ensures that the information is collected accurately and efficiently, aligning with the processing standards and requirements established for ACH transactions.

Using electronic methods for MICR capture helps to reduce errors associated with manual entry, improves transaction speed, and enhances overall security. It supports the automation of ACH processing, which is crucial for maintaining smooth transaction flow between the merchant's system and the banking networks.

In contrast, manual capture can lead to inaccuracies and is less efficient, visual capture does not involve any electronic processing, and capturing information by phone is impractical for the secure transfer of sensitive banking information needed in ACH transactions. Therefore, the requirement to capture MICR information electronically is essential for proper processing and compliance with regulations in the ACH framework.