Accredited ACH Professional (AAP) Practice Exam

What is an optional, variable format field of the MICR line of a check called?

1. Auxiliary On-Us Field

2. Check Identifier

3. MICR Extension

4. Variable Field Marker

The correct answer is: Auxiliary On-Us Field

The optional, variable format field of the MICR line of a check is known as the Auxiliary On-Us Field. This field is employed to provide additional information that is not available in the standard MICR fields, such as transaction codes or other specific identifiers that might aid in processing the check. Its primary function is to enhance the machine readability and the ability to capture necessary details for automated processing while allowing for flexibility in how information is encoded based on the needs of different financial institutions. This variable field can accommodate multiple uses depending on the institution's requirements, which underscores its optional nature, as not all checks will necessarily include it. Understanding this aspect of the MICR line is essential for professionals in the payments industry, as it involves both the operational side of check processing and the compliance with industry standards set forth by the American National Standards Institute (ANSI).