OCR (Optical Character Reading)
1. This is commonly used method for DDE.
2. MICR uses a special scanning technique to read the characters.
3. These characters can be now easily read by humans as well as MICR.
4. It involves the use of special device called the MICR for reading the characters to be input into the computer.
Advantages of OCR
OCR eliminates the human effort of transcripttion.
Paper work explosion can be handled because OCR is economical for a high rate of input. Since documents only need to be typed or handwritten, not very skilled staff (like the keypunch operators) is required. Furthermore, these input preparation devices (typewriters etc.) are much cheaper than the keypunch or the key-to-tape devices.
Disadvantages of OCR
Most optical readers are not economically feasible unless the daily volume of transactions is relatively high.
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