encode

(1) To assign a code to represent data, such as a parts code. Contrast with decode.

(2) To convert from one format or signal to another. See codec and D/A converter.

(3) The term is sometimes erroneously used for "encrypt." However, encoded data are not secretly scrambled and can be decoded easily. See cryptography.

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Imprinting of the dollar amount in machine readable characters-Magnetic Ink Character Recognition (MICR), on checks sent through the banking system for collection, as well as checks deposited at the same bank from which the items are drawn. All preprinted checks have standard MICR line coding on the bottom edge, and for a good reason; the Federal Reserve refuses to handle unencoded checks as Cash Items which means delayed funds availability for the depositor.