Abstract: A method and apparatus for recognizing an unknown character, pattern, or indicia, or the like as being a particular one of a group of known reference characters, patterns, indicia, or the like. In the preferred embodiment, the system converts scanned and digitized MICR data and uses it to identify the character. The reference characters and the unknown character are Fourier Transformed and various corrections are made for eliminating the absolute amplitude difference from the recognition process, while simultaneously providing a method of correcting for position differences between the reference charcter and the unknown character. Provisions are made for weighting the phase differences proportional to the expected accuracy of the phase data to minimize the effects of noise on the measurement, and for combining the amplitude and phase data to define a single "best match" criteria for the unknown character.