A point of sale printer includes a magnetic reader for processing transactions and payment by check at a checkout point of a retail establishment. The printer includes a magnetic or MICR reader located at a predetermined point on the printer's document travel path and a print head located at the same point on the document travel path but laterally offset from the MICR reader to allow the printer to print customer receipts and a journal as well as reading MICR information from checks and endorsing the check after it is cleared. A pressure pad is used with the magnetic read head of the MICR reader which utilizes a pressure film which flexes when a document is inserted between the magnetic read head and the pressure film to provide a spring loading force on the magnetic read head while still allowing the document to be moved smoothly past the magnetic read head. A method for processing checks using the printer utilizes bidirectional motion of the check along the document travel path to magnetize the MICR information, read the MICR information and print the endorsement on the check.