In this paper handwritten character recognition by human readers, a statistical classifier, and a neural network is compared to know the required accuracy for handwritten word recognition. Sample characters extracted from postal address words on mail pieces collected by USPS were used to evaluate human and machine performance. Experimental results show that 1) when the characters are segmented from words and are randomly presented, the accuracy of the machine recognition is comparable with the average human recognition accuracy, 2) the neural network employing the feature vector of size 64 outperforms the statistical classifier employing the same feature vector, and that 3) the statistical classifier employing the feature vector of size 400 achieves comparable recognition rate with the best human reader.