Cash Handling Fundamentals: Verifying Bills and Coins for Authenticity

Why authenticity checks matter

Verifying currency is a risk-control step that protects the business, the customer, and you. The goal is not to “catch” someone; it is to confirm that the bill or coin matches known security features and to follow your organization’s escalation procedure when something looks wrong. Use a calm, routine approach: check every large denomination and any note that feels “off,” regardless of who presents it.

1) Visual and tactile checks for common denominations

Use a consistent 3-step routine: Feel → Look → Tilt

• Feel: Authentic notes typically have a distinct paper feel (often a cotton/linen blend) and raised printing in certain areas. Counterfeits may feel waxy, overly smooth, limp, or unusually thick.
• Look: Hold the bill at eye level and check embedded features (watermark, security thread/strip) and print quality (sharp lines, microprinting where applicable).
• Tilt: Many modern notes include color-shifting ink or holographic/optically variable elements that change appearance when the angle changes.

What to check (quick reference)

Step-by-step: quick check for higher denominations

Use this routine for any higher-value bill (and any bill that triggers concern):

1. Feel the note with your fingertips: compare to a known-good note if available.
2. Check the portrait and borders: look for crisp detail and clean lines.
3. Backlight the note: confirm watermark and embedded security thread/strip are present and positioned correctly.
4. Tilt the note: confirm color-shift/holographic elements behave as expected.
5. Decide: Accept, or escalate if any key feature is missing/inconsistent.

Tip: Train your eyes by keeping a “known genuine” example (per policy) for side-by-side comparison. Side-by-side comparison often reveals differences faster than memory.

2) Using tools (and the limitations of each)

UV light

How it helps: Some authentic notes have UV-reactive features (fibers, strips, patterns) that glow under ultraviolet light.

Step-by-step:

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1. Turn on the UV light and dim ambient light if possible.
2. Place the note under the UV beam.
3. Look for the expected UV pattern for that denomination/currency.
4. If the entire bill glows uniformly or the expected pattern is missing, treat as suspicious.

Limitations: UV features vary by country and series; older notes may differ. Some counterfeiters can mimic UV reactions. UV is a supporting check, not a single “pass/fail.”

Counterfeit detection pen (where permitted)

How it helps: Many pens react to starch in common wood-based paper; authentic currency paper often lacks that starch.

Step-by-step:

1. Mark a small, discreet area (follow your policy on where to mark).
2. Observe the color change per the pen instructions.
3. Combine the result with other checks (feel/look/tilt).

Limitations: Counterfeiters may print on “starch-free” paper or bleach and reprint genuine low-denomination notes. A pen can give false confidence; never rely on it alone.

Magnifier

How it helps: A magnifier makes microprinting and fine line patterns easier to verify.

Step-by-step:

1. Focus on areas known for microprinting or intricate line work.
2. Check that tiny text is readable and lines are sharp, not pixelated.
3. Compare to a known-good note if available.

Limitations: Some genuine notes show wear; heavy circulation can blur fine details. Use magnification to confirm, not to “fail” a worn but genuine note.

Tool use rule of thumb

Tools are best used to confirm what your senses already suggest. If the bill fails a major security feature check (missing watermark/thread, wrong color-shift behavior), escalate even if a tool seems to “pass.”

3) Coin authenticity basics

Coin counterfeits are less common in many settings but still occur, especially with higher-value coins or when coins are used in bulk. Focus on simple, fast checks that do not damage coins and align with policy.

Core checks: size, weight, edge, and design

• Size and thickness: Compare to a known coin of the same type. Counterfeits may be slightly off in diameter or thickness.
• Weight (if you have a scale and policy allows): A small difference can indicate a different metal composition.
• Edge patterns: Many coins have reeded (ridged) edges, lettering, or specific edge designs. Look for uneven ridges, incorrect spacing, or a “seam” that suggests casting.
• Design sharpness: Authentic coins typically have crisp details. Cast counterfeits can look soft, pitted, or bubbly.

Magnet test (only where policy allows)

How it helps: Many genuine coins are non-magnetic or only weakly magnetic depending on composition. Strong attraction can indicate the wrong metal.

Step-by-step:

1. Use a small magnet approved for this purpose.
2. Bring it near the coin without snapping it onto the surface (avoid scratching).
3. Note attraction level and compare with a known genuine coin.

Limitations: Some genuine coins may have magnetic properties; some counterfeits may be non-magnetic. Use as a supporting check only.

Sound test (use caution)

Some organizations discourage “ping” tests because they can appear confrontational or may damage coins. If allowed, keep it subtle and use it only as a secondary check.

4) What to do when currency is suspected (policy varies)

When you suspect a bill or coin, your actions must follow your organization’s rules and local regulations. Policies differ on whether you should return the currency, retain it, or request another form of payment. The consistent priorities are: stay calm, keep the interaction routine, and involve a supervisor.

Immediate steps (non-confrontational)

1. Pause the transaction politely and keep the currency in view (do not accuse).
2. Re-check using your standard routine (feel/look/tilt; then tools if used at your site).
3. Use neutral language such as: “Let me verify this quickly; our register requires a quick check on some notes.”
4. Follow your site rule on whether to return the note/coin or retain it for supervisor review.
5. Request an alternate payment method if policy instructs you to decline the currency.

Do and don’t

• Do keep your voice steady and your body language neutral.
• Do treat it as a process issue, not a personal accusation.
• Do minimize handling and avoid marking or damaging currency unless policy requires it.
• Don’t argue about authenticity with the customer.
• Don’t put yourself at risk; if the customer becomes agitated, prioritize safety and call a supervisor/security per procedure.

5) Documentation steps and supervisor handoff

Good documentation supports loss prevention and protects staff by showing that procedures were followed consistently.

What to record (as required by policy)

• Date/time and register/location.
• Denomination and type (bill/coin) and any visible identifiers (series year, design type), if you are trained to record them.
• Reason for suspicion (e.g., missing watermark, security strip mismatch, unusual paper feel, incorrect edge pattern).
• Tools used and results (UV pattern missing, pen result, magnifier findings).
• Transaction context (purchase amount, whether change was requested, whether multiple high bills were presented).
• Customer description only if your policy allows and only objective details; avoid profiling or subjective statements.
• Supervisor notified (name, time) and outcome (accepted/declined/retained per policy).

Supervisor handoff checklist

1. Keep the suspected currency separate from other cash (use an envelope or designated holder if available).
2. Do not write on the currency unless policy requires it.
3. Hand it directly to the supervisor/manager with your notes.
4. Follow instructions for securing it (safe drop, evidence bag, log entry) if the organization retains it.

6) Scenario practice: decide actions for borderline cases without confrontation

Read each scenario and choose the best action based on the principles above. Assume you are trained on the checks and must follow your site’s policy for final decisions.

Scenario A: “Feels wrong,” but features look right

A higher-denomination bill feels unusually smooth, but you can see a watermark and an embedded security thread when backlit. Color-shift appears normal.

• Best action: Perform a tool-assisted check (UV/magnifier) if available, compare to a known-good bill, and if still uncertain, involve a supervisor. Use neutral language and avoid implying wrongdoing.
• Avoid: Rejecting solely based on feel when multiple primary features appear correct, unless your policy says otherwise.

Scenario B: Tool “passes,” but a primary feature is missing

A counterfeit pen mark indicates “genuine,” but you cannot find the watermark or the security thread where it should be.

• Best action: Treat as suspicious and escalate. Primary embedded features outweigh a single tool result.
• Suggested script: “I’m going to have my supervisor verify this note quickly; thank you for your patience.”

Scenario C: Customer is in a hurry and becomes impatient

You begin checking a large bill; the customer says, “Just take it, I’m late.”

• Best action: Continue the standard quick check calmly. If agitation increases, call a supervisor per policy. Keep the interaction procedural: “This is a standard verification we do for certain bills.”
• Avoid: Skipping checks due to pressure.

Scenario D: Coin looks slightly off-color

A coin’s color seems different and the edge ridges look uneven compared to others.

• Best action: Compare size/edge to a known coin, use magnet/scale if allowed, and escalate if inconsistencies remain. If policy requires, request another coin/payment method.
• Avoid: Publicly announcing it is fake; keep it routine.

Scenario E: Multiple high bills presented for a small purchase

A customer tries to pay a small amount with several high-denomination bills.

• Best action: Verify each bill using your routine, limit acceptance per policy (some sites restrict large bills), and involve a supervisor if anything is inconsistent. Document if required.
• Note: This pattern can be associated with counterfeit attempts, but it is not proof; rely on checks and policy, not assumptions.

Decision drill: choose your escalation trigger

Use this quick rule set to decide when to escalate (adapt to your policy):

• Escalate immediately if a primary security feature is missing/incorrect (watermark/thread/color-shift) or coin size/edge is clearly inconsistent.
• Escalate after re-check if multiple minor concerns stack up (odd feel + blurry print + tool inconsistency).
• Accept with confidence when primary features match and any minor issues are consistent with wear (creases, slight fading) rather than structural/security failures.