NotABLE TERMS:

Altered note:

The opposite of "original" or unaltered note.  Altered notes have been changed in some way.  

See "Processed" for notes which have been washed or pressed in order to make the note appear better than it actually is.  See "Raised" for a note which has been rendered to look as if it is a higher denomination than it was as issued.  Both are examples of an Altered note.  

An "Overprint" is usually a regular note which has been legally re-issued with additional print, stamp, symbol (& some notification) which commemorates a significant event. Other types of overprints could be regional currency issues, a new issue date/series or even a modified denomination.  There can be many types of overprints & these are just a few examples.  

Banknote:

Fiat currency made to represent a set denomination (value: such as Dollar, Pound, Euro, Peso, etc). Take this BANKNOTE link to review Wikipedia's definition (& scroll down for more on the banknote hobby). 

Book Value:

The BV (aka "catalogue value") of a note is a ballpark figure ($ or other) based on a Pricing Panel's estimate. The suggested price a particular banknote is linked to the note's assigned grade.  It is typically a consensus BUT does not take into account either fluctuating market conditions for collectible banknotes (nor any other mitigating circumstances).  Do not confuse BV with FMV (Fair Market Value) since, due to fluctuating market conditions, BV & FMV may change or diverge.  Also: don't expect BV from certain buyers like dealers who must factor in their costs to resell your note.  For more info see "Catalog or Catalogue" below:

Bundle or Brick:

A bundle refers to 100 notes while a "brick" means 10 bundles (or 1000 notes).  A "brick searcher" is not a construction worker seeking new perfect bricks, but a paper money collector searching 1000 note "bricks" from either a bank, casino or money distributer. Typically these "brick searchers" seek special numbered notes, errors, or insert replacements. US collectors sometimes refer to a bundle as a 10 straps &/or a "strap" is the US term for a bundle. A US bundle searcher would be similar to a CDN brick searcher. See this link from CPMF for a comparison of the American (BEP) collector terms vs the Canadian/British banknote collectors' terms.

Change-over:

Each banknote is given a unique serial number and prefix.  "Change-overs" occur when there is either a change in: signature, year, prefix (block/BPN) or design of a banknote.* 

Sometimes the Governor (& Deputy Governor) of the bank will change so a new set of signatures must be engraved on the revised design.  In Canada, Stephen Poloz left the Bank of Canada and Tiff Macklem took his place as Governor.  Carolyn Rogers later replaced Wilkins as the Senior Deputy Governor.  Nearly nine million IND prefixes on the Frontiers $5.00 banknote have the Poloz-Wilkins signature combination.  Only about a million IND $5 notes have the newer Wilkins-Macklem signature combination.  The IND $5 is considered a "signature change-over."  In the summer 2021 the Bank of Canada used Patrick Lane's signature as Senior Deputy Governor on the $50 & $100 since Wilkins departed (& Rogers would not commence her post till December 2021).  Now that Rogers has taken the Senior Deputy post we have begun to see her signature change-overs for the $10 & $20.  There has often been about a one year lag between when a governor (or Sr Deputy) commenced & his/her new signature appeared.

The Canadian Journey Series also had the year imprinted on the bottom of the banknote (reverse side).  This meant that a prefix could also have a year change-over such as the Knight-Dodge FEE $10 which was printed both in 2001 & 2002.  Less than 500,000 2001 FEE prefixes were issued making it the much more tough change-over desired by collectors.  Later, the Jenkins-Dodge HOH $5 was printed in 2004 & 2005 another good example of a $5 year change-over (the 2004 being much harder to obtain than the 2005).

Occasionally, a banknote will undergo a design change in the middle of a prefix (and sometimes continue to use the same prefix on the new design).   When the 1937 Gordon-Towers signature was applied to the H/A & J/A $1.00 prefixes the Canadian Banknote Company widened the signature panel for K/A and later prefixes.  Design changes also occurred between the TWO DOLLAR 1954 Devil's Face on the I/B prefix and its Modified 1954 Series successor (The Modified I/B prefix is much scarcer).  

It also happened between the Original & Modified Journey FIVES (with the AOF & HPA prefixes).  These examples of atypical design change-overs are not always flagged by the world catalogues (the modifications are classified as a new "series")   You won't hear the term "design change over" but the last prefix of the first series & the first prefix of the second series will be given a premium. Savvy collectors anticipate/discover banknote design change-overs and often seek these over full prefix/signature print runs.  They're not rare but in high grades they can be "uncommon."

Change overs are highly collectible but should not be confused with "Short Prefixes/Signatures" since aborted (short) prefixes are a different type of classification.  Recently, collectors have had warnings for anticipated signature change-overs whereas shortened prefixes/signatures were typically unanticipated. They can be tougher!

*US collectors also have "Change-Over pairs" which are the last note of one Back Plate # (or Signature/Date) & the next note from the next BPN (Signature/Date).  They are NOT a PAIR unless they are adjacent notes! 

"cherry picking"

This expression refers to when a collector discovers a tough/rare note & buys it for a regular (low) price since the owner/seller is unaware of its true value. The metaphor of snapping up a bargain while others are napping has its proponents & opponents due to the ethics of finding a gem amongst the rocks. Coin shops have been caught buying rare items from seniors for very minor premiums so the controversy is warranted.  Here is an excellent thread on the "Ethics of Cherry Picking" posted over at the Paper Money Forum PMF (11/23).  I hope you read it to get a better feel why this could become a "slippery slope."

circulated:

The opposite of uncirculated (also referred to as "UNC.")   Banknotes are released (ISSUED) by a bank distribution centre into use for the general population.  Used cash is called "circulated" and Third Party Graders (TPG) sprung up to grade assess (or certify) the degree to which a particular note has been circulated.  Grades range from "G" (Good) to "AU" (Almost Uncirculated) once it has been circulated or "used."  See Certified above or Grading below:

conventions/Shows:

I have become a big fan of workshops which anyone can attend at the many coins & paper money conventions (or shows) that occur in North America and elsewhere.  If you have an opportunity to attend the RCNA annual convention, then make an effort to go.  The Chicago World's Fair of Money is the largest show/convention as far as I know. 

The reason I enjoy shows is not to pick up new currency but rather just to mix & mingle and learn new things.  I enjoy attending a workshop & will always pick up supplies which have been priced very fairly at most shows I've attended.  Also note that coin shows are great places for kids to pick up the collecting bug.

Check out the Notaphilyc Sites link (& your chapter) in order to discover how you can get more involved at an RCNA convention or other shows.

Counterfeit:

Any banknote that has NOT been produced by its nation's authorized printer and is intended to be passed off as an authentic banknote should be considered forged, bogus, or counterfeit. Many nations have a central bank which issues the printed banknote after it has been produced by a private printer. Counterfeits should not be confused with reproductions which are legal so long as they are a different size or have a "COPY" or "REPRODUCTION" label printed across the note. (Reproductions are sometimes used on stage or on movie sets by actors or EXTRAS).

Design:

Banknote's have unique designs to help users identify the nation's currency. Designs have numerous security features plus historical & cultural symbolism. Banknote designs include borders, guilloche, celtic knots, national symbols, the notes counter (denomination #), signatures, serial numbers and possibly a significant historical (or allegorical) figure.  Many world notes have important historical references (& national heros, figures) communicated via their designs and this is just one reason why so many people enjoy collecting them.  

Many collectors collect due to a banknote's design, symbolism or Motif. (See below)

A note's security features, include: polymer substrate, metallic security strips, holographic windows, watermarks & latent images which can only be seen with a strong backlight. All of these elements can be considered part of the design.  

For a fun look at banknote designs, here's a site to check out by researcher Rukmini Dahanukar!

Exceptional Paper Quality (EPQ):

This term is used by Paper Money Guarantee PMG for original/unmolested paper.  Please see "Original" below.

Fantasy note:

Fantasy notes are usually printed by individual artists in the print industry.  Some may feature "Spock" from the USS Enterprise or half-nude mermaids, etc. Each collector buys note holders, pages, and other supplies.  I urge collectors to avoid fantasy (novelty) banknotes since their values can fluctuate wildly.  While it may be true that Disney Dollars have increased in value I suspect its a passing fad. Zero Euros are fantasy & yet I wouldn't bank on them remaining popular.  Limited # do not make something collectible or valuable.

I suppose if you are in the printing business they'd be a worthy pursuit - since such notes often have an amusement factor to consider.  Leave this realm to the artists, banknote designers & printers!

Format:

The dimensions (width and height) of a banknote often measured in c.m. or inches.  Some central banks use larger formats for higher denominations (& vice versa: eg a 500 Euro note is much larger than the 5 Euro note). 

Many collectors of world paper prefer large format (older/sometimes higher denominations) than smaller format (more recent/often lower denominations).  But this is not a general rule of thumb as some collectors will focus on small (or single) denominations too.  There are many collectors who collect fractionals & other small notes exclusively!

Forums:

Today's collectors are fortunate to have access to crucial/contemporary information on countless subjects pertaining to their hobby via online forums. If you wish to become a better/seasoned collector DO NOT LURK- but JOIN one of these sites so you can ask questions, clarify misconceptions, etc.*   For years I have participated on CPMF learning which modern Canadian notes were collectible & uncommon, using their SNDB (serial #database).  I have also used the CCF to become more familiar with World paper money.  Many collectors use forums to correctly identify, grade & assess whether a particular note is an error, special number, or even collectible.  Numista not only provides the opportunity for collectors to catalogue & swap their banknotes but you can communicate what you've learned with fellow members on their forum. The most active (& informative) forum I have ever been involved with happens to be the Paper Money Forum (or PMF for short).

On some sites, I have seen the number of "Guests" outnumber "Members"  by as much as 200:1.  (I find this alarming!)  Imagine if more registered collectors actually participated!  *(BTW: I wish I could add a "forum" to Notaphilyc Culture but in the meantime I suggest you engage in one of the 4 sites listed above). 

To see more online resources check out my Notaphilyc Sites/Forum link.  

front position number:

Position Number(s) allow printers to know where, on the sheet of 40 notes, that actual note was positioned or placed on the matrix. Position numbers do not contribute to a banknote's BV! 

Do not confuse a Position Number with a Face or Back Plate #.  These refers to the plates used and are a completely different subject!

"Good over"

According to "Canadian Government Paper Money: A Charlton Standard Catalogue*" the 1971 Lawson-Bouey $10 had a signature change-over starting with the EEP prefix (thus all EEP notes should have the Crow-Bouey signature combination).  However, a few notes (higher than 9M in serial number) with the EET prefix were discovered with the Lawson-Bouey signature combination. It has been speculated that the printers "recycled" these older "Lawson-Bouey" sheets and gave them the newer (Crow-Bouey) EEP, EES & EET prefixes. So notes with either the EEP & EES or EET prefixes but have the incorrect signature combination (Lawson-Bouey) and have been labelled "Good overs."

These "Good over" banknotes are an example of printers using previously printed sheets with the 3 prefixes (EEP, EES & EET).  They are very scarce & difficult to acquire.

(*See page 276 CGPM 31st ED) 

Grading:

The formal term used to describe how one should assess each note's condition.  There are four forms of uncirculated: Almost Uncirculated (AU 50-58); Uncirculated (UNC 60-62); Choice Uncirculated (CU 63-64) or Gem Uncirculated (GU 65-70).  For further details of what each variation, please consult Canadian Government Paper Money: A Charlton Standard Catalogue, 31st Edition edited by S. Bell or one of the forums listed in the Sites & Forums.

Mid-grade circulated banknotes vary the most, from Very Fine plus (VF20-38) to Extra Fine (EF 40 - 48). Typically circulated notes range from Good (G1- VG9) to Fine (F10 - F18). 

When consulting a catalogue for a note's BV it is important to keep in mind that all quotes are for notes in original (unblemished) condition. See "Original" below for clarification of what this term means (also known as EPQ).   So if a note has a problem or "issue/details" (such as ink, stains, tear) it should be noted when a note has been graded by a Third Party Grader or TPG. Be careful when purchasing a note that it has no EPQ because a note can be processed & the TPG won't describe how/why it lost EPQ status. It is also a well known observation that Canadian graders tend to be more conservative than US based graders.  Also check out this site.

Guilloche:

Most early printers used complicated spirals engravings called "guilloche" which produced fancy (spirographic like) designs as a means to deter counterfeiters. Guilloche were extensively employed on the Canadian 1937 & earlier series. 

hyperinflation notes:

Many European countries experienced hyperinflation before World War 2 (Austria/Germany) and with that- began producing 100,000 "Marks" or several million (of the country's denomination).  Hungary had notes printed in the billions of Pengos so their currency was later changed to Forint.   More recent examples have been seen in Venezuela and Zimbabwe. Often these inflated currencies meet with some type of reform (re-valued by chopping off 3 or more zeros).  Some collectors seek these notes due to the large number of zeros, which occurred with the 100 Trillion Dollars note from Zimbabwe.

imprint:

Not to be confused with "overprint" an imprint is either the release date or name of the printers- typically found at the bottom of a banknote (or some hidden/subtle area of the design).  See below for an example of the "CANADIAN BANK NOTE COMPANY, LIMITED" imprint just below the numeral 1 at the centre-border of the design of a 1937 $1.00. 

insert NOTE:

Canadian brick searchers noticed different prefixes inserted in untouched bundles of notes. They documented specific serial number ranges where these inserts were suspected to replace defective sheets/single notes.  No asterisk/special prefix letter distinguished the insert from regular notes -other than their SN range.  

See "Replacement" note below.

Issues:

The term that a banknote has "issues" usually means the note has problems, such as a teller stamp, pencil marks, ink (graffiti), tears, stains, glue, mold or other notable problems.  TPG note issues as "NET" or non "EPQ" non "Original." The other term for issues is "details." Avoid these unless extremely scarce.

This should not be confused with a banknote that was issued by the central bank (see below).

Issued banknote:

Unlike a "Colour trial," proof or specimen a note that has been issued by the central bank has a unique serial number and is meant for circulation.  The issuing of banknotes is merely the release of banknotes by private banks. The majority of banknote collectors seek are issued banknotes (proofs, specimens and colour trials are geared towards a smaller niche market).

Mint:

This is COIN talk, or a place where coins are produced (minted).  Saying that your note is "near mint" or "not quite mint" just exemplifies how little you have familiarized yourself with grading paper money (when the note in question may be Extra Fine, EF or Almost Uncirculated AU) & currency jargon.  Please see Grading above for more acceptable terms to describe the wear and tear that most banknotes are subjected to.  

Missing Circle ($10 Boc):

Some prefixes of the 2001-2002 Canadian Journey TENS had an inner circle missing in one of the design elements.  This was considered an anomaly on the FRONT narrow, vertical panel which some collectors sought.

For a more detailed description outlined by a Canadian Paper Money Forum member, take this link. 

Prefixes affected:

FEB; FEC*; FED*; 2001 & 2002 FEE; FEF; FEG; FEH*; FEJ; FEK; FEL; FEM* & FEN

*Includes Insert replacement ranges on the above BC-63/P-102 notes

Motif:

A banknote's motif is its recurring subject, idea or theme.  Many collectors will seek recurrent themes, such as nature (birds or primates), boats (battleships or yachts) & even UNESCO WORLD HERITAGE SITES on their notes.  When I started collecting banknotes, motifs were the farthest thing from my mind.  However, these days, I have come to appreciate the many world motifs used on several nations' currency.

See my WORLD MOTIF page for other ideas.

Mule:

The US BEP produced separate batches of 1928 $2 banknotes which employed different # plates for the front and back of their sheets.  This resulted in creating different fonts and positions of their FPN & BPN on the $2 notes produced.  The tradition of using another backplate after the first set of backplates wore out for a series was continued with smaller denominations & these have been called "mules" since they're similar to a mixed breed note.  Certain "mule notes" can demand much higher premiums than typical regular large replacement or regular runs of BEP notes.

Net: 

The reason for a "NET" grade is typically found on the back of PMG labels & is considered a serious issue with the note.  A "NET" note has some alteration & is sometimes referred to a problem note. The "net" may also signify that the note appears better than it actually is (technically).  Most NET explanations, why the note has such a designation, are brief & incomplete. It may have been mounted (or framed) have been restored or processed in some way. PMG will only guarantee that the note is genuine for a "Net" grade. These notes are usually avoided unless quite rare (& I don't mean "ebay rare" but rare as defined by the experts).

niche market:

With the risk of offending a few collectors, I consider any smaller subsection of the paper money hobby a niche market.  For example, some might want to buy an uncirculated Specimen which is in less than UNC condition (EF+ to AU+) non EPQ. Keep in mind that Specimens were UNC EPQ to begin with and never reached circulation!  In essence, these collectors are buying a note that has been manhandled or poorly stored. To me: this defeats the purpose of collecting issued UNC notes!  When one buys a pressed EF-UNC specimen he/she has paid a premium for someone's storage mistake! But also remember that a specimen is not even legal tender (not real money!) So for me, that's like buying a worthless reproduction for a huge premium. If you want to buy a note with a lot of zeros in the serial number get a low # note or 1000000 (million) note! 

Other niche markets aren't so bad (like WW2 Invasion money or old currency with overprints) but I will only focus on notes that have a wide appeal (fractional, countries who's name has changed, commonwealth, etc). For collectors on a tight budget there may be limits to what he/she can afford and he/she may wander into niche areas.  That's okay. People will buy what they can afford.  However, if you've been a collector for a few years, or are just getting your feet wet, stick to the notes which will likely have a widespread appeal or some history (so you can sell them down the road).  Stay clear of niche markets!

Notaphily

According to Wikipedia, notaphily " is the study and collection of paper currency, and banknotes. A notaphilist is a collector of banknotes or paper money, particularly as a hobby."  That is why I named this site Notaphilyc Culture (just adding a "c" to notaphily).  I have had a few complaints for manhandling the English language but perhaps that's why I did it (so you would remember)!

It might look odd (rather than "notaphylic") but we collectors are an odd bunch!

Original, PPQ or EPQ:

Each TPG designates a note that has its original properties using its own unique terms.  Banknote Certification Services (BCS) uses "Original" to designate a note that is perfectly unmolested from VF25 to UNC. For Paper Money Guarantee (PMG) the "Exceptional Paper Quality" designation or EPQ for short distinguishes perfect original notes from notes with issues.  Today, few TPG-ers designate why a note loses its original or EPQ designation.  Older PMG certified notes used "NET" for notes which appeared better than their grade.  BCS may, or may not, list the detractions on the back of their holders.  For PCGS it is PPQ (or Perfect Paper Quality). Aim for Q or original notes!

overprint:

Some printers add an extra symbol or text to designate special events/historical anniversaries, etc. Banknotes from the Philippines have many examples of overprints (stamp or printing on an original design) which commemorate many historic occasions for that country.  Check out the Philippines P-203 a 200 Peso note celebrating the Central Bank's 60th anniversary.

Check out this CCF Thread on Overprints to see some examples!

Paper money:

Most banknotes are made out of a cotton-linen substrate which collectors call "paper money."  They are the cheapest substrate but they are also the target of forgers & more actively counterfeited (targeted) than polymer.  Several security features are embedded in paper money such as foil strips & watermarks to deter forgers. Check out Crane for a deeper look at one leading company that produces the security paper used for BEP notes. 

Plate number:

The plate number represents the plate used in printing a BEP run of notes.  Plate numbers are tiny numbers (like position numbers) but are in a different place on the note & are completely unrelated to position numbers! (Do not confuse the two!) Collectors look to the back plate number for "Mules" (old unexpected plates used to finish a large run) & as such, plate # can affect the BV of a BEP issued banknote!

Polymer: 

A polymer banknote has a plastic substrate (material) rather than the typical cotton-linen blended substrate of a typical paper note.  Australia* was the first nation to switch to the full use of polymer banknotes & many nations have since followed suite. The main reasons countries have chosen polymer over traditional cotton-linen are twofold: longevity & security.  Plastic notes do not wear out as quickly & they function well in humid climates.   Most polymers have far more security features & are extremely difficult (if not impossible) to counterfeit. Check out Kurz Banknotes for a deeper look at one leading company that produces the security features used in today's polymer banknotes.

*While it is true that isle of Man, Haiti & Costa Rica used a hybrid substrate called Tyvek in the 1970's, I only consider the Reserve Bank of Australia's 1988 Commemorative $10.00 (P-49) the first successful use of polymer (see below). The note's design did not wear off in circulation & the RBA considered P-49 an unparalleled success. It then switched all of its denominations to the same polymer substrate used in most of today's notes.

position number:

Position Number (BPN for the Back Position Number of the note/FPN for the front) are micro-printed numbers which signify the position of the note on the entire sheet according to the printing matrix.  Each printing press prints either 40 or 45 notes per sheet at one time (five rows of eight or nine rows of five).   A specific Position Number combination (FPN/BPN) identifies exactly where that note originated from each sheet (according to the particular matrix of that prefix series).  Position Numbers are normally very difficult to see as they're very small & neatly incorporated into the designs of the notes.  Also see "MULES" above, the Modified Series $1 notes & Web Pressed notes (below) all of which are identified by varied positions of their BPN.

pressed note:

A note which has been pressed by heat or pressure.  See "Processed" note below.  A pressed note will lack embossing. The idea of a processed banknote is the opposite of an "original" note with "EPQ" designation. Do not confuse "Web Pressed" notes with a pressed (processed) note.  Avoid!

Print run: 

(prefix, suffix, or series__ designated):

Each country has a typical number of notes it will print per prefix* (limit to the serial numbered run). For Canada it is 10,000,000 (or less than 9,999,998 since no 10M note & #1 note are often set aside). It is very important to get a grasp of any particular series prefix print run in order to better understand its Book Value (BV).  Special Serial numbered notes (radars, ladders, low #) are often harder to acquire in 100,000,000 print runs rather than smaller 1,000,000 print runs.  This should be kept in mind when purchasing World radars with complicated multi-digit prefixes and lower digit serial numbers.  Also keep in mind that knowing the print run is an excellent starting point (to determining a note's BV) BUT it doesn't indicate how many of the run was released (issued) nor how many were saved by collectors!  It also does nothing to help us get a notion of any particular note's demand (as proven by the popular Devil Face series which had 10,000,000 runs for each prefix but remain super popular/in demand).  * some nations use a suffix or series #/letter rather than a prefix for each run.

Processed note:

In the past people often washed/cleaned banknotes or put them in books (even ironed out their creases) to make a note "appear nicer." Once a note has met with water (or been heated) it changes the hue of its colour.  When a note is flattened (pressed after being stored in a book) it loses its embossing (see below).  If this note comes from an older series and is certified by a Third Party Grader (TPG) it CANNOT get "EPQ" nor "Original" designation.   In auctions with full disclosure, such notes will automatically lose about 20-30% of its Book Value (BV) typically only attracting uninformed new paper money collectors (or dabblers). See "Washed" for more info & avoid these.

Proofs:

Printer's "proofs" are similar to "Specimens" since they are typically like "Colour Trials" in that they are printed for the inspection of the printing company managers (not the general public) or for the central bank's administration to peruse/approve.  In terms of the evolution of a banknote design, the colour trial would come first, followed by the proofs and specimens.  Issued notes (with uniquely individual serial numbers) are always last. 

Provenance:

The history of the ownership of an object, especially when documented or authenticated. Used for artwork, antiques, books & banknotes.  As a collector, I feel that the origin of a banknote becomes more important the tougher the note is. Here is an interesting PMF thread which gives various opinions on Third Party Graders (TPG) who certify & provide "pedigrees & heritage" on the front/back of their notes' holders. 

Raised:

Past counterfeiter's manipulated the 1 counters from old Dominion of Canada ONE DOLLAR banknotes to look like FOUR DOLLAR banknotes.  Recently, criminals have taped the holographic strip from the $5 onto bogus $100 copies.  Any lower denomination which has been altered to appear like a higher denomination has been "raised" in value.

RARE:

In today's online world, more & more anonymous collectors (or writers with pseudonyms) & eBay sellers have been making outrageous claims that their note is RARE. It is much more likely that their note may be approaching uncommon (which collectors also call "tough" meaning difficult to source) but even then, I would not assume a note is RARE unless I have a good grasp of its provenance.  I suggest you be sure to research whether a note is uncommon or truly "rare."  See this SCALE OF RARE & Uncommon below.

Remainder:

This is an unissued banknote that was printed but never released into circulation. This means that a bundle (or brick of) banknotes were stored and discovered and then later sold (likely for less than Face Value).   Much later, owners of these "remainders" sold them to dealers and they eventually reached the market at a much inflated price. Most remainders have no serial number or signature.

Much like "specimens" I avoid "remainders" because they never reached circulation. [One of the reasons a collector strives to acquire a high grade note is because that note is rare based on its condition!]  You cannot apply the same principal to either remainders or specimens. Every catalogue pricing panel guesses what a banknote's value is according to grade. Estimates are based on past auctions, online sales, # issued, and such viable data on losses in production. Then they factor in DEMAND (which will look at the coin collectors & newbies who don't want to research).  In my books, you've got to throw out the book OR be extremely skeptical on the BV for specimens (more based on low #/newbie demand) & remainders in any condition less than UNC since they were never intended to be circulated! Proofs & specimens are most briskly sold for seldom seen banknotes (like the 1935 Canadian $500 banknote) but this is a rich man's affair more for bragging rights than anything else.

ReplacementS:

Printing secure banknotes is a complicated process which can often cause series shortfalls due to banknote production issues.  In the past, printers issued "Replacement" banknotes which were identified with either a star (USD), an asterisk (CDN, NZ, AUD, see *N/S $5 replacement below) -or some specific symbol before (or after) the serial number.  Later, printers simply changed the prefix so that the letter "Z" (or some other letter such as "X") designated a note as being a replacement.   Most replacement print runs tend to be a fraction of full run of any particular prefix. This is the reason they are given a separate catalogue designation and many collectors seek them over regular issued prefixes (thus Replacements command higher BV). 

For a more comprehensive list of World replacement indicators (prefix or asterisk) see this Substitute Note link from Moneypedia.

In Canada, Sheet Replacements are regular replacements released as sheets (so sequential inserts were be found).  Where minor problems occurred, printers preferred to replace just one note at a time (rather than the whole sheet).  Inserts which replaced a single note were called Single Note Replacements (or SNR). These SNR were possible due to increased computer technology scanning problem notes (found in the Journey & early Frontiers series). In Canada, printers no longer print separate Insert Replacement notes as a cost-saving measure.   In lieu of producing replacements, BOC printers simply produce an extra prefix. This  often creates a LAST short prefix in order to meet the numbers of BOC order). See Short Prefix below.

Security features:

Each printer has embedded a series of security features in each note so that banks (& later the general population) are able to verify a note's authenticity.  Originally, it started with the printer's paper composition, raised rinks and elaborate guilloches in the note's design.  Eventually the printers' plate numbers were added. Later, security fibres, watermarks (see below), plus microprinting were featured to deter forgers from producing passable copies of legitimate notes.  Generally speaking, the higher the denomination, the more sophisticated the security features.   Eventually printers turned to security threads/strips, holographic windows and other techniques such as using polymer based substrates. Security features have evolved & improved over time. 

See this thread on the PMF for more sophisticated examples + excellent explanations from a collector who goes by CurrencyDen1. He is a specialist in test notes & you may wish to contact him if you're further interested in this subject.

Serial Number:

Each note is given a unique serial number which typically consists of a letter PREFIX/suffix and (multi-digit) NUMBER.  The prefix/suffix designates a specific print run. For Canadian banknotes each run is 10,000,000 notes (so the 1973 AAA $1.00 prefix would have that many notes issued).  Banknote serial numbers (& their prefix/suffixes) are often overlooked by coin collectors who "dabble."  However, a lot of enthusiasm for the hobby can be acquired once one takes note of special serial numbers and/or special (change-over/short/replacement) prefixes. See "Special Numbered Notes;" "Change-over;" and "Short Prefix" for more information on serial number collecting.   

Short prefix/Signature:

When the Bank of Canada decided it would upgrade the original Journey TEN Dollar banknote it dropped the $10 BET prefix and started with the new BEU prefix for the 2005 upgraded series.   Less than one million $10 BET prefixes were printed making this note a short prefix thus quite collectible.  They also short-changed the $5 AOF prefix on the original FIVE Dollar banknote. Recently, in the 2017 Commemorative Ten, the BOC used the last prefix (CDF) as the short prefix to end the series.  

The Bank of Canada's first governor (J.A.C. Osborne) was on loan from the Bank of England and had been replaced by D. Gordon, shortly after the 1937 design change.  This caused an "Osborne-Towers" short signature since this combination was only seen on five prefixes (or less).  Many Canadian (& world) currency collectors seek this brief first short signature. 

Check your Charlton Standard Catalogue or the CPMF Database for further information on which prefixes (series/print runs) have had shortened runs.  Also see "Change Over" &/or "Print run" above but be careful not to confuse the terms.

signature combination

on the signature panel:

Another feature lacking on coins is the signature of the issuing bank governor, deputy governor or even the president of the nation (as with notes produced in the Philippines).  Often the people holding these positions will change & thus the signature combination changes.   Also see "Change-over" above for more information on signature, prefix, year & design change-overs (transitions to new signatures, years, or designs). Collectors often collect according to a note's signature combination (wanting an example of each).  Veteran collectors usually seek toughest (shortest or scarcest) signature combinations.  

On my 2004 visit to Europe, I wanted a nice example of the Duisenberg Euro, printed in 2002.  The only nice clean notes I could find had the "Trichet" signature & this started my quest to find the original Duisenberg signed Euros! On the Euro, the signature panel is immediately below on the "copyright BCE ECB EZB EKT EKP 2002" in the design) & the panel MOVES below the Euro flag for the 2nd series.  On the Philippines examples below the 2 signature panels remain constant on the four variations of the 20 Pesos.

See this Signature index on Moneypedia for a list of signature images on World Currency.  See this Governing Council link from the BoC "Historical Leadership" page & the faces behind most of the signatures seen on BoC issues.

Four different signature combinations are shown below for the New Generation series of the Philippines 20 Pesos note. Some signature combinations may be more in demand (less common) than others.

Special Numbered notes:

Most paper money catalogues will have a section on Special Numbered Notes at the end of their publication reserved for notes which bear striking serial numbers.  Low numbered notes are below 1000 (with the lowest commanding the highest premiums) while ladder notes are serial numbers which increase (or decrease) by one (eg: 123456). Million numbered notes are exactly as described and repeaters have a pattern (2 -4 digit cycle) which repeats itself (eg 3215321).  The most popular special serial numbered note is a radar which can be read from left to right or from right to left (like image of $20 EWF0064600 pictured below).  The most coveted radars are called "Solid" radars because all numbers are the same (eg: 1111111).  All Special Serial Numbered notes are rarer than regular serial numbered notes.

NOTE: Special Numbered notes should not be confused with "Fancy Serial Numbers" since the former is well established while the latter term has recently emerged from eBay (& refers to a serial number that may be collectible to a smaller niche community). Some US collectors confuse the terms of fancy with special.

For a more detailed description of Special Numbered notes please check out SITES & FORUMS or better yet, get yourself a paper money catalogue from your local library. Check out this page of Special Serial Numbers & remember that these, like Errors, are listed at the back of a Charlton Guide to Canadian Paper Money. They should have separate sections in most other catalogues too.

Specimens:

Printers print "Specimens" for banks and financial institutions to familiarize themselves with a new series of banknote (particularly their security features).  Typically, these notes have no signatures, zeros for their serial number, punch holes or "SPECIMEN" overprinted on the face of the note.  Printers alter these notes since they are not legal tender AND they have not been issued for circulation! 

Test Notes:

Printers in the past have prepared short runs (a ream) of test notes to verify durability of trial inks and/or cotton-paper compositions (also called the substrate).  Such "Test Notes" were given a specific prefix for a specific number range (ream or # of reams).  Central banks do not announce that they've released "test notes" so they have often been very difficult to identify. Typically, they have been identified well after they were release (circulated) so finding UNC (high grade) test can be a challenge. 

Each nation's Central Bank may (or may not) employ Test Notes.  Typically, specific reams with a specific prefix get released into circulation (issued) to test either the longevity of the series ink & paper.  If you wish to pursue collecting them you must be sure to know the specific prefixes, serial number ranges for selected denominations.  Test notes were started in the 1954 Modified series with small batches of E/R, G/R, N/R & all of the S/R prefix.  In the 1969-1975 series prefix RS and X in the middle (eg EXA) prefixes were used. (See the "RS" $2 Test note below).

Occasionally, a printer (like Thomas De La Rue TDLR) will print an internal test note which is not meant for circulation.  They are used to show off a note design or to demonstrate how a security feature works.  These often have no denomination (No MARKERS).  

See what @GregAlex, @CurrencyDen1 & others over at the PMF have contributed to an excellent thread entitled: Anyone collect test notes? 

Texture:

For notes which have had intaglio printing on a high quality cotton/linen substrates you should be able to feel the note's texture.  Inks and the mechanical printing process to print & serial number the designs cause areas that are either raised or depressed.  This raised & indented texture on a banknote is referred to as "embossing."  While not quite as prevalent (or noticeable) on the polymer issues, well preserved older series should have some evidence of embossing in order to determine that it has "Exceptional Paper Quality (EPQ)" or is "Original" (or has NOT been PRESSED) for Third Party Graders (TPG) to certify it as such.

Third Party Grader (TPG):

Typically, one hears about TPG notes versus "raw" or unslabbed/uncertified notes.  The acronym means that a note has been certified by a "Third Party Grader."  It is important to understand that one must get into the habit of grading a note for oneself (not all TPG graded notes will receive the exact same grade).  Assessing a note's condition is very subjective. However, reputable TPG services strive to be objective (to apply standardized degrees of circulation) to all notes consistently.  But in real life, the standards sometimes slip & the graders are human. That is why I advise all collectors to "buy the note - not the holder."  Don't take the grade (nor the number) for face value.  Question each note you see & complete your own assessment.

One important thing a reputable TPG note accomplishes is to provide "peace of mind" for those collectors who prefer to purchase banknotes online. This has become the norm now a days.  Many notes are scanned (not photographed) & scans are terrible in terms of viewing a note's imperfections.  When one purchases expensive uncommon examples on eBay they want to know that the note has Original embossing & has NOT been pressed.   PMG, PCGS and BCS all add the EPQ, PPQ & Original qualifiers- which establishes the fact that the banknote has in no way been tampered with/nor altered.   TPG certification assures a collector that he/she is indeed buying a Choice, Gem or Uncirculated Quality "Q" banknote that will (hopefully) hold its Book Value (BV).

However, I have also seen PMG award stapled East Indian banknotes & punched world specimens with EPQ knowing full well that BCS would never award "Original" to such altered paper.   Many Canadian collectors also feel that Canadian Coin Grading Services CCGS to be very liberal (in the same way as Legacy or PCGS) and prefer the more conservative approach of BCS.  When buying rarer banknotes it is important to realize that not all TPG certifiers are alike so remain skeptical!

toned:

While a toned coin may have positive connotations a toned note means the substrate has aged (& usually yellowed or turned slightly brown in colour).  It is not a good thing when a note has toned but decreases a note's overall eye appeal.  Avoid notes that are toned (unless rare of course!)

Uncirculated:

A note that has not reached general circulation is considered uncirculated. However, many uncirculated banknotes may have minor printing flaws which can actually lower the note's grade.  These include poorly centred designs, cutting cups, edge bumps, wrinkles, scratches and smeared serial numbers.  It is important to get a good grasp of how the term "uncirculated" can mean different things to different people in the hobby (collectors, dealers, dabblers).  Also, be careful how you handle your uncirculated prized banknote since a poorly/roughly handled bill will end up with a lower grade. 

Today, we see three added qualifiers: Almost Uncirculated (or AU 50-58) means that the note has had minor handling with partial bends/folds; while UNC (60-61 & no qualifier) usually has some production flaws & minor handling.  Choice Uncirculated (62-64) means that the note is pretty crisp, minty with the only flaw of the design being slightly off-centred.  The topnotch qualifier is GEM (which is no handling, a 'flawless' note with the TPG grading system granting UNC 65 to 70#). See additional comments on TPG above & visit Notaphilyc Sites for other takes on this broad subject of Uncirculated.

Uncommon:

eBay, Social Media participants (for example Reddit, IG, FB Groups) & online articles often make claims that notes are "RARE" when in fact they are much more likely approaching "uncommon."  One of the most glaring missing pieces of the puzzle is that anonymous online writers seldom back up their claims with proof (or evidence).  Most notes printed in the 10-100,000,000 range are unlikely to be tough/uncommon & yet these wild claims continue to circulate.  The only exceptions are older change overs or short prefixes in uncirculated (or higher grades).  Rare notes could include errors & solid (or 2 digit) radars.  Remember, if the note is printed in the last 20 years there are chances that large runs (even bundles/bricks of 100 or 1000) have been stashed in Safety Deposit Boxes whereas older notes (with shorter runs) have a much higher chance of being tough or uncommon (or approaching uncommon).

Washed:

A laundered, cleaned or chemically treated note. Recently I viewed a YouTube video showing how to wash your polymer notes. Please don't do this!  If you don't collect notes you probably won't notice a difference from a regular to washed note, but for those people who do collect: they will notice.  A washed note may appear "nicer" to the untrained eye but it will look dull to the experienced collector and it is a processed note and will never get the same Book Value as an unwashed/unprocessed note. See "Processed Notes" above.

Watermark:

If you hold a watermarked banknote up to a light source, you will see a pattern or image that has been embedded in the paper.  This watermark is often created in a blank area of the note so that ink or note design doesn't impede visualizing the see-through image.  Watermarks are part of the security features employed to discourage counterfeiting.

WEB pressed notes:

The US Bureau of Engraving and Printing (BEP) tried using a web press of continuous printing (much like seen for newsprint) in 1988, 1993 & 1995 for $1.00 notes exclusively. The BEP management believed that Web Pressed, as compared to intaglio produced notes, would be much faster & thus a cheaper method to print. However, there were numerous production problems and the venture was abandoned. For collectors, the early first trial runs on the 1988 $1.00 command the greatest desire/BV. further info check out this WIKI entry on WEB notes.

world banknote collector:

A collector of world banknotes (or coins) is often a different type of collector than a collector who collects his/her nation.  First off, since the global scope is so much broader than the national scale of collecting, most World collectors specialize in either a Motif, region (continent(s)) or use other parameters to narrow down their area of interest. Many world paper money collectors started collecting coins and then turned to paper.  Others were paper enthusiasts of their own nation and then branched out.  There are also those who collect from places they have travelled.  I call the last type of collector a "globe-trotter" collector. These 3rd type are typically the least serious about the hobby and enjoy circulated banknotes & rarely visit sites like this (or participate in forums). Many World Banknote collectors turn to the Standard Catalogue of World Paper Money (SCWPM), or an online source to ID each note in their collection.  Other collectors may turn to online resources such as the Bank Note Museum (BNM) or Numista.  It has become far more challenging to get a handle on a World note's value since Krause stopped publishing their SCWPM catalogue.  Sellers often turn to eBay or other market places to find realized sale's price of specific notes. 

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