Beginner's Guide to Coin Collecting

What is a Counterfeit Detector Pen?

2006-06-23T16:11:44Z

A counterfeit detector pen is a felt tip pen containing an iodine solution that can be used to help identify computer generated counterfeit bills. According to United States Secret Service date, funny money generated by criminals using computers and ordinary printers accounted for only one-half of 1 percent of the counterfeit bills confiscated in 1955. By the year 2000, that figure has risen to 45 percent and is still going up. Counterfeit detector pens, although not fool proof, are an effective way to identify computer generated counterfeit bills because the iodine solution in a detector pen reacts with starch, which is commonly found in the wood based copy paper used by most printers.

What Are The Pros And Cons Of Counterfeit Detector Pens?

2006-06-23T16:15:36Z

Detection pens are easy to use and require no training. A clerk at a cash register simply uses their counterfeit detector pen to put a small mark on the bill. If the bill is counterfeit and the paper is wood-based, the iodine in the pen solution will react with the starch and leave a dark brown or black mark. If the bill is authentic and the paper is fiber based, there won’t be any starch and the pen will not leave a mark.

Manufacturers of counterfeit detector pens sometimes add a biodegradable pastel coloring to the iodine solution in order for the user to easily see which bills they have already screened. This pastel coloring usually fades within a day or so.

A counterfeit detector pen costs about $5.00 and can be used to screen up to 3,000 bills. Counterfeit detector pens can be used for any thread based currency.

What Other Counterfeit Detection Features Are Available?

2006-06-23T16:16:04Z

The most recent $20 bills printed from the United States Bureau of Engraving and Printing, have a multitude of security features designed to make counterfeiting more difficult. The most obvious of these features is the “20” in the lower right corner written in color changing ink. There is also a security strip embedded in the paper to the left of Andrew Jackson that is visible if you hold the bill up the light. Other new features include micro-writing, a watermark and very closely space lines that are harder for a counterfeiter to reproduce.

All of these features are nice, but none of them are as easy as the counterfeit detector pen. The counterfeit detector pen solves the biggest counterfeiting threat. At one time counterfeiting operations used expensive presses and special links and papers to create exact duplicates of the bills. Because of the color copiers and color printers that are available, people try to create passable facsimiles of a bill. They are not trying to make an exact copy and they are not particularly careful or meticulous, so they copy or print onto normal, wood based paper. They are trying to create something close enough that people won’t notice anything if they give the bill a passing glance.

The counterfeit detector pen is extremely simple. It contains an iodine solution that reacts with the starch in wood-based paper to create a black stain. When the solution is applied to the fiber based paper used in real bills, no discoloration occurs. The pen does nothing but detect bills printed on normal copier paper instead of the fine papers used by the United States Treasury.

Some counterfeiters bleach small denominations and print more valuable bills on the blank paper to evade these test.

How Accurate Are Counterfeit Detection Pens?

2006-06-23T16:16:37Z

Counterfeit detection pens are not always accurate and may give you a false result. Rather than using the counterfeit detection pens exclusively, consumers and cash handlers should also check the bill’s security features to guarantee its authenticity. Three new features, security thread, color shifting ink, and a watermark, were incorporated into the bills in the 1990s and were enhanced for the Series 2004. These features vary depending on the denomination.

Pen manufactures claim over 98 percent effectiveness, but critics suggest the effectiveness is only around 80 percent for new bills and even lower for the older bills.

There are several other products available, but unfortunately, none are fool proof. The counterfeit detection pens work most of the time and the black light is fairly accurate. But if a bill has been folded and stuffed into a pocket, and the pocket has been laundered, the black light will show a false reading.

The best way to test for a counterfeit bill is to trust a teller’s fingers and a teller’s intuition, because an experienced teller will let very few counterfeit bills get by them.

When Did The United States Government Add Counterfeit Detection Features?

2006-06-23T16:17:06Z

Beginning in 1996, the United States government has been adding advanced security features to paper money. These were the first major design changes since 1928. Advanced copying technologies have helped raise the frequency of counterfeiting. Ink jet printers, color copiers, and scanners are just a few tools criminals use to create fake bills.

In keeping with the strategy of maintaining the security of our currency by enhancing the designs every seven to ten years, a new series of United States currency is being issued, beginning with the $20 note. This $20 note entered circulation on October 9, 2003, followed by the $50 note that was issued on September 28,2004. The next denomination to be introduced in the series was the $10 note, which was issued on March 2, 2006. These new notes are issued to the public through commercial banks. The notes began circulating immediately in the United States and are introduced in other countries as international banks place their orders from the Federal Reserve. Businesses that handle cash and use machines that receive or dispense cash continue to update their machines to accept these new notes.

The $100 note is also scheduled to be redesigned, but a timetable for its introduction has not been set. The government does not have any plans to redesign the $5, $1 or $2 notes as this time.

New money designs are being issued as part of an ongoing effort to stay ahead of counterfeiting and to protect the economy and the hard-earned money of United States currency users.

Where Can I Purchase Counterfeit Detection Pens?

2006-06-23T16:17:36Z

Counterfeit bill detector pens can be purchased at most office supply stores and can cost as little as $5.

How Do Counterfeit Detection Pens Work?

2006-06-23T16:18:01Z

Counterfeit currency detection pens use chemical color indicators to sense trace chemicals left in the paper from the manufacturing process. Most governments use special paper manufacturing processes that to not leave the same trace chemicals residues. Starch and iodate salts seem to be the most common trace chemical residue tested for in commercial paper.

Counterfeit pens contain an iodine based ink. Genuine banknotes are printed on paper based on cotton fibers and do not contain the starches that react with iodine.

Counterfeit notes are often printed on the commonly used wood pulp based paper and the iodine in the ink reacts to starch in the wood pulp and the pen makes a dark mark indicating a counterfeit note.

With the counterfeit detection pen, test mark any area of a bill. Wait one second. If a dark brown or black mark appears, the bill is a suspected counterfeit. If a gold or yellow mark appears, the bill is good. This yellow mark will fade away in a few days. A black mark remains until the bill is destroyed. Counterfeit detection pens will detect U. S. Dollars, French Francs, German Marks, Japanese Yen, Hong Kong Dollars, Venezuelan Bolivars and Bahamian Dollars.

A Quicktest Pen is a similar device for testing Switzerland and Euro banknotes.

Resources:

WWW.SEARCHSECURITY.TECHTARGET.COM
WWW.KEYSAN.COM
WWW.MONEY.HOWSTUFFWORKS.COM

Gold and Silver Coins

2006-07-21T14:57:30Z

Gold and Silver Coins Overview

How to Decide what Coins to Collect

Gold Coins

Silver Coins

Grading of Coins

2006-07-21T14:59:44Z

Grading of Coins Overview

The Grading Process

Importance of Coin Grading

Grading is Subjective

Collecting Paper Money

2006-07-21T15:01:23Z

Collecting Paper Money Overview

What Kind of Paper Money do People Collect?

What's the Best Way to get Started Collecting?

How Does the Typical Paper Money Transaction Occur?

Coin Collecting Supplies

2006-07-21T15:04:03Z

Introduction to Coin Collecting Supplies

Coin Sorters

Coin Wrappers

Coin Banks

How Bill Changers Work

2006-10-12T15:08:47Z

You desperately want that last Baby Ruth in the vending machine, but all you have is a $20. Enter the bill changer. A bill changer is a vending machine that accepts dollar bills and dispenses coins. With a bill changer, you can convert your large bills to smaller ones, or to coins. This is especially handy when you come across vending machines that don't offer change. Some bill changers subtract a small amount as a surcharge for the transaction, but other machines make no charges at all. Machines that are free of charge are usually found in locations where the change can be used on the spot at another vending machine. Bill changers are commonly found in laundromats, video arcades, shopping malls, and next to other vending machines. Creating a good bill changer is a difficult task, not only does it have to be able to read both old raggedy dollar bills and crisp new ones, it also has to be reasonably good at distinguishing between real and counterfeit bills. Some bill changers also have to be able to sense different denominations of bills.

There are several different techniques that have been used over the years in the development of bill changers. Early bill changers were programmed to read the magnetic ink used in U.S. bills. Using magnetic heads, like the ones in a tape recorder, they picked up signals from the bills. Certain areas of the bill, such as behind the president's face, generate signals at a specific frequency. Detecting the frequency validates the bill and determines what denomination it is. Another method used is determining the bills conductivity. A genuine dollar bill has a certain conductivity and checking the resistance of the bill can determine whether or not it is genuine. Checking the fluorescent properties is another technique that has been used. Inks and papers have different fluorescent properties, so checking these is another way to tell real bills from counterfeit ones. The last technique is to check the optical properties of the bill, or of a strip of the bill. This technique is preformed with a photocell or a camera and works by comparing the bill to valid patterns in stored memory. Different patterns from different bills can determine the denomination. Good bill changers use a variety of these techniques to help outwit those who might want to cheat the bill changer.

Types of Bill Changers

2006-10-12T15:12:47Z

There are many different types of bill changers. Some changers are front loading and some are rear loading. The rear loading machines are usually made to mount to a wall, which offers additional security. There are also different sizes of bill changers. Some are very small and are made to sit on a countertop. These changers are typically pretty low-cost and perform only simple functions. They are great for small vending areas and bars that have arcade games and billiard tables. Others are mounted on pedestal bases or are freestanding. This allows the bill changer to be placed anywhere within the facility. Bill Changers also vary by how many bills they can accept. A "mini" bill changer may hold as few as 500 bills, while a large model may hold several thousand. Another variety of bill changer is the belt coin changer. A belt coin changer has a barrel that holds quarters, nickels, dimes, and pennies and disperses them as change to customers. This allows for greater speed and accuracy at the checkout line. Bill to bill exchangers can convert high denominations of bills to lower ones. For instance, you could insert a twenty-dollar bill and instead of receiving twenty dollars in quarters, you could get back four $5 bills. These bills can then be used in standard bill changers to get coins.

Starting a Bill Changer or Vending Machine Business

2006-10-12T15:13:09Z

The first step in starting a bill changer or vending machine business is to find a reputable supplier of commercial quality vending machines. You need to decide what type of vending you want to do: soda, snacks, candy, gumballs, or strictly bill changing. Once you have your equipment, you need to find good locations in your area. Look for places with a lot of foot traffic. The more people coming through a location, the better. Once you have picked out a location, approach the owner of the store and let them know you operate a vending machine business in the area. Make a proposal to set up a vending machine in their store, and explain that, as the owner, you will set up the machine and take full responsibility for keeping it stocked and serviced. Let them know that they will make a percentage of the gross sales, between 15 and 33 percent. Set up your machine and start making money! Then you can start the process over again at another location.

Frequently Asked Questions About the Vending Machine/Bill Changer Business

2006-10-12T15:13:34Z

How much money will I make with a vending machine business?
There is no way to predict how much you will make with a vending machine or bill changer. The amount you will make depends entirely on your location. The better your location, the better your profits will be. Look for places with high foot traffic.

Do I have to offer the storeowner a percentage of my sales?
When approaching business owners, it is proper to offer them some sort of incentive for allowing you to place your machine in their store. Typically, a percentage between 15 and 33 percent is acceptable. However, some business owners will allow you to put up machines for free if you are associated with a charitable organization. There are many organizations that will supply you with stickers to put in your machine for a nominal fee, usually $1 a month per machine.

Should I use a locating service to find locations for my machines?
Although there are many different locating services that you can use, the best and cheapest way to find good locations is to do it yourself. Research and explore your area to find the best options.

What are good locations for machines?
Certain businesses have consistently proven to be successful locations. These include restaurants, bowling alleys, skating rinks, shopping malls, Boys and Girls Clubs, laundromats, movie theaters, high schools, colleges, markets, coffee shops, banks, automotive centers, taverns, and apartment complexes. However, you should always be on the look out for more obscure locations that could be profitable, such as auction facilities, casinos, bingo halls, horseback riding facilities, or airports.

Do I need a business license or insurance to operate this type of business?
Check with your local licensing department to find out what is required in your particular state.

When placing a machine, do I need to have the owner sign some sort of a contract?
This is up to you, but typically, a contractual agreement is unnecessary.

Is theft and/or vandalism a big issue in the vending business?
Since vending machines and bill changers are typically placed in high traffic areas, vandalism and theft is uncommon. If your machine is located in a questionable location, a simple solution is to wrap a chain around the base of the machine and secure it to a fixture in the store. This will prevent thieves from attempting to steal your equipment.

How often will I need to service my machine?
That depends entirely on the type of machine you choose. A gumball machine may only need to be serviced once a month, while a bill changer may need to be checked on more often.

Can I operate my business out of my home?
Absolutely. With this type of business, there is no need for an expensive office space or warehouse.

References
www.wikipedia.org
http://money.howstuffworks.com/question269.htm
http://www.changemachinesdirect.com
http://www.gumballs.com/vending-machine-business-vending-business.html