Expert: Ronald Fern - 6/14/2010

Question
QUESTION: I have a $20 that has a black mark that appears to be on the paper, as it is under the gold 20's on the back of the bill. The mark almost looks like a Black cricle with a backwards B. Is this an error and what would something like this be worth?

ANSWER: Hi Stephanie:

Thanks for your question.

Without a photo, it's going to be hard for me to give you an exact answer, but I'll try.  If you want to send a follow-up question, with a photo, I'll revise my answer, if required.  A lot depends on the condition. One possibility is a rather minor type of error note (if real). The other a more major one. Let's look at the possibilities.

Bills are printed in sheets of 36 notes and in three phases. Obverse print, reverse print, and green serial numbers with seal print. The obverse print uses black ink. The reverse print uses green ink. The final print of the serial numbers and seal on the right uses green ink as well.

The more major error that may have happened is where the separation sheet was either missing or partially missing after the face printing. The wet ink from the front transferred on to the blank back side as the back was being printed. From your description of a black circle with a backwards "B", it is possible you have a later stage error, where most of the ink transferred earlier, leaving only the ink in the area of the black seal to imprint on your note. The sheet, with the error(s), went unnoticed during the cutting and final inspection phase. There may have been several others with a similar error like yours to "escape" into circulation.

A bill in crisp Uncirculated condition like yours, if an error, would have a value of approximately $100 to $250 to an interested error collector. Circulated notes would likely bring about $50 to $75 retail.

The minor error that happens where there are marks on the bill are usually what are called ink smears; however, they are always found with the same color ink as the printing of that side. Black smear on front and green smear on back. They are caused when too much ink gets on the machinery during the printing, and can be small or very large. I'm going to rule out this as the cause, where you say your black mark is on the back of the bill.

It is more likely what happened is that a merchant used the marking pen to establish if your $20 bill was real or counterfeit. Your bill has no added value, and I do not believe you have an error.

There are, generally speaking, two "types" of counterfeit marker pen testers. The older devices (dating back 20 or more years, but still available today) are a simple type of pH tester, which proved ineffective. Faced with the reality that the pH tester pens were quickly losing effectiveness, the makers developed 2 new types of pen that utilize different tests. The newer pens look to react with chemicals that either 1) should be found in US banknote paper (in this case, calcium) or 2) that should NOT be in the paper (Starch). When a fake bill is encountered, the indicator fluid in the pen will turn black.

An article called "Fraud Fighter" on the Internet states: "While it would be nice to believe that a $5.95 marker pen can protect us from counterfeit currency, the reality is that countermeasures to all of the available marker testing pens have long been developed and understood, and can be easily researched on the Internet by anybody who is aspiring to become a counterfeiter." So, generally speaking, it appears to be a waste of time to use these markers to establish if a bill is real or not.

Here's a site for more information on detecting counterfeit currency: http://www.secretservice.gov/money_detect.shtml

Here's a link for currency grading: http://www.cganotes.com/

Here's link for you to view different types of error currency and their values.

Link: http://www.coinsite.com/html/uscurrencyerrors.asp

Here's a link with information on FRN's: http://en.wikipedia.org/wiki/Federal_Reserve_Note

Here's a link for history of the $20 bills: http://en.wikipedia.org/wiki/United_States_twenty-dollar_bill

You may want to check US currency listings under error notes on eBay from time to time to see if your error is listed what this type of error note brings. Always try and get at least two opinions and try and deal with PNG dealers if possible. If you should decide to sell your bills to a dealer, remember they will offer about 50% to 60% of the retail value. Here's a link to find one in your area: http://www.pngdealers.com/dealersearch.php

Hope this helps to answer your question. Please remember to go to the experts site to rate this answer. Check the nomination box on the rating page below any comments you may have.

Thank You and Good Luck in your collecting.

---------- FOLLOW-UP ----------

QUESTION: Thank you so much. I have attached the picture and hope that this assists you in your determination of what I have found. Thank you for the information and assistance in my interest.

Answer
Hi Again, Stephanie:

Thanks for your follow-up question, with the photo. Sorry, but I'm stumped.

I looked at the photo under magnification. The black mark on your bill does not look like the reverse of the black seal with the "B". I don't know what it is or where it came from.

If you live close to a local shop, they should offer an opinion as to it's value and if it is authentic at no charge.

Please remember to go to the experts site to rate this answer and my first reply. Check the nomination box on the rating page below any comments you may have.

Thank You and continued Good Luck in your collecting.