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<span id="openzim-page-title" class="mw-page-title-main"><span class="mw-page-title-main">Banknote processing</span></span>
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<p><b>Banknote processing</b> is an automated process to check the <a href="Security_printing" title="Security printing">security</a> (or authenticity) features and the fitness of <a href="Banknote" title="Banknote">banknotes</a> in circulation, to count and sort them by <a href="Denomination_(currency)" title="Denomination (currency)">denomination</a> and to <a href="Balance_(accounting)" title="Balance (accounting)">balance</a> deposits. This processing of <a href="Currency" title="Currency">currency</a> is performed by security printing companies, <a href="Central_bank" title="Central bank">central banks</a>, <a href="Financial_institution" title="Financial institution">financial institutions</a> and <a href="Cash-in-transit" title="Cash-in-transit">cash-in-transit</a> (CiT) companies.
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<div class="mw-heading mw-heading2"><h2 id="Cash_Cycle">Cash Cycle</h2></div>
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<p>The cash cycle is driven by <a href="Coin" title="Coin">coins</a> for lower values and banknotes for higher values (called <i>denominations</i>). The central bank orders the banknotes from security printing companies and stocks them. To get banknotes, financial institutions raise a credit at the central bank with paying interests and depositing securities. On request of their customers they pay them out over the bank counter or <a href="Automated_teller_machine" class="mw-redirect" title="Automated teller machine">cash dispensers</a> (i.e., automated teller machines, ATM) and put them into <a href="Currency_in_circulation" title="Currency in circulation">circulation</a>. After paying at <a href="Cash_register" title="Cash register">cash registers</a> of <a href="Retail" title="Retail">retail</a> or <a href="Gas_station" class="mw-redirect" title="Gas station">gas stations</a>, <a href="Vending_machine" title="Vending machine">vending machines</a> (e.g., cigarettes, tickets, drinks) or depositing in ATMs the cash is returned to the financial institutions. In most cases, CiT companies pick up the cash receipts by <a href="Armored_car_(valuables)" title="Armored car (valuables)">armored cars</a> and refill the cash dispensers or store it in <a href="Bank_vault" title="Bank vault">bank vaults</a>.
</p><p>Depending on the country the cash cycle is regulated and structured differently. Some central banks (e.g., the <a href="Bank_of_England" title="Bank of England">Bank of England</a> or the <a href="Reserve_Bank_of_Australia" title="Reserve Bank of Australia">Reserve Bank of Australia</a>) delegate their tasks for maintaining the fitness and checking the authenticity to the financial institutions and accept only unfit banknotes to be deposited (returned). Otherwise they may charge a <a href="Penalty_(contract)" class="mw-redirect" title="Penalty (contract)">penalty</a> or a fee. The <a href="European_Central_Bank" title="European Central Bank">European Central Bank</a> (ECB) stipulates that the financial institutions may always return the banknotes as standardized units (bundles of 1,000 banknotes, sorted by denomination, banded as packages of 100 banknotes) without having sorted them for the fitness level. The <a href="Deutsche_Bundesbank" title="Deutsche Bundesbank">Deutsche Bundesbank</a> (DBB) even accepts unsorted banknotes as "multi-denomination deposit" for a moderate <a href="Fee" title="Fee">fee</a> independent from the amount of the payment.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> This attractive offering supports a high quality of the cash in circulation and the reliable and early detection of <a href="Counterfeit_money" title="Counterfeit money">counterfeit money</a> all over <a href="Germany" title="Germany">Germany</a>. The <a href="National_Bank_of_Belgium" title="National Bank of Belgium">National Bank of Belgium</a>, the <a href="Oesterreichische_Nationalbank" title="Oesterreichische Nationalbank">Oesterreichische Nationalbank</a> with its participation in <i>Geldservice Austria</i> (GSA) and the <a href="Central_Bank_of_Luxembourg" title="Central Bank of Luxembourg">Central Bank of Luxembourg</a><sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup> apply similar models of the optimized cash cycle.
</p><p>The central banks define the conditions for the recirculation of fit banknotes by the financial institutions. The ECB, with its <i>Decision on the authenticity and fitness checking and recirculation of euro banknotes</i> (ECB/2010/14), defines a minimum standard for the recirculation of <a href="Euro_banknotes" title="Euro banknotes">euro banknotes</a> by financial institutions and other professional cash handlers.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup> This includes the verification of authenticity and sufficient fitness level by certified <i>banknote processing machines</i>. Damaged and soiled banknotes must be returned to the National Central Bank (NCB). Suspect counterfeit money must be handed over to the competent national authorities.
</p>
<div class="mw-heading mw-heading2"><h2 id="History">History</h2></div>
<div class="mw-heading mw-heading3"><h3 id="Counting_machines">Counting machines</h3></div>
<p>First mechanical means for the sorting and counting of banknotes existed in the 1920s already. In 1916, the <a href="United_States" title="United States">USA</a> granted the <a href="Patent" title="Patent">patent</a> <i>Machine for Assorting and Counting Paper Money</i>.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> The machine offered several slots for feeding banknotes by a cashier and used <a href="Mechanical_counter" title="Mechanical counter">mechanical counters</a>. It was used as <i>Federal Bill Counter</i> by the <a href="Federal_Reserve_System" class="mw-redirect" title="Federal Reserve System">Federal Reserve System</a> over several decades.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup>
</p><p>From 1957, the British <a href="De_La_Rue" title="De La Rue">De La Rue</a> marketed the first counting machine based on spindle principles, i.e., with counting the pieces on the edges.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup>
</p>
<div class="mw-heading mw-heading3"><h3 id="Sorting_machines">Sorting machines</h3></div>
<p>When <a href="Microelectronics" title="Microelectronics">microelectronics</a> became available by the end of the 1960s, the development of sorting machines started to check the authenticity and fitness of banknotes in one step. First prototypes were developed by <a href="Toshiba" title="Toshiba">Toshiba</a> in <a href="Japan" title="Japan">Japan</a>, by <a href="Crosfield_Electronics" title="Crosfield Electronics">Crosfield Business Machines</a> under the guidance of <a href="John_Crosfield" title="John Crosfield">John Crosfield</a> in the <a href="United_Kingdom" title="United Kingdom">United Kingdom</a>, by <i>Società di Fisica Applicata</i> (SFA) in <a href="Italy" title="Italy">Italy</a>, and by <i>Gesellschaft für Automation und Organisation</i> (GAO), a subcompany of <a href="Giesecke%2BDevrient" title="Giesecke+Devrient">Giesecke+Devrient</a> (G+D), in <a href="Germany" title="Germany">Germany</a> under the guidance of <a href="Helmut_Gr%C3%B6ttrup" title="Helmut Gröttrup">Helmut Gröttrup</a>. In 1976 the US company <i>Recognition Equipment Inc</i> (REI) joined.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> The demand was driven by the central banks, mainly <a href="Bank_of_Japan" title="Bank of Japan">Bank of Japan</a>, <a href="Banca_d'Italia" class="mw-redirect" title="Banca d'Italia">Banca d'Italia</a>, <a href="De_Nederlandsche_Bank" title="De Nederlandsche Bank">De Nederlandsche Bank</a> and the German <a href="Deutsche_Bundesbank" title="Deutsche Bundesbank">Deutsche Bundesbank</a>. The sorting machines of the first generation achieved a processing speed of 4 up to 20 banknotes per second. In many cases they were built on the technology of reading <a href="Punched_card" title="Punched card">punched cards</a> or <a href="Mail_sorting" title="Mail sorting">mail sorting</a> or used synergies in manufacturing such machines.
</p><p>The model <i>ISS 300</i> of G+D was a product of the first generation and designed as a <i>semi-automatic machine</i>. It sorted the banknotes of a preselected denomination by authenticity and fitness, achieved a processing speed of 8 banknotes per seconds and was introduced by the Deutsche Bundesbank in 1977.<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> It was manufactured until 2000 and set a world-wide reference of banknote processing systems with more than 2,100 sold systems to 67 countries. In 2006, an early machine was exhibited in the <a href="Deutsches_Museum" title="Deutsches Museum">Deutsches Museum</a> to demonstrate <a href="Pattern_recognition" title="Pattern recognition">pattern recognition</a> as an early application of <a href="Information_technology" title="Information technology">information technology</a>.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup>
</p><p>From 1985, the progress of microelectronics on base of <a href="Microprocessor" title="Microprocessor">microprocessors</a> enabled banknote processing systems with a processing speed of up to 40 banknotes per second with fully automated functions of debanding, banding, bundling and online destruction by a <a href="Paper_shredder" title="Paper shredder">paper shredder</a>. The <i>BPS 3000</i> from G+D was a second generation machine which dominated the market as <i>fully automatic machine</i> after achieving a large order from the US <a href="Federal_Reserve" title="Federal Reserve">Federal Reserve</a> in 1990 and replaced the <i>Currency Verification and Counting System</i> (CVCS) from REI.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> The Deutsche Bundesbank and further central banks followed. As variant BPS 2000 OBIS it became a world-wide standard for the final quality inspection of single notes in banknote printing works.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup>
</p>
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<div class="thumb" style="width: 200px; height: 160px;"><span typeof="mw:File"></span></div>
<div class="gallerytext">Banknote processing system ISS 300PS exhibited im Deutschen Museum (1986/2006)</div>
</li>
<li class="gallerybox" style="width: 205px">
<div class="thumb" style="width: 200px; height: 160px;"><span typeof="mw:File"></span></div>
<div class="gallerytext">REI CVCS banknote processing system with Federal Bill Counter (1994)</div>
</li>
<li class="gallerybox" style="width: 205px">
<div class="thumb" style="width: 200px; height: 160px;"><span typeof="mw:File"></span></div>
<div class="gallerytext">Banknote processing in an Indian cash center with BPS 200 from G+D (2004)</div>
</li>
<li class="gallerybox" style="width: 205px">
<div class="thumb" style="width: 200px; height: 160px;"><span typeof="mw:File"></span></div>
<div class="gallerytext">Banknote processing in the <a href="Democratic_Republic_of_the_Congo" title="Democratic Republic of the Congo">Democratic Republic of the Congo</a> with BPS 200 and a DLR 8762 tabletop sorter from De La Rue (2010)</div>
</li>
</ul>
<div class="mw-heading mw-heading2"><h2 id="Functions_of_banknote_processing">Functions of banknote processing</h2></div>
<p>The machines for banknote processing offer different levels of <a href="Automation" title="Automation">automation</a> with a processing speed of up to 44 banknotes per second.<sup id="cite_ref-BPSX9_12-0" class="reference"><a href="#cite_note-BPSX9-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup>
</p>
<div class="mw-heading mw-heading3"><h3 id="Automated_feeding">Automated feeding</h3></div>
<p>With the highest automation level the banknotes are automatically fed to the singler by using the following principles:
</p>
<ul><li>Feeding of printed sheets of paper with up to 60 banknotes in security printing into a cutting system and subsequent filling of circulating carriers with up to 1,000 loose banknotes each</li>
<li>Feeding of loose banknotes from standardized trays<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup></li>
<li>Feeding of packaged banknotes by automated opening of parcels and bundles (e.g., a <a href="Carton" title="Carton">carton</a> or a <a href="Shrink_wrap" title="Shrink wrap">shrink wrapped</a> parcel of 10 bundles with 10 packages of 100 banknotes)</li>
<li>Debanding of the packages by cutting and removing the <a href="Currency_strap" title="Currency strap">currency straps</a></li></ul>
<div class="mw-heading mw-heading3"><h3 id="Singler">Singler</h3></div>

<p>The singler pulls single banknotes from a stack. Simple machines are using the <a href="Friction" title="Friction">friction</a> principle (friction singler), grip them at the long edge and transport, and evaluate and sort them by a short-edge transport. High-speed machines additionally use <a href="Compressed_air" title="Compressed air">compressed air</a> and <a href="Suction" title="Suction">suction</a>, grip the banknotes at the short edge (long-edge transport) and bring them within milliseconds to a speed of up to 11 m/s (approx. 40 km/h or 25 miles/hour). This banknotes are accelerated by more than 500-fold <a href="Earth_gravity" class="mw-redirect" title="Earth gravity">earth gravity</a> (i.e., &gt;5,000 m/s<sup>2</sup>).
</p><p>A special challenge is the singling of banknotes with poor quality, e.g., due to limpness, soiling, mechanical defects, glued by <a href="Adhesive_tape" title="Adhesive tape">adhesive tape</a> or <a href="Chewing_gum" title="Chewing gum">chewing gum</a>, often distorted by long storage, or high moisture.
</p><p>By using separator cards or header cards, different deposits can be accounted separately without interrupting the singling.
</p>
<div class="mw-heading mw-heading3"><h3 id="Detectors">Detectors</h3></div>
<p>The <a href="Currency_detector" title="Currency detector">currency detectors</a> specialized for high-speed processing check each single banknote for the following features:
</p>
<ul><li>Detecting the <a href="Denomination_(currency)" title="Denomination (currency)">denomination</a>, <a href="Series_(United_States_currency)" title="Series (United States currency)">series</a> and orientation, e.g., distinguishing <a href="Euro_banknotes" title="Euro banknotes">euro banknotes</a> between series ES1 and ES2 or sorting <a href="US_dollar" class="mw-redirect" title="US dollar">US dollar</a> for faced orientation</li>
<li>Reading the serial number for statistical purposes, if applicable for the search of <a href="Blackmail" title="Blackmail">blackmail</a> money</li>
<li>Checking the authenticity of banknote based on machine-readable <a href="Security_printing" title="Security printing">security features</a></li>
<li>Determining the fitness for recirculation by evaluating <a href="Soil" title="Soil">soil</a>, <a href="Stain" title="Stain">stains</a>, ink wear, and mechanical damages (e.g., <a href="Tearing" title="Tearing">tearing</a>, holes, <a href="Adhesive_tape" title="Adhesive tape">adhesive tapes</a>, <a href="Dog_ears" title="Dog ears">dog ears</a>, missing parts, fold, <a href="Crumpling" title="Crumpling">crumpling</a>, limpness)</li>
<li>Detecting dyed banknotes which were neutralized by an <i>Intelligent Banknote Neutralisation System</i> (IBNS), e.g., when a stolen ATM cassette was opened without authorization<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup></li></ul>
<p>Optical and other physical measuring systems are used to detect these characteristics. Security features of banknotes are strictly <a href="Secrecy" title="Secrecy">covert</a> with regard to composition and detection principles.<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup>
</p><p>Banknotes which cannot be verified as genuine are rejected to a special output pocket for manual inspection. This also applies for multiple items if the singler pulls more than one banknote at once. The machine operator can refeed them to the singler or check the human-readable authenticity features for verification.
</p>
<div class="mw-heading mw-heading3"><h3 id="Stacking_and_packaging">Stacking and packaging</h3></div>
<p>The processed banknotes are output to various stackers depending on the evaluated category. In general stackers with <a href="Spiral" title="Spiral">spiral</a> slots are used to receive the banknotes, decelerate them on shortest distance (&lt;200 mm) and stack them.
</p><p>Depending on the degree of automation the stacking may comprise the following steps:
</p>
<ul><li>Separation (sorting) by denomination, series, orientation and fitness level (optionally including differentation for ATM fitness and standard fitness for circulation)</li>
<li>Counting and stacking as loose banknotes</li>
<li>Transfer of loose banknotes into special trays</li>
<li>Banding as output packages with 100 banknotes. The currency strap is 25 to 40 mm wide and is printed with processing data. As strapping requires some time two alternating stackers (<a href="Tandem" title="Tandem">tandem</a> operation) are assigned to one sorting category.</li>
<li>Pre-packaging of bundles with 5 or 10 output packages for a unit of 500 or 1,000 banknotes, optionally with a <a href="Label" title="Label">label</a> printed with processing data</li>
<li>Bundling of the units by a <a href="Packaging_machinery" title="Packaging machinery">packaging machinery</a> with using <a href="Shrink_wrap" title="Shrink wrap">shrink wrap</a> or <a href="Vacuum_packing" title="Vacuum packing">vacuum packing</a>. This procedure protects the banknotes from soil and dirt and prevents the <a href="Theft" title="Theft">theft</a> of single banknotes.</li>
<li>Aggregation of 4 to 20 bundles with using shrink wrap or <a href="Carton" title="Carton">carton</a> (secondary packaging)</li>
<li>Automated <a href="Palletizer" title="Palletizer">palletizing</a> by a <a href="Robot" title="Robot">robot</a></li></ul>
<div class="mw-heading mw-heading3"><h3 id="Destruction">Destruction</h3></div>
<p>The destruction of unfit or recalled banknotes is a responsibility of the central bank. In general, the destruction is performed by a <a href="Paper_shredder" title="Paper shredder">shredder</a>. The machine cross-cuts the banknotes to particles (shreds) with an area of less than 25 mm<sup>2</sup>. This work process is executed under very high security provisions to preclude manipulation of authenticity detection and counting. Optionally, <a href="Digital_signature" title="Digital signature">digital signatures</a> are used to protect the <a href="Application_software" title="Application software">application software</a> and <a href="Transmission_(telecommunications)" class="mw-redirect" title="Transmission (telecommunications)">transmission</a> of counting data.
</p><p>In a second stage the shreds are collected by a special suction system and <a href="Briquette#Paper_briquettes" title="Briquette">briquetted</a> to reduce the volume. The briquettes may be disposed of in a <a href="Landfill" title="Landfill">landfill</a> or burnt for <a href="Heat_generation" class="mw-redirect" title="Heat generation">heat generation</a>. Some central banks offer shreds as a popular <a href="Souvenir" title="Souvenir">souvenir</a>.
</p>
<ul class="gallery mw-gallery-traditional">
<li class="gallerybox" style="width: 235px">
<div class="thumb" style="width: 230px; height: 150px;"><span typeof="mw:File"></span></div>
<div class="gallerytext">Shreds of euro banknotes (series ES2) with a typical size of 1.5 x 14 mm²</div>
</li>
<li class="gallerybox" style="width: 235px">
<div class="thumb" style="width: 230px; height: 150px;"><span typeof="mw:File"></span></div>
<div class="gallerytext">Briquetted euro banknotes by <a href="Deutsche_Bundesbank" title="Deutsche Bundesbank">Deutsche Bundesbank</a> (approx.&nbsp;1&nbsp;kg)</div>
</li>
<li class="gallerybox" style="width: 235px">
<div class="thumb" style="width: 230px; height: 150px;"><span typeof="mw:File"></span></div>
<div class="gallerytext">Shredded <a href="United_States_dollar" title="United States dollar">US dollar</a> with a typical size of 1.5 × 14 mm²</div>
</li>
<li class="gallerybox" style="width: 235px">
<div class="thumb" style="width: 230px; height: 150px;"><span typeof="mw:File"></span></div>
<div class="gallerytext">Shredded US dollar by <a href="Federal_Reserve_Bank_of_San_Francisco" title="Federal Reserve Bank of San Francisco">Federal Reserve Bank of San Francisco</a> as souvenir</div>
</li>
<li class="gallerybox" style="width: 235px">
<div class="thumb" style="width: 230px; height: 150px;"><span typeof="mw:File"></span></div>
<div class="gallerytext">Briquetted US dollar by <a href="Federal_Reserve_Bank_of_New_York" title="Federal Reserve Bank of New York">Federal Reserve Bank of New York</a> (approx.&nbsp;1,000 pieces, 1&nbsp;kg)</div>
</li>
</ul>
<div class="mw-heading mw-heading2"><h2 id="Market_and_manufacturers">Market and manufacturers</h2></div>
<p>Since 1995 the offering of banknote processing machines has differentiated to the following product classes:
</p>
<ul><li>Modular high-speed systems with a high degree of automation and a processing speed of more than 20 banknotes per second with up to 20 output stackers for the concurrent processing of mixed denominations (multi-denomination processing) or mixed <a href="Currency" title="Currency">currencies</a></li>
<li>Modular desktop systems for mid-range performance (mainly used by cash centers of CiT companies and financial institutions)</li>
<li>Compact tabletop systems with up to 4 output stackers for the use in the <a href="Back_office" title="Back office">back office</a> of a <a href="Retail" title="Retail">retail</a> or <a href="Commercial_bank" title="Commercial bank">commercial bank</a> branch</li>
<li>Simple tabletop systems for the <a href="Cashier" title="Cashier">cashier</a> for counting and low-level authenticity verification (no sorting)</li></ul>
<p>The preeminent market leader for high-speed systems is the German <a href="Giesecke%2BDevrient" title="Giesecke+Devrient">Giesecke+Devrient</a> (G+D),<sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> followed by the Japanese <a href="Toshiba" title="Toshiba">Toshiba</a><sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> and the British-American <i>Cash Processing Solutions</i> (CPS) with low market shares. The CPS products are based on the technology of Recognition Equipment Inc. (REI), which was acquired by <i>Currency Systems International</i> (CSI) in 1990, by <i>De La Rue</i> in 2002 and divested to CPS in 2016. In January 2023, CPS announced to withdraw from this market segment<sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> and is focusing on service and software business instead.<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup>
</p><p>The Japanese <i>Glory</i>,<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> followed by G+D and several Chinese, Korean and Japanese suppliers, leads the desktop and compact tabletop market.
</p><p>Super-large cash centers have a capacity of processing up to 20 million banknotes per day. They are protected by the highest security provisions to protect from heists. The world-wide largest cash centers are:
</p>
<ul><li><a href="Federal_Reserve_Bank_of_New_York" title="Federal Reserve Bank of New York">Federal Reserve Bank of New York</a>: <a href="East_Rutherford_Operations_Center" title="East Rutherford Operations Center">East Rutherford Operations Center</a> (EROC) with high-speed systems from G+D, operational since 1992. For the first time it used an <a href="Automated_storage_and_retrieval_system" title="Automated storage and retrieval system">automated storage and retrieval system</a> (AS/RS) and <a href="Automated_guided_vehicle" title="Automated guided vehicle">automated guided vehicles</a> (AGV).<sup id="cite_ref-21" class="reference"><a href="#cite_note-21"><span class="cite-bracket">[</span>21<span class="cite-bracket">]</span></a></sup></li>
<li><a href="Bank_of_Japan" title="Bank of Japan">Bank of Japan</a>: Center in <a href="Toda%2C_Saitama" title="Toda, Saitama">Toda</a> (North of <a href="Tokyo" title="Tokyo">Tokyo</a>) with high-speed systems from Toshiba, operational since 1993. It has a very high degree of automation with nearly unmanned operation from the deposited to the withdrawn parcel, using <a href="Conveyor_belt" title="Conveyor belt">conveyor belts</a> and packaging machinery.<sup id="cite_ref-22" class="reference"><a href="#cite_note-22"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup></li>
<li><a href="People's_Bank_of_China" title="People's Bank of China">People's Bank of China</a>: Several large cash centers in <a href="Metropolitan_area" title="Metropolitan area">metropolitan areas</a>, mainly with high-speed processing systems from G+D, operational since 2003</li>
<li><a href="Deutsche_Bundesbank" title="Deutsche Bundesbank">Deutsche Bundesbank</a>: Cash center in <a href="Dortmund" title="Dortmund">Dortmund</a>, operational since July 2021. It is using a high degree of automation with a standardized "P-Behälter"<sup id="cite_ref-23" class="reference"><a href="#cite_note-23"><span class="cite-bracket">[</span>23<span class="cite-bracket">]</span></a></sup> and relies on conveyors belts, automated guided vehicles and packaging systems.<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">[</span>24<span class="cite-bracket">]</span></a></sup></li>
<li><a href="Central_Bank_of_Egypt" title="Central Bank of Egypt">Central Bank of Egypt</a>: <a href="Security_printing" title="Security printing">security printing</a>, <a href="Paper_mill" title="Paper mill">paper mill</a> and highly automated cash center in the <a href="New_Administrative_Capital" title="New Administrative Capital">New Administrative Capital</a> with a daily capacity of processing 20 million banknotes, operational since 2022<sup id="cite_ref-25" class="reference"><a href="#cite_note-25"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-26" class="reference"><a href="#cite_note-26"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup></li></ul>
<div class="mw-heading mw-heading2"><h2 id="Related_technologies">Related technologies</h2></div>
<p>Banknote processing is a special application of <a href="Document_processing" title="Document processing">document processing</a> for currency based on <a href="Security_paper" title="Security paper">security paper</a> or <a href="Polymer_banknote" title="Polymer banknote">polymer</a>. Therefore some manufacturers tried adapting existing technology for banknote processing, especially for the singling and <a href="Image_scanner" title="Image scanner">image scanner</a>. Such applications comprised:
</p>
<ul><li><a href="Punched_card_sorter" title="Punched card sorter">Punched card sorter</a>: Reading of binary encoded information and sorting of punched cards, see also <a href="Unit_record_equipment" title="Unit record equipment">Hollerith machines</a></li>
<li><a href="Cheque" title="Cheque">Checks</a>: Reading of checks (or cheques) by <a href="Magnetic_ink_character_recognition" title="Magnetic ink character recognition">magnetic ink character recognition</a> (MICR) and sorting for the paying financial institutions. In 2000, the US Federal Reserve System processed more checks (approx. 40 billion per year) than banknotes. Since 2003, with <a href="Check_21_Act" title="Check 21 Act">Check 21 Act</a> and <a href="Cheque_truncation" title="Cheque truncation">check truncation</a>, the full image scanning of checks is used and physical return if the checks to the paying financial institution is no longer necessary.<sup id="cite_ref-27" class="reference"><a href="#cite_note-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup></li>
<li><a href="Voucher" title="Voucher">Vouchers</a> and <a href="Coupon" title="Coupon">coupons</a>: Reading of documents with a defined value, mainly used in <a href="Casino" title="Casino">casinos</a> and retail. In some countries food coupons are used to subsidize the deserving poor.</li>
<li><a href="Medical_prescription" title="Medical prescription">Medical prescriptions</a>: Scanning and reading of printed documents for central accounting with <a href="Health_insurance" title="Health insurance">health insurance</a> companies</li>
<li><a href="Mail_sorting" title="Mail sorting">Mail sorting</a>: Reading the address of letters and sorting by the <a href="Postal_code" title="Postal code">postal code</a>. Modern systems are capable of sorting the letters according to the detailed sequence of destinations for the distribution by the <a href="Mailman" class="mw-redirect" title="Mailman">mailman</a>.</li></ul>
<p>Meanwhile these applications are differentiated because the requirements for banknote processing are quite special. Only Toshiba is offering banknote processing and mail sorting machinery from the same division.<sup id="cite_ref-28" class="reference"><a href="#cite_note-28"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup>
</p>
<div class="mw-heading mw-heading2"><h2 id="Patents">Patents</h2></div>
<p>One of the first comprehensive <a href="Patent_application" title="Patent application">patent applications</a> was filed by the Italian <i>Societá di Fisica Applicata</i> (SFA) on May 31, 1972, as "Automatic Used Banknote Selecting Machine". It described an apparatus for the detection of counterfeits (by <a href="Watermark" title="Watermark">watermark</a>, <a href="Fluorescence" title="Fluorescence">fluorescence</a> and <a href="Intaglio_(printmaking)" title="Intaglio (printmaking)">intaglio printing)</a>, the measuring of the wearing by comparison with a sample banknote, and the reading of the serial number. SFA developed the machine <i>Selenota</i> which was used by the central banks of Italy and Spain until the early 1980s. The patent US 3,800,155<sup id="cite_ref-29" class="reference"><a href="#cite_note-29"><span class="cite-bracket">[</span>29<span class="cite-bracket">]</span></a></sup> which was granted on March 26, 1974, was easily avoided due to weak claims and only had little market impact.
</p><p>In the 1990s, the US company <a href="Cummins_Allison" title="Cummins Allison">Cummins Allison Corp.</a> installed a comprehensive patent protection for tabletop machines, especially for the combination of short-edge transport with a processing speed of more than 800 banknotes per minute. In 2003 it filed infringement lawsuits against Japanese Glory<sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">[</span>30<span class="cite-bracket">]</span></a></sup> and Korean Shinwoo<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">[</span>31<span class="cite-bracket">]</span></a></sup> for compensation of the damage and fine with several tens of million US dollar. With this success Cummins Allison could seal the US market of tabletop machines off from competition until the main patents expired in 2017.
</p><p>Meanwhile the relevant basic patent have expired for all product segments. Therefore manufacturers from China and <a href="Russia" title="Russia">Russia</a><sup id="cite_ref-32" class="reference"><a href="#cite_note-32"><span class="cite-bracket">[</span>32<span class="cite-bracket">]</span></a></sup> have tried to enter the market of high-speed machines by copied technology, but with little success due to issues of <a href="Quality_(business)" title="Quality (business)">product quality</a>.
</p>
<div class="mw-heading mw-heading2"><h2 id="Literature_and_media">Literature and media</h2></div>
<ul><li>Criminal fiction <i>Montecristo</i> from <a href="Martin_Suter" title="Martin Suter">Martin Suter</a><sup id="cite_ref-33" class="reference"><a href="#cite_note-33"><span class="cite-bracket">[</span>33<span class="cite-bracket">]</span></a></sup> describing a white-collar crime by unauthorized printing of <a href="Swiss_franc" title="Swiss franc">Swiss franc</a></li>
<li>Documentary film <i>Tonbridge Securitas Heist</i> on <a href="Securitas_depot_robbery" title="Securitas depot robbery">Securitas depot robbery</a> in <a href="Tonbridge" title="Tonbridge">Tonbridge</a>, Kent, with a prey of £53.1m in 2006<sup id="cite_ref-34" class="reference"><a href="#cite_note-34"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup></li>
<li>Action film <a href="Den_of_Thieves_(film)" title="Den of Thieves (film)">Den of Thieves</a> with a fictional raid on a cash transport and the Los Angeles branch of the <a href="Federal_Reserve_Bank_of_San_Francisco%2C_Los_Angeles_Branch" class="mw-redirect" title="Federal Reserve Bank of San Francisco, Los Angeles Branch">Federal Reserve Bank of San Francisco</a>.<sup id="cite_ref-35" class="reference"><a href="#cite_note-35"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> The scenery of banknote processing does not correspond to the principle of FRB operations.</li></ul>
<div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2></div>
<ul><li><a href="Automated_cash_handling" title="Automated cash handling">Automated cash handling</a></li>
<li><a href="Automated_teller_machine" class="mw-redirect" title="Automated teller machine">Automated teller machine</a></li>
<li><a href="Ticket_machine" title="Ticket machine">Ticket machine</a></li>
<li><a href="Slot_machine" title="Slot machine">Slot machine</a></li></ul>
<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>
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</style><span class="citation patent" id="CITEREFJohn_P._BuckleyAllan_E._Lard"><a rel="nofollow" class="external text" href="https://worldwide.espacenet.com/textdoc?DB=EPODOC&amp;IDX=US1328263">US 1328263</a>, John P. Buckley &amp; Allan E. Lard, "Machine for assorting and counting paper money", published 1916-07-12</span><span class="Z3988" title="ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Apatent&amp;rft.number=1328263&amp;rft.cc=US&amp;rft.title=Machine+for+assorting+and+counting+paper+money&amp;rft.inventor=John+P.+Buckley&amp;rft.pubdate=1916-07-12"><span style="display: none;">&nbsp;</span></span></span>
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<li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20220227174220/https://www.clevelandfed.org/2012-annual-report/assets/pdf/operations_evolution.pdf">"Operations Evolution"</a> <span class="cs1-format">(PDF)</span>. <i>FRB Cleveland</i>. 2012-01-01. Archived from <a rel="nofollow" class="external text" href="https://www.clevelandfed.org/2012-annual-report/assets/pdf/operations_evolution.pdf">the original</a> <span class="cs1-format">(PDF; 561&nbsp;kB)</span> on 2022-02-27<span class="reference-accessdate">. Retrieved <span class="nowrap">2022-02-27</span></span>.</cite></span>
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<li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.delarue.com/about/our-history">"Our 200 year heritage"</a>. <i><a href="De_La_Rue" title="De La Rue">De La Rue</a></i><span class="reference-accessdate">. Retrieved <span class="nowrap">2022-02-27</span></span>. <q>In 1957 De La Rue first marketed a banknote counting machine. De La Rue Instruments was later formed to run this line.</q></cite></span>
</li>
<li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.youtube.com/watch?v=W7yj4piLcmU">"Computer History Automated Check Processing 1989 Federal Reserve Bank"</a>. FRB of St. Louis. 1989<span class="reference-accessdate">. Retrieved <span class="nowrap">2022-03-03</span></span>.</cite> from 4:30 min the REI CVCS is shown; the Federal Bill Counter from 5:10 min; check processing from 7:50 min</span>
</li>
<li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text"><cite class="citation web cs1 cs1-prop-foreign-lang-source"><a rel="nofollow" class="external text" href="https://www.spiegel.de/spiegel/print/d-41019622.html">"Falschgeld"</a> <span class="cs1-format">(PDF; 308&nbsp;kB)</span> (in German). Der Spiegel 6/1977. 1977-01-31<span class="reference-accessdate">. Retrieved <span class="nowrap">2019-05-16</span></span>.</cite></span>
</li>
<li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text"><cite id="CITEREFHartmut_Petzold2007" class="citation web cs1 cs1-prop-foreign-lang-source">Hartmut Petzold (2007). <a rel="nofollow" class="external text" href="https://www.deutsches-museum.de/fileadmin/Content/data/Allgemein/PDF/Jahresberichte/jab2006_2.pdf">"Jahresbericht 2006"</a> <span class="cs1-format">(PDF; 4,24&nbsp;MB)</span> (in German). Deutsches Museum. p.&nbsp;24<span class="reference-accessdate">. Retrieved <span class="nowrap">2019-07-23</span></span>.</cite></span>
</li>
<li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.youtube.com/watch?v=15t5kXHRszg">"First Look inside the Federal Reserve"</a>. <i><a href="YouTube" title="YouTube">YouTube</a></i>. 2013-03-24<span class="reference-accessdate">. Retrieved <span class="nowrap">2022-03-03</span></span>.</cite> from 26:30 min the BPS 3000 is shown in operation at FRB of New York, EROC</span>
</li>
<li id="cite_note-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-11">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.youtube.com/watch?v=pIbaNszdXXk">"Banknote printing and coin minting"</a>. <a href="Banco_de_M%C3%A9xico" class="mw-redirect" title="Banco de México">Banco de México</a>. 2011-01-01<span class="reference-accessdate">. Retrieved <span class="nowrap">2022-03-03</span></span>.</cite> manufacturing of banknotes with final inspection and packaging. Cutting from 6:30 min, final inspection with BPS 2000 OBIS at 6:37, packaging at 7:15 min</span>
</li>
<li id="cite_note-BPSX9-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-BPSX9_12-0">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.gi-de.com/en/payment/cash/scalable-cash-cycle-solutions/banknote-processing-systems/bps-x9">"BPS X9: superior high speed quality inspection for print works"</a>. <i>Giesecke+Devrient</i><span class="reference-accessdate">. Retrieved <span class="nowrap">2022-03-28</span></span>.</cite></span>
</li>
<li id="cite_note-13"><span class="mw-cite-backlink"><b><a href="#cite_ref-13">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.gi-de.com/en/payment/cash/scalable-cash-cycle-solutions/banknote-processing-systems/bps-m7">"BPS M7: highest security and efficiency for the high-speed world"</a>. <i>Giesecke+Devrient</i><span class="reference-accessdate">. Retrieved <span class="nowrap">2022-03-28</span></span>.</cite></span>
</li>
<li id="cite_note-14"><span class="mw-cite-backlink"><b><a href="#cite_ref-14">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://www.ecb.europa.eu/euro/banknotes/ink-stained/html/index.en.html">"Ink-stained banknotes"</a>. European Central Bank. 2022<span class="reference-accessdate">. Retrieved <span class="nowrap">2022-04-15</span></span>.</cite></span>
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