Standards · Bank Notes
Paper Money Grading Scale
Bank notes are graded on a 70-point scale parallel to the Sheldon scale used for coins, sharing its adjectival anchors and adding the critical designations EPQ (Exceptional Paper Quality) or PPQ (Premium Paper Quality) for notes whose paper remains wholly unaltered. The scale was standardised by PMG (Paper Money Guaranty) and adopted independently by PCGS Banknote; both services, along with Xene, apply identical numerical anchors. Condition assessment focuses on three primary factors: paper originality, the degree of circulation wear, and the centering of the printed design within the cut margins.
Historical origin
Formal numerical grading of paper money emerged in the 1970s among specialist US currency dealers who adapted the adjectival vocabulary — Good, Fine, Very Fine, Uncirculated — already in use for coins. PMG standardised the 70-point scale in 2005, aligning banknote nomenclature with the Sheldon coin scale for the first time and introducing EPQ as a marketable distinction. PCGS Banknote followed with its PPQ equivalent. The numerical scale replaced the older 12-point system that had been used informally since the 1960s and which still appears in some older auction catalogues.
Originality of paper
The paramount question in modern bank-note grading is whether the paper is original — not pressed, washed, ironed, dipped or chemically restored. Pressing removes fold lines and restores apparent crispness but also destroys the raised embossing left by intaglio plates, compresses the paper fibres and subtly alters the feel and sheen of the surface. A pressed AU-58 note may visually resemble a fresh MS-63, but an experienced grader detects the absence of natural fibre texture and the loss of intaglio relief. The market values genuinely unaltered paper at a significant premium over a higher numeric grade achieved through restoration.
Centering
The position of the printed design within the cut margins is measured at all four sides. Strong centering is required for the highest uncirculated grades: a note with one margin nearly absent cannot achieve Gem Uncirculated regardless of paper quality. Centering is reported as a margin ratio on the Xene certificate. For Gem Uncirculated 65, we require a minimum 65/35 ratio on the limiting axis; for Superb Gem 67 and above, 70/30 is the practical floor.
Embossing
The raised impressions left by intaglio printing plates on the face and reverse of the note are the most reliable single indicator of paper originality. Original embossing — detectable by running a fingertip lightly across the surface — is destroyed by pressing or washing. Graders at Xene assess embossing under raking light at 15° to the paper surface, which reveals the relief of individual intaglio lines. Polymer notes lack traditional fibre embossing; originality for these is assessed by examining the optically variable elements and surface structure.
Pinholes, tape and cleaning
Pinholes — produced by counter pins on early vending and counting machines — do not inherently prevent EPQ designation, since the paper itself is original. They are recorded by count on the certificate and reduce the numeric grade but do not disqualify paper originality. Tape repairs, adhesive residue or paper lifts from tape removal are disqualifying for EPQ and typically result in a Details designation. Cleaning — whether aqueous or solvent — is detected under ultraviolet illumination and by the absence of natural surface oxidation, and similarly results in a Details designation.
Tolerance for circulated notes
Circulated notes are graded by the number, depth and location of folds, the degree of soiling and surface wear, and the structural integrity of the paper. A single bold centre fold reduces a note from AU-58 to roughly EF-40–45. Multiple folds along multiple axes place a note in the Fine to Very Fine range. The tolerance for light handling marks — counting flicks, corner bends — increases at lower grades: a VF-30 note may show three or four folds without penalty, whereas a single fold at AU-50 is the defining characteristic of the grade.
Common dispute points
The most frequent grading disputes concern the AU-58/MS-60 boundary (where a note with one light counting flick may be graded either way by different examiners), the detection of light pressing on otherwise sound notes, and the treatment of natural paper toning versus soiling. Xene resolves AU/MS boundary cases by examining the paper surface under polarised light to detect micro-compression from circulation; natural toning is distinguished from soiling by ultraviolet inspection and by the distribution pattern across the note.
How Xene differs from PMG/PCGS Banknote
Xene publishes all four margin measurements individually on the certificate, rather than an overall centering assessment. We also record embossing strength on a three-point scale (Full / Partial / Absent) alongside the EPQ determination, giving the market objective data rather than a binary designation. For polymer notes, Xene photographs the optically variable device under three illumination angles and stores the images on the online registry, enabling future authentication comparison. Xene does not issue 'Net' grades with undisclosed fault descriptions — all faults are enumerated on the certificate face.
Edge cases and Details designations
Notes with structural or cosmetic faults that preclude a clean numeric grade receive a Details designation: 'Cleaned — Details', 'Pressed — Details', 'Repaired — Details', 'Tape — Details', or 'Graffiti — Details'. The Details designation appears on the label alongside the apparent pre-fault numeric grade, so that a VF-30 note with a small tape repair is labelled 'VF-30 / Tape — Details'. Notes where authenticity is in doubt receive an 'Inconclusive' opinion with a written commentary. Counterfeit notes are confiscated in accordance with applicable law and are not returned to the submitter.
Reference table
At a glance.
| Numeric | Adjectival | Brief description |
|---|---|---|
| 1 | Poor (P-1) | Barely identifiable; extreme damage or missing pieces |
| 2 | Fair (FR-2) | Heavily worn; margins may be missing; tattered |
| 3 | About Good (AG-3) | Very heavily worn; design outline visible |
| 4 | Good (G-4) | Heavily circulated; complete but heavily soiled |
| 6 | Fine / Good (G-6) | Clear but very worn; all denominations legible |
| 8 | Very Good (VG-8) | Well circulated; complete; possible small tears at margins |
| 10 | Very Good (VG-10) | Well circulated; minor margin tears only |
| 12 | Fine (F-12) | Moderate circulation; several folds; legible throughout |
| 15 | Choice Fine (F-15) | Moderate circulation; bold colour; no tears |
| 20 | Very Fine (VF-20) | Light to moderate circulation; some folds |
| 25 | Very Fine (VF-25) | Light circulation; fewer folds; original brightness |
| 30 | Very Fine (VF-30) | Light circulation; limited folds; strong colour |
| 35 | Choice Very Fine (VF-35) | Minimal circulation evidence; three or fewer light folds |
| 40 | Extremely Fine (EF-40) | Very light use; two or three folds; near crisp |
| 45 | Choice EF (EF-45) | One or two light folds; bright, crisp paper |
| 50 | About Uncirculated (AU-50) | Single bold fold or counting flick |
| 53 | About Uncirculated (AU-53) | Trace handling; partial original crispness |
| 55 | Choice AU (AU-55) | Minor handling only; nearly fully crisp |
| 58 | Choice AU (AU-58) | Original crispness retained; no folds; possible corner bend |
| 60 | Uncirculated (MS-60) | No folds; possible average centering or minor print flaws |
| 61 | Uncirculated (MS-61) | No folds; minor surface disturbance |
| 62 | Uncirculated (MS-62) | No folds; above-average overall; minor imperfections |
| 63 | Choice Uncirculated (MS-63) | Strong centering; original crispness; minor blemishes only |
| 64 | Choice Uncirculated (MS-64) | Above average on all criteria; no material flaws |
| 65 | Gem Uncirculated (MS-65) | Premium centering; full embossing; original unaltered paper |
| 66 | Gem Uncirculated (MS-66) | Exceptional centering and paper; trivial imperfections only |
| 67 | Superb Gem (MS-67) | Outstanding on all criteria; near-perfect centering |
| 68 | Superb Gem (MS-68) | Virtually flawless; perfect registration and embossing |
| 69 | Superb Gem (MS-69) | Near perfect; only the most trivial flaw visible under magnification |
| 70 | Perfect (MS-70) | Flawless in every respect; perfect centering and embossing |
Questions
- What is the difference between EPQ and PPQ?
- EPQ (Exceptional Paper Quality) is the designation used by PMG. PPQ (Premium Paper Quality) is the equivalent used by PCGS Banknote. Xene uses EPQ as the recognised industry term. Both designations require unaltered paper: no pressing, washing, ironing or chemical treatment of any kind.
- Will pinholes prevent EPQ?
- Pinholes do not prevent EPQ on their own — the paper itself remains original and the pinhole is a mechanical intrusion, not a chemical or thermal alteration. However, pinholes cap the numeric grade (a note with three or more pinholes cannot reach Gem Uncirculated 65) and are recorded by count on the certificate.
- How is centering measured on bank notes?
- We measure all four margins to 0.1 mm precision using calibrated digital imaging and report the narrowest as the limiting dimension. For Gem Uncirculated 65 we require a minimum 65/35 ratio on the limiting axis; for Superb Gem 67 a 70/30 minimum; for 68 and above, 75/25 or better.
- How are split grades assigned?
- A split grade — for example 'VF-25 / Details' — is assigned when a note's circulation wear places it in one band but a fault would normally prevent assignment of the clean grade. The numeric component reflects the underlying condition as if the fault were absent; the Details suffix discloses the fault. This convention allows market participants to compare the underlying quality across graded and ungraded examples.
- How does Xene handle replacement notes?
- Replacement notes (star notes in US terminology; notes with a replacement prefix in Commonwealth issues) are identified on the certificate with a 'Replacement' notation. Serial-number authenticity is verified against the issuing authority's published replacement prefix ranges. Replacement notes in high grades often command a premium; Xene's registry entry records the full serial number to enable market tracking.
- Does cleaning always disqualify EPQ?
- Any form of cleaning — aqueous washing, solvent treatment, bleaching or de-acidification without original-paper intent — disqualifies EPQ and results in a 'Cleaned — Details' notation. Natural ageing and toning are not cleaning; Xene distinguishes these under ultraviolet illumination and by examining the distribution pattern of any discolouration, which tends to be structurally random in natural toning and artificially uniform in chemically treated notes.
- What is a Net grade?
- A Net grade is not used by Xene. We record all faults on the certificate face as a Details designation alongside the underlying numeric assessment. This provides more information than a net grade, which collapses the underlying condition and the fault severity into a single lower number without specifying what the fault is.
- How are polymer notes graded differently?
- Polymer notes cannot be assessed for traditional fibre embossing. Originality is instead verified by examining the optically variable device under three illumination angles, inspecting the substrate for evidence of heat treatment or surface laminate lifting, and checking that the see-through window is intact and unaltered. Fold tolerance differs from paper notes: a polymer note retains visible crease damage permanently, so fewer folds are allowed at each grade tier.
- Can a note with writing on it receive EPQ?
- Graffiti — including signatures, stamps, bank endorsements or any writing — disqualifies EPQ and results in a 'Graffiti — Details' notation. Historical bank endorsements on the reverse of early notes are treated as part of the note's provenance history; they are disclosed but assessed individually as to whether they constitute a grading fault or a documented historical addition.
- What happens if Xene disagrees with a previous PMG grade?
- Xene re-examines every note independently against our own rubric and current standards. We make no guarantee of replicating a PMG or PCGS Banknote grade. If the note was previously certified in a holder from another service, the holder is broken and the note examined fresh. Approximately 70% of PMG 65 EPQ notes receive a Xene 65 EPQ or better; the remainder grade between 63 and 64, most often due to centering reassessed under our digital measurement protocol.