Collecting banknotes has its own language. When you know the terminology used, you will find yourself able to list, describe, search and purchase banknotes with greater confidence. The following is not a comprehensive listing of all terms used; however, it does cover the majority of terms found here and in forums, marketplaces and auctions.
Terms Used to Describe Banknotes
Set
A collection of banknotes issued by the same country in the same series (e.g., 10, 20 and 50 dollar bills) but with various denominations. An example would be a 3-note set of the 2025 issue. A set generally implies an intention to collect and/or purchase all of the denominations within the series.
Lot
A group of banknotes sold together as one bundle, without implying they belong to the same series or follow a structured denomination run. A lot may include duplicates, mixed values, or even notes from different countries, combined simply for sale rather than as an organized set.
Series
Officially designated groups of banknotes produced by a central banking authority at a single time (i.e., same year, same design, same signatures). Generally speaking, banknotes within a series have similar design features.
Denomination
The face value printed on a banknote. This is the monetary amount the note represents, such as $10, €20, £50, ¥1000, or ₹500. The denomination reflects the official currency and value assigned by the issuing authority.
Obverse/Reverse
Obverse refers to the front side of a banknote while reverse refers to the back side.
Issue/Release
The particular print run or date a banknote was made available.
Prefix/Serial Number
Unique identifiers assigned to each banknote.
Star Note/Replacement Note
A replacement banknote produced by a central banking authority in order to replace banknotes that were damaged during the printing process. Not all countries produce replacement banknotes; those that do may use a unique identifier or prefix.
Abbreviations Used for Condition Grades
Condition grades provide an indication of the overall condition of a banknote. Each grading body uses slightly different criteria when determining grades; however, the basic guidelines are the same.
The two most commonly accepted grading systems are:
- IBNS — International Bank Note Society
- PMG — Paper Money Guaranty
- PCGS — Professional Coin Grading Service
Below is a general explanation of the most common grades and their respective meanings.
Common Condition Terms
Collectors use these abbreviations regularly. They show how close a note is to perfect.
| Abbreviation | Meaning |
|---|---|
| UNC | Uncirculated |
| AU | About Uncirculated |
| XF / EF | Extremely Fine |
| VF | Very Fine |
| F | Fine |
| VG | Very Good |
| G | Good |
| PR | Poor |
What These Grades Mean
Uncirculated (UNC)
Perfect or nearly perfect. No signs of circulation. Sharp corners and crisp paper. May still have minor handling marks before grading.
About Uncirculated (AU)
Almost no wear. Light handling or counting marks might be visible, but still very crisp. Light center fold is acceptable.
Extremely Fine (XF / EF)
Light overall wear. Paper still flat. Small fold marks might be present or one strong center crease. No tears or holes.
Very Fine (VF)
Clear signs of circulation. Multiple folds, light soiling. Still a solid collectible grade. No tears or holes.
Fine (F)
Noticeable wear (much handling), subdued paper quality. All major design elements visible. May have minor outside tears.
Very Good (VG)
Heavy wear, softened edges, creases. Still whole, no major damage.
Good (G)
Heavily worn/circulated, may be thin or soft. Some detail lost. No large pieces missing, however.
Poor (PR)
Severe wear, possible stains, tears, or missing small pieces. Often collectible only for type or rarity. May have filler.
How Grading Scales Work
Different graders interpret these terms with numeric scales.
IBNS
The International Bank Note Society provides guidelines for descriptive grades. IBNS does not assign numbers but defines criteria for each descriptive grade and is widely used for comparison. More here: theibns.org.
PMG Grading
PMG uses a numeric scale from 1 to 70, with 70 being perfect uncirculated.
- 70 = Gem Uncirculated
- 66–69 = Choice Uncirculated
- 60–65 = Uncirculated
- Below 60 shows increasing wear and handling.
More details: pmgnotes.com.
PCGS Banknotes
PCGS Banknotes also grades from 1 to 70, aligned closely with market expectations.
- 67–70 UNC = Highest quality uncirculated
- 50–66 UNC / AU = Lower uncirculated and about uncirculated
- Numbers below show finer gradations of wear.
Reference: pcgs.com.
Using Grades in Listings
When you list notes for sale, include:
- Grading service if you used one (PMG, PCGS)
- Numeric grade if available
- Short grade abbreviation (UNC, AU, VF, etc)
- Any qualifiers like “EPQ” (Exceptional Paper Quality)
For example:
USA 2024 $10 FRN PMG 66 EPQ UNC
This tells the buyer it’s graded by PMG, uncirculated in the higher range, with strong paper quality.
A Note on Subjectivity in Grading
While grading systems provide structured criteria, condition assessment can still involve a degree of judgment. Minor differences in corner sharpness, fold visibility, paper brightness, or handling marks may be interpreted slightly differently between collectors or even professional graders.
Third-party grading services like PMG and PCGS apply standardized numeric scales to promote consistency, but no grading system is entirely mechanical. Lighting, magnification, experience level, and market expectations can all influence a final determination.
For raw, ungraded notes especially, opinions may vary. That’s why clear photos, accurate descriptions, and transparency are essential when buying or selling.
-Lance
Very informative, thanks! I was looking for something like this to help me I’m a new collector