With cash counters, businesses have an effective deterrent against counterfeiting. Passing fraudulent money can greatly damage the local economy by adding fakes to the money supply. Businesses suffer losses both in goods that are essentially stolen and in customers who inadvertently receive the fake bills due to ignorance. By having machines that quickly and efficiently detect fraudulent bills based on such granular details as the level of magnetic ink, the quality of the paper and the fluorescence of the bill, there's a greater chance of combating and minimizing counterfeiting activities, ensuring a stable economy.
Counterfeiting can be dangerous to the economy because it reduces the value of the real currency by adding worthless bills to the money supply. A similar situation occurs when governments print too much money, spurring a rapid decline in the paying power of the currency. However, there are differences as well, as noted in a white paper from the Bank of Canada. With fake currency, businesses and customers are liable for the loss in using the money. In other words, if a customer uses a fake $100 bill to pay for something, the business can't go to the bank to claim a loss, as it's considered a theft.
Secondly, people lose confidence in the currency if too many counterfeit bills are in circulation. The dollar functions because people believe it represents the value of the goods they pay for. If they lose that trust, then they're less likely to use the currency, which greatly hampers economic activity and development. An example of this is Somalia, as reported by local newspaper Mareeg. Ever since the Somali government collapsed in the early 1990s, counterfeiting is rampant due to the nation's instability. Many businesses have to rely on alternative currencies in order to stay open. In fact, the situation got so severe that government employees received fake bills as compensation. As the war-torn country attempts to stabilize itself after many years of a non-functioning government, taking down counterfeiting operations that are a way of life is now a priority.
Seeing the damage that counterfeiting can do on a national scale should give businesses in the U.S. a reason to stay vigilant. One way of being proactive is to use cash counters. The machines have sensors that utilize infrared and ultraviolet light to better detect fakes. It provides a backup when standard measures of detection, such as a pen or a magnetic ring, don't provide confirmation.
September 28, 2015