11 min read
Every seasoned collector has a story about the note they confidently shipped off to a third-party grading service, only to get it back in a holder that read two full points below their expectation. It stings. The grading fee is gone, the note is now slabbed at a grade that may actually hurt its resale value versus raw, and you’re left wondering what you missed. After years of handling everything from circulated Series 1899 $5 Silver Certificates to fresh-from-the-BEP Series 2017A $100 Federal Reserve Notes, I can tell you with confidence: the answer almost always comes down to pre-screening. Professional graders at PMG and PCGS Currency are examining your note under 5x to 10x magnification in controlled lighting, checking criteria that the naked eye in a dim room will simply miss. This checklist is designed to close that gap.
PMG Grading Scale
1 (Poor) to 70 (Superb Gem UNC)
PCGS Currency Scale
1 (Poor) to 70 (Gem New)
EPQ / PPQ Designation
Exceptional / Premium Paper Quality modifier added at 63+
Typical Grading Fee
$22 to $150+ per note depending on service tier
Break-Even Rule of Thumb
Note should be worth 3x to 5x the grading fee at target grade
Most Common Submission Error
Missing folds, pinholes, or cleaning under magnification
Step One: Know What Grade You Are Actually Chasing
Before you pick up a loupe, you need a clear target. Grading a note is meaningless without understanding what grade threshold makes economic sense for that specific note. Consider a Series 1928B $2 Legal Tender Note (Friedberg catalog number F-1501). In circulated Fine-12 it might bring $30. In Very Fine-25 it moves to roughly $65. But in PMG 64 EPQ it has realized $600 or more at Heritage. The jump from VF to CU is enormous, and the jump from a plain 64 to a 64 EPQ can add another 20 to 40 percent. If your note cannot plausibly reach MS-63 or higher, grading fees for most modern notes simply will not pencil out. For scarcer large-size type, problem-free VF examples can absolutely justify the submission cost.
Build your value target using recent auction archives from Heritage Auctions, Stack’s Bowers, and Lyn Knight. PMG’s and PCGS Currency’s own population reports will tell you how many examples of a given series and grade already exist in certified holders, which directly affects how the market will price your note upon return.
Collector Tip
Before submitting any note, pull the PMG or PCGS Currency pop report for that specific Friedberg number and grade range. If 400 examples already exist in MS-64 EPQ for a Series 1995 $1 FRN, grading yours into that pool is unlikely to generate a meaningful return over the grading fee, no matter how nice it looks.
Step Two: Set Up Your Examination Station
Professional graders work under OTT-Lite or similar full-spectrum fluorescent daylight bulbs at approximately 5,000 to 6,500 Kelvin. They use transmitted light, meaning they hold the note up to a light source to look through it, as well as oblique raking light to catch surface disturbances. Replicate this at home with the following setup:
- A daylight LED desk lamp rated between 5,000K and 6,500K
- A 5x to 10x loupe or a quality jeweler’s magnifier
- A UV (ultraviolet) blacklight lamp, ideally shortwave for detecting washing and repairs
- Clean white cotton gloves or clean fingertips (no lotion) for handling edges only
- A clean, white, lint-free surface such as a large sheet of white cardstock
Never handle a note by its face. Hold it along the very edges with clean fingers or gloves. A single fingerprint on a Gem note can cause a grader to note “stains” and dock a full point or add a qualifier.
Step Three: The 12-Point Pre-Screening Checklist
Work through each of these criteria methodically. Keep a notepad and record your findings. If you encounter a hard stop (a tear, a missing corner, evidence of cleaning), you have your answer: the note may still be worth certifying for authenticity or as a problem note, but it will not achieve a numerical grade without a qualifier that limits its market value.
1. Centering
Hold the note face up under daylight light. PMG and PCGS both award centering as part of their overall grade. For Gem Uncirculated (65+), you want margins that are roughly equal on all four sides. For EPQ designation, centering needs to be reasonably balanced. On large-size notes like Series 1901 $10 Legal Tender “Bison” notes (F-114 through F-122), dramatic miscentering is very common and is expected by graders, so the standard shifts. On modern small-size notes, anything with a border nearly touching the design on one side will cost points.
2. Folds and Creases
This is where most collectors fool themselves. Run your fingers along the note’s surface using the pads of your fingertips in a gentle raking motion. Then hold the note at a 45-degree angle to your raking light source and slowly rotate it 360 degrees. Any fold, even a soft corner bend that was carefully re-pressed, will catch the light differently than undisturbed paper fiber. A single sharp fold dropping the note from AU-58 to EF-40 represents a significant value difference on almost any pre-1950 type note.
3. Corner Integrity
Examine all four corners under 5x magnification. Look for: rounding, splitting along the corner fold, soft bending that has been flattened, or any evidence of trimming. Trimmed corners on large-size notes were a common repair method for decades, and graders will catch even a 0.5mm trim. On a Series 1896 $1 Silver Certificate “Educational” note (F-224 through F-226), a single trimmed corner moves the note from numerical grade to “Apparent” status, which dramatically suppresses value.
4. Paper Quality and Originality
Hold the note to transmitted light (backlit through the paper itself). The paper should be uniform in density across the entire note. Washed or pressed notes will often show subtle unevenness in the paper’s translucency, or a slightly stiff, boardy feel that differs from original BEP paper crispness. Use your UV lamp: authentic BEP paper typically shows a purple-blue fluorescence on older notes, while washed or repaired areas will fluoresce differently, sometimes as bright white patches. This is one of the single most important steps and the one most often skipped by beginning collectors.
Collector Tip
When examining paper quality on pre-1929 notes, gently flex the note very slightly (without creasing) along its length. Original, uncirculated paper has a distinctive snap and rigidity. Paper that has been washed, pressed, or subjected to humidity will feel limp, even if it looks visually crisp under light. Graders call this “body” and it directly influences EPQ eligibility.
5. Pinholes
Hold the note directly up to your brightest light source and look through the paper. Even a single pinhole the size of a needle tip will be visible as a bright point of transmitted light. Multiple pinholes indicate the note was once stapled or bundled, which is common on mid-20th century bank-back notes but still constitutes a technical problem. PMG and PCGS will note pinholes in the grade description if they are significant, and multiple holes can trigger a “Details” grade.
6. Stains and Foxing
Under daylight light and UV, inspect the entire face and back for rust-brown foxing spots (oxidation from metal contact), ink stains, grease, food deposits, or water tide marks. A single small stain on the face of an otherwise Gem Series 1922 $1 Gold Certificate (F-1173) can drop it from a 65 EPQ candidate to a 63 or lower. On the back of the note, stains are weighted somewhat less heavily but still factor into the grade.
7. Ink Quality and Smearing
The BEP’s intaglio printing process produces ink that stands in measurable relief above the paper surface. On a Gem note, you should be able to feel the ink with a clean fingertip. Run your finger very lightly across the portrait area: on an uncirculated note, the raised ink texture is unmistakable. Ink that appears flat, thin, or smeared indicates either heavy circulation wear or a printing defect. Smeared serial numbers or Treasury seals are actually popular as error notes and may increase value rather than detract from it.
8. Tears, Splits, and Missing Pieces
Inspect all four edges under magnification for any splits or tears that may have been pressed back together. A closed tear along the edge of a note often escapes the naked eye but becomes obvious under raking light. Any missing paper, regardless of size, will result in a PMG or PCGS “Details” or “Apparent” designation.
9. Writing, Stamps, and Counting Marks
Bank tellers historically stamped or wrote on notes. Rubber stamp impressions, pencil writing, and counting machine marks all trigger qualifier designations. Examine both faces under magnification. Pencil marks are sometimes visible only at a steep angle to the light. Even a light pencil tick in the margin that looks erasable will be caught and noted by graders who have seen every conceivable attempt to clean a note.
10. Splits Along Fold Lines
On heavily circulated notes being considered for a problem-free circulated grade, check any fold lines for splits that go partially through the paper. A note can be VF-20 in overall wear but have a split along the central horizontal fold that elevates it to a Details grade. This distinction matters enormously: a Details VF-20 Series 1863 $1 Legal Tender (F-16 range) may sell for 40 to 60 percent less than a straight VF-20 example.
11. Repairs and Restoration
Under UV light and transmitted light together, look for any areas where paper fibers appear to have been re-laid, where the note has a backing material, or where tears have been bridged with tissue or adhesive. Tape residue, even from tape that has been removed, leaves a ghost under UV that is completely invisible under white light. This is the single most common hidden defect that results in a disappointed collector when a Details grade comes back.
12. Serial Number and Series Date Verification
Before finalizing your submission, confirm the exact series date, Federal Reserve District letter (for FRNs), plate position letter, and signature combination against the Friedberg catalog or the Standard Catalog of United States Paper Money. Misidentified notes get submitted under the wrong catalog number, which affects how graders document them and how buyers interpret the holder. For star notes, confirm the replacement asterisk is present and cross-reference the serial number against known star note print run data from sources like mystarnotecollection.com or the Federal Reserve’s published data.
Collector Tip
For Series 1928 through 1934-D small-size notes, always verify the specific sub-series letter (A, B, C, D, etc.) and signature combination before submitting. A Series 1934 $500 FRN with a Julian-Morgenthau signature (F-2201A) is a completely different catalog entry than a 1934A with the same signatures, and the value difference can be several thousand dollars. Misidentification on the submission form creates problems in the holder description that can be difficult and costly to correct later.
Step Four: Make the Submission Decision
After completing all twelve checklist points, you should be able to place your note into one of three categories. First, a clean submission candidate: no detectable problems, and the note meets your grade target with a reasonable margin. Submit it. Second, a borderline note: one or two minor issues that may or may not affect the numerical grade, but no hard stops. These notes are judgment calls. If the potential upside at the target grade is significantly above the grading fee even at one grade lower than your estimate, it can still make sense. Third, a Details/Apparent candidate: one or more hard stops detected. For these notes, the question becomes whether authentication and certification as a problem note adds value for the type. For rare notes like a Series 1890 $1,000 Treasury Note (F-379A) or a Series 1861 Demand Note, even a Details grade in a PCGS or PMG holder adds authentication credibility and liquidity that an equivalent raw note simply does not command.
| Series / Friedberg No. |
Denomination and Type |
Typical Raw Market |
Submission Priority |
| 1896 F-224/225/226 |
$1 Silver Certificate “Educational” |
$500 to $3,000+ depending on grade |
High Priority |
| 1901 F-114 to F-122 |
$10 Legal Tender “Bison” |
$700 to $8,000+ raw |
High Priority |
| 1928B F-1501 |
$2 Legal Tender, Red Seal |
$25 to $600+ certified |
Selective |
| 1934 F-2201A |
$500 FRN, Julian-Morgenthau |
$2,500 to $10,000+ |
High Priority |
| 1995 Star Note (Atlanta F*) |
$1 FRN Star Replacement |
$50 to $300 certified |
Selective |
| 2017A Various Districts |
$1 FRN Modern Gem |
$1 to $15 raw |
Low Priority |
| 1922 F-1173 |
$1 Gold Certificate |
$100 to $800+ raw |
Selective |
| 1890 F-379A |
$1,000 Treasury Note |
$50,000 to $200,000+ |
High Priority |
| 1863 F-16 range |
$1 Legal Tender, Civil War |
$75 to $400+ circulated |
Selective |
| 1935A R & S Experimental |
$1 Silver Certificate |
$300 to $2,500 certified |
High Priority |
A Final Word on EPQ and PPQ
The Exceptional Paper Quality designation from PMG, and the Premium Paper Quality designation from PCGS Currency, are not simply about a note being uncirculated. They represent a grader’s attestation that the paper is original, unaltered, and free from any artificial enhancement. A note can be MS-64 without EPQ if it has a small counting machine mark or very minor paper disturbance. That same note in MS-64 EPQ can command 25 to 50 percent more in the current market. Your pre-screening checklist, specifically the paper quality, UV examination, and fold detection steps, is essentially your EPQ eligibility test. Do it thoroughly, do it in good light, and do it before you spend a dollar on postage and grading fees. The notes that survive this checklist without a single hard stop are your best submission candidates, and those are the notes that come back in holders that justify every penny of the process.
