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Banknote verification relies on vision, feel and a single second

Author

Listed:
  • Frank van der Horst
  • Jelle Miedema
  • Joshua Snell
  • Jan Theeuwes

Abstract

Central banks incorporate various security features in their banknotes to enable the general public, retailers, professional cash handlers and central banks to detect counterfeits. In this study we conducted two field experiments to test the extent to which euro banknotes can be authenticated as a function of exposure time and perceptual modality. In addition we investigated if these effects are moderated by expertise. In both experiments, the counterfeit banknotes were actual counterfeits taken out of circulation.

Suggested Citation

  • Frank van der Horst & Jelle Miedema & Joshua Snell & Jan Theeuwes, 2020. "Banknote verification relies on vision, feel and a single second," Working Papers 680, DNB.
    • Handle: RePEc:dnb:dnbwpp:680
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    File URL: https://www.dnb.nl/media/ji2oghs3/working-paper-no-680_tcm47.pdf
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    References listed on IDEAS

    as
    1. Hans Brits & Carlo Winder, 2005. "Payments are no free lunch," DNB Occasional Studies 302, Netherlands Central Bank, Research Department.
    2. van der Horst Frank & Miedema Jelle & Eschelbach Martina & Sieber Susann, 2017. "Does Banknote Quality Affect Counterfeit Detection? Experimental Evidence from Germany and the Netherlands," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(6), pages 469-497, December.
    3. de Heij, Hans, 2017. "A model for use-centered design of payment instruments applied to banknotes : Upid-model," Other publications TiSEM 981fb06b-8f61-4652-aedb-6, Tilburg University, School of Economics and Management.
    4. Anneke Kosse & Heng Chen & Marie-Hélène Felt & Valéry Dongmo Jiongo & Kerry Nield & Angelika Welte, 2017. "The Costs of Point-of-Sale Payments in Canada," Discussion Papers 17-4, Bank of Canada.
    5. Frank van der Horst & Ester Matthijsen, 2013. "The irrationality of payment behaviour," DNB Occasional Studies 1104, Netherlands Central Bank, Research Department.
    6. Esselink, Henk & Gijsel, Lola Hernandez-van, 2017. "The use of cash by households in the euro area," Occasional Paper Series 201, European Central Bank.
    7. Jeremy M. Wolfe & Todd S. Horowitz & Naomi M. Kenner, 2005. "Rare items often missed in visual searches," Nature, Nature, vol. 435(7041), pages 439-440, May.
    8. van der Horst Frank & Miedema Jelle & Eschelbach Martina & Sieber Susann, 2017. "Does Banknote Quality Affect Counterfeit Detection? Experimental Evidence from Germany and the Netherlands," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(6), pages 469-497, December.
    9. Jeremy M. Wolfe & Todd S. Horowitz, 2017. "Five factors that guide attention in visual search," Nature Human Behaviour, Nature, vol. 1(3), pages 1-8, March.
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    Cited by:

    1. Frank van der Horst & Joshua Snell & Jan Theeuwes, 2021. "Enhancing banknote authentication by guiding attention to security features and prevalence expectancy," Working Papers 716, DNB.

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    More about this item

    Keywords

    attention; decision-making; change blindness; gist; sight; touch; authentication; banknotes; counterfeits;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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