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🧾 How Counterfeit Detection Pens Work (And Why You Shouldn’t Rely on Them Alone)

June 8, 2025

Counterfeit detection pens are a popular tool for identifying fake currency, especially in retail and banking in usa. But while these pens offer quick results, they have their limitations. In this post, we’ll explore how they work, how accurate they are, and how to truly verify if a $100 bill is genuine.


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🖊️ What Is a Counterfeit Detection Pen?

A counterfeit pen is a felt-tip marker filled with an iodine-based solution. These pens are designed to help identify fake currency by testing the type of paper used to print the note.

đź§Ş How It Works

  • Main ingredient: Iodine solution.
  • Test target: The pen reacts with starch, commonly found in regular wood-based paper (used in printing or photocopy paper).
  • Paper type tested:
    • Real currency: U.S. currency is printed on a blend of cotton and linen, which does not contain starch.
    • Fake currency: Counterfeiters often use paper with starch, triggering a chemical reaction.

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🔍 Reactions Explained

Type of NoteReaction to PenColor of Mark
Real billNo starchPale yellow or invisible
Fake billContains starchDark brown or black

⚠️ Can You Use a Counterfeit Pen on Real Notes?

Yes, counterfeit pens are safe to use on real U.S. bills. The light amber or pale yellow mark usually fades over time and does not damage the bill. However, it is advisable not to write excessively or use it on collectible notes.


đź’µ How to Check if a $100 Bill Is Real

Counterfeit pens can provide a quick clue, but they are not foolproof. Smart counterfeiters have discovered ways to trick the pen, including:

  • Using starch-free paper.
  • Bleaching lower denomination bills and reprinting them as $100 notes.

To confirm the authenticity of a $100 bill, always inspect other security features built into the note, especially for the redesigned 2013 series and newer.

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âś… 8 Security Features to Check on a Real $100 Bill

FeatureDescription
1. Feel the PaperCotton-linen blend gives a distinct texture—not waxy, smooth, or glossy like regular paper.
2. 3D Security RibbonBlue woven ribbon (not printed). Bells change to “100” and move as you tilt the note.
3. Color-Shifting Ink“100” in lower right corner shifts copper to green when tilted.
4. Bell in the InkwellAlso color-shifting; bell appears and disappears inside the copper-colored inkwell.
5. WatermarkFranklin’s faint image appears on the blank space to the right of the portrait.
6. Security ThreadVertical strip embedded left of portrait. Under UV light, it glows pink and reads “USA 100.”
7. MicroprintingFine print such as “THE UNITED STATES OF AMERICA” and “USA 100” on collar and thread.
8. Red & Blue FibersTiny security fibers embedded in the bill, not printed on the surface.

âť“ Will a Counterfeit Pen Work on New $100 Bills?

Yes—but only partially. The paper composition of U.S. currency has not changed, so the iodine reaction still applies. However, modern counterfeit techniques can bypass the pen entirely:

âť— Methods That Fool the Pen

  1. Bleached Bills: A real $1 or $5 bill is bleached and reprinted as a $100. The paper passes the pen test, but other features (like the watermark or security thread) will not match.
  2. Starch-Free Paper: Counterfeiters now use paper that doesn’t contain starch, which gives a false negative on the pen test.
  3. Coated Paper: Some fake bills have coatings that block the iodine reaction.

âś… Bottom Line:

A counterfeit pen is only reliable for low-grade fake bills. For newer, sophisticated fakes, you must check additional security features.

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🟡 Does a Counterfeit Pen Leave a Permanent Mark?

On Real Currency:

  • Color: Light amber or yellow.
  • Fade time: Typically fades within 24 to 48 hours.
  • Impact: Does not devalue the bill unless heavily marked.

On Fake Currency:

  • Color: Dark brown or black.
  • Duration: Permanent.
  • Why: The iodine-starch reaction creates a lasting stain.

đź§  Common Misconceptions

MisconceptionTruth
“If the pen says it’s real, it must be real.”False. It only tests for starch—not the bill’s printing, ink, or embedded features.
“It works on all foreign currencies too.”False. Different countries use different substrates like polymer; the pen won’t work on these.
“You can reuse bleached bills if the pen passes.”Illegal and punishable—bleached bills are still counterfeit.

âś… When to Use a Counterfeit Pen

✅ Use For❌ Avoid For
Quick retail transactionsSole method for high-denomination bills
Bills issued before 2013Modern counterfeits with real paper
Fast checks in restaurants, gas stationsCollectible or damaged bills

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đź§ľ Final Thoughts

Counterfeit detection pens are convenient tools for quick triage in retail or business settings. However, they should never replace proper inspection using:

  • UV lights,
  • Watermark visibility,
  • Texture testing,
  • Microprint and color-shifting ink.

📌 Pro Tip:

If you’re unsure about a bill—even after using a counterfeit pen—compare it side-by-side with one you know is genuine, or take it to a bank for verification.


📝 Summary

FeaturePen TestAdvanced Check
Paper materialâś…Texture, red/blue fibers
Watermark❌✅ Hold to light
Security thread❌✅ UV light
Color-shifting ink❌✅ Tilt test
Microprinting❌✅ Magnifying glass
3D ribbon❌✅ Motion test

đź§© Conclusion

A counterfeit detection pen is a good first line of defense—especially for low-quality fake bills. But for a $100 bill (or higher), especially in a world of advanced forgeries, relying solely on the pen is risky. Always verify multiple security features for peace of mind.


📌 Affiliate Disclosure

Some of the links in this post may be affiliate links. This means that if you click on the link and make a purchase, I may earn a small commission at no additional cost to you. I only recommend products and tools that I have personally used or researched and believe to be genuinely helpful. Your support helps me create more informative content like this—thank you!


đź‘‹ About Me

Hi, I’m Sujith Shanmugam—a content creator, eCommerce expert, and gear reviewer with a passion for simplifying complex topics like digital tools, product safety, and smart shopping. I combine hands-on experience with in-depth research to help individuals, retailers, and creators make smarter decisions. Whether you’re verifying a bill or setting up your first online store, I’m here to break things down and keep it real.