DNB Payments publications

nr 021 - New Soiling Test Method: Anti-Dirty Fingers

P. Balke

The deterioration of banknotes is mainly studied in practice, i.e. in circulation trials. This is a direct consequence of the lack of knowledge about the physical and chemical processes that cause deterioration in circulation. Because circulation trials have some major drawbacks DNB initiated research on these basic issues. By using an artificial sebum in combination with an ageing treatment a so-called 'Super Unfit' banknote was reproduced under laboratory conditions. It is likely that the sebum on circulated banknotes is due to interaction with the human finger. While the banknote is transferred the banknote is touched and fingerprint deposits are left behind on the banknote. During the lifetime of the banknote this procedure is frequently repeated, i.e. fingerprint deposits will accumulate and eventually will form a layer of aged sebum (soil).

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nr 018 - Banknote opinion polls: a method for collecting customer feedback on banknote design

Hans, A.M. de Heij

In 2002 DNB introduced the motto 'DNB Knowledge Bank'. Payment systems, one of them being cash, are pointed out by DNB's board as one of the three main knowledge areas of DNB, together with super vision and monetary policy. To support this policy further, the first DNB Cash Seminar was held in Amsterdam on 28 - 29 February 2008. This paper is one of the subjects presented by DNB, contributing to the Seminar's theme 'Consumer research on banknote design'. The paper presents the findings of the 13 opinion polls held by DNB since 1983. These findings are split in two parts: a) unique time series like the public's knowledge of security features and b) recommendations to come to better banknote design. Also other ways to come to public input for banknote design are mentioned.

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nr 017 - Programme of Requirements - a powerful tool to develop new, secure banknotes

Hans, A.M. de Heij

New banknote designs are often disappointing because: - The new note is not on time, as a result of endless design loops and time consuming decision making. - The new note exceeds the development budget because of not foreseen additional research. - The new note is not attractive and does not communicate. - And the worst: a mistake is made, e.g. in the text or in one of the images. Or something is forgotten. Although may be bureaucratic at first glance, working with a clear Programme of Requirements (POR) could diminish the above shortcomings. The graphic designer might qualify the listed requirements ‘as thick as a telephone book’. But in practice working with a POR for new banknotes will save a lot of paper work and will turn out to be efficient and user friendly. Further more it will lead to new design concepts.  Recently Quality Management is another driver to introduce a Programme of Requirements, especially when central banks want to operate according ISO 9001. A complete POR is a key part in such a procedure.

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nr 011 - Numbers on Banknotes. What is their use.

Hans de Heij en Alwin van Gelder

Serial numbers have been included on Dutch banknotes since they were first issued in 1814. The number, which is unique for each banknote, allows the note to be traced and identified. Early banknotes were numbered by a central bank clerk, in clearly legitable handwriting. Handwriting became obsolete around 1860 and letterpress numbering was introduced, using specially designed typographic fonts. In 1968 DNB was the first to introduce machine readable numbers on banknotes (OCR-B). It was also the first organisation to establish a database of all banknotes in circulation, requiring banknotes to be registrated by means of an automated reading process. In 1989 DNB was the first central bank to introduce barcodes on banknotes. The banknote identifier of tomorrow might be a chip rather than a printed serial number. This however depends on the stakeholders of a banknote identifier and the way they want to use it. (published with permission of Keesing Journal of Documents & Identity)

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nr 010 - Banknote dimensions and orientation: user requirements

Hans de Heij

Looking at the dimensions of banknotes, a uniform banknote height is the major trend worldwide. For one, it facilitates public use of all kinds of banknote acceptors. Second, the notes fit better inside wallets. A uniform note height would also help the blind in that it allows for a distinct length increment between the most used notes, e.g. 8 mm.  

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nr 009 - Payments are no free lunch

Hans Brits and Carlo Winder

Total costs of the payments system to society are considerable. These costs can be higher or lower depending on the use of payment instruments that are less or more cost efficient. Empirical evidence is provided by a survey on the costs of pos payment instruments in the Netherlands. The overall costs involved in pos payments amount to 0.65% of gdp or, equivalently, eur 0.35 per transaction. The e-purse is most costefficient, irrespective of the size of a transaction, while if the choice is between cash and the debit card, the former is most economical for purchases below eur 11.63 and the debit card is to be preferred for larger purchases. From a cost perspective, credit cards should not be used at all. The distorting effect caused by the use of public resources to finance the expenses made by central bank to maintain the cash circulation is found to be limited. It is argued that a less-cash society has better chances of success than a cashless one, at least in the medium term.

Download: English (2005): Payments are no free lunch (PDF: 459,4 Kb)

nr 008 - Payment instruments as perceived by consumers – a public survey

Nicole Jonker

Survey results show that Dutch consumers perceive paying in cash as an inexpensive way to pay, while they regard electronic payment cards as relatively expensive. This finding partly explains the low usage of electronic payment cards in point-of-sale (POS) payments. The survey also highlights several non-price features that contribute to the unpopularity of electronic payment cards. The objective of the survey was to identify price and non-price features of payment instruments that can be used to stimulate the use of electronic payment cards. Their attractiveness can be increased, through 1) technological modifications to e-purses and debit cards that enhance their convenience, 2) by increasing the number of acceptance points and 3) by drawing public attention to the speed of e-purse payments. Making it more expensive for consumers to pay in cash could also increase the usage of electronic payment instruments.

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nr 006 - Life cycle analyses of security features in banknotes

Hans, A.M. de Heij

In 2004 the Dutch press reported frequently about the euro counterfeit situation in the Netherlands. One of the criticised tools to check a banknote is the ‘UV-lamp’. It was written that the UV check had become useless. The UV lamp was qualified as old fashioned. Commercial purveyors advised their customers not to use UV lamp s any longer. Infrared tools were recommended as being more reliable and future oriented.

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nr 005 - Attractive banknotes. A matter of design management

Hans, A.M. de Heij

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nr 004 - Efficient cash payments with euro coins and banknotes in the Netherlands

Hans, A.M. de Heij and Jeanine Kippers

DNB has made several investigations into the use of cash by the Dutch public. Conclusions on the use of cash can only be drawn based on observations of real cash transactions at the spot and not on the basis of surveys like internet surveys or the use of macro figures.

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nr 003 - Comparence EUR - USD banknotes

Hans, A.M. de Heij

In February of 2002 the US Treasury Department, the European Central Bank and the Dutch Central Bank conducted studies on public awareness of banknotes. Each of the three studies had a different purpose/goal. The United States evaluated public knowledge of the dollar in the US, the European Central Bank studied the effects of the Euro-note public education campaign and the Dutch Central Bank compared the public perception of the new Euro-notes with previous research performed on the NLG-notes. The set up of the US-study did take note of the Dutch-studies, for example the sampling period was chosen also in February 2002 and the questions on appreciation were made comparable. However, while the studies were implemented independently there are only some elements that are common and can be compared and contrasted. This paper examines the results of the three different studies and serves as a baseline analysis of multi-national public awareness of bank notes.

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