Abstract: A magnetically selective token system comprises valid tokens which are nonmagnetically responsive in the peripheral portions thereof and responsive in the central portions thereof and a token acceptor which is operative for segregating valid tokens from various types of counterfeit tokens. Unspecified tokens inserted into the acceptor are individually passed to an upper token station where first magnetic elements are operative for magnetically communicating with only the peripheral portions of the tokens so that counterfeit tokens having magnetically responsive peripheral portions are retained at the upper station, whereas other types of unspecified tokens are individually passed to a lower station. Second magnetic elements are operative for magnetically communicating with the central portions of tokens at the lower station so that valid tokens are retained at the lower station, whereas nonmagnetically responsive counterfeit tokens pass to a first outlet slot.