Abstract: A method of identifying and designating one of a plurality of denominations of a bill or other paper currency, and apparatus therefor, scans a line along the length of the bill, and stores significant pulses in the scanning signal. The position of the significant pulses are modified, in accordance with identified characteristics of the bill which is scanned, and then compared with stored values for the expected locations of key ones of such pulses. Coincidences with the key pulses are counted, and secondary pulses, which are significant pulses occurring between key pulses are also counted. Both counts are relied on in identifying the correct denomination.