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Magnetic Thread. Many bank notes contain a metal thread within the paper substrate which has some magnetic properties. A centrally placed MG sensor on the bank note counter can detect the presence of a magnetic security thread very effectively. All note counters available from NoteCheckers.Com have this feature as it is essential for English Pounds. Coded Magnetic Thread. The metallic thread of many bank notes (inc English) can have a secret magnetic coding (almost like a digital signal coding) which is different for every note denomination. Special sensors can detect the presence and even read the code within the note at high counting speeds