The world of currency is a vast field that can keep even the most enthusiastic collector fully occuppied.  Paper Money is a sub category of coin collecting at Ebay and this guide is designed to help you maximize your success in bidding and buying the best in US Paper Money.

Paper Money represents history.  Each note can be identified to a specific country and time.  Even here in America there are Large Size Notes, Small Size Notes and a myriad of colored seals and designs.   There are colonial notes, Confederate notes and many independent bank notes.  Any collector needs a couple of good books to help sort through all the different notes.  One of the first things the smart collector will do is buy them and Ebay is a good place to look.  My personal favorite is the brand new 18th edition of the "Paper Money of the United States, from Colonial Times to the Present..." by Arthur and Ira Friedberg.   Now I have half a dozen good money books, but this one provides a nice depth of information and realistic and conservative prices for all US Paper Money.

One of the best things about a good reference books is it will allow you to check some of the off the wall claims you will find on eBay.  Many sellers use the words "rare" or "scarce" when describing their note.  Maybe its rare to them, but most of the time its not.  Never assume a note is RARE just because the seller says it is.  Some sellers offer rare orange or yellow seal $2 notes.  These are not real.  They are just red seal legal tender notes that have been lightly bleached in water until the ink fades from red to either orange or yellow.  They are not rare and are basically good notes that have been damaged.  A good reference book lets you check such claims before you waste any money on such claims.

I stick to United States Paper Money myself, but the principles I outline here will apply equally if you are shopping for other types of old paper money.  With your book nearby you can begin your shopping spree on Ebay.  Looking at Red Seal United States Notes, Blue Seal Silver Certificates, Green Seal Federal Reserve Notes, Brown Seal National Currency or Brown Seal World War II Emergency Notes.  There are even Yellow Seal World War II Notes used in North Africa and Europe. 

A note's series is based on its date and the signatures which further reflect its real date of issue.  For example the 1935 $1.00 Silver Certificates have nine different letter variations in the different series to reflect different signatures over the years from 1935-1965. Values can range widely from note to note and a book is the best way to tell if you have found a bargain or a bomb.

After you have identified the note by type and issue series, (ie 1935A $1 Silver Cerficate Blue Seal). You should focus on the notes condition.  This is the next biggest factor on value and cost.  Collectors use the following terms to describe a paper note's condition and they don't always mean the same thing as when used in normal conversation, so be aware!  Different books use slightly different standards, but this is a compliation of several reliable sources.  Starting from the worst to the best we have:

• GOOD: Badly worn with pin holes, tears and frayed edges.  Often soiled and stained.  (So you see, good doesn't always mean good)
• VERY GOOD:  Considerable wear, may be dark, soiled and have small tears.  Limp with no crispness.  Heavily folded and wrinkled.
• FINE: Note shows much circulation and use including folding and wrinkling with light stains and soiling.  Corners should be intact.
• VERY FINE:  A note that has been circulated and shows folds and wrinkles, but not heavy wear or signs of prolonged use.  Still has a little crispness in the paper and no soiling or darkening.  Possilbly some light smudges.
• EXTRA-FINE:  Faint signs of use, bright and clean with nearly full crispness.  Light signs of two or three minor folds.  No other distractions or problems.
• ABOUT UNCIRCULATED:  Very light signs of use, maybe a light corner fold or crease, but otherwise bright and clean with full crispness.
• UNCIRCULATED:  No trace of circulation, bright and crisp.  Sometimes you may find traces of poor handling or storage such as pin holes (from old style bank counting machines) or counting smudges. 
• CHOICE UNCIRCULATED:  An uncirculated note that is fresher and brighter than the norm and well centered.
• GEM UNCIRCULATED : A flawless note free from any fault and perfectly centered.

Now you must remember that most notes on Ebay will be described using these words, but people are always subjective and each does his or her best to be accurate.  It is truly a matter of opinion.  Some sellers have their notes graded by professionals and it will be so noted.  Such notes are almost always more expensive as grading does cost money.  Professional grading services will rate a note from 1-70, or from Good to GEM.

So you are an expert in grading now and ready to review the paper money offered on Ebay.  Here's another checklist to help you settle in and know what to look for to make an informed decision before you bid.  These factors apply to most things you think about buying, but are very important in the Ebay auction process for currency.

• Description Detail:  The seller must clearly state the year, denomination, series, condition and any problems with the note, (ie 1935A $1.00 Silver Certificate in Very Fine). 
• Quality Photos: Ideally the seller should provide full views of the front and reverse of the note.  A close-up is often helpful to provide the little bit of extra detail preferred with old paper money.  Look for flaws such as writting and ink marks which will seriously detract from the note's value.
• Payment:  The easier to pay, the better for you the buyer.  Look to make sure your preferred method of payment is available.  If it's not, you should probably just move on.
• Return Policy: Check to make sure you can return the note if it turns out not to be as described.  This doesn't happen often, but if it does or if you just have an honest difference of opinion on the notes condition you need to know you can return it for a money back refund.  If the seller won't do this, you should give it some thought before you bid.
• Shipping Costs:  Some sellers may offer free shipping to attract bidders, but most charge something.  Take a look before you buy because a few charge a lot!  Postage, padded envelopes, delivery confirmation, time and effort as well as listing fees can all show up in the shipping charge.  Just remember to factor this in before you bid.  A good price on a nice note can disappear if you pay $10 for shipping!
• FEEDBACK:  Always take a quick look at the seller's feedback score.  If it's not at least 98% you may want to take the time to read their feedback comments to find out why.  Feedback is a great way to know you can reasonably trust a seller before you put your money on the line.  And try to always leave positive feedback when you complete your transaction.

THE INVESTMENT FACTOR:  US Currency can be an incredible investment!  In the last few years the value and the popularity of collecting paper money has just gone wildly up, up, up.  Many notes have gone up 50-60% in the last two years alone!  Now you can cancel all that out, for awhile at least, if you overpay when you buy the note.  So use that reference book, buy smart, not too far above the current book value and then hold on and watch the value of a good high quality note reward your investment while you have fun collecting.

With these thoughts in mind, and the checklists in hand you are ready to go out there and be an informed currency collector and enjoy the fun of history in the form of old paper money.  As a good buyer always pay promptly, communicate clearly and leave that feedback.   If you got anything useful from this guide please give it a positive rating below.  Thanks!  Happy bidding and good luck!