Miscut and Cutting Errors

A miscut note is a printing error that occurs during the cutting stage of manufacturing, when large sheets of printed notes are cut into individual pieces. Miscuts create some of the most visually striking error notes.

How Cutting Works Normally

Modern currency printing uses precision cutting equipment to cut sheets of printed notes into individual bills. The equipment is guided by:

Registration marks on the printed sheet
Computer-controlled cutting blades
Precise positioning systems

Correctly cut notes have clean borders and show only the designed portion of one bill, with no overlap into adjacent notes.

Types of Miscuts

Oversized Note (Wide Margin)

The cutting blades are positioned too far apart, resulting in a note larger than normal with wide white margins. In extreme cases, the oversized note shows portions of adjacent notes on one or both sides.

Example: A $1 note printed with half of another $1 note visible on the right edge
Value: Can be substantial, especially if portions of two distinct bills are visible

Undersized Note

The cutting blades are positioned too close together, resulting in a note smaller than normal with margins trimmed into the designed portrait or other design elements.

Example: A note with a portion of the portrait cut off
Value: Less valuable than oversized notes because the missing design is less dramatic

Butterfly Fold

A sheet is accidentally folded before cutting. When the folded sheet is cut, individual notes come out with unusual shapes. When unfolded, the note displays an odd configuration with missing or doubled portions.

Example: A note with a large unprinted "tail" extending from one corner (the fold area)
Value: High, because the visual impact is very distinctive

Off-Center Cut

The cutting is off-center but the sheet isn't folded—the cut simply doesn't align with the registration marks. The resulting note shows more of one design element and less of another.

Example: A portrait shifted to one side with an extra-wide white margin on the opposite side
Value: Depends on severity; minor off-center cuts are worth small premiums; major shifts are worth more

Uncut or Partially Cut Pairs

Two adjacent bills remain connected because the cutting blade missed the seam between them.

Example: Two complete bills connected by a thin strip of paper
Value: Very high, because entire two-note specimens are rare

Miscut Errors and Quality Control

Modern manufacturing has largely eliminated gross miscuts because computer-guided cutting systems are extremely precise. However, miscuts still occur occasionally when:

Registration marks are misaligned before printing
Cutting equipment malfunctions
Sheets become misaligned in the cutting apparatus
Sheets are folded or damaged before cutting

Evaluating Miscut Value

The value of a miscut note depends on:

Severity of the error – Extreme miscuts are worth more than minor ones
Visual appeal – Does the error create an attractive or interesting appearance?
Multiple-bill visibility – If two distinct bills are partially visible, value increases dramatically
Condition – Uncirculated miscuts are worth significantly more than circulated ones
Series year – Older miscuts are generally valued higher

Notable Examples

Valuable miscuts from collector history include:

Notes with over 25% of an adjacent bill visible (can be worth $500-$3,000+)
Uncut pairs (often worth $1,000-$5,000+)
Butterfly folds with dramatic missing sections (highly variable pricing)
Oversized notes showing clear portions of a second denomination (very rare and valuable)

Authentication Caution

Before believing you have a major miscut, consider:

Was the note deliberately cut incorrectly by someone after manufacturing? (Not an error)
Does the cut represent a known miscut type from error references?
Is professional authentication available for this specific error?

Submit high-value miscuts to PMG or PCGS for professional authentication before assigning significant value.