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all denominations of U.S currency is printed with magnetic ink also known as ferrofluid which is a suspension of iron oxide mixed in with ink this is one way that bill validators and self-checkout machines can tell the difference between a one dollar bill and a hundred dollar bill you can also check the authenticity of a bill by folding it and picking it up with a neodymium magnet however somebody could print black work of a bill with something called micr toner which stands for magnetic ink character recognition toner this is designed for businesses to be able to print their own checks from home allowing the check readers to read the routing number and account number on the bottom of a check is hard to print the symmetrical patterns behind the presidentamp;#39;s portrait with a laser printer I always preferred inkjets with that being said checking a Billamp;#39;s authenticity with a magnet isnamp;#39;t Fail-Safe but itamp;#39;s a pretty good method