Banknote vs. Bill — What's the Difference?
Edited by Tayyaba Rehman — By Maham Liaqat — Updated on March 29, 2024
A banknote is a type of currency issued by a national bank with legal tender status, while a bill refers to both a form of currency in some regions and an invoice for services or goods.
Difference Between Banknote and Bill
Table of Contents
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Key Differences
A banknote is a paper currency issued by a national bank or monetary authority, signifying a certain value and used as a medium of exchange. It often features elaborate designs to prevent counterfeiting. Whereas, a bill in the context of currency, especially in American English, refers to paper money of any denomination, essentially another term for banknotes in countries like the United States.
Banknotes are manufactured using special paper or polymer materials, incorporating advanced security features such as watermarks, security threads, and holograms to ensure authenticity. On the other hand, when referring to an invoice, a bill is a statement of money owed for goods sold or services provided, indicating the amount due, terms of payment, and other transaction details.
The value of a banknote is determined by its denomination and the economic policies of the issuing country. It holds value as legal tender, meaning it is recognized by law to be acceptable for settling debts. Whereas a bill, in the financial obligation sense, represents a request for payment and does not hold intrinsic value beyond its context.
Banknotes play a crucial role in a country's economy, facilitating transactions and serving as a physical representation of value. They are carefully designed to reflect cultural and historical aspects of the issuing country. On the other hand, a bill, as an invoice, is a critical component of financial and accounting practices, enabling the formal request for payment and reconciliation of accounts.
Collecting banknotes is a popular hobby known as notaphily, which involves collecting currency notes from different countries or historical periods for their artistic, cultural, or rarity value. In contrast, bills, in the context of invoices, are typically not collected for their aesthetic or historical value but are essential for financial record-keeping and budgeting.
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Comparison Chart
Definition
Currency issued by a national bank, used as legal tender.
Currency in some regions; or an invoice for goods/services.
Material/Format
Special paper or polymer, with security features.
Paper or digital format for invoices.
Purpose
Medium of exchange in transactions.
Currency: Medium of exchange; Invoice: Request for payment.
Value
Denomination determined by issuing authority.
Currency: Face value; Invoice: Amount owed.
Collection Interest
Collected for their cultural, artistic, or rarity value.
Invoices are not typically collected for their value.
Compare with Definitions
Banknote
Collectible items for notaphilists.
His collection included banknotes from over 50 countries.
Bill
(Currency) Paper money in common use.
He handed over a $10 bill to pay for his coffee.
Banknote
A legal tender issued by a country's central bank.
The $20 banknote featured a new security hologram to prevent counterfeiting.
Bill
(Invoice) A statement of charges for services or goods.
The electric company sent their monthly bill.
Banknote
Features national symbols and figures.
The banknote bore the portrait of the country's founder.
Bill
(Invoice) Specifies payment terms and amounts.
The bill outlined a 30-day payment term.
Banknote
Incorporates advanced security features.
The new banknote series introduced a transparent window to enhance security.
Bill
(Invoice) Essential for financial tracking.
They organized their bills to manage their budget better.
Banknote
Paper currency used for transactions.
She paid for her groceries with a crisp banknote.
Bill
(Currency) Often used in everyday transactions.
She found a $5 bill on the ground.
Banknote
A banknote (often known as a bill (in the US and Canada), paper money, or simply a note) is a type of negotiable promissory note, made by a bank or other licensed authority, payable to the bearer on demand. Banknotes were originally issued by commercial banks, which were legally required to redeem the notes for legal tender (usually gold or silver coin) when presented to the chief cashier of the originating bank.
Bill
An itemized list or statement of fees or charges.
Banknote
A piece of paper currency.
Bill
A statement or list of particulars, such as a theater program or menu.
Banknote
A promissory note issued by a central bank.
Bill
The entertainment offered by a theater.
Banknote
A piece of currency made of paper or polymer.
Bill
A public notice, such as an advertising poster.
Banknote
A promissory note issued by a bank, payable at a given time to a specific beneficiary.
Bill
A piece of legal paper money
A ten-dollar bill.
Banknote
A promissory note issued by a bank or banking company, payable to the bearer on demand. See also sense 4.
Bill
(Slang) One hundred dollars.
Banknote
Formerly, a promissory note made by a banker, or banking company, payable to a specified person at a fixed date; a bank bill. See Bank bill, 2.
Bill
A bill of exchange.
Banknote
A promissory note payable at a bank.
Bill
(Obsolete) A promissory note.
Banknote
A promissory note issued by an authorized bank, payable to the bearer on demand and intended to circulate as government-authorized money; in the United States such notes may only be issued by a Federal Reserve Bank; as, he peeled off five one-thousand-zloty banknotes.
Bill
A draft of a proposed law presented for approval to a legislative body.
Banknote
A piece of paper money (especially one issued by a central bank);
He peeled off five one-thousand-zloty notes
Bill
The law enacted from such a draft
A bottle bill in effect in three states.
The GI Bill.
Bill
A document containing the formal statement of a case in equity; a complaint seeking equitable relief.
Bill
An indictment or charge in an indictment against an accused person.
Bill
A structure projecting from the head of a bird, consisting of the jaws and their horny covering and including the upper and lower mandibles; a beak.
Bill
A similar horny mouth part, such as that of a turtle.
Bill
The visor of a cap.
Bill
(Nautical)The tip of the fluke of an anchor.
Bill
A billhook.
Bill
A halberd or similar weapon with a hooked blade and a long handle.
Bill
To present a statement of costs or charges to.
Bill
To enter on a statement of costs or on a particularized list.
Bill
To advertise or schedule by public notice or as part of a program.
Bill
To declare or describe officially; proclaim
A policy that was billed as an important departure for the administration.
Bill
To touch beaks together.
Bill
Any of various bladed or pointed hand weapons, originally designating an Anglo-Saxon sword, and later a weapon of infantry, especially in the 14th and 15th centuries, commonly consisting of a broad, heavy, double-edged, hook-shaped blade, with a short pike at the back and another at the top, attached to the end of a long staff.
Bill
A cutting instrument, with hook-shaped point, and fitted with a handle, used in pruning, etc.; a billhook.
Bill
Somebody armed with a bill; a billman.
Bill
A pickaxe, or mattock.
Bill
(nautical) The extremity of the arm of an anchor; the point of or beyond the fluke (also called the peak).
Bill
The beak of a bird, especially when small or flattish; sometimes also used with reference to a platypus, turtle, or other animal.
Bill
A beak-like projection, especially a promontory.
There is a lighthouse on Portland Bill.
Bill
Of a cap or hat: the brim or peak, serving as a shade to keep sun off the face and out of the eyes.
Bill
A written list or inventory. (Now obsolete except in specific senses or set phrases; bill of lading, bill of goods, etc.)
Bill
A document, originally sealed; a formal statement or official memorandum. (Now obsolete except with certain qualifying words; bill of health, bill of sale etc.)
Bill
A draft of a law, presented to a legislature for enactment; a proposed or projected law.
Bill
A declaration made in writing, stating some wrong the complainant has suffered from the defendant, or a fault committed by some person against a law.
Bill
A piece of paper money; a banknote.
Bill
One hundred dollars.
Bill
A written note of goods sold, services rendered, or work done, with the price or charge; an invoice.
Bill
A paper, written or printed, and posted up or given away, to advertise something, as a lecture, a play, or the sale of goods
Bill
A writing binding the signer or signers to pay a certain sum at a future day or on demand, with or without interest, as may be stated in the document; a bill of exchange. In the United States, it is usually called a note, a note of hand, or a promissory note.
Bill
A set of items presented together.
Bill
The bell, or boom, of the bittern.
Bill
(transitive) To dig, chop, etc., with a bill.
Bill
(obsolete) to peck
Bill
To stroke bill against bill, with reference to doves; to caress in fondness
Bill
(transitive) To advertise by a bill or public notice.
Bill
(transitive) To charge; to send a bill to.
Bill
A beak, as of a bird, or sometimes of a turtle or other animal.
Bill
The bell, or boom, of the bittern
The bittern's hollow bill was heard.
Bill
A cutting instrument, with hook-shaped point, and fitted with a handle; - used in pruning, etc.; a billhook. When short, called a hand bill, when long, a hedge bill.
Bill
A weapon of infantry, in the 14th and 15th centuries. A common form of bill consisted of a broad, heavy, double-edged, hook-shaped blade, having a short pike at the back and another at the top, and attached to the end of a long staff.
France had no infantry that dared to face the English bows end bills.
Bill
One who wields a bill; a billman.
Bill
A pickax, or mattock.
Bill
The extremity of the arm of an anchor; the point of or beyond the fluke.
Bill
A declaration made in writing, stating some wrong the complainant has suffered from the defendant, or a fault committed by some person against a law.
Bill
A writing binding the signer or signers to pay a certain sum at a future day or on demand, with or without interest, as may be stated in the document.
Bill
A form or draft of a law, presented to a legislature for enactment; a proposed or projected law.
Bill
A paper, written or printed, and posted up or given away, to advertise something, as a lecture, a play, or the sale of goods; a placard; a poster; a handbill.
She put up the bill in her parlor window.
Bill
An account of goods sold, services rendered, or work done, with the price or charge; a statement of a creditor's claim, in gross or by items; as, a grocer's bill.
Bill
Any paper, containing a statement of particulars; as, a bill of charges or expenditures; a weekly bill of mortality; a bill of fare, etc.
Bill
To strike; to peck.
Bill
To join bills, as doves; to caress in fondness.
Bill
To work upon ( as to dig, hoe, hack, or chop anything) with a bill.
Bill
To advertise by a bill or public notice.
Bill
To charge or enter in a bill; as, to bill goods.
Bill
A statute in draft before it becomes law;
They held a public hearing on the bill
Bill
An itemized statement of money owed for goods shipped or services rendered;
He paid his bill and left
Send me an account of what I owe
Bill
A piece of paper money (especially one issued by a central bank);
He peeled off five one-thousand-zloty notes
Bill
The entertainment offered at a public presentation
Bill
A list of particulars (as a playbill or bill of fare)
Bill
An advertisement (usually printed on a page or in a leaflet) intended for wide distribution;
He mailed the circular to all subscribers
Bill
Horny projecting mouth of a bird
Bill
A sign posted in a public place as an advertisement;
A poster advertised the coming attractions
Bill
A long-handled saw with a curved blade;
He used a bill to prune branches off of the tree
Bill
A brim that projects to the front to shade the eyes;
He pulled down the bill of his cap and trudged ahead
Bill
Demand payment;
Will I get charged for this service?
We were billed for 4 nights in the hotel, although we stayed only 3 nights
Bill
Advertise especially by posters or placards;
He was billed as the greatest tenor since Caruso
Bill
Publicize or announce by placards
Common Curiosities
Are all bills considered legal tender?
In the context of currency, bills are legal tender. However, an invoice is not legal tender but a request for payment.
Can banknotes be collected?
Yes, collecting banknotes is a hobby known as notaphily, valued for their cultural, historical, and rarity aspects.
What happens if I don't pay a bill (invoice)?
Failure to pay a bill can lead to penalties, interest charges, and potentially legal action.
How are banknotes protected against counterfeiting?
Banknotes incorporate advanced security features, including watermarks, security threads, and holograms.
Why are some banknotes more valuable to collectors?
Rarity, historical significance, and unique features can increase a banknote's value to collectors.
Do bills have any value beyond their face value?
Currency bills hold value as legal tender. Invoices have no intrinsic value but represent the amount due for services or goods.
How are the values of banknotes determined?
The value of a banknote is set by its denomination and backed by the issuing country's economy.
Is a banknote the same as a bill?
While both can refer to paper currency, a banknote is specifically issued by a country's central bank, whereas a bill can also mean an invoice for payment.
Can bills (invoices) be used for tax deductions?
Yes, certain bills can be used to claim tax deductions, depending on the nature of the expenses and applicable tax laws.
Can I refuse to accept a banknote as payment?
Generally, banknotes are recognized legal tender for all debts, public and private, and must be accepted.
Are digital banknotes a thing?
Some countries are exploring digital currencies, but traditional banknotes are predominantly physical.
What's the significance of the designs on banknotes?
Designs often reflect a country's cultural heritage, significant figures, and historical events.
Can anyone issue a bill (invoice)?
Any entity providing goods or services can issue a bill as a formal request for payment.
How do I verify the authenticity of a banknote?
Authenticity can be verified through its security features, such as watermarks and holograms.
Is it legal to collect and sell banknotes?
Yes, collecting and selling banknotes is legal, but certain regulations may apply, especially for rare or historical items.
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Written by
Maham Liaqat
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
