how does the ATM recognizes different banknotes when you make a cash deposit?

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how does the ATM recognizes different banknotes when you make a cash deposit?

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It has a camera that can “see” the bill and it compares it to a picture it has of each type of bill. It also checks dimensions and for that magnetic strip, if it has it. That’s why it’ll spit out bills with folded corners or tears. It doesn’t match up with the photo it’s been compared too.

It makes sure it’s the right size and colors. Then it checks for which bill it matches from the photos it has.

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