New $20 Bank Note in 2027: Don't Wait Until the Last Minute to Prepare
Canada's new $20 bank note will begin entering circulation in early 2027. For businesses that regularly handle cash, now is the time to start preparing.
On September 3, the Bank of Canada unveiled the new Canadian $20 bank note, which will begin gradually entering circulation in late February 2027.
New vertical format, portrait of King Charles III, the Canadian National Vimy Memorial, and new security features: the change will be significant and, of course, highly visible.
But when I saw the announcement, my first thought was this:
Retailers and businesses that regularly handle cash should start preparing now.
I have worked in the field of cash handling and authentication equipment for several years. My experience has taught me that it is far better to prepare for this type of transition a few months in advance than to wait until a problem occurs.
And this time, some statistics deserve particular attention.
Counterfeit Bank Notes Are Already Rising Sharply in Canada
I wanted to verify the numbers before writing this article because it is easy to have a perception of a problem that does not necessarily reflect reality.
The Bank of Canada's data are quite telling.
In 2024, 22,471 counterfeit Canadian bank notes were detected in circulation. In 2025, that number rose to 42,186.
That's an increase of approximately 88% in just one year.
But it was the $20 bank note in particular that caught my attention.
In 2024, 2,807 counterfeit $20 bank notes were detected. In 2025, that number rose to 12,848.
It therefore more than quadrupled in a single year.
I am not going to claim that the arrival of the new $20 will automatically trigger a new wave of counterfeiting. The available statistics do not allow us to make that conclusion.
However, one thing is certain: the new bank note will arrive at a time when counterfeiting of the $20 is already rising sharply.
For me, that is reason enough to start preparing.
My Advice to Retailers: Be Proactive
If your business regularly accepts cash and you currently have no reliable way to verify bank notes, I would not wait until next February to start thinking about it.
And above all, I would not wait until you have accepted a counterfeit bank note before purchasing a detector.
It may seem obvious, but over the years, I have often seen the same thing: it is only when a problem occurs that prevention suddenly becomes urgent.
A counterfeit bank note is accepted, sometimes several, and that is when people quickly start looking for a solution.
Why wait?
The coming months are an excellent opportunity to review your verification methods, make your employees aware of bank note security features and, if necessary, purchase a counterfeit bank note detector suited to your business.
This also helps avoid having to shop for equipment in a hurry when the new bank note begins circulating and demand for equipment, updates and technical support could be higher.
Prevention generally costs much less than reacting to a problem.
Already Have a Detector or Counter? Don't Assume It Will Be Compatible
This is probably the second most important message I want to convey.
If you already use a bank note counter, automatic detector, value counter or currency discriminator, or other equipment that recognizes and authenticates Canadian bank notes, check its compatibility with the new $20.
The fact that a machine can physically accept and count the new bank note does not necessarily mean that it will be able to identify and authenticate it correctly.
The dimensions of the new $20 will remain the same as those of current Canadian bank notes, but its security features are evolving.
The Bank of Canada also indicates that the new bank note includes security technologies never before used on Canadian currency, particularly within its new purple security stripe.
Depending on the equipment you use, an update to its software, firmware or currency database may therefore be required.
Some machines will probably be easy to update. For other models, particularly older ones, the situation will need to be verified with the manufacturer.
Don't assume your equipment is compatible simply because it works perfectly today.
Why I Suggest Checking Several Months in Advance
Imagine that it is late February.
The first new $20 bank notes begin arriving at your business, and your counter or detector systematically rejects them.
The bank notes are genuine. Your machine simply does not recognize them correctly.
You then have to verify the bank notes manually, contact your supplier, determine whether an update is available, schedule a service appointment or, in some cases, replace the equipment.
For a business that handles a large amount of cash, this can quickly become a significant inconvenience and slow down operations.
This is precisely the kind of situation that can be avoided by preparing in advance.
The Bank of Canada is already working with the bank note equipment industry to prepare for this transition.
If the industry is starting to prepare now, businesses that use this equipment have every reason to do the same.
Several Different $20 Bank Notes Will Circulate at the Same Time
It is also important to understand that the new bank note will not replace all existing $20 notes overnight.
Its introduction will be gradual, and the $20 bank notes currently in circulation will continue to be used.
For some time, employees and consumers will therefore encounter different, perfectly legitimate versions of the $20 bank note.
This is another good reason to use the coming months to familiarize employees with the different security features and put in place a simple and effective verification method.
We Are Already Preparing on Our Side
At ERGA, we have already started preparing for the arrival of the new bank note.
We will follow the testing, technical information and updates from our various manufacturers to determine which equipment will be directly compatible and which will require an upgrade.
This will allow us to assist our customers well before the first new bank notes arrive in their cash registers.
If you already own a bank note counter or detector and have any doubts about its compatibility, don't wait until February to check.
And if your business regularly accepts cash without currently having an effective way to verify bank notes, this may also be a good time to consider equipping your business.
There are ONLY A FEW MONTHS left before the new $20 arrives.
Let's use that time to prepare rather than waiting until a problem forces us to react.
Sources
Bank of Canada — September 3, 2026
Bank of Canada unveils new vertical $20 bank note
Official announcement of the new $20 bank note and its gradual introduction into circulation beginning in late February 2027.
https://www.bankofcanada.ca/2026/09/bank-canada-unveils-new-vertical-20-bank-note/
Bank of Canada — 2026
Vertical $20 note security features
Official security features of the new $20 bank note.
https://www.bankofcanada.ca/banknotes/vertical-20-note-security-features/
Bank of Canada — 2024–2025 data
Statistics on the counterfeiting of Canadian bank notes
Statistics on counterfeit bank notes detected in circulation in Canada.
Bank of Canada — 2026
Resources for the cash-handling machine industry
Resources concerning preparation and compatibility of bank note handling equipment.
https://www.bankofcanada.ca/banknotes/audience-specific-resources/cash-handling-machine-industry/
About the ERGA Team
Articles published on this blog are written by members of the ERGA team and draw on the experience gained through hundreds of projects completed for hospitals, clinics, financial institutions, municipalities, retail businesses, and service organizations across Canada.
Depending on the topic, some articles may also include insights and firsthand experience from members of our team who have been directly involved in projects in the field.