In today's society, the national large denomination currencies are used in paper currency, thus inevitably coming with a high degree of counterfeit banknotes, so for the inspection and recognition of notes, there have been many new methods with technological advances. Electromagnetic detection is a new technology of detection to identify money. This paper introduces the basic principles of pulsed eddy current technology, the inspection equipment design, the experimental results analysis and the characteristic quantity extraction. The results show that, notes detection has a high detection resolution and the potential advantages for development based on the pulsed eddy current technology. It can distinguish between different denominations by further practical design and may count different denominations at the same time.