A challenge is a way to verify that members are carrying the coin formally issued by their organization. The rules of a challenge are not always formalized, and may vary between organizations, thus challenges between members of different organizations are not recommended.
The challenge, which may be made at any time, begins with the challenger drawing his/her coin and slapping or placing the coin on the table or bar, or in noisy places, continuously rapping the coin on a surface. Accidentally dropping a challenge coin is considered to be a deliberate challenge to all present. Everyone being challenged must immediately produce the coin for their organization; anyone failing to do so must buy a round of drinks for the challenger and everyone else who has their challenge coin. However, should everyone challenged be able to produce their coin, the challenger must buy a round of drinks for the group While most holders of challenge coins usually carry them with them, most versions of the rules permit a challenged person "a step and a reach" to produce the coin.
A variant of the rules is that if you are able to steal a challenge coin, everyone in the group must buy you a drink. In another variant, everyone in the group must buy a drink for the holder of the highest-ranking coin. Some rules have strict time limits to respond to a challenge.
Traditionally, rules of a challenge include a prohibition against defacing the coin, especially if it makes it easier to carry at all times. If the challenge coin is attached to a belt buckle or key ring, or has had a hole drilled in it to attach to a lanyard, it no longer qualifies as a challenge coin. A generally safe place to carry a coin is in a pouch worn around the neck. Carrying a challenge coin in the wallet is a problem for military personnel because the distinctive circular bulge may identify the person as a military member, which may be a security consideration in many places. For this reason, some unit rules specifically prohibit carrying a challenge coin in a wallet.
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