The U.S. government is stepping up efforts to protect the integrity of its monetary system by implementing stricter policies on damaged and counterfeit bills. In collaboration with the Bureau of Engraving and Printing, the Secret Service, and the Advanced Counterfeit Deterrence Committee, measures are being introduced to ensure banks, retailers, and ATMs reject unfit currency. This includes notes classified as “mutilated” due to cuts, stains, discoloration, or significant wear.
Under these new rules, businesses like Walmart, Target, Costco, and Dollar Tree must adapt their systems to identify and reject bills that no longer meet circulation standards. Even older high-denomination bills, such as $500 and $1,000 notes, still in circulation but not produced anymore, could face rejection if deemed unfit.
How to redeem a damaged bill
If you have a damaged bill, you can take the following steps to seek reimbursement through the Bureau of Engraving and Printing:
- Submit the damaged bill for evaluation by the Bureau.
- Fill out a form describing the extent and nature of the damage.
- Await the Bureau’s assessment using specialized tools to verify authenticity.
- If approved, you will receive a check for the full value of the bill.
As part of ongoing efforts, the Federal Reserve also plans to release redesigned bills with advanced security features. These updates aim to deter counterfeiting and enhance public trust. New versions of $50, $20, $5, and $100 bills will be introduced gradually between 2028 and 2038, featuring innovations such as color-changing ink, 3D ribbons, and watermarks.
These steps reflect a commitment to maintaining the reliability and security of the U.S. dollar, ensuring it remains a trusted global currency.
