There will be big changes to how dollar bills are accepted in the U.S. starting in October 2024. Many stores, banks, and ATMs will no longer accept certain banknotes, particularly those labeled “mutilated” or severely damaged.
The U.S. government, the Bureau of Engraving and Printing (BEP), and the Advanced Counterfeit Deterrence (ACD) Steering Committee are working together to strengthen the security and integrity of the country’s monetary system, and this program is one element of their efforts.
Here’s what you need to know about the reasons behind these changes, which bills are impacted, and what you can do if you own one of these bills if you have dirty dollar notes.
Why Are Some Dollar Bills Not Accepted?
Rejecting these bills primarily prevents counterfeiting and ensures that only authentic, untainted currency is in circulation. Because it is more difficult to verify security features on damaged or mutilated bills, they are more vulnerable to fraud and counterfeiting. The Federal Reserve and other agencies hope to improve the general security of U.S. currency by taking such bills out of circulation.
As of October 2024, many damaged bills—such as those with tears, extreme discoloration, missing parts, or water damage—will no longer be accepted in shops, banks, or ATMs.
Common denominations like $5, $10, $20, $50, and $100 notes will be impacted by this, but if they are in bad condition, even older, uncommon denominations like $500 and $1,000 bills are subject to the same regulations.
What is Considered a “Mutilated” Bill?
When a bill is so damaged that it is difficult to confirm its legitimacy, it is referred to as “mutilated.” Common causes of damage include being submerged in water, fire, or earth for a long time. Bills with significant wear, breaks, or missing corners are deemed mutilated.
Some instances of disfigured or damaged bills that may be refused are:
- Bills with large tears in the corners or missing portions.
- Wet bills with designs that have warped or faded.
- Coins that have been burnt or chopped.
Banks and ATMs, as well as retailers, will also stop taking these bills. Therefore, you must redeem a damaged dollar bill through the Bureau of Engraving and Printing.
What Should You Do if You Own a Mutilated Bill?
Don’t worry if your bill is considered mangled; its worth won’t decrease. By submitting a “Mutilated Currency Claim,” you can give the Bureau of Engraving and Printing (BEP) your damaged cash. The BEP will evaluate the bill’s redeeming value and legitimacy.
This is how it works:
- Send in the Bill: The BEP will use specialist equipment to assess the damaged bill that you send in.
- Verification: To verify its legitimacy, the BEP will check the paper, ink, and security features.
- Reimbursement: Once verified, the BEP will issue a reimbursement check for the full value of the bill.
For additional details on how to file for benefits, go to the BEP’s official website. Each claim is handled individually; some may take several months to process.
Changes in Currency Design
The Federal Reserve has set a deadline for issuing new notes with improved security measures as part of the initiative to modernize U.S. currency:
- 2028: The $50 bill will be the first to get a redesign in 2028.
- 2030: A revised $20 banknote is scheduled for introduction.
- 2032–2035: The $5 bill will be redesigned in 2032–2035.
- 2034–2038: The $100 bill will add modern security features.
Color-shifting ink, microprinting, and 3D security ribbons are among the new designs that will make it more difficult for counterfeiters to replicate real U.S. cash. These elements will be essential for the country’s currency supply to remain authentic and secure.
How to Spot Fake Bills
Become familiar with the security mechanisms inherent in U.S. cash to help you avoid counterfeit notes. Real bills have the following:
- Security threads: A slender, vertical band that is visible when illuminated.
- 3D security ribbons: Newer $100 notes have 3D security ribbons, which shift their designs in response to tilt.
- Color-shifting ink: When viewed from various perspectives, the numbers on bills, such as the $100, change color.
- Watermarks: A portrait appears when a real currency is held up to the light.
By closely examining these qualities, you can ensure that the bills you receive are authentic and avoid unintentionally using or receiving counterfeit money.
As of October 2024, American stores, banks, and ATMs will not take certain damaged and disfigured dollar bills. This change is part of a bigger plan to make the financial system more reliable and stop the flow of fake money.
It is very important to look over any damaged bills and exchange them before they are returned. By learning about the risks and taking the right steps, you can make sure that your money is still taken for everyday purchases.