The page explains new federal guidance on what kinds of damaged U.S. banknotes are no longer usable in stores, banks, or ATMs, and how Americans can still redeem partially intact notes through the Bureau of Engraving and Printing (BEP) Mutilated Currency Division. It also highlights a 2026 accessibility upgrade to the $10 bill and frames why these changes matter as the country balances anti-counterfeiting upgrades with a gradual shift toward digital payments.
What’s Changing—and What Isn’t
- The government is updating cash-handling rules and security design standards to curb fraud and modernize the currency system; most bills remain fine to spend if they’re in decent condition.
- Certain severely damaged notes are now deemed “irredeemable,” meaning retailers, banks, and ATMs should not accept them in everyday transactions.
- Older designs are not being canceled; the focus is on condition and authenticity, not age or series year.
Irredeemable vs. Redeemable: The Practical Line
- Irredeemable notes: Bills that are so altered or destroyed that they can’t be authenticated—think notes missing substantial material, chemically altered, or otherwise beyond recognition—are considered unusable in commerce under the clarified guidance.
- Redeemable notes: If at least part of the bill remains and authenticity can be verified (commonly at least half a note), it may still be eligible for reimbursement through the BEP’s Mutilated Currency Division.
- Why this matters: The line protects merchants and consumers from high-quality fakes while giving honest holders of damaged cash a path to recover value.
How to Claim Value for Damaged Cash
- Who handles it: The BEP’s Mutilated Currency Division, which processes tens of thousands of requests each year.
- What to send: Damaged notes with as much remaining material as possible; avoid further harm (don’t tape, glue, or peel apart fragments).
- Where to send: Mail directly to the BEP per the agency’s published process for examination and possible reimbursement at full face value if authenticity thresholds are met.
- How you’re paid: If approved, reimbursement is issued for the face value of the submitted note(s) once experts verify genuineness and amount.
Key Dates and What’s Next
- 2026 milestone: The $10 bill is slated to debut tactile features to aid people who are blind or have low vision, paired with raised printing and color contrasts to make denomination recognition more inclusive.
- Why now: It fulfills a long-standing accessibility commitment and reflects broader modernization alongside anti-counterfeiting updates.
Payments Landscape: Cash Still Matters
- Even as contactless and app-based payments grow, cash continues to play a meaningful role in everyday transactions across the U.S.
- Policy balance: Agencies are upgrading note security while preserving broad public access to legal tender, amid debates over “cashless” business models and inclusivity.
Everyday Tips to Avoid Snags at Checkout
- Check condition: Avoid using notes that are burned, chemically damaged, or missing large portions; present clean, intact bills when possible.
- Don’t discard damaged cash: If a note is too beat-up for spending, consider BEP redemption instead of throwing it away.
- Store smart: Keep bills dry, flat, and away from solvents or extreme heat to prevent irreparable damage.
Bottom Line
- Your cash still spends—if it’s in decent shape—but retailers and ATMs can reject notes that cross the “irredeemable” line; when in doubt, the BEP offers a path to reclaim value.
- The 2026 tactile $10 is a landmark for accessibility, signaling that the dollar’s next chapter is about both security and inclusion.