Recently, there has been some news regarding what the Bureau of Engraving calls “mutilated dollar bills”. These are not accepted in any US shop, store, bank, or ATM. While it’s not clear as day what constitutes a mutilated dollar bill, there are some criteria to help you out.
How can you spot a mutilated dollar bill?
Of course, sometimes it’s simply obvious – anything ripped, torn, or generally damaged is considered “mutilated”, thus won’t be accepted.
According to the Federal Reserve, a bill is not suitable for further circulation when it has been damaged to the degree that only 50% or less of it remains. Another sign is that the condition is such that the value of the note itself is questionable.
If you have bills that fit the description above, these will no longer be accepted anywhere in San Diego or all over the United States, unless you file a mutilated currency claim with the Bureau of Engraving and Printing. Whether that’s worth the effort, will of course depend on your personal situation and the value of the bills affected.
What to do with these bills
As mentioned above, your best bet is the Bureau of Engraving and Printing’s “Mutilated Currency Claim”. If you’re looking to file one, first check that one of the two options below are true:
- Over 50% of the dollar bill is present and identifiable, and preferably it also includes remnants of any security features
or
- 50% or less of the dollar bill is identifiable, but the method of mutilation and supporting evidence demonstrate (to the satisfaction of the BEP) that the missing portions have been destroyed
While that last point sounds pretty confusing, it essentially ensures that nobody can submit more than one separate Mutilated Currency Claim for the same dollar bill.
Here’s a step by step guide on how to submit a claim for your mutilated dollar bills.