In a significant move to bolster the security of the monetary system, the Bureau of Engraving, the Secret Service, and the Advanced Counterfeit Deterrence (ACD) Steering Committee have embarked on a new initiative. This program mandates that US stores, businesses, banks, and ATMs cease accepting certain dollar bills starting in October.
Based on various reports, the dollar bills that will be declined beginning this month include all those classified as “mutilated.”
Presently, the U.S. Federal Reserve (Fed) issues dollar bills in the following seven denominations:
Although larger denominations, such as the $500, $1,000, and $10,000 bills, have not been produced for quite some time, they still remain in circulation. These larger bills will only be rejected if they are considered “mutilated,” similar to any other unit of currency.
How to Identify if Your Dollar Bill is “Mutilated”
Banknotes often become mutilated due to various factors such as fire damage, misuse, or even deterioration from being buried. According to the Federal Reserve, signs of mutilation include cuts, damaged edges, and discoloration.
What to Do with “Mutilated” Dollar Bills
If you find yourself with a mutilated dollar bill, your first step is to contact the Bureau of Engraving and Printing directly. You will need to file a mutilated currency claim. The Bureau offers a comprehensive guide to help you through the process of redeeming your damaged currency.
“The BEP will thoroughly evaluate the note,” explains a Fed currency representative. “They utilize specialized tools to verify the currency’s authenticity and determine its full value. Once this evaluation is complete, they can issue a check to the consumer.”
Upcoming New Designs in Circulation
Alongside this new security measure, the Federal Reserve plans to release new designs for several denominations of U.S. currency. The updated designs will be implemented as follows:
- $50 bill: Introduction in 2028
- $20 bill: Introduction in 2030
- $5 bill: Introduction between 2032 and 2035
- $100 bill: Introduction between 2034 and 2038
These changes aim to enhance security and maintain the integrity of U.S. currency.
