Can You Use Taped Money and What Are Your Options?

U.S. currency, even when damaged, often retains its full face value. The specific method for redemption depends on the extent of the damage incurred by the banknote. Understanding the different categories of damage and the appropriate channels for resolution can help ensure that the currency maintains its purchasing power.

Acceptance of Minor Damage

For minor damage, such as a small tear on the edge or a bill neatly taped back together, many merchants or individuals may still accept the currency in direct transactions. This acceptance is often discretionary and relies on the comfort level of the recipient. A bill with minor damage is generally accepted if it is still clearly recognizable as U.S. currency, with its serial numbers and security features remaining intact. More than half of the original bill should be present for it to be considered valid for everyday use.

Bank Exchange for Damaged Currency

When currency is more significantly damaged than what a merchant might accept, but not yet “mutilated,” financial institutions are generally the appropriate point of contact for an exchange. Banks can typically exchange currency that is worn, dirty, defaced, or has minor tears, provided more than half of the original note is clearly present. The security features, such as watermarks, security threads, and serial numbers, must remain visible and verifiable to confirm the bill’s authenticity. Damage should not appear suspicious or intentional, like signs of counterfeiting.

Bureau of Engraving and Printing Submission for Mutilated Currency

For currency that is severely damaged, known as “mutilated currency,” redemption is handled by the Bureau of Engraving and Printing (BEP). Mutilated currency is defined as a note so badly damaged that its value is questionable, or where one-half or less of the original note remains. Common causes of such damage include fire, water, chemicals, explosives, or damage from animals or insects. Redemption at full value is possible if clearly more than 50% of an identifiable U.S. note is present with sufficient remnants of security features. If 50% or less of the note remains, full redemption requires satisfactory evidence that the missing portions were totally destroyed.

When submitting mutilated currency, it is important to handle it as little as possible to prevent further deterioration. If the currency is brittle or in fragments, it should be carefully packed in cotton and boxed as found. If the money was found in a container, such as a wallet or box, it should be left inside to protect loose fragments and the entire container should be sent to the BEP. Do not attempt to tape, glue, or otherwise alter the currency in an effort to preserve it if it was flat when mutilated.

The submission process requires completing BEP Form 5283, which includes details such as the estimated value of the currency and an explanation of how the damage occurred. The form and the currency should be sent to the BEP’s Mutilated Currency Division. For mailing via the United States Postal Service (USPS), use the specific P.O. Box address provided by the BEP. For private carriers, a street address is available.

Processing times can vary significantly, typically ranging from six months to three years, depending on the complexity of the case and the current workload. This redemption service is provided free of charge.