Does a Ripped Dollar Still Work? Here’s What to Do

U.S. currency is printed with a blend of 75 percent cotton and 25 percent linen, designed to withstand significant handling and wear. Despite its durability, bills can become damaged through everyday use or unforeseen circumstances. The U.S. government, through the Bureau of Engraving and Printing (BEP), has established procedures to address damaged currency and ensure its value is retained.

Immediate Usability of Damaged Bills

Minor damage to a dollar bill often does not prevent its use. Bills with small tears, slight rips, or minor defacement are generally accepted by businesses and individuals. As long as the bill is clearly identifiable as genuine U.S. currency and most of its features remain intact, it can circulate without issue. This category of damage is often referred to as “unfit” currency, meaning it is unsuitable for further circulation due to its physical condition but does not require specialized examination for value determination.

Commercial banks can exchange these unfit notes for new ones. For instance, a bill with a corner missing or one ripped into two pieces that can be taped together may be accepted by a bank for exchange. The key is that the majority of the bill, more than half, must be present and the serial numbers must be identifiable.

Criteria for Exchanging Severely Damaged Currency

Currency extensively damaged, known as “mutilated currency,” requires a formal process for redemption. Mutilated currency is defined as a note that has been damaged that one-half or less of the original note remains, or its condition is such that its value is questionable. Common causes of such severe damage include fire, water, chemicals, explosives, and damage from animals, insects, or deterioration from burying.

For a mutilated note to be redeemed at its full face value, more than 50% of the original note must be present and identifiable as U.S. currency. This includes sufficient remnants of any relevant security features, such as the security thread or watermark. If 50% or less of the note remains, redemption is possible, but the claimant must provide evidence that the missing portions were completely destroyed. The Director of the BEP holds the final authority in determining such claims. Intentional mutilation or attempts to defraud the United States will result in the denial of a claim.

Steps for Exchanging Damaged Currency

For minor damage, local commercial banks are the first point of contact. Banks can exchange bills that are worn, dirty, limp, or have small tears, as long as more than half of the original note is present and its value is easily determined. If a bank cannot exchange the currency, it will advise submission to the Bureau of Engraving and Printing.

For severely damaged or mutilated currency, submission to the BEP’s Mutilated Currency Division is necessary. The process involves mailing the damaged currency to the BEP. It is important to include a letter explaining how the currency became damaged, the estimated value, and contact information. A completed BEP Form 5283 must accompany all submissions.

Careful packaging prevents further damage during transit. Do not disturb fragments; if the currency is brittle, pack it in cotton. If the currency was damaged within a container, leave it in the container and send the entire item to protect fragments. Do not tape, glue, or alter the currency. Processing time for mutilated currency claims varies from six months to three years, depending on complexity and workload. The BEP will notify the claimant of their decision.