How Much of a Torn Bill Do You Need for an Exchange?

Paper currency can be torn, stained, or otherwise damaged. The United States government provides avenues for individuals to exchange damaged money for new, usable bills. The process for exchange depends largely on the extent and nature of the damage.

Determining if Your Bill is Redeemable

The redeemability of a damaged bill depends on how much of the original note remains and the nature of its damage. For a torn bill, if more than 50% of the original note is present and identifiable as United States currency, it can be redeemed at its full face value. This also applies if sufficient remnants of any security features are present.

Currency can be considered “unfit” if it is dirty, defaced, limp, torn, or worn, but still has more than half of the original note remaining. Currency is classified as “mutilated” if one-half or less of the original note remains, or if its condition makes its value questionable. Common causes of mutilation include damage from fire, water, chemicals, explosives, animals, insects, rodents, or deterioration from being buried. If less than 50% of the note is present, it may still be redeemed at full value if the method of mutilation and supporting evidence satisfy the Treasury that the missing portions have been completely destroyed.

Standard Exchange Options

For “unfit” currency due to minor damage, the most straightforward exchange option is a commercial bank. Banks are equipped to handle such currency and can exchange it for new bills. When presenting a torn bill to a bank, it is important that the serial numbers on both sides are intact and clearly visible to aid in verification. Banks will accept bills where more than 50% is present and identifiable.

Advanced Exchange Procedures for Severely Damaged Currency

For currency that is “mutilated”—meaning it is severely damaged, such as notes with 50% or less remaining, or those compromised by fire, water, or other extreme conditions—submission to the Bureau of Engraving and Printing (BEP) is necessary. The BEP provides a free public service for examining and redeeming such currency.

To submit a claim, individuals must prepare the damaged currency carefully, avoiding further damage. It is important to leave the currency as found, especially if it is fragile, and package it securely. A submission requires a completed BEP Form 5283, which can be found on the BEP website.

This form, along with the damaged currency, should be accompanied by a letter detailing the estimated value of the currency, an explanation of how the damage occurred, and the claimant’s contact information. For reimbursement, bank account and routing numbers for a U.S. bank should be provided for direct deposit, especially for redemptions of $500 or more.

Submissions can be mailed or, in some cases, delivered in person to the BEP. The processing time for these complex cases can vary from approximately six months to over three years, depending on the complexity of the damage and the current workload of the examiners.