What Happens If Money Gets Wet? Here’s What to Do

Currency often gets wet, whether from a forgotten bill in a pocket during laundry or exposure to an unexpected downpour. While wet money might seem compromised, in many situations, it can be salvaged and returned to a usable state. Understanding the condition of the currency and applying appropriate drying techniques can often restore its integrity, preventing the loss of its value.

Assessing the Condition of Wet Currency

Determining whether wet currency is salvageable or requires professional intervention begins with assessment. Examine the bills for immediate signs of damage such as excessive ink smudging, which can obscure security features or denominations. Observe if the paper has begun to tear or if its structural integrity has been compromised, indicating a more severe impact from the water. Handle the wet currency gently to avoid causing further damage, as wet paper is more fragile.

Different levels of water damage present varying characteristics. Lightly damp bills may show minimal distortion, while heavily soaked currency might appear pulpy or have fibers that have begun to separate. Currency that has been exposed to prolonged moisture, especially if it was dirty water, may also develop mold or mildew, which can further degrade the material. These cues help determine the best course of action, from simple drying to formal exchange processes.

Methods for Safely Drying Wet Money

Several methods can effectively dry wet currency without causing additional damage, with air drying being a primary approach. For individual bills, separating them and laying them flat on a clean, dry surface, such as a paper towel or absorbent cloth, in a well-ventilated area is effective. A low-speed fan can be used to circulate air around the bills, which helps to expedite the drying process, but ensure the fan’s setting is gentle enough not to blow the money away. Placing individual bills between the pages of a heavy book can also help to absorb moisture and flatten the currency as it dries.

It is important to avoid certain methods that can cause irreversible damage to the currency. Microwaves should never be used, as the magnetic inks in U.S. bills can cause them to catch fire or damage the appliance. Similarly, direct high heat from sources like clothes dryers or ovens, even on low settings, can burn the bills, damage security features, or cause discoloration. If using an iron, it should be on the lowest heat setting, and a protective cloth should be placed between the iron and the bill to prevent scorching or damage to the embedded security strip.

Exchanging Severely Damaged Currency

When currency is too damaged for personal restoration, it may qualify as “mutilated currency” and can be exchanged through formal channels. The U.S. Bureau of Engraving and Printing (BEP) defines mutilated currency as notes that are damaged to the extent that one-half or less of the original note remains, or whose condition makes its value questionable. This can include damage from fire, water, chemicals, explosives, or animal activity. If more than 50% of an identifiable U.S. note is present, it can typically be redeemed at full value. Even if 50% or less is present, redemption is possible if the method of mutilation and supporting evidence satisfy the BEP that the missing portions were totally destroyed.

For currency that is merely dirty, worn, or has minor tears but is clearly more than half intact, it is generally considered “unfit” and can be exchanged at most local commercial banks. These banks will then process the currency out of circulation. For severely damaged or “mutilated” currency, direct submission to the BEP’s Mutilated Currency Division is necessary. The process involves mailing the damaged currency, along with a letter detailing its estimated value and how it was damaged, and completing BEP Form 5283. Processing times for these claims vary, often taking six months to 36 months, depending on the complexity and workload.