The monetary system in our country is changing in most businesses and no, it is not because they want to stop accepting physical money, but because they want to make sure the physical money they receive is real and not counterfeit.
This time, it’s the turn of retail chains like Target, Walmart, or Costco, which will stop accepting damaged bills starting this April 2025.
And as we said, it is not just a decision made by these companies, it is part of a new strategy promoted by the Secret Service and the Advanced Counterfeit Deterrence Steering Committee (ACD), through which they aim to strengthen security and reduce counterfeit bills. Here’s everything we know so far.
Which bills will no longer be accepted?
We need to understand that this is not a bill recall or a ban on cash payments. It means that, by regulation, bills that are visibly damaged will not be accepted. Among them, the main types of damage that will cause rejection are “mutilated” bills (that is, bills with cuts, damaged edges or incomplete bills), bills with burns, stains, or severe signs of deterioration.
This includes large bills like the $500 bill (even though they are no longer printed, some are still in circulation).
Which bills are currently in circulation?
Currently, the bills produced and circulating, according to the Federal Reserve, are: $1
- $2
- $5
- $10
- $20
- $50
- $100
And the $500, $1,000, and $10,000 bills are no longer produced, but many are still in circulation, although it is not very common to see them. And of course, these bills follow the same rules as the others: torn, burned or stained bills will not be accepted.
How do I know if I have a damaged bill?
Just take a close look at the bill. If it has damaged edges, discoloration in some areas, or missing corners, it will be considered a damaged bill and it will not be accepted.
And what if I have a mutilated bill?
If you have one of these damaged bills, the best thing to do is to contact the Bureau of Engraving and Printing (BEP) to submit a claim. They have a step-by-step guide to accept them. Basically, the bill must have at least 50% of its surface identifiable and show its security features. In case it has less than 50% identifiable but the security elements are still detectable, it can still be reviewed.
The Bureau of Engraving and Printing will analyse the bill to verify its authenticity and, only if appropriate, issue a check for the full value of the bill.
Is there a chance they won’t issue the refund?
Yes. If the BEP finds that the bill was intentionally mutilated for criminal purposes (such as counterfeiting), or determines that the bill is unreliable, they will not issue any refund
What is the reason behind this measure?
According to the Federal Reserve, there are approximately between 15 and 30 million dollars in counterfeit bills circulating, which quickly calculated is about 1 fake bill for every 40,000 real ones. So this measure responds to the agency’s need to improve authentication services and protect the financial system.
In addition, this measure aligns with another already proposed that will be implemented from 2028 to 2038, a plan to gradually redesign all bills to prevent counterfeiting. These new bills will include more security features like microtext, raised print, or visible threads to make them harder to copy.
How can I identify a counterfeit bill?
Here are several signs that may indicate a bill is fake:
- The security thread visible against light must read “USA”
- The 3D security ribbon changes gradually when you tilt the bill.
- If you use an invisible ink pen, it will stain the bill if it’s fake.
Why are retailers leading this measure?
Because they handle the highest volume of cash.
Considering the number of daily transactions in these stores and the self-checkout areas, some people have taken advantage of the system, causing these companies to lose a lot of money until they decided to put a stop to the problem and protect their finances.
So, if you have torn bills, get rid of them soon!
