If you’re heading to the grocery store with damaged cash, you might be in for a surprise. Certain types of dollar notes are no longer being accepted, and it’s not just about being worn or old—some bills are now considered completely irredemable. While most changes to paper currency focus on security and design updates, this one has more to do with the physical condition of the money itself.
So, what exactly makes a dollar bill unacceptable? And what changes to currency are coming next? Let’s break it all down.
Purpose
Why do dollar notes get updated in the first place? The answer is simple: to fight fraud. As counterfeit techniques grow more advanced, authorities have to stay one step ahead. That’s why your cash might look different today compared to what you used a decade ago.
The government, through agencies like the Bureau of Engraving and Printing (BEP), Federal Reserve, U.S. Treasury, Secret Service, and the Advanced Counterfeit Deterrence (ACD) Committee, works constantly to make cash harder to fake.
They’ve added features like:
- Color-shifting ink
- 3D ribbons
- Security threads
- Raised printing
- Microtext
All these help ensure that fake bills are easier to spot and harder to produce. But alongside these updates, there’s another lesser-known measure: rejecting damaged bills.
Damaged
Not all cash is equal—especially if it’s badly damaged. While worn bills are common and usually still accepted, there’s a line. And if your dollar note crosses it, it might get flat-out rejected.
Every year, the Mutilated Currency Division within the BEP gets over 22,000 requests from people asking whether their damaged money can still be used or redeemed.
Recently, the BEP clarified that some bills are too far gone to be accepted at stores, banks, or ATMs. These are considered irredemable. In general, a bill falls into this category if it meets one or more of the following:
- It has severe fire damage
- It’s fragmented or torn into pieces
- It’s unrecognizable or missing key identifiers
Retailers and machines are instructed not to accept these, and even if you try to deposit them, most banks will reject them.
Examples
Let’s say you accidentally leave a bill in your jeans and run it through the wash. Chances are, it’ll survive with some wear and still be usable.
But if the bill:
- Got caught in a house fire
- Was shredded beyond half its original form
- Has faded so badly that the denomination is unclear
Then it’s probably considered irredemable. You won’t be able to use it at stores, and ATMs won’t accept it either.
Here’s a quick guide:
| Condition | Redeemable? |
|---|---|
| Slightly torn or worn | Yes |
| Washed and wrinkled | Yes |
| Burned edges, mostly intact | Possibly |
| Missing over 50% of note | No |
| Completely charred | No |
| Unreadable or stained | No |
If you think you have a damaged bill that might be redeemable, you can send it to the BEP for evaluation. They’ll assess the note and may send you a replacement if it qualifies.
Future
Looking ahead, major changes to paper money are already planned. The Federal Reserve has announced updated versions of multiple bills to be released over the next 10+ years.
Here’s the current timeline:
| Denomination | New Design Release |
|---|---|
| $50 bill | 2028 |
| $20 bill | 2030 |
| $5 bill | 2032–2035 |
| $100 bill | 2034–2038 |
| $10 bill | 2026 (tactile version) |
One of the most notable updates is the tactile feature on the $10 bill, coming in 2026, designed to help blind and visually impaired individuals identify bills by touch. This marks a major step toward making currency more accessible for everyone.
Digital
As cash undergoes these updates, it’s worth noting how its usage is declining. With more stores going cashless, especially in big cities, and digital payments becoming the norm, it’s possible we’ll see less physical money in circulation in the future.
Still, for those who prefer or rely on cash, these changes matter. It’s important to know what condition your money needs to be in to still be valid.
So, the next time you’re about to hand over a crumpled or burned dollar bill, take a closer look—because the store might not take it.
FAQs
What makes a dollar bill irredemable?
Severe fire damage, fragmentation, or being unrecognizable.
Can I use a washed dollar bill?
Yes, as long as it’s mostly intact and readable.
Will ATMs accept damaged bills?
No, if the bill is badly damaged or unreadable.
When will new dollar bills be released?
Between 2026 and 2038, starting with the $50 bill in 2028.
What is the tactile feature on the $10 bill?
It helps blind individuals identify bills by touch, starting 2026.
