You can pay with ripped money at stores or banks as long as more than half of the bill is still there and it’s obviously genuine. A store can refuse a damaged bill if the cashier isn’t confident it’s real, but any commercial bank will exchange a torn, worn, or washed note for a new one at no cost. Bills that are burned, crumbling, or missing more than half go to the Bureau of Engraving and Printing for redemption.
The More-Than-Half Rule
Federal regulations sort damaged paper money into two buckets. “Unfit” currency is dirty, limp, torn, or worn but still clearly recognizable as real U.S. money. “Mutilated” currency is damaged badly enough that its value is questionable or half or less of the note survives.1eCFR. 31 CFR 100.5 – Mutilated Paper Currency
The practical test: if more than half the original bill is present and you don’t need an expert to figure out what it’s worth, it’s unfit rather than mutilated.2Federal Reserve Financial Services. Mutilated Currency A bill torn cleanly in two with both halves accounted for, a note with a corner missing, a $20 that survived the washing machine — all unfit. That means full face value, exchangeable at a bank.
Once you’re past that line, a bank can’t help you. The Bureau of Engraving and Printing (BEP) handles severe damage from fire, flooding, chemical exposure, rodents, or burial.3Bureau of Engraving & Printing (BEP). Mutilated Currency Redemption
Can a Store Refuse a Ripped Bill?
Yes. No federal law requires a private business to accept cash at all, let alone damaged cash. The legal tender statute, 31 U.S.C. § 5103, makes U.S. currency valid payment “for all debts, public charges, taxes, and dues,” but that language covers debts already owed, not new purchases at a register.4The Federal Reserve. FAQs – Is It Legal for a Business in the United States to Refuse Cash as a Form of Payment?
In practice, most retailers take bills with small tears or worn edges without a second look. Refusals start when the damage makes a cashier question whether the note is real: missing security features, heavy staining, or a large piece torn away. The cashier’s caution is reasonable, because if the store’s bank rejects the bill on deposit, the store eats the loss. If you’re getting pushback at the register, don’t argue. Take the bill to your own bank.
Exchanging a Torn Bill at the Bank
For unfit currency, a commercial bank is the right place to go. Walk in, hand the bill to a teller, and they’ll swap it. There’s no form, no fee, no waiting period. The Federal Reserve specifically directs that unfit currency be exchanged at commercial banks rather than sent to the Treasury.1eCFR. 31 CFR 100.5 – Mutilated Paper Currency
If your bill is torn in two, bring both pieces. The teller will confirm the serial numbers on the two halves match, then hand you a replacement. Taping the halves together is fine, and it also lets you spend the reassembled bill in the meantime, though some cashiers may still balk.
Banks aren’t required to accept a note that looks suspicious, so if one branch declines, try another, or try a bank where you already have an account. From there, unfit notes are bundled up, returned to the Federal Reserve, and forwarded to the BEP for shredding and replacement.
When You Need to Send It to the Bureau of Engraving and Printing
If less than half the bill survives, or if the damage is severe enough that authenticity isn’t obvious, you’re in mutilated-currency territory. The BEP’s Mutilated Currency Division examines these claims for free and pays full face value when more than 50 percent of the note remains along with enough security features to confirm it’s genuine. Even with less than half surviving, you can still get full value if you can prove the missing part was completely destroyed rather than held back for a separate claim. The BEP director has final say on that proof, and there’s no appeal.5eCFR. Subpart B – Request for Examination of Mutilated Currency for Possible Redemption
To file a claim, submit BEP Form 5283, available on the BEP website. It asks for your name, mailing address, phone, email, a short description of how the currency was damaged (200 characters or fewer), an estimated total dollar amount, and your bank routing and account numbers. Claims of $500 or more must be paid by electronic funds transfer, so accurate banking details matter.6Bureau of Engraving & Printing. How to Submit a Request for Mutilated Currency Examination
Packing the Bills
Handling matters. The BEP’s core rule is to disturb the fragments as little as possible.7Bureau of Engraving & Printing. Mutilated Currency Packing Directions
- If the bills are brittle or crumbling, pack them in cotton and box them as found. Don’t flatten, separate, or rearrange fragments.
- If the currency was damaged inside a purse, box, or safe, leave it there and send the container along.
- If the bills were rolled when damaged, don’t unroll them.
- For flat bills, don’t roll, fold, laminate, tape, or glue them.
- Carefully remove any coins or other metal before packing, since metal will break up fragile paper during shipping.
Where to Send It
Ship or deliver to: Bureau of Engraving and Printing, Room 344A, 14th and C Streets SW, Washington, DC 20228.6Bureau of Engraving & Printing. How to Submit a Request for Mutilated Currency Examination Use USPS Registered Mail, the only postal service with insurance payable at full declared value for cash, up to $50,000. Declare the full value when you mail it.8FAQ | USPS. Registered Mail – The Basics Don’t send mutilated currency to the Federal Reserve. It won’t be accepted and won’t be forwarded to the BEP for you.2Federal Reserve Financial Services. Mutilated Currency
Processing times vary with the severity of damage and the queue. Simple cases with identifiable fragments move faster; heavily charred or compressed bills take longer. Plan on several months at minimum. Payment for claims of $500 or more comes by electronic funds transfer; smaller claims may arrive as a Treasury check.
Damaged Coins Are a Separate Problem
If your question is about bent or broken coins rather than paper money, the answer changed recently. The U.S. Mint permanently closed its bent and partial coin redemption program on October 25, 2024, and no longer accepts damaged coins for exchange.9United States Mint. Products and Coin Programs Coins that are simply dirty or worn from circulation are still fine to deposit at a bank; coins that are bent, partially melted, or fused together currently have no federal redemption path.