From 2025, major retail chains such as Walmart, Aldi, Dollar Tree and Target will implement a policy prohibiting the acceptance of US dollar banknotes with visible damage. This includes banknotes with tears, cut edges, damp spots or other signs of significant deterioration.
The measure seeks to guarantee the integrity of the cash in circulation and protect both consumers and merchants from possible inconveniences related to the acceptance of banknotes in poor condition.
Reasons why shops will no longer accept certain banknotes
This policy is in line with the new banking guidelines that seek to modernize the country’s monetary system. The measure aims to reinforce currency security and combat counterfeiting. According to the authorities, damaged bank notes make it difficult to verify their authenticity, creating risks for both consumers and businesses.
From 2025, major retail chains such as Walmart, Aldi, Dollar Tree and Target will implement a policy prohibiting the acceptance of dollar bills with visible damage.
Experts warn that the circulation of damaged bank notes not only represents a logistical challenge for banks, but also increases the vulnerability of the financial system to economic losses in the millions.
The government announced the update of these dollars:
In line with these initiatives, the government of the United States intends to implement design changes to various denominations of US dollars to ensure their integrity:
- USD 50 bill (2028): will incorporate advanced anti-counterfeiting systems.
- USD 20 bill (2030): will feature state-of-the-art technology to prevent counterfeiting.
- Other denominations, such as USD 5 and USD 100, will be upgraded at later stages.
These innovations will include elements such as:
- Security threads with microprinting.
- 3D bands that change color when tilted.
- Inks sensitive to ultraviolet light.
What steps should I follow if I have damaged banknotes?
The Bureau of Engraving and Printing (BEP) provides an official procedure for exchanging mutilated currency. This process includes the following steps:
Consult the procedure on their official website.
Send in the damaged banknotes for evaluation.
Receive a check for the equivalent amount after validation.
Every year, this office processes more than 22,000 requests for the exchange of mutilated banknotes, with a value of more than USD 35 million.
If you have damaged banknotes, it is imperative that you exchange them at financial institutions before trying to use them in supermarkets or other shops. Banks accept these banknotes, as long as their authenticity is not compromised.
Is it legal for shops to refuse banknotes in the United States?
Although dollar bills are legal tender, there is no federal regulation that obliges businesses to accept them as a method of payment. Companies are free to establish their own policies, except in those states where the law specifically prohibits it.
The change in the policies of these chains represents a step towards the modernization of the financial system, although it also poses a challenge for consumers. If you have bank notes in poor condition, make sure you get them sorted out as soon as possible to avoid any inconvenience.
