Start with your bank for U.S. bills with ordinary wear or minor tears. If half or less of a note remains, or damage makes its value uncertain, review the Bureau of Engraving and Printing (BEP) redemption process. Suspected contamination needs handling instructions before either route proceeds.

For a small business, the practical task is to keep the cash secure, avoid further damage, and make sure someone follows up. Here is how to choose the next contact and keep the handoff simple.

Where Should You Take Damaged U.S. Bills?

The BEP distinguishes unfit currency, such as worn or torn notes unsuitable for continued circulation, from mutilated currency, where half or less remains or the condition makes the value questionable. Ordinary unfit notes should be handled through commercial financial institutions rather than the BEP's mutilated-currency service. See the BEP's definitions and FAQs.

The Federal Reserve identifies contaminated currency as a separate handling concern, even when the denomination is readable. Contamination and damage can overlap: a note may also need BEP examination. For a shop, the useful first step is to explain the suspected exposure to the bank and obtain instructions before transporting or processing the cash.

If authenticity is the concern, use our guide to handling suspected counterfeit U.S. currency. If the bill simply has an older design, see whether older U.S. bills are still valid.

Can a Bank Exchange a Torn Dollar Bill?

A worn or slightly torn bill may be exchangeable at a commercial financial institution. Confirm the bank's acceptance and presentation requirements before making a trip or including it in a routine deposit.

• Can this branch review the note's condition?
• Do I need an account or identification?
• Should I bring the note separately from the business deposit?
• If the branch cannot handle it, what should I do next?

You can keep the inquiry simple:

“We have a damaged U.S. bill from our business cash. Its condition is [brief description]. Can your branch advise whether it can be exchanged or deposited, and what we should bring?”

When Does Damaged Currency Need BEP Examination?

Fire, water, deterioration, or other damage can leave notes difficult to identify or value. A note can need specialist examination even when much of it remains. The BEP provides a mutilated-currency redemption service for individuals and institutions, including businesses.

The BEP describes two circumstances in which lawful holders of mutilated currency may qualify for redemption:

• Clearly more than half remains: the remnants must be identifiable as U.S. currency and retain enough of the relevant security features.
• Half or less remains: the remnants must be identifiable as U.S. currency, and the damage and supporting evidence must satisfy the BEP that the missing portions were completely destroyed.

The amount remaining is only part of the examination. The BEP makes the final determination, so neither side of the 50% threshold tells you the outcome by itself.

Complete the Current Form and Payment Requirements

Start with the BEP's current submission page. Mailed, shipped, and personally delivered submissions must include a fully completed and signed BEP Form 5283. Completing the online form alone does not submit the physical currency for examination.

Review the current electronic-payment requirements and provide the banking information requested on Form 5283. The BEP warns that missing or inaccurate banking information can delay payment. Check the current delivery instructions, and keep a copy of your completed form and submission details, along with any reference number provided.

How Long Does BEP Redemption Take?

The BEP does not charge a redemption service fee. As of November 8, 2026, its FAQ says standard requests can generally take six to 36 months to process. Timing depends on the currency's condition, case complexity, and examiner workload. Check the FAQ for current estimates before submitting.

That guidance applies to BEP examination, not an ordinary exchange at a bank. For a business, it means keeping the submission details accessible well beyond the current deposit or accounting period.

Preserve Severely Damaged Currency Before Handling It Further

With fragile remnants, trying to make the money easier to count can make examination harder. The BEP's packing directions emphasize keeping disturbance to a minimum:

• Leave fragments in their original container when possible to help prevent further deterioration or loss.
• For currency that was flat when damaged, do not tape, glue, laminate, roll, or fold it as a preservation attempt.
• For currency damaged while rolled, do not try to unroll or straighten it.
• Do not pack coins or other metal in the same package as mutilated paper currency. Follow the BEP's directions if metal is already mixed with fragile remnants.

Follow the complete official packing directions for your submission. If contamination is also suspected, obtain the applicable handling instructions before preparing it.

Our practical recommendation: do not run brittle or fragmenting notes through a counter to obtain a total, or pull them apart to complete a store record. Record what you can establish without further disturbance and mark uncertain amounts clearly.

A Simple Handoff Routine for Small Businesses

For a small team, a short handoff record helps keep the next action and responsible person clear.

1. Keep the item secure. Follow the applicable preservation instructions and your store's access controls.
2. Record what is known. Keep estimates separate from confirmed information.
3. Assign the follow-up. Name the person who will contact the bank or review the BEP instructions, then record the response.

This optional store record does not replace BEP Form 5283 or the bank's requirements.

For preparing the rest of your cash deposit, use our cash deposit preparation checklist.