Can You Use a Defaced Dollar?

Yes, It's Legal! Many people assume that it's illegal to stamp or write on paper currency, but they're wrong! ... You CANNOT change the denomination — for example, you cannot add two zeros to a one dollar bill and pretend that it's a one hundred dollar bill. That's illegal.

Can you use a damaged dollar?

As long as three-quarters of a bill are intact, you can exchange it for a whole bill. For more severe damage, you will need to submit your bills to the Mutilated Currency Division of the Bureau of Engraving and Printing, where it will be reviewed by U.S. currency experts.

Can you exchange defaced money?

Banks can exchange some mangled money for customers. Typically, badly soiled, dirty, defaced, disintegrated and torn bills can be exchanged through your local bank if more than half of the original note remains. These notes would be exchanged through your bank and processed by the Federal Reserve Bank.