To bolster the security of the monetary system, the Bureau of Engraving, the Secret Service, and the Advanced Counterfeit Deterrence (ACD) Steering Committee have implemented an initiative to stop U.S. retailers, banks, and ATMs from accepting specific banknotes.

Reports indicate that the dollar bills set to be rejected include those classified as “mutilated” — with cuts, damaged edges, or discoloration. This policy applies to stores and supermarkets such as Target, Walmart, Dollar Tree, Costco, and others.

Currently, the Federal Reserve issues dollar bills in seven denominations: $1, $2, $5, $10, $20, $50, and $100. While $500, $1,000, and $10,000 bills are no longer produced, they remain in circulation. However, these high-denomination notes can be rejected if they meet the “mutilated” criteria, just like any other bill.