Got a damaged banknote? Here’s how to ‘fix’ it!
- Replies 9
Payment systems might be more advanced nowadays, what with all the cards and apps available to Aussies, but cash still plays an important role for many.
We understand that every dollar saved is an important one — no matter how small!
That’s why today we’re tackling an issue we’re sure a lot of members have encountered at least once in their lives: damaged Australian banknotes.
Would it be fair to assume that many of you have encountered a store refusing to accept your payment because your money has seen better days?
But what are your rights when dealing with a banknote that’s been ripped or damaged?
Such is the dilemma that an Aussie raised in a message to 9News Morning Editor Stuart Marsh.
‘Do shops have to accept banknotes that are a little bit damaged?’ the anonymous sender asked.
‘I have this $20 note that I think I received as change and it's missing a chunk out of one corner.’
‘No machine will accept it and I don't want to pass it on to some small business who then will probably have trouble cashing it in. I'm owed this $20, but it feels like I've been caught short with a dud!’
Quite relatable, isn’t it? But the letter sender had one more question to squeeze in: ‘That also makes me wonder (what) about people who draw moustaches on the face of the Queen on money?’
Well, it turns out, there’s nothing that forces stores to accept damaged bank notes, even ones that only have minimal defects.
‘Shops are not obliged by law to accept banknotes that are damaged, especially as some forms of damage may arouse suspicion over whether the note is genuine,’ Marsh replied.
‘The (Reserve Bank of Australia) is keen to remove damaged banknotes from the system, as having shoddy and worn money introduces a whole new set of problems, including a greater chance of counterfeit currency being used.’
‘To cut a long story short — you can simply take your $20 note to your bank, and depending on how badly it is damaged, they will replace it for you.’
But will you still get an equal amount? Well, it depends.
Marsh explained that banks used ‘grids’ given to them by the RBA to determine how much your damaged note is worth in exchange.
‘If less than 20 per cent of the banknote is missing: Full face value is paid,’ he said.
‘If between 20 and 80 per cent of the banknote is missing: The value is paid in proportion to the percentage remaining, for example, $5 value for half of a $10 banknote.’
And if more than 80 per cent of the note is damaged, well… you won’t be getting anything in exchange.
For large amounts of money — think hundreds of dollars worth, at least — Marsh says Aussies can submit claims to their local banks, which ‘are encouraged by the (RBA) to accept all claims’.
Meanwhile, exchanges for amounts above $1000 will require proof of identity to be processed.
‘Oh, and drawing a moustache on the Queen? Well, that's actually illegal under the Crimes (Currency) Act 1981.’
‘If you intentionally deface, disfigure, mutilate or destroy an Aussie banknote, you could be looking at a maximum penalty of $5000 or two years in prison —- or both!’
Certainly something to warn the kids and grandkids about, isn't it?
That said, while banknotes bearing the late Queen Elizabeth’s visage will remain legal tender for the foreseeable future, Australia is saying goodbye to the royals on future notes printed by the RBA after they announced that a new design will be replacing the departed monarch after a series of consultations.
What are your thoughts on Marsh’s advice? Have you ever had a damaged banknote replaced in the past? Did you take it to your bank? What was your experience like?
Share your opinions and stories below!
Source: TikTok/@thehistoryofmoney
We understand that every dollar saved is an important one — no matter how small!
That’s why today we’re tackling an issue we’re sure a lot of members have encountered at least once in their lives: damaged Australian banknotes.
Would it be fair to assume that many of you have encountered a store refusing to accept your payment because your money has seen better days?
But what are your rights when dealing with a banknote that’s been ripped or damaged?
Such is the dilemma that an Aussie raised in a message to 9News Morning Editor Stuart Marsh.
‘Do shops have to accept banknotes that are a little bit damaged?’ the anonymous sender asked.
Did you know that you can still have damaged banknotes replaced? Image Credit: TikTok/@thehistoryofmoney
‘I have this $20 note that I think I received as change and it's missing a chunk out of one corner.’
‘No machine will accept it and I don't want to pass it on to some small business who then will probably have trouble cashing it in. I'm owed this $20, but it feels like I've been caught short with a dud!’
Quite relatable, isn’t it? But the letter sender had one more question to squeeze in: ‘That also makes me wonder (what) about people who draw moustaches on the face of the Queen on money?’
Well, it turns out, there’s nothing that forces stores to accept damaged bank notes, even ones that only have minimal defects.
‘Shops are not obliged by law to accept banknotes that are damaged, especially as some forms of damage may arouse suspicion over whether the note is genuine,’ Marsh replied.
‘The (Reserve Bank of Australia) is keen to remove damaged banknotes from the system, as having shoddy and worn money introduces a whole new set of problems, including a greater chance of counterfeit currency being used.’
‘To cut a long story short — you can simply take your $20 note to your bank, and depending on how badly it is damaged, they will replace it for you.’
But will you still get an equal amount? Well, it depends.
This grid helps banks appraise the value of a damaged banknote. Image Credit: Reserve Bank of Australia
Marsh explained that banks used ‘grids’ given to them by the RBA to determine how much your damaged note is worth in exchange.
‘If less than 20 per cent of the banknote is missing: Full face value is paid,’ he said.
‘If between 20 and 80 per cent of the banknote is missing: The value is paid in proportion to the percentage remaining, for example, $5 value for half of a $10 banknote.’
And if more than 80 per cent of the note is damaged, well… you won’t be getting anything in exchange.
Meanwhile, exchanges for amounts above $1000 will require proof of identity to be processed.
‘Oh, and drawing a moustache on the Queen? Well, that's actually illegal under the Crimes (Currency) Act 1981.’
‘If you intentionally deface, disfigure, mutilate or destroy an Aussie banknote, you could be looking at a maximum penalty of $5000 or two years in prison —- or both!’
Certainly something to warn the kids and grandkids about, isn't it?
That said, while banknotes bearing the late Queen Elizabeth’s visage will remain legal tender for the foreseeable future, Australia is saying goodbye to the royals on future notes printed by the RBA after they announced that a new design will be replacing the departed monarch after a series of consultations.
What are your thoughts on Marsh’s advice? Have you ever had a damaged banknote replaced in the past? Did you take it to your bank? What was your experience like?
Share your opinions and stories below!
Source: TikTok/@thehistoryofmoney
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