Texas Walmart and Target Stores Now Enforcing New Cash Rule

HOUSTON, Texas (KPEL News) - Attention Texas shoppers! A new cash rule is now in effect at Walmart, Target, and other major retailers across the state. This change is part of a nationwide effort to enhance the security of U.S. currency and reduce fraudulent transactions. While the rule might seem like a small adjustment, it’s important for Texans to understand how it impacts their everyday shopping.

Here’s everything you need to know about this new policy and how to stay prepared during your next visit to Walmart, Target, or other stores in Texas.

What Is the New Policy?

As of December, Walmart, Target, and other retailers in Texas will no longer accept “mutilated” bills. These are dollar notes that are torn, burned, discolored, or have damaged edges. The initiative is part of a program by the Bureau of Engraving and Printing and the Federal Reserve to bolster currency security and reduce the circulation of damaged or counterfeit bills.

This policy applies to all denominations, from $1 bills to $100 bills, ensuring that all cash in circulation meets uniform standards. Retailers, banks, and ATMs across Texas have already begun enforcing the change​.

How Does This Affect Texas Shoppers?

Texas, known for its blend of urban centers and rural communities, has a strong tradition of cash usage, especially in smaller towns and local markets. The new rule means that anyone trying to use a mutilated bill at Walmart, Target, or other stores may face rejection at the register.

While most Texans won’t encounter issues with their day-to-day cash, it’s still wise to inspect your bills before heading out. Torn or heavily worn notes could disrupt transactions, especially during busy holiday shopping. Texans who frequently handle cash—such as small business owners or market vendors—may need to take extra care to ensure their currency is in good condition.

What to Do with Damaged Bills

If you have damaged currency, there’s no need to worry. The Bureau of Engraving and Printing provides a straightforward process for redeeming mutilated bills. Follow these steps:

1. Contact the Bureau: Visit their website to learn about the currency redemption process.
2. Mail in the Bills: Send the damaged bills to the Bureau for evaluation.
3. Receive a Check: Once validated, you’ll receive a check for the amount of the damaged currency.

For more details, visit Bureau of Engraving and Printing Currency Redemption.

Why This Change Is Important for Texas

1. Reducing Fraud: Texas is among the top states for retail fraud, and this policy helps curb counterfeit bills, especially in high-traffic stores like Walmart and Target.
2. Protecting Small Businesses: Many Texas businesses rely on cash transactions. This policy ensures that only usable, authentic currency is in circulation, reducing risks for local merchants.
3. Encouraging Secure Practices: With this policy, Texans are encouraged to adopt secure transaction practices, including using debit or credit cards when possible to avoid potential cash issues.

How Retailers Are Preparing in Texas

Retailers across the state have trained their employees to identify and refuse damaged bills. Walmart and Target have posted clear signage near checkouts, alerting customers to the new policy.

In Texas cities like Dallas, Houston, and Austin, where large volumes of transactions occur daily, this policy is designed to ensure smooth operations and protect both businesses and consumers from fraud. Retailers in smaller towns are also implementing the policy, making it a statewide change​.

Staying Ahead of the New Rule in Texas

Texans are known for their independent spirit, but staying informed about this new cash policy can save you time and hassle at the register. By inspecting your currency and using the Bureau of Engraving and Printing’s redemption services for damaged bills, you can adapt to this change seamlessly.

Whether you’re shopping in Houston, grabbing groceries in Lubbock, or visiting a rural market in West Texas, understanding this new policy will keep your transactions hassle-free this holiday season and beyond.