Today's question:
How can a retailer reject a large denomination bill when you are attempting to make a purchase? Customer service at a multi-state grocer would not accept a $100 bill that had never been folded and was in near-mint condition. Taken to the store manager the statement was: "It is too old." The date on the bill was about 15 years ago. As it is legal tender, how can a business refuse to accept cash?
Federal law says your $100 is indeed legal tender. However, there is no rule that says a retailer has to accept it anymore than there is a rule that says you can pay with chickens or a sack of potatoes.
According to a U.S. Treasury website: "Private businesses are free to develop their own policies on whether or not to accept cash unless there is a state law which says otherwise."
Many airlines won't accept cash for in-flight services such as drinks or food. Fast food restaurants, movie theaters and small shops hardly ever take anything bigger than a $20 bill.
That said, I am a bit surprised a large grocery store wouldn't take your bill. There could be any number of reasons why a retailer wouldn't want to deal with a $100.
For one thing, $100 bills are popular with counterfeiters. So are $20 bills, but the retailers isn't going to be out as much making change for a $20.
Some places keep very little cash on hand to make change or have drop safes that can't be opened any old time or by any old assistant manager. And, while one doesn't want to be prissy about it, cash carries a lot of germs.
