As others have said, this is completely false. The form of payment is totally at the decression of the business. I had a Subway sandwich for lunch today and on the counter is said they "do not accept bills larger than $20." This is perfectly within their rights.
That's surprising. I suppose they would be more common and supposedly less obvious. Easier to get rid of. Depends on who's making them and where they are. I guess people are counterfeiting everything nowadays. Everything I've watched about counterfeit operations outside the US showed stacks of $100 and $100 bills drying on lines. One place was an underground bunker in the middle of a rainforest, fully equipped. I know our local grocery store swipes a marker over every $20 now. It must be getting to be a real problem.
Same thing here in Canada. It's the 5's, 10's, and 20's that we get more counterfeits of. The $100's and $50's are the ones that make the news, though.
As a counterfeiter (or "distributor" of fake notes) you want to make a good profit of course, but at the same time stay below the radar. Here in the euro area for example the €200 and €500 notes are hardly ever used, and cashiers will be extra cautious when a customer wants to pay with one. The €100 is on the edge so to say. Then again, with small notes (€5, €10) the profit that can be made is apparently not big enough. The result? Most counterfeits are €20 and €50 here ... Christian
As already stated, your grandmother told you a bunch of poppycock. Businesses CAN refuse to accept unrolled, and even rolled, change, just as they can refuse to accept a $50 or $100 bill. Walk into a 7-Eleven near you and I would be surprised if they don't have a sign saying they don't accept bills larger than $20 after a certain time at night. Everyone near me, and there are currently 3 within a 3.5 mile radius of my home, that do not.