You've probably seen signs in businesses across the Hudson Valley warning customers that $100 bills are not welcome. We wanted to find out if this was actually legal.

How can a business turn down perfectly good cash?

While not a new concept, it seems as though more and more local businesses have enacted policies refusing specific denominations, sometimes even as low as $20. Business owners claim that it's because of the increase in counterfeit bills, but some customers have been crying foul over the inconvenience.

Some may have wondered if this was actually against the law. If you have legal tender that is issued by the government, it would seem that it should be valid for any transaction. How can a business turn down perfectly good cash?

Well, Hudson Valley attorney Jonna Spilbor tells us that it is absolutely legal for businesses to deny transactions with their customers for any reason, including the use of specific currency. Spilbor says that businesses have the right to decide what type of payment they will accept, including the type of bills. The only ones that cannot deny certain denominations is the U.S. Government. When paying debts to Uncle Sam you can use any currency you like.

The U.S. Treasury clarifies the issue with a statement on their website. It reads:

There is... no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. 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.

While it's legal for businesses to deny the bills, it might not always make the most business sense.

While it's legal for businesses to deny the bills, it might not always make the most business sense. Customers don't want to be inconvenienced or embarrassed when denied a transaction. Business also don't want to come across as cranky or unappreciative by posting passive aggressive signs. It's suggested that business owners clearly state their policy for customers in a professional and polite way and remember to make the transaction as pleasant and easy as possible. Accepting alternate forms of payment like Apple Pay or Credit Cards will also help smooth over any misunderstandings.

On the flip side, customers should also be aware that businesses may not accept large bills and come prepared with appropriate currency. Of course, when in doubt always ask before approaching the register.

We want to know what you think about these policies. Have you been inconvenienced by businesses not accepting large bills? Are you a business owner who'd been burned by counterfeit bills? Let us know your thoughts in our comments section below or on our Facebook page.

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