The European Central Bank has refused to issue 500 euro banknotes: why they are not accepted in stores.

All euro banknotes in circulation that show no signs of wear or counterfeiting are considered legitimate means of payment. However, in practice, one specific denomination of currency is almost never accepted in transactions. Such banknotes are avoided in supermarkets, exchange offices, and food establishments.

The News.LIVE website shares information about which specific denomination of euro has become unpopular even within the European Union.

Denomination of 500 euros: why it is disliked

The first series of euro banknotes appeared back in 2002. At that time, seven denominations were introduced: 5, 10, 20, 50, 100, 200, and 500 euros. However, over time, most banknotes of this series were replaced by the second generation 'Europe'.

The new money featured improved security features and a longer lifespan. However, the denomination of 500 euros was excluded from the new 'Europe' series. The first banknotes of this series appeared in 2013, and production ceased in May 2019, when 100 and 200 euro notes were introduced into circulation.

'The denomination of 500 euros did not enter the 'Europe' series, but all banknotes already issued always retain their value and can be exchanged at any national bank of the Eurozone.'

The withdrawal of this denomination is linked to the prevalence of counterfeit money, especially the 500 euro note. This allowed the bank to gradually withdraw this banknote from circulation in order to combat terrorism, organized crime, corruption, bribery, and tax evasion.

Can you exchange 500 euros?

Legally, the 500 euro note is still a valid means of payment, but in practice, it is almost always refused in transactions. Most stores, supermarkets, food establishments, and exchange offices in the European Union refuse to accept such banknotes for payment.

Financial institutions worldwide are prohibited from refusing clients who wish to exchange high-denomination banknotes. Therefore, it is important for Ukrainians to keep this feature in mind when preparing for a trip to Europe. It is better to exchange 500 euros for smaller notes at the bank in advance to avoid problems in the future.

The design of the banknotes has remained unchanged. They depict a fragment of a wall with a window on one side and a map of Europe with outline lines of a rising bridge on the other side.

It is evident that the 500 euro denomination is becoming increasingly unpopular due to active counterfeiting and the refusal of many establishments to accept these banknotes. This may cause inconveniences for tourists and individuals making transactions in Eurozone countries. Therefore, it is recommended to avoid excessive denominations when traveling to countries where the euro is used as an official currency.