If someone wants to pay cash, wouldn't be that difficult for both parties to swing by a bank and let them check out the bills.
Personally, I think your seller's hesitancy to accept cash was out of hearing about counterfeit bills. And as there are several series of bills of each different denomination in circulation, I can certainly understand how someone might be intimidated and fear accepting cash. But yes, this topic "should" have been hashed out ahead of time between both parties.
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