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David_J_Balan comments on Rooting Hard for Overpriced M&Ms - Less Wrong
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They take $1 bills but usually nothing larger than that. Where are you?
The vending machines in Melbourne seem to accept bills up to $20, sometimes $10, giving change. Older models are limited to coins, usually excluding $0.05 ones.
Does this change comprise of a mixture of bills and coins, or coins alone? One handicap in the States is that dollar coins are not widely circulated.
Edit: A datum, for example, is that I recall only one vending machine of the many (hundreds? possibly only dozens) I've encountered in the DC area accepting fives and offering change in dollar coins, and that (a) doesn't always and (b) is selling ice cream treats for US$1.75 each.
I have never used a higher denomination bill than $5 (our smallest note). However, the dispensers do not usually have a mechanism for dispensing notes at all. I recall seeing warning signs specifying a limit to how much change will be given (up to $10 so probably $2 coins) but this may have been at a machine dispensing transportation tickets rather than candy.
ETA: Do you guys over there seriously still not have notes that are colour coded? (Also, my friendly spell checker just picked up that I was trying to spell colour as 'color' which I found rather ironic. A pox on popular programming languages.)
UK.