My first question is, "Can they do that"?
Can they legally do that?
We'd have to take such a case through probation to see if they can do that.
Now, I believe a place of business can limit what denominations of legal tender are accepted.
As far as demanding the personal info from the payor, that's a question in need of answering.
Most are going to quietly acquiesce to the demand.
Hopefully, someone with some guts will take up the question .