Do small retail stores pay interest to exchange cash for change from [whoever they get their money from]?

Sorry if it's a stupid question but I'm basing it off of something my father told me a looooong time ago. He said "[our neighbour] has to pay the bank interest to get change to give to his customers since all he gets is bills and all he gives is change". It's always made sense to me why that would happen, but I've never found anything about this when I google it. Is it true?

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