What is the new bills option on ATMs here?

Withdrew money from Santander in Ixtapa and inside the Soriana in Zihuatanejo. I just selected 9,000 option and declined the conversion, worked the same as always. I did try a different bank first in Ixtapa might have been BBVA, the fee was very high and it seemed like I would have been forced to accept the poor conversion rate so I canceled the transaction.

Saw this at 2 different banks here for the first time, the "bills" option.

May we ask which two banks confronted you with this option?

Saw this at 2 different banks here for the first time, the "bills" option. One ATM had a $50 by that option next to a place you enter a number in the box. The other had $100 next to the empty data entry box. I ended up getting only 200P and was charged a fee that was almost half that. Wanted several mil pesos. I don't know how to work these, never saw them before trying to get money downtown. Ended up having to go to a bank with a high rate because I could not figure out the new ATM option.

Yes I know to decline the conversion option but the bills option, haven't a clue. The answer very well may be "go to an ATM without the bills option".

Sounds like you made a donation to a charity.

They are asking how many bills of each denomination you would like. Beside the 500 put in 10 and you will get 5000 pesos.

I wonder whether it is like the Scotiabank ATM I used in Canada.

It dispenses money in the denominations I want. If I want C$400, I can choose to get it in $20s or $50s or $100 bills.

For example, I can select

20 * $20 = $400

Or I can select

4 * $100 =$400

Or I can select

10 * $20 plus 4 * $50 = $400

We used the INBURSA ATM on Saturday and it didn't ask anything like what you remember. It was just the normal stuff.