Bosses at the bar chain reportedly instructed staff not to accept any Scottish £20 and £50 notes from late November last year.
The decision comes after Wetherspoon bosses were warned by the Bank of England last October that a large number of fake Scottish £20 notes were being put into circulation by organised crime gangs, according to the Scottish Sun.
The news outlet reported that some Scots have been left “embarrassed” after their Scottish notes were refused at Wetherspoon’s English branches over the last year.
READ MORE: ‘Everyone is welcome’: New Scottish independence hub officially opens
A spokesperson for the pub chain has since apologised for the impact the policy is having on its customers.
Eddie Gershon told The Scottish Sun that the banning of Scottish £20 and £50 notes does not apply in Scotland, along with certain towns and cities with close ties to the city.
He said: “We were notified by the Bank of England last October that a large number of fake Scottish £20 notes were being put into circulation by organised crime gangs.
“Advice was given as to how to identify them — but with a warning not to accept if in doubt.
“This warning, coupled with an increase in the receipt of fake notes by pubs, led to a decision in late November last year not to accept Scottish £20 notes.”
Gershon added: “This does not apply in Scotland and certain towns and cities with close links to Scotland.
“Scottish £50 notes are not accepted for the same reason.”
The Wetherspoon spokesperson added that the firm will continue to keep the decision “under review”.