The token issuer sells a box of 100 tokens to a store. And charges the store $110. Just like a chewing gum merchant sells a box of 100 chewing gums to a store.
Last time I checked, there was chewing gum in stores.
So now all you're proposing is just a different currency with these tokens. This solves absolutely nothing. Nobody needs to use tokens when they already have real currency to use along with various transfer services to move money physically and digitally.
Do I go down to my local store, and buy tokens from them, that they've purchased from the issuer? How is that very much different than a prepaid visa/mastercard/amex gift card that I can get today; maybe that it's easier to spend the money with people who can't get a credit card merchant account?
How much margin is the merchant going to add on top of what you're charging them?
How do you deal with anti-money laundering laws, etc?
The question isn't whether there is crime or not, but how much and whether it's worth the cost and risk. Merchants do have to spend time and effort fighting it. It's a significant cost of business.