All this happened, more or less.

...the better-known nasal connotations of money, namely 'to pay through the nose', which telling phrase stems from the disconcerting habit of the Danes in Ireland, who in the ninths century slit the noses of those unable or unwilling to pay the Danish poll tax.
p. 39. A History of Money, by Glyn Davies. University of Wales Press, Cardiff, 1994.