Disadvantages of Cash Payments
Cash remains the preferred option in the world when buying or loading in the wallet. However, more and more facilities and initiatives are being created to eliminate the use of cash gradually. This is done to ensure secure transactions and formalize the economy of the countries. While developing plans and technologies that allow it, consider the advantages and disadvantages of using cash.
A very innovative mechanism of digital payments has been developed by Perfect Money, a part of Perfect Money Finance Corporation. Perfect Money is an easy and effective payment system.
It is a safe, secure, and very transparent model. Users’ privacy and information are also protected. Perfect Money can be used to purchase bitcoins, exchange currencies, online shopping, monetary transactions, etc.
With that being said, here are some of the cons of using cash in the practical world:
It prevents you from creating a credit history: If all your expenses are made in cash, you may not be able to create a credit history, either with the use of credit cards or with loans associated with those cards. When applying for a loan, the financial institution has nowhere to turn to verify how financially responsible you are.
The risk of assaults increases: The more money you have in the box, the greater the risks of suffering heavy damage in case of assault. The accumulated amount can also attract the attention of people with bad intentions, placing your establishment in the target of criminals. Cash may be subject to theft or loss. As the probability of the cards being cloned decreases, when we load cash, it can be stolen or simply lost.
Security: one of the disadvantages of cash that most worries people is security in case of theft or assault. In these situations, the main objective is things of value and cash, which once lost nobody can replace it. In the case of cards, there is support from the financial institution, and you can report your card as stolen or lost.
The costs are difficult to measure: When you do a credit card operation, you know exactly the cost of this transaction, since the values are percentages defined by a contract. With cash payment, it is more difficult to measure costs, but you can be sure that the task of storing, transporting, counting and avoiding embezzlement has a price in the routine of your establishment.
It is more difficult to track expenses: By using the different cards to make our payments, these are reflected at the end of the month in our statements. The use of cash makes this tracking a bit more difficult and requires extra effort from us to know precisely what we spend our money on.
