What are the advantages and disadvantages of cash payments in transactions?
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Cash payments have both advantages and disadvantages in transactions. One advantage is that cash provides anonymity, allowing customers to make transactions without leaving a digital trail . Cash is also widely accepted and can be used by anyone, regardless of their access to financial institutions . Additionally, cash helps individuals better allocate their resources and keep track of their spending . However, there are also disadvantages to cash payments. Cash can be easily lost or stolen, leading to financial loss . It also poses a higher risk of payment fraud and identity theft . Furthermore, cash payments hinder transparency and accountability, making it difficult to track and regulate transactions for tax purposes . Overall, while cash payments offer certain advantages, they also come with risks and limitations that need to be considered.
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| Papers (5) | Insight |
|---|---|
Open access•Posted Content 2 Citations | The advantages of cash payments include anonymity and lower declared profits, while the disadvantages include lack of digital record keeping. |
49 Citations | Advantages of cash payments: anonymity, convenience. Disadvantages: risk of theft, difficulty in tracking transactions. |
Open access•Posted Content 5 Citations | Cash payments offer simplicity and privacy, but they also have hidden costs that disproportionately affect the poor and can lead to higher borrowing costs in the future. |
| The advantages of cash payments include simplicity and immediate availability, while disadvantages include the risk of theft and lack of traceability. | |
Open access•Journal Article | Advantages of cash payments include anonymity and immediate availability. Disadvantages include risk of theft and lack of digital record keeping. |
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