Cash or non-cash payments?

Finance

Cash has more than a long timehistory. The first samples of cash in the form of coins appeared more than 2,5 thousand years ago in the territory of modern Turkey, in the Lydian state. But a wide circulation of the coin was received about 450 years BC in Persia, when King Darius replaced them with exchange of goods, among which the money was usually used for skins, metal bars, shells, cattle, etc. Paper money arose almost 800 years after the invention of paper, at the end of the first millennium AD, in China (910), where they received a mass circulation.

Today, the term "cash" meansCoins and banknotes, which, in accordance with the legislation of the Russian Federation, are issued by the Bank of Russia. The central bank of the country has the exclusive right to issue cash, while the forgery of money is pursued in accordance with the Criminal Code of the Russian Federation.

Cash is a means of calculatingmainly for individuals (citizens) who do not carry out entrepreneurial activities, that is, for those cases when a person buys something for himself personally. Some large cash transactions are subject to control (for example, if an individual has bought securities for more than 600 thousand rubles and paid in cash).

A significant part of the operations conducted betweenenterprises and organizations (legal entities) or organizations and citizens in the conduct of entrepreneurial activities, shall be effected in a non-cash form.

However, for settlements between legal andindividuals can apply both cash and non-cash money. In this case, cash transactions of an enterprise are conducted in accordance with regulatory documents governing cash transactions, including non-cash payments when paying by bank cards, when after reading the information on the card the buyer receives a check.

Unlike cash turnover, non-cash payment is carried out only through authorized credit organizations by issuing a payment order, check, collection or letter of credit.

Cash and non-cash settlements have their ownAdvantages and disadvantages. The drawbacks of non-cash settlements include the fact that many institutions and institutions in our country do not support while settlements with bank cards with individuals. That is, in most small retail outlets the population can not buy goods by wire transfer. The number of fraudulent transactions made by non-cash card payments is not decreasing from year to year. Dishonest waiters in the restaurant, for example, can write off a larger amount of money on the card than the one for which the services were rendered. ATMs often have readers that allow scammers to steal money from cards.

On the other hand, the card allows you to carrylarge amounts in the form of an electronic record. With its loss and timely blockage with money on the account, nothing happens, unlike lost or corrupted coins or banknotes - although the Bank of Russia accepts worn out, as well as damaged, paper money for exchange under certain conditions.

The Russian reality suggests thatThe person with him must always have cash for small payments. And the further from large cities, the higher the need for cash. However, carrying large sums with you is not always safe (and this is a big lack of cash), therefore, in addition to coins and paper money, it is better to have a bank card with a wide network of ATMs and offices where you can always withdraw the required amount.

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