Cash or non-cash payments?

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

A significant part of the transactions conducted between enterprises and organizations (legal entities) or organizations and citizens in the conduct of entrepreneurial activities, should be carried out in a non-cash order.

At the same time, cash and non-cash money can be used for settlements between legal entities and individuals. 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, a check, an operation of collection or a letter of credit.

Cash and non-cash payments have their advantages and disadvantages. The drawbacks of non-cash payments include the fact that many institutions and institutions in our country do not support so long as 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 with 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 carry large amounts of electronic notes with you. With its loss and timely blocking 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 that a person should 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.