Cash payment

A cash payment is bills or coins paid by the recipient of goods or services to the provider. It can also involve a payment within a business to employees in compensation for their hours worked, or to repay them for minor expenditures that are too small to be routed through the accounts payable system.

Cash payments are preferred by those individuals not having a bank account, or which are attempting to avoid reporting an income tax liability.

Cash payments made in a hard currency are preferred in inflationary environments, since these funds hold their value much better than the local currency that is subject to inflation.