Cash versus on-line payments
Hi Terry: I enjoy your columns very much. Regarding today’s column, why are some merchants allowed to tell customers they don’t take cash when $ are legal tender in the U. S.? Also how safe are on-line payments and on-line bank deposits given all the scams and phishing that are prevalent on the internet? What happened to “Cash is King?”
Terry Says
Cash is still “king” — but only in the non-literal sense. Let’s say a recession comes, and you have money in a money market account at a bank. A desperate home-seller might and likely will be willing to take a lower price if the buyer doesn’t need to wait for mortgage approval. Anyone desperate to sell who wants a quick deal is likely to accept “cash” — or an immediate bank transfer.
And those bank transfers, whether done through the banking system (ACH) or Venmo or Zelle or PayPal are very safe — as long as you know who you are sending the money to!
The fraud comes in only when you send money to someone you don’t know, haven’t checked out. Most banks limit the amount of funds that can be transferred the first transaction with a new recipient. But once transferred through any of the above ways, you are out of luck if you try to get the money back.
Beware of scams — phone, text, or email. Scams are designed by experts to fool you. And they often do!
