Paying with cash

Using cash is one way to pay for purchases. Most merchants accept cash as a form of payment. Some merchants don’t accept debit or credit cards.

You may prefer paying for something with cash because you don’t have to provide your financial information. For example, your debit or credit card number.

Advantages of paying with cash

There are certain advantages to using cash, such as:

• you only spend what you have
• you don’t pay interest or fees
• you may get a discount since merchants don’t have to pay a fee to accept cash transactions
• it may be faster and easier than other payment methods
• it doesn’t require equipment, internet or electricity

Disadvantages of paying with cash

There are certain disadvantages to using cash, such as: 

• if you lose your cash or someone steals it, you probably won’t get it back
• you won’t build credit history
• online and remote purchases are limited

Tips when paying with cash

Here are things to consider when using cash:

• keep track of your spending so you know what you’re spending your money on
• keep your receipts, especially for returns, proof of purchase and warranty claims

Related links

• Making a budget
• Paying by cheque