Updated August 24, 2023
A cash payment receipt proves that a product or service was paid for with physical currency. Due to there being no electronic evidence of a cash transaction, a receipt is the only way to verify that funds were paid to the receiving party. The business providing the product or service should retain a copy of the receipt, be it physical or digital, for the purpose of tracking sales or services rendered. Should the payment qualify as a tax-deductible purchase for the payer, the individual will require the receipt when itemizing deductions on their income tax return.
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How to Accept Cash Payment (3 steps)
- Make a Deal
- Seller Provides the Goods/Services, Buyer Brings the Cash
- After Exchange, the Receipt is Issued
When accepting a cash payment it’s important for the transfer of goods or services to occur at the same time (if applicable). The main benefit of paying in cash is that there is no fee. Currently, people can still use cash or take advantage of websites and mobile apps that allow sending money electronically and for free.
2. Seller Provides the Goods/Services, Buyer Brings the Cash
If there is a cash transaction the buyer will be obligated to bring the funds and the seller should bring the product. If the seller is providing a service and, depending on the situation, the funds will be transferred before or after the service is provided.
How to Send Money Electronically (free)
The most popular ways to send money to someone else for free are with PayPal, Venmo, and the CashApp. Each involves knowing the receiving party’s email. Money that is sent will be saved to the account matching the email (even if they don’t have an account yet!).
PayPal
If sending to someone else within your country then PayPal is the most popular and trusted source worldwide. Users can send funds to others within their country without a fee, although, any funds sent will not have “buyer protection” which means once sent there is little to no chance of ever getting it back in a dispute.
- International Payments – Available. View PayPal’s Fees for International Payments.
Venmo
Venmo is a popular mobile app that, much like PayPal, has a peer-to-peer network that allows the transfer of funds by a user’s account or e-mail address. Unfortunately, the use of Venmo is only permitted in the USA.
- International Payments – Not available.
CashApp
Developed by Square, the CashApp allows the transfer of funds on a peer-to-peer network through their mobile app. Like Venmo and PayPal, all that is needed to send money is the recipient’s e-mail. Only for use in the USA.
- International Payments – Not available.