Updated July 29, 2022
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
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.
Step 1 – Make a Deal
The first (1st) step is establishing the deal between the buyer and seller. If the buyer is purchasing a product or service the price should be agreed on and when the transaction should take place. If it’s immediate the transaction can occur instantly.
Step 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.
Step 3 – After Exchange, the Receipt is Issued
Once the cash is in-hand the seller should issue a receipt stating the item purchased and the amount. This is needed to give the buyer proof of the purchase in case of the need to prove their ownership at a later time.
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.
How to Write a Cash Payment Receipt
Download: Adobe PDF, Microsoft Word (.docx), Open Document Text (.odt)
1 – The Cash Payment Receipt Can Be Downloaded From This Site
To issue a receipt documenting a payment made in cash, download and open the template on this page. You can accomplish this by acquiring the file linked to the “ODT,” “Word,” or “PDF” buttons attached to the preview picture.
2 – Introduce The Payment Recipient As The Issuer Of This Receipt
The entity that must issue this documentation should make sure it self-identifies at the onset of this receipt. This process starts with the full name of the Company or Contractor reported on the line labeled “Company Name.” 
The identity of the Company needs some supporting information. This will take the form of the entity’s contact details. The mailing address will need to be entered as the first line (P.O. Box or Building/Street/Suite) labeled as “Street Address” 
In “City, State, Zip” the next line of the mailing address is called for and should be presented accordingly. 
The Company or Contractor’s telephone and fax numbers should be included in this part of the receipt. You may produce this information on the two appropriately labeled blank lines 
The blank spaces “Email” and “Website” are meant to give the Payer in this receipt some additional options for contacting the business. 
3 – Produce The Documentation For This Cash Payment
This receipt will operate as proof of payment for the Client thus, a clear record of what was paid for must be included. Before we produce this information for the record, we must distinguish this paperwork from other documents in a filing system. Thus, fill in the calendar month, day, and year when this money was received on the line labeled with the word “Date.” 
Next, supply this receipt’s document number on the line “Receipt #.” 
The section heading “Payment Information” serves as the staging area for the record of payment we must produce. Place the full name of the Payer on the blank line labeled “Paid By.” 
Next, verify the payment amount then write out the dollar value of the submitted payment on the “Amount Paid” line. You must also document this dollar amount numerically after the dollar sign. 
We must attach the product or work being paid for to the amount of money that was paid. Report this information on the line attached to the label “For Payment Of” 
4 – Payment Information Must Be Included To Define The Cash Received
This receipt should produce a concise breakdown of the payment that was owed. To this end, produce the “Subtotal,” “Tax Rate (%),” “Total Tax,” and the “Total Amount Due” This information should be transcribed exactly from the invoice the Client’s payment concerns. 
The next two items require the “Amount Paid” that you reported above on the next blank line. 
Now, subtract the payment submitted from the “Total Amount Due” you recorded and place the result in “Remaining Balance.” 
The lines at the bottom of this document are reserved for the individual verifying the cash payment that was received. This Representative of the Company or the Contractor must print his or her name on the “Received By” line. 
After printing his or her name, the Representative or Contractor must sign the “Authorized Signature” line. 