People think of cash as notes and coins of a particular currency. This is the physical currency that we normally carry around in our wallets to pay for various goods and services. In addition to cash payments, non-cash payments are increasingly being used. In this case, money is deposited, for example, in a current account at a bank and we pay for selected goods and services through electronic banking or credit cards.
Restrictions on cash payments
Cash payments in the Czech Republic are limited to CZK 270,000. Therefore, if the requested price for goods or services exceeds this limit, it is not possible to use cash but, for example, a non-cash payment from a bank account to a bank account, transfer money by postal order or use a person authorized to provide payment services.
Advantages of cash
Cash is preferable to electronic payment in many life situations. For example, people like to use cash for smaller payments, wherever the retailer does not accept credit cards, or when we want to maintain a certain level of anonymity in the payment (e.g. when buying a gift from a joint bank account of a married couple). Many studies also confirm that people have better control over their spending and spend less overall when paying in cash compared to electronic payments.
