Good As Cash
There are many ways money can change hands these days. The most common and desired by many is through cash transactions. When people think about cash, most likely they are thinking about bank notes and coins. You can open your wallet and coin purse and actually see and feel the cash right there. You grab that money and hand it over to the sales clerk, then whatever it is you are buying is now yours.
Stores and shops everywhere will accept your cash as payment. Most people young and old will readily accept your cash in any deal you make with them. When we use the phrase “good as cash”, whatever we are talking about should have the same characteristics as cash.
What is it about cash that makes it cash? Cash is all about the here and now. First, cash should be something that you have. You own it and you have control over it. The next important feature of cash is that you can use it right now at this very moment. Lastly, when you hand over cash to someone else, then it becomes their cash, carrying the same here and now nature as it did when you had it.
What do you call the money that you have in your bank account? Is the money there good as cash? Let us check our criteria. Is it something that belongs to you? Yes. Can you use it now? Only if you have access to it so the answer is yes and no. Will the recipient of the funds be able to use it? Again, that will depend on how the money was paid.
In order for the money in your bank account to be good as cash, you need to have access to it now. Having your checkbook with you means you can make a check payment. Having a debit card also provides you with ready access to your money. You can also have access to your bank account online or when transacting at the bank itself.
The final test is how readily can the recipient of a check or a debit card transaction use the money? In the case of a check payment, the payee does not really have the money until the check is deposited and cleared. Depending on the banking network, debit cards do not necessarily transfer funds immediately. Aside from these rare debit card networks, the only other way to transfer the money in your account instantly is by online fund transfers.
For so many years, the banking industry has tried to provide us with more efficient good as cash payment methods. They have come very close but the continuing widespread use of bank notes and coins tell us that we’re not quite there yet.
