2 PAYMENT METHOD PROFILES: CASH
Settlement Time Cash is also settled immediately, although the nature of the cash supply chain means that merchants may wait several days before the money is credited in their bank account.
Authorization Cash spending at the POS does not require authorization from the consumer’s bank account or any other third-party, other than for cashback (where supported). Cashback authorization from issuing banks is identical to a card transaction authorization process, although there can be customer authentication nuances – for example, in the United States and the United Kingdom cashback is only available when a customer enters their PIN. Bank authorization is also required for a consumer’s original cash withdrawal (for example, at an ATM) which generally does not occur at a merchant POS. Fraud/Authentication Process Merchants can face challenges making sure cash is valid and neither counterfeit nor in too poor a condition to accept. According to the Federal Reserve, the stock of counterfeit is at most about $30 million or about 1 in 400,000 notes and is likely $15 million or about 1 in 80,000 notes. This suggests cash fraud is relatively small compared to other tender methods. 113 Cross-Border/FX Capability Many currencies such as the Euro can be used cross-border, and the U.S. Dollar is accepted in many countries outside the U.S. 114, 115 However, in most situations cash is only usable within its country of origin. As much as half of the value of U.S. currency is abroad, as of December 31, 2023, the total amount in circulation $2,259.3 billion. 116 Refunds Cash transactions can be refunded if the merchant has the available change in the cash register. However, unlike card payments there is no independent arbitrator of refund-related disputes between merchants and consumers, aside from the court system.
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