When are checks are preferred over cash, and when cash is preferred over checks?

Question

Checks are not guaranteed to be cashed, as the payer's account may not have enough money at the time of cashing, and the payer may not know when the payee is going to cash the check. When that happen, payer and/or payee may have to pay bouncing fee or overdraft fee.

So I wonder when checks are preferred over cash, and when cash is preferred over checks, as two payment methods?

In terms of receiving payments?
In terms of giving payments?
Verifying a transaction is completed?
Record keeping?
Fraud?
Other sorts of legal standing?

mhoran_psprep · Accepted Answer

It is risky to mail cash. If the letter gets lost, the money is gone. You also have no proof they received it. There are ways to overcome these shortfalls using registered mail and return receipt mail, but these cost money and time.

Sending a bad check is a crime. That keeps almost everybody honest.

If you write a check only when you have the money in the account, and you keep track of your balance, you never have to worry about when the other person will cash the check. The money will always be there.

When are checks are preferred over cash, and when cash is preferred over checks?

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