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> With say Venmo, I open the app, press a few buttons, and my friend has the money in seconds But they very much don't have the money yet. The transaction may
by jjav 5y ago
> With say Venmo, I open the app, press a few buttons, and my friend has the money in seconds
But they very much don't have the money yet. The transaction may have posted (if you happened to have connectivity) but it hasn't settled. It may be blocked in all kinds of ways before they actually get the money. Their account might be suspended. The payment processor may simply decide to never pay it (paypal being infamous for this).
With cash, the moment the object and the bills change hands, the funds transfer has irrecovably settled without any external dependency being possible.
- Sankozi 5y ago> With cash, the moment the object and the bills change hands, the funds transfer has irrecovably settled without any external dependency being possible. It isn't even remotely true. You might get mugged, you might lose money, you might get counterfeit money.
- walterbell 5y agoThose are pre/post-transaction risks, not settlement risks. Cashless systems also have their own pre/post-transaction risks.