A bit confusing but what I mean by this is say, a guy writes a 1000 dollar check (made out to cash)to buy a quad. The guy receiving the check, instead of cashing it out, uses the original check to then go buy his own quad and so on.
In: Economics
Tldr it’s because checks can bounce.
Cash is cash. Aside counterfeiting a $1000 In cash is usable anywhere in the usa. No fear of it not working. So you can buy my pokemon cards for cash.
Debit and credit cards are near instant. So the transaction is immediate. Debit/credit cards are like using a teacher as a 3rd party to ensure your pokemon cards are traded for the agreed amount.
Checks are basically IOUs until in your account.
While it’s not legal to write bad checks there is no easy way to get my goods back. So I take your check you take my cards. I deposit the check and I get notified it bounced. So now I’m actually out $30 or so on top of my pokemon cards. You mean while use them as toilet paper. Ruin the values and 5 months later MAYBE go to prison for check fraud and I MIGHT get able to get restitution. Not including my lawyer fees.
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