Cash vs Cheque — Difference (with Table & FAQs)
Cash vs Cheque compared side by side — a 5-row comparison table, 4 key points and 3 exam FAQs. Class 6-8 Economics, free and no sign-up.
TL;DR: Cash vs Cheque compared side by side — a 5-row comparison table, 4 key points and 3 exam FAQs. Class 6-8 Economics, free and no sign-up.
Written & reviewed by the Syllab.in Academic Team (CBSE/NCERT subject experts) · Updated
The main difference between Cash and Cheque: Cash is physical currency in the form of notes and coins used for immediate payment. A cheque is a written order to a bank to pay a specified amount to a r
Cash vs Cheque — Comparison Table
| Basis | Cash | Cheque |
|---|---|---|
| Form | Physical notes and coins | Written document/paper |
| Acceptance | Accepted everywhere immediately | Accepted only with verification |
| Transaction Time | Instant payment | Takes time to clear |
| Security | Less secure if lost or stolen | More secure, can be stopped |
| Record | No written record | Maintains written record |
Key Points
- Cash is physical currency for immediate payment
- A cheque is a written instruction to a bank to transfer money
- Cash transactions are instant while cheques take time to clear
- Cheques provide a record of transaction while cash does not
Frequently Asked Questions
What is the difference between paying by cash and by cheque?
Cash is currency notes and coins handed over directly, and the payment is complete at once. A cheque is a written instruction to a bank to pay a stated sum from the drawer's account, so the money moves only when the bank clears it.
Which gives a better record of payment?
A cheque. It creates a record in the bank statement showing who was paid, how much and when. A cash payment leaves no such record unless a separate receipt is written.
What happens if a cheque bounces?
If the account does not hold enough money, the bank refuses to pay and returns the cheque unpaid. The payment fails, the bank usually charges a penalty, and dishonouring a cheque is a punishable offence in India.