Cash deposits are the very traditional method for depositing funds into an account in which users take physical cash to a depositing location such as a financial institution like a bank and make a cash deposit directly into the brokerages or exchanges bank account. The process is done in person and with real physical cash, rather than online like most other deposit options. There are many online trading brokerages and exchanges that offer this method of deposit as it provides a safe, secure, and widely accessible deposit option. However, with the likes of credit cards, online banking, bank wires, electronic transfers and so on, cash deposits are not the most convenient or popular method for depositing funds. Yet there are businesses that offer this deposit method among others and some who offer cash deposits as the only viable deposit method.show more
Cash deposits are a viable method of payment and are used by brokerages and exchanges all over the world for several reasons. See why people and businesses use cash deposits below.
Privacy is very important for people. With cash deposits, there is no identity verification required for depositing cash into an account. Therefore, this method of payment is perfect for individuals who wish to stay anonymous and protect their identity from theft or exploitation.
Users who deposit funds via cash deposits are not required to wait for identity verification from the brokerage or exchange. Many online exchanges who require identity verification can take days or weeks to approve one’s account before allowing deposits.
Cash deposits can be made by anyone who is within distance of a depositing location. No legal documentation is required, and users don’t even need a bank account or debit/credit cads. Cash deposits serve the unbanked, allowing nearly anyone to participate in trading.
Some businesses prefer cash deposits because there can be no charge backs. For instance, many cryptocurrency exchanges prefer this method so when they send out Bitcoin or other cryptocurrency, the user can not reverse the payment and get the cryptocurrency for free.
Cash deposits may be an inconvenient method of payment, but it is really quite simple. There are mainly two ways for making a cash deposit. The first way is to physically go to a depositing location such as a financial institution like a bank or money transfer service. Once at the location, you simply fill out a deposit slip with the banking information and reference number that has been provided to you from the exchange or brokerage you are dealing with. Then, hand the cash over with the depositing slip, and the funds will be deposited. The whole process is very simple and fast, especially if the depositing location is nearby.
Another cash deposit option which is not usually recommended is cash deposit via mail. This method should only be used as a last resort and with small amounts of cash. You will need to fill out the depositing form provided by the exchange or brokerage you deal with and send it in the mail along with the cash. This method is less secure and takes much longer to be processed.