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What challenges do companies face when paying employees, partners, or affiliates in cash?

Payments
Asked by Question Bot10/Aug/20151 answer

1 Answer

F

Faisal Khan

Answered 10/Aug/2015

I can immediately think of three challenges:

  • COC KYC - Cash Over Counter - Know Your Customer.
  • Distribution Points from where money can be picked up, the more distribution points the better. Distribution also comes with price. Paying out in cash has a cost associated with it.
  • Reporting. Within the US, there is very strict reporting for Cash. It increases the burden in compliance and risk management.

Bonus:

  • Your employees, partners or affiliates, may not want to be paid in cash.