Why might someone be hesitant to use cash for large purchases?

When considering why someone may hesitate to use cash for large purchases, the concern regarding fraud protection is significant. Cash transactions lack built-in safeguards that many electronic payment methods provide. For instance, if you use a credit card or a mobile payment app and there is a fraudulent charge, you typically have the ability to dispute that charge and temporarily suspend your account to prevent further unauthorized transactions. Additionally, these electronic methods often come with enhanced security features, such as encryption and fraud monitoring.

In contrast, cash transactions are final and do not provide any recourse if the money is lost, stolen, or if the transaction turns out to be a scam. Once cash is given to a seller, it is nearly impossible to recover if something goes wrong, making it a less secure option for significant purchases. The lack of fraud protection associated with cash can make individuals more cautious, especially with larger sums of money where the risk of loss feels more substantial.