How Does Money Move from Hand to Hand in the Real World?

Money moves like a game of tag in the real world. When you pay for your coffee with cash, the money goes straight from your hand to the barista’s. But if you use a card, it’s like sending a message through a phone, your bank tells the shop’s bank that the money should go there. It all happens super fast so you don’t even notice!

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Examples

You pay for your coffee with cash, it's a simple hand-to-hand exchange.
You swipe your card at a store, and your bank sends money to the merchant’s bank almost instantly.
You tap your phone on a payment terminal, and your digital wallet gives the shop owner your money.

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Categories: Science · money· transactions· everyday science· banking· economics