The advantages are mainly to the payee or person who receives the payment. This is due to the lack of needing to have a bank account to cash the payment. It is also a means to not claim the income on their taxes as if not placed in a bank account it's receipt is basically hidden from the taxing agencies. The disadvantages are mainly to the pay-or as without an acknowledgment from the payee the payment could become an issue as the pay-or will not have proof of payment. The pay-or may also find the payment to be disallowed if audited by a taxing agency as without documentation of the service and payment the allow-ability of the deduction would most likely be disallowed for lack of documentation.