Why do payment platforms store money in cents instead of dollars?

1 Mins read

Why do payment platforms store money in cents instead of dollars?

1 Mins read
Read summarized version with

Standard floating-point arithmetic approximates most decimal fractions instead of representing them precisely, which means ordinary decimal math on dollar amounts introduces tiny errors that compound across large transaction volumes. Storing amounts as whole integers in minor units eliminates floating-point discrepancies, making math operations precise.