DOUBLE COINCIDENCE OF WANTS: This Is one of the problems encountered during the time of barter system as exchange cannot take place unless Mr. Z has what Mr. A wants and at the same time Mr. Z wants what Mr. A has. This condition renders the system cumbersome because others may not need what one has at that same particular point in time.
LACK OF STANDARD RATE OF EXCHANGE – In barter system, there was no standard rate of exchange. In this case, chances about for cheating as object of unequal values may be exchanged. For instance, a bag of rice being exchanged for a tuber of yam.
INDIVISIBILITY OF LARGE ITEMS – Most commodities can only be sold as wholes. Consequently, sellers of large items are usually in trouble. If for instance, a bag of rice is worth twenty tubers of yams, what would then be the worth of one yam? The system therefore difficult.
PROBLEM OF SPECIALIZATION – As the whole process of barter system involves waste of time, cheating and other inconveniences, people might be tempted to produce all that they need. This seriously and obviously disrupted the process of specialization and its disadvantages.
PROBLEM OF STORAGE SYSTEM – With the barter system, wealth cannot be stored for future use. This is as a result of the fact that perishable goods (like fish, yam, and fruits) cannot be stored for future use.