Credit card from a retail customer
In this article, we are going to give you detailed information regarding credit cards from retail customers. Of course, we all are aware of credit cards. Many of us own them and use them to make payments in our regular life. But, if you ever heard about retail customers’ credit card, which is also known as a retail credit card.
A retail credit card is another type of credit card that is more popular than other credit cards. It is another popular type of consumer lending/financing service a retailer often provides customers. Retail credit cards offer advantages in large amounts. Retailers can also issue closed-loop cards, which are made only for the use of retailers.
In short, a retailer credit card is a credit card that is used only in a retailer’s store or shop. Retailer credit cards do not allow any annual fee. In other words, a retail credit card alloys you a $0 annual fee and scores more than 640. This offers customers to purchase more at low costs or prices.
Which of the following is not an advantage of accepting credit cards from retail customers?
Many people face a question regarding the advantages and disadvantages of accepting credit cards from retail customers. Many of them are more curious to know the answer to the question given below. This is a frequently asked question in the form of MCQ type. You need to know the correct option for that. Overlook the other writing to get the correct answer to Which of the following is not an advantage of accepting credit cards from retail customers?
Q: Which of the following is not an advantage of accepting credit cards from retail customers?
Find the correct answer from the given options.
A.The acceptance of credit cards tends to increase sales.
B. There is fees charged for the privilege of accepting credit cards.
C. The credit card company performs creditworthiness assessments.
D. The credit card company assumes the cost of slow collections and write-offs.
We have already highlighted the correct answer, which is “ There are fees charged for the privilege of accepting credit cards.” It means option B is not a disadvantage of accepting a credit card from retail customers.
Relatable questions:
Q: Which one of the following is not the accurate description of allowance for doubtful accounts?
Find the correct answer from the given options.
- The allowance for doubtful accounts decreases the net realizable correct value of a company’s receivables. Account.”
- The estimate of uncollectible account expenses increases the account.
- The account is a contra account
- The account is temporary
Right, the answer is already highlighted, which means “The account is a contra account.”
“. Is not the accurate description for doubtful accounts. Hence the right answer is “C.”
Disadvantages of accepting credit cards from retail customers
- You need to pay some monthly expenses of a minimum amount
- You may have to charge back if your customer is not satisfied with your product. As credit cards offer them this right
- You may face problems like “fraud liability.”
Advantages of accepting credit cards from retail customers
- Accepting credit cards captures and attracts more customers
- This allows more convenience
- Moreover, this offers higher revenue
- Furthermore, it is safer.