Credit cards - fits to merchants, Other Subject

FITS TO MERCHANTS

An illustration of street markets accept credit cards

For merchants, a credit card transaction is frequently added more security than other types of payment, such as checks, because the issuing bank commits to pay the merchant the instant the transaction is official, in spite of whether the consumer defaults on the credit card payment (apart from for legitimate disputes, which are discussed below, and can result in charges back to the merchant). In the majority cases, cards are even more protected than cash, because they discourage theft by the merchant's employees and decrease the amount of cash on the place. Prior to credit cards, each merchant had to estimate each customer's credit narration before extending credit. That duty is now performed by the banks which suppose the credit risk.

For every purchase, the bank charges the merchant a expenses (discount fee) for this service and there may be a assured delay before the decided payment is get by the merchant. The charge is regularly a percentage of the transaction amount, plus a fixed fee. additionally, a merchant may be penalized or have their capacity to receive payment by means of that credit card limited if there are too many cancellations or reversals of charges as a result of disputes. various small merchants want credit purchases to have a smallest amount (usually between $5 and $10) to recompense for the transaction costs, although this is not forever permissible by the credit card consortium.

In a number of countries, for illustration the Nordic countries, banks assurance payment on stolen cards just if an ID card is checked and the ID card number/civic registration number is written down on the receipt jointly with the mark. In these countries merchants consequently more often than not ask for ID. Non-Nordic citizens, who are doubtful to possess a Nordic ID card or driving license, will as an alternative have to show their passport, and the passport number will be written down on the delivery, occasionally jointly with other information. a number of shops use the card's PIN for identification, and in that case showing an ID card is not essential.

Posted Date: 10/13/2012 1:12:13 AM | Location : United States







Related Discussions:- Credit cards - fits to merchants, Assignment Help, Ask Question on Credit cards - fits to merchants, Get Answer, Expert's Help, Credit cards - fits to merchants Discussions

Write discussion on Credit cards - fits to merchants
Your posts are moderated
Related Questions
QUESTION 1 1 What are your views on the importance of e-learning as compared to the traditional teaching and learning approach? 2 Discuss the influence of the use of multi-m

Describe the full range of recruitment documents that are used by BSiX in the recruitment and selection of a Learning Centre (Library) Administrator. What documents do you need

Select or design a policy that, in your opinion, would feasibly and effectively provide coverage for the uninsured and underinsured in the United States.

Environmental Assessment: An environmental assessment is a study needed to establish all the influence either positive or negative regarding one particular project. It will contai

Why does Cowan believe it is important to examine technologies in the context of technological systems? What advantage does this broader perspective give to planners? Give a specif

I get an assignment from the university. I have to prepare a report on the topic Subdivisions of forensic science. Can you please assist me for Subdivisions of forensic sciencerepo

One of the roles of your centre is to provide primary health care to recently arrived immigrant groups. Clients of your service do not have private health insurance and need to acc

QUESTION (1) You are the operations manager and in this capacity, you have been asked to provide a location analysis on whether your company should expand an existing manufactu

Question: a) In the context of e-banking or e-commerce, outline some of the risks associated with informational websites and transactional websites. b) In addition to tr

QUESTION 1 Caste divides and Language unites discuss this statement critically with reference to your own society. QUESTION 2 How far do you agree that education helps