credit card

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  • Credit card
    • allows businesses to accept lots of different currencies, which is important if they trade in other countries
    • payments can be made online
    • customers more likely to spend more or impulse buy because they can spread the payments
    • the business' employees can pay for expenses when they are working, rather than having to use their own money and claiming it back
    • risk of fraud is reduced, especially with PIN
    • customer can spread the payments
    • can offer insurance protection to the business if something goes wrong with the purchase
    • money can be borrowed
    • interest rates can be high, especially when using credit cards to borrow cash
    • can be expensive to set up in the first place
    • business doesn't see the full value of the transaction
    • customer may be fined if payments are late
    • additional costs of staff training

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