Accepting credit cards, such as MasterCard or Visa, enables a firm to decrease the expense of extending credit to customers.

Question

Quizplus · Accepted Answer

Accepting credit cards shifts the risk of extending credit to the credit card company and frees up the firm's resources that would otherwise be spent on managing credit accounts and collections. Therefore, it can decrease the expense of extending credit to customers.

Accepting Credit Cards, Such as MasterCard or Visa, Enables a Firm