Santiago Cleaners allows customers make purchases using their VISA credit cards.If customers purchase from Santiago using VISA credit cards,which of the following statements is correct?
A)VISA pays Santiago the full amount of purchase,without charging a fee.
B)VISA will wait until the customer makes payment to the credit card company until forwarding payment to Santiago.
C)Santiago does not have to collect directly from customers.
D)Santiago must bear any losses from uncollectible accounts.

Question

Quizplus · Accepted Answer

Unlike private credit card programs,where the seller pursues collection from customers,national credit card companies,such as VISA,pay the seller within one to three days of the sale.Most banks accept credit card receipts as overnight deposits into the company's bank account as if they're cash.This not only speeds up the seller's cash collection,but also reduces losses from customers writing bad checks.The credit card companies charge a fee for their services,often around 3% of the total sales price.

Santiago Cleaners Allows Customers Make Purchases Using Their VISA Credit