A company's acceptance of credit cards,like MasterCard,is an example of factoring with recourse.

Question

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Factoring with recourse is a financial transaction where a business sells its accounts receivable to a third party (factor) at a discount, but the business remains responsible if the debts are not paid. Accepting credit cards like MasterCard does not involve selling accounts receivable to a third party; instead, it's a form of payment processing.

A Company's Acceptance of Credit Cards,like MasterCard,is an Example of Factoring