When the customer pays with a credit card
A)the retailer receives payment from the credit card issuer promptly, typically within a few days.
B)the retailer treats the transaction like a cash sale.
C)the credit card issuer bears the risk of nonpayment by the customer.
D)the customer compensates the issuer by paying finance charges and other fees.
E)all of the above.

Question

Quizplus · Accepted Answer

All the statements are correct regarding credit card transactions. Retailers receive payment quickly from the issuer, treat the transaction as a cash sale, the issuer bears the risk of nonpayment, and customers pay finance charges and fees to the issuer.

When the Customer Pays with a Credit Card