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Name 5 reasons why a firm benefits from accepting credit cards

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Final answer:

Firms benefit from accepting credit cards through increased sales, customer satisfaction, impulse buying, reduced risk of bad debt, and streamlined accounting.

Step-by-step explanation:

Accepting credit cards can benefit a firm in several ways:

  1. Increase in sales: By accepting credit cards, firms can attract more customers who prefer using cards for convenience and security, leading to increased sales.
  2. Increased customer satisfaction: Credit cards provide an easy and convenient payment method for customers, enhancing their shopping experience and improving customer satisfaction.
  3. Increased impulse buying: Credit cards make it easier for customers to make unplanned purchases, increasing the chances of impulse buying and boosting sales for the firm.
  4. Reduced risk of bad debt: When customers pay using credit cards, the risk of non-payment or bad debt is transferred to the credit card company, reducing the firm's risk exposure.
  5. Streamlined accounting and record-keeping: Accepting credit cards simplifies the firm's accounting process as transactions are electronically recorded, reducing the need for manual paperwork and making it easier to track revenue and expenses.

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