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:
- Increase in sales: By accepting credit cards, firms can attract more customers who prefer using cards for convenience and security, leading to increased sales.
- Increased customer satisfaction: Credit cards provide an easy and convenient payment method for customers, enhancing their shopping experience and improving customer satisfaction.
- 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.
- 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.
- 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.