Final answer:
The statement is true as credit card systems reduce the float time for the collector compared to debit card systems because credit card companies immediately transfer funds to the seller, which isn't the case with direct and immediate withdrawals using a debit card.
Step-by-step explanation:
The statement 'A credit card system is better at reducing float time for the collector than a debit card system' is true. The term 'float time' refers to the period between when a payment is initiated and when it is processed and cleared from the payer's account to the receiver's account. A credit card transaction involves the credit card company immediately transferring funds to the seller on behalf of the cardholder, essentially lending the money until the cardholder pays the bill. Conversely, a debit card transaction directly and immediately withdraws funds from the cardholder's connected bank account, with no float for the seller. Therefore, credit card systems reduce float time for sellers because payment is received faster compared to debit card systems, where the transfer of funds is immediate but still subject to normal processing times.