Final answer:
The main disadvantage of credit cards for retailers is that they are more expensive due to transaction fees, impacting the retailer's profits.
Step-by-step explanation:
The primary disadvantage of credit cards over other payment forms, from a retailer’s perspective, is d. it’s more expensive for the retailer.
When a retailer accepts a credit card as payment, they incur fees that are not present with other forms of payment. These fees are often a percentage of the transaction amount, plus a fixed charge per transaction. Merchants must pay this to the credit card processor or bank for each credit card payment they accept. These costs are known as merchant discount rates or interchange fees, and they can have a significant impact on the retailer's profits, especially for small-business owners with tight margins. Unlike direct transfers from debit cards or cash payments, credit cards involve these additional expenses for the retailers. Additionally, credit cards are effectively short-term loans to consumers, with the retailer receiving immediate payment from the credit card company's checking account when a purchase is made. However, the cost of accepting this kind of payment reflects the convenience and the credit risk that comes with it.