Question

When the net method is used for handling the processing fees for credit cards and debit cards, the third-party processor collects its fees from the business at the end of the month by collecting the fees from the business's bank account.

A. True
B. False

Answer 1

The statement B. False is correct. When the net method is used for handling the processing fees for credit cards and debit cards, the third-party processor collects its fees from the business at the end of the month by withholding the fees from the transactions collected from the business's customers.

Step-by-step explanation:

The statement B. False is correct.

When the net method is used for handling the processing fees for credit cards and debit cards, the third-party processor collects its fees from the business at the end of the month by withholding the fees from the transactions collected from the business's customers.

The net method is a common practice where the fees are deducted from the total amount collected before it is remitted to the business's bank account. This way, the business receives the net amount after deducting the fees.

For example, if a customer makes a $100 purchase with a credit card, and the third-party processor charges a 2% fee, the processor would withhold $2 from the transaction, and the business would receive $98 in their bank account.