Question

Which of these statements about national credit card (e.g., Visa) sales is correct?

1) The retailer waits at least 24 hours to receive payment from the customer who used the credit card at a retailer.
2) The issuer must assess the customer's credit worthiness when the customer uses a national credit card to make a purchase.
3) A retailer's acceptance of a national credit card is a form of factoring the receivable by the retailer.
4) The retailer considers sales involving the use of a national credit card to be sales on account.

Answer 1

The correct statements about national credit card sales are that the retailer waits at least 24 hours to receive payment, the retailer considers sales involving credit cards to be sales on account, and the issuer assesses the customer's creditworthiness.

Step-by-step explanation:

The correct statement about national credit card sales is:

1. The retailer waits at least 24 hours to receive payment from the customer who used the credit card at a retailer. When a customer makes a purchase with a credit card, the payment is typically processed within 24 hours, and the retailer receives the payment from the credit card company.
2. The issuer must assess the customer's credit worthiness when the customer uses a national credit card to make a purchase. When a customer applies for a credit card, the issuer assesses the customer's creditworthiness to determine if they are eligible for the card.
3. A retailer's acceptance of a national credit card is not a form of factoring the receivable by the retailer. Factoring is a financial transaction where a business sells its accounts receivable to a third party at a discount.
4. The retailer considers sales involving the use of a national credit card to be sales on account. Sales made with credit cards are considered sales on account because the retailer receives payment from the credit card company at a later date.