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For
merchants, a credit card transaction is often more
secure than other forms of payment, such as
checks, because the issuing bank commits to pay
the merchant the moment the transaction is
verified. The bank charges a commission (discount
fee), to the merchant for this service and there
may be a certain delay before the agreed payment
is received by the merchant. In addition, a
merchant may be penalized or have their ability to
receive payment using that credit card restricted
if there are too many cancellations or reversals
of charges.
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