Question

1. Why do you think merchants keep the VISA payment option? (4) 2. Refer to the reading material posted and discuss at least three differences between invoice created through regular credit purchase and invoice through VISA purchase. (2*3) 3. What kind of ledger balance is VISA payable and why?( hint - asset, liability etc.)(5) 4. Explain the journal entry for creating visa purchase and paying visa.(refer document)(5)

Answer 1

Answer -

1. The reason merchnats keep the VISA payment option because :
   1. One of the important reason is that through the VISA they have the benefit that many customers which are interested in card payments are happy to do business with them.
   2. They do not loose the customers by being the merchants that only accept the cash and no cards.
   3. Even though there is extra fee for the VISA payment options or on the VISA for the merchants but the extra growth of the sale make up for it. So, the VISA payment option increases the sale for the merchants.
   4. There are many customers that do not carry cash with them are more of the cashless person. So, in that case they get the benefit of having this option.
   5. It is also safe option as they can prevent themselves of any fraud or fake money being used by the customers. Even if there is fraud then they can get the money back from the transaction shown.
   6. This payment option also increase the flexibility for the customers as they can buy more without the worry of having that much cash with them or not.

So, these are some of the reasons why the merchants keep the VISA payment option to get more benefit on the sale and give more facility to their customers.