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The average cost per sale to accept credit cards is often higher for a small business...

The average cost per sale to accept credit cards is often higher for a small business than the cost of operating a self-managed credit plan. Based on that, why would businesses choose to use credit cards as their credit system rather than establishing their own credit system?

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Answer #1

Businesses use Credit cards because customers are convenient with Credit cards. If business starts using their own credit system, customers may not be convenient with Credit system and can cause issues.

Every business needs to be customer centric to ensure customers are satisfied and more customers are coming into the business. Usage of credit cards also helps in the manner, customers have a tendency of overspending when they use credit cards. It is a psychology which plays in the customers mind that he has to pay later, he is not paying anything actually now. Due to all these reasons small business choose to use credit cards.

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