An advantage to a retailer's use of its individual retailer credit card over a bank-sponsored card is ________.
A) greater flexibility in extending credit
B) lower capital requirements
C) lower interest costs
D) lower bad debt costs

Question

Quizplus · Accepted Answer

Retailers can extend credit more easily through their own credit card as they have more control over the credit approval process and can tailor it to their specific customer base. This can result in higher approval rates and more customer loyalty. Bank-sponsored cards may have stricter credit requirements and may not be as flexible in terms of credit extension.

An Advantage to a Retailer's Use of Its Individual Retailer