a companies acceptance of credit cards like visa is an expample of ?

Question

securitization
factoring with recourse
discounting
factoring without recourse

Answer 1

Marketing Question ? Mid -term Exam? Security is the main reason. The amount of the clients purchase is known. It is scribed into the credit card's approval activity,with the amount to be charged, Visa approves the amount and the customer gets the goods.So now, instead of every retailer carrying receivables, the credit card people assume the risk, and receive a percentage for their work. Visa is in effect factoring with recourse. If any problems arise Visa charges back the amount to the retailer.