| Businesses can only exist if they make a substantial | | | | transactions made on credit cards because they won't |
| profit from the sales and services provided by them. | | | | have the need to store large amounts of ready cash |
| All business people are aware that if consumers were | | | | in their retail shops and this, in turn, reduces the |
| to depend solely on their savings/ready cash to | | | | temptation to steal/pilfer cash by opportunists present |
| purchase goods and services, then their businesses | | | | in the buildings. And what is more, the relatively recent |
| would run very slowly indeed. So, the act of | | | | introduction of the chip and PIN means that fraudster |
| purchasing goods and services on credit cards is a | | | | can no longer operate any transactions on stolen |
| boon for a majority of businesses as this facility allows | | | | credit cards if they do not know the respective PINs. |
| consumers to purchase goods and services even | | | | While businesses benefit greatly from the regular |
| when they don't have the ready cash. The consumer | | | | usage of credit cards by consumers, they (the |
| is able to buy goods and services on credit, there and | | | | businesses) are obliged to pay the credit card |
| then. | | | | providers for this convenience afforded to them. As is |
| Businesses have the security of the knowledge that | | | | the custom, the business is obliged to pay a |
| credit card providers are committed to honour all | | | | commission on each credit card sale, to the credit card |
| transactions that have been authorised by them (credit | | | | provider. Levels of commission depend not only on the |
| card providers). Businesses also know that they will | | | | size of the business but also on the amount of sales |
| receive money from the sale even if the credit card | | | | made on credit cards and are negotiable. Because of |
| holder later fails to make any payment to the credit | | | | this obligation, some small businesses do not accept |
| card provider. | | | | transactions, of say under £10.00, when made |
| Also, the retailers are better off conducting | | | | on credit cards as it will not benefit them in the long run. |