Preceding credit cards, each merchant had to evaluate each client's credit history before expanding credit. For merchants, a credit card transaction is regularly more secure than different types of payment, for example, checks, because the issuing bank resolves to pay the merchant the minute the transaction is authorized, regardless of whether the purchaser defaults on the credit card payment with the exception of legitimate disputes, which are discussed beneath, and can result in charges back to the merchant. That task is currently performed by the banks which assume the credit risk. Credit cards can also aid in anchoring a sale especially if the client does not have enough cash on hand or in a financial records.
For each purchase, the bank charges the merchant a commission (discount expense) for this administration and there may be a certain delay before the agreed payment is gotten by the merchant. Extra turnover is generated by the fact that the client can purchase products and enterprises immediately and is less repressed by the amount of cash in pocket and the immediate state of the client's bank balance. Quite a bit of merchants' marketing is based on this immediacy.