| A | B |
|---|
| measure of a credit applicant's currecnt financial worth or ability to pay based on assets | capital |
| private company that acts as an intermediary between a business and credit card companies to establish a maintain credit services | merchant account provider |
| merchant accounts are managed by specialized banks known as | acquiring banks |
| credit plan in which customer agrees to make a stated number of payments over a fixed period of time at a specified interest rate | installment credit |
| sponsored by two companies and have benefits and rewards designed specifically for their joint customers | co-branded credit cards |
| issued by a financial institutionand cosponsored bt an organization that receives a small percentage of the sales or profits generated by the card | affinity credit card |
| this card immediately transfers fund electronically from the cardholder's checking account to the business's account hwen a purchase is made | debit card |
| efficient ways for a business to accept customer credit | seek a merchant account provider , establish a private card system while also accepting other cards, obtain a line of credit from the company's local bank |
| a person with revolving credit CANNOT | exceed the established dollar amount set for their account |
| To determine the creditworthiness of people or organizations, businesses apply the | 4 c's of credit |
| list the 4c's of creidt | capital, character, conditions, capacity |
| purpose of a credit agency | establish creditworthiness of an individual or business |
| best measure of creditworthiness | point system |
| this card automatically transfers funds electronically whether you have sufficient funds to cover the cost or not | debit cards |
| one disadvantage to using this type of credit card system is customers don't want to carry around cards for each place they shop | private credit card system |
| products that incorporate installment loans as a typical method of payment | appliances, cars, homes |
| ex's of non bank credit card | discover card, american express card |
| A measure of an individual's or a business's ability and willingness to repay a loan | creditworthiness |
| The process where businesses assign points to each of the 4c's categories in order to determine an individual's or business's creditworthiness | point system |
