Retail marketing has undergone a great change. Just about 4 decades back all retail marketing was on cash or a hire and purchase scheme. Such schemes were normally associated with a bank. Sales were just passable, though the concept of mail order sales came up, yet the volume of sales remained where it was.
The credit card changed all that. The result was a stupendous rise in sales after Merchants began to accept credit cards for payment of goods. This happened in the fifties and sixties and the sales really burgeoned after the Internet came on the scene. Major creditcard companies like Visa, MasterCard, Discover and Amex have appeared on the scene and the result are a booming retail market with spends of $1.5 trillion.
The internet and interpolation of sales to it has given a further impetus to sales. Though credit card fraud does take place it is tolerated by the banking companies who term it as ‘acceptable levels’. This term has not been defined by the banks and is the subject of conjecture.
Merchants who accept credit card signal their assent to give the item to the customer as per the rules of issue of the credit card. All credit cards have a cash and credit limit which is electronically stored and as per
For a merchant to accept credit cards he has to get his establishment or shop approved from the bank or issuing authority. The merchant will have to apply for the same and give details of all information regarding his sales, type of goods, address and credit report.
Once approved the merchant can sell his goods either at the store or on the net, the choice is with him. But a Merchant will have to get approval for both types of sales on separate applications. Once approved for sale the approving authority will install the necessary hardware at the point of sale of the Merchant. Some Software training is also provided and the merchant after the approval date can go ahead with sales by swiping credit cards.
It is found that merchants who accept credit cards have greater sales. This is a fact of commerce; sometimes the sales are over 10 times physical sales. Thus accepting credit cards is the modern day axiom for marketing