Question

Describe advantages and disadvantages of credit card as a payment system of a hotel.​

Answer 1

Advantages of using payment cards for purchases

• Credit - credit or charge cards can offer an interest-free period of varying lengths, dependent on which card issuer you use.
• Reduction in administration - with a company credit or charge card, you pay one bill each month, no matter how many purchases you make. Itemised monthly statements can help with your accounting and administrative procedures.

Disadvantages of using payment cards for purchases

• Card fraud - if the card details are discovered or revealed, you may find fraudulent purchases appearing on your statement. If this is due to an employee's negligence, your business will be liable for the payments. Financial Fraud Action UK provide guidance on preventing card fraud.