Document 17621747

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
Credit card fee (percent of sales based on a sliding
scale)
› Travel and entertainment cards is slightly higher than
bank cards
› 1.79% (MC/Visa) - 3.25% (Am Ex)
Debit card fee (flat fee no matter how much
purchase is)
 Purchase Discount – set amount of money that a
business saves on a specific order if the payment is
made within a certain period of time.

› Ex: A purchaser brought a $100 item, with a purchase
discount term 3/10, net 30. If he pays within 10 days, he
will only need to pay $97. If not, the amount needs to be
fully paid within 30 days.

Bulk discounts – purchasing a large quantity and
getting a discount on the price
Your store ships products worldwide from one fulfillment center.
You must collect a 15% sales tax on orders shipped to geographical zone A
and a 7% sales tax on orders shipped to geographical zone B. You do not
need to collect sales tax for orders shipped to other regions in the world.
The following tables summarize the taxes that must be collected:
Sales Tax Rates
Geographical
Zone
Tax Rate
A
15%
B
7%
Rest of World
0%

You must also charge shipping for orders shipped to
geographical zone A and geographical zone B. For
shipments to addresses in geographical zone A, shipping
charges are $15, while shipping charges are $10 for
shipments to addresses in geographical zone B. The rest of
the world is subject to $25 shipping charges.
Shipping Rates
Geographical
Zone
Shipping Rate
A
$15
B
$10
Rest of World
$25

Can increase the cost of items,
overall, to cover credit card charges
and frequent discounts

Retailers want to make money, so they
pass the charges/loss of revenue
because of discount down to the
customer


Don’t have to figure “in your head” or by
hand calculations of charges and/or
discounts
Cash register/POS (point of sale)
terminal/Register does it for you, so you
don’t have to make change
› Ex: $6.65 sale. You are given a $10 bill. How
will you make change?

Lessens the time taken to double check
figures.



Drawer/register doesn’t balance
Costs the retailer money
May cost the retailer a customer
› Ex: Overcharging the customer
› Ex: Customer loses confidence in store, as
the transaction wasn’t correct
Takes time to redo the sale/void out
the previous transaction
 Books/accounting don’t reconcile

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