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Why do companies still take checks and not just cash debit or credit?
Wiki User
∙ 16y ago
For the bottom dollar. People don't always carry cash or have credit cards. You want to increase sales? Make the purchase easier for the customer. With proper ID you at least have recourse if it does bounce. www.slygear.com Also because it costs you nothing to receive checks - there are fees associated with receiving credit cards and debit cards that can add up to a significant amount. For example: Certain floral (flower shops) support companies (like FTD) offer credit card processing for their customers - the benefit is that they can accept almost any credit card ... down side is that the fees, charges and hidden costs can run upwards of 6% of the total sale to the owner... that's on top of the absolutely deplorable monthly statements they send that probably could have been more concise if drawn up by a team of 2 year olds with large boxes of crayons.
Wiki User
∙ 16y ago
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Is a VISA Credit Card being used as 'Debit' if you use a pin?
No - its still a credit transaction. The PIN is simply used to verify you are the registered owner of the card.
Will a credit always decrease a cash account?
A cash account will always be decreased by a credit, but a credit will not always decrease a cash account. The only time a credit decreases cash is when the company pays out cash, whether it's to purchase supplies, inventory, or pay wages etc. Here is two examples of a credit in a transaction, one will decrease cash, the other will not. Company X buys $1,000 in inventory from Company Y and pays CASH. The debit for this transaction will increase inventory, the credit will decrease cash since company X is paying cash for this transaction. Using the same transaction however, changing Company X wants to purchase this inventory on "credit" the debit in this transaction as above will still increase inventory, however, since Company X has chosen to purchase this inventory on credit and not use cash and accounts payable will be set up and the credit will "increase" accounts payable. Remember, Assets will "always" increase with a debit and decrease with a credit. Liabilities will "always" decrease with a debit and increase with a credit.
Is common stock have a normal debit or credit balance?
All Stock is listed under Owners Equity or also known as Stockholders Equity. If you look at the Accounting Equation you understand that Assets = Liabilities + Owners (Stockholders) Equity Assets maintain a Debit Balance, while Liabilities maintain a Credit Balance. OE (Stockholders Equity) also will maintain a Credit Balance. Therefore stock will maintain a "Credit" Balance. The only exception to this rule is "Treasury" stock which is stock purchased back by the company to reduce outstanding stock. Although Treasury Stock is still listed in Equity, it is listed as a negative number (or rather a debit).
How do you remove a completely depreciated fixed asset from your fixed asset accounts?
Debit Accumulated Depreciation and Credit the Fixed Asset account for the capitalized value; however, if you still own the asset, you should not remove it.
What do you debit and credit when recording depreciation expense?
There are two ways to record depreciation. With and without using a contra t-account for accumulated depreciation. Example The company buys a machine for 100,000. The residual value is 0 and the expected economic lifetime is 10 years. Using straight line method this results in a yearly depreciation expense of 10,000. Without a contra t-account Depreciation expense machine debit 10,000; machines credit for 10,000. At the end of (say) the third year, machines has a debit value of 70,000. With a contra t-account Depreciation expense machine debit 10,000; accumulated depreciation machines credit for 10,000. At the end of (say) the third year, machines still has a debit value of 100,000. Accumulated depreciation machines has a credit value of 30,000. Jointly they show the net value (or book value) of 70,000, which is the same as when no contra t-account is used.
Are personal checks still popular?
No, the use of personal checks is dropping dramatically as more individuals are using credit cards, debit cards and online bill pay options.
Can a chase debit card also be used as a credit card?
Yes, but the funds are still withdrawn from the account that the debit card it linked to ... in other words using the debit card as a credit card is still a point of sale transaction. You cannot be extended "credit" on a debit card.
Can you write checks or use your debit card as long as you have them?
Only if the accounts are still active - and belong to you.
What if you swipe your debit card as credit what happens?
The transaction would still be processed... provided the bank account linked to the debit card had sufficient funds in it.
Can you use a debit card as a credit card?
Yes. You can use your debit card as a credit card. When you run it as a credit you will almost always have to sign for your purchase, but when you run it as a debit you use your PIN number. With the debit the amount is deducted immediately from your bank balance, ran as a credit it doesn't show up until the next business day or two later. It doesn't have anything to do with 'your credit'. Just another way merchants can run your card. Usually how to run it as credit is on the pad where you swiped your card instead of entering your pin you hit cancel and that will run your card as credit. It still isn't necessarily a credit card as you cant accrue debt on a debit card.
Is a VISA Credit Card being used as 'Debit' if you use a pin?
No - its still a credit transaction. The PIN is simply used to verify you are the registered owner of the card.
What are the advantages of a debit or credit card?
There are many advantages to using credit and debit cards. Many cards offer rewards such as cash back, air miles and points toward free gifts. In the case of credit cards, they offer the ability to pay for purchases over time. Debit cards, which are linked to a checking account, allow people to pay for their purchases without using checks or cash.HistoryThe use of credit cards in the United States started in the 1920s. However, credit cards were used in Europe dating back to 1890. Debit cards became popular in most countries starting in the 1980s, though they are still rarely used in Japan.TypesThe major types of both credit and debit cards are MasterCard and Visa. There are also Discover and American Express general purpose credit cards. Gas companies and department stores also frequently issue cards to be specifically used at their businesses.ConsiderationsWhile a credit card is advantageous because purchases can typically be paid back over time, it is important to consider how much extra debt can be comfortably carried in a household budget. Interest rates, which can exceed 20 percent per year, tend to create significant debt depending on how much the consumer spends on credit-card purchases. Credit cards must be paid each month to keep the account active and maintain a positive credit standing.BenefitsA debit or credit card is usually protected against unauthorized purchases in the event of loss or theft.FeaturesSome credit and debit cards also come with the ability to create unique card numbers for online purchases. This is a security measure to help prevent your card number from being hacked.
Can you use a debit card as a credit card without your pin?
Only if it is a "check card." Debit cards require a PIN number, but many banks have switched to check cards that can be used as either a debit or credit card. To find out for sure, next time you use your card, hit the "credit button." If it's a check card it will ask you to sign instead of entering your PIN. The check/debit card must have a Visa, Mastercard or a Discover symbol to work as a Credit purchase but still comes out of your checking account. Discover is just starting up there debit card network.
If someone left the country 10 years ago with credit card debt and bad checks what can they expect upon their retun?
The best advice is to get a copy of your current credit report. This will show you a bounty of information such as any money still due, money that companies have written off etc. If your open accounts still reflect a balance, paying them off will help your credit score. A free credit report is available once a year from all three credit bureaus at annualcreditreport.com.
When selling stuff on amazoncouk does the money still get transferred if you have a debit card rather than a credit card?
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Which shops in UK still accept cheques?
Not many. Most people now use credit/debit cards, or cash for smaller items.
Can someone with bad credit still obtain mortgages in the UK?
Someone with bad credit can still obtain mortgages in the UK. Some of the companies that offer mortgages for people with bad credit are Alexander Hall and ASAP Mortgages.
