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sir in one question , as a deficiency in sales system it is given ” the customer’s credit card is charged after despatch of goods to the customer, meaning that goods are already sent to customer before payment is authorized ”
we always despatch goods first, then invoiced and only get payment. so why that above line is pointed as deficiency ?
If you are making credit sales, it is part of the risk of trading that the customer might not pay and this risk should be minimised by checking up on the customer’s credit-worthiness before we give credit.
A credit card transaction is essentially a cash sale, except that the customer has decided to pay by credit card. Customer can just walk in off the street or order over the internet without you knowing anything about them. Because you can find out immediately if the credit card will be honoured it makes no sense to despatch goods first.
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