Use of Credit Cards with Past Due Customers

Credit Research Foundation Member Assistance Program  
Credit Card Policies  
         
  Does your company, as a matter of policy, allow Commercial Customers to pay off their open term balances with a Credit Card at the end of their Open Term? Does your company allow the credit professional's the discretion of allowing payment of a commercial past due balance with a credit card as often as needed? Does your company as a matter of policy allow commercial customers to also take a cash discount if they use a credit card on a cash discount term like 2%10 Net 30? Some suggested practices
% Never Allowed 70% 43% 96% Only allow Credit Card within 5 days of shipment
% Allowed Once 4% 31% 0% Allows Customer to pay with Credit Card a week after sale
% Allowed 26% 26% 4% Mark-up product as if C.O.D. - Pricing offsets 2.5% charge
        Fee Paid for Credit Card administration is offset by: 1. Risk elimination from instant cash 2. Eliminate the Cost of Capital 3. Eliminate A/R Costs (invoicing, dunning, collecting, cash app.) 4. Reduction in Disputes

By CRF