A fee mechanism, supplied sometimes by a particular meals institution, permits shoppers to accrue debt for purchases made completely at that retailer. For example, think about a pizza chain extending a line of credit score to frequent prospects, permitting them to order pizzas and settle the accrued steadiness at a later date, normally topic to pre-agreed phrases and situations.
The enchantment of those monetary instruments stems from their potential to foster buyer loyalty and improve gross sales quantity for the enterprise. Patrons is likely to be incentivized to decide on that individual institution over opponents because of the ease and comfort of delayed fee. Traditionally, such preparations have been widespread in smaller, locally-owned companies earlier than the widespread adoption of general-purpose bank cards.
