question 3 of 13\nwhy might a merchant prefer an eft over a check?\nselect an answer from the options…

question 3 of 13\nwhy might a merchant prefer an eft over a check?\nselect an answer from the options below.\na reduces the risk of fraud and theft\nb involves no transaction fees\nc offers immediate access to cash\nd is accepted universally

question 3 of 13\nwhy might a merchant prefer an eft over a check?\nselect an answer from the options below.\na reduces the risk of fraud and theft\nb involves no transaction fees\nc offers immediate access to cash\nd is accepted universally

Answer

Brief Explanations:

  • Option A: While EFT (Electronic Funds Transfer) has security measures, checks also have some anti - fraud features (like watermarks, MICR encoding). So, this is not the most distinct advantage.
  • Option B: EFT usually involves transaction fees (for the merchant, often a percentage of the transaction amount), while checks may have costs like check - cashing fees for the merchant but are not “no - fee” for EFT.
  • Option C: With EFT, the funds are transferred almost immediately from the customer's account to the merchant's account. In contrast, when a merchant receives a check, they have to deposit it and wait for the check to clear (which can take 1 - 3 business days or more depending on the bank and the amount). This immediate access to cash is a major advantage for merchants.
  • Option D: EFT is widely accepted but not “universally” (e.g., some very small or rural businesses might not have EFT capabilities). Checks also have a wide but not universal acceptance.

Answer:

C. Offers immediate access to cash