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Execute sales transactions

Execute sales transactions. Sales transactions include:. Cash or check Debit card sales Credit card sales Layaway sales On approval sale Cash-on-delivery (COD) PayPal. Cash Or Sales Check. Cash is the simplest type of sales transaction.

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Execute sales transactions

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  1. Execute sales transactions

  2. Sales transactions include: • Cash or check • Debit card sales • Credit card sales • Layaway sales • On approval sale • Cash-on-delivery (COD) • PayPal

  3. Cash Or Sales Check • Cash is the simplest type of sales transaction. • When a customer writes a check, the salesperson has to verify identity, usually by asking to see picture identification. • A Sales Check is a written record of a sales transaction that includes the date of the transaction, items purchased, purchase price, sales tax, and total amount due.

  4. Debit Card Sales • Customer can choose to pay for purchases using their debit card. • Customers key in a personal identification number (PIN) on the merchants keypad. • The terminal dials the customer’s bank to check the availability of funds. • The customer does not sign a sales receipt. • Funds are immediately withdrawn from the customer’s bank account.

  5. Advantages of debit card payments include: • Convenient to customers who cannot get approved for credit cards or do not wish to use credit cards. • Perfect for customers who do not carry large amounts of cash or a checkbook. • Merchants prefer debit payments because they can access the funds immediately.

  6. Credit Card Sales • Businesses that accept credit cards can increase sales by as much as 40%. • It has been proven that customers spend more when they are able to “charge it”. • Most businesses accept Visa, MasterCard, American Express, and Discover. • Credit cards are often used for Internet purchases.

  7. Credit Card Sales • In order for a business to accept credit cards, they must pay the issuing credit card company a transaction fee for processing the transaction. • For example, most credit card companies charge merchants between 1.79% and 3.25% for each transaction. • To eliminate fraud, retail stores may set a floor limit, the maximum amount that may be charged by a customer. This helps to protect the business from loses incurred from stolen or fake credit cards. • For example, Bill’s Electronics only allows customers to charge $1,500 in merchandise without approval from the credit card company.

  8. Layaway Sales • Merchandise is removed from stock and held until the customer pays for it. The customer pays an initial deposit and makes payments over a certain period of time.

  9. On Approval Sale • An agreement that allows the customer to take the merchandise home, for further consideration. • This special arrangement is extended to regular customers. • Credit information is often obtained in the event the customer does not return the item.

  10. Cash-on-delivery (COD) • A customer pays for the merchandise upon delivery. • CODs are not as efficient as other types of transactions. • Customer may not be at home at the time of delivery, and there is the greater chance to commit fraud.

  11. PayPal • An eBay company: allows merchants and individuals to accept payments on line. • Advantages • Cheap and easy to use. Account setup is complete in minutes. • Helps to prevent identity theft. • Money can be sent to anyone with an email address in 55 countries. • Merchants can handle credit cards, bank transfers, and debit cards with transaction fees from 1.9% - 2.9% + $.30.

  12. PayPal • Disadvantages • Customers may not want to leave personal information with a company they are unfamiliar with. • Customers need to leave your website to complete transactions. This may be viewed as confusing and unprofessional. • Unable to handle shipping charges and handle returns. • A complaint against PayPal becomes a complaint against you personally

  13. Completing Sales Checks • Multiply the unit price times the quantity purchased • Add the totals together to determine the subtotal • Calculate sales tax • Calculate shipping charges if applicable • Add the subtotal, tax, and shipping charges to arrive at the total purchase price

  14. How much do I owe? • Multiply unit price times the quantity purchased. • Add the totals together to determine the subtotal. • Calculate sales tax. • Calculate shipping charges if applicable. • Add the subtotal, tax and shipping charges. Item Qty. Price Extension Socks 2 $2.99 $5.98 T-shirt 1 $7.99 $7.99 Subtotal: $ 13.97 Tax $1.05 Shipping $2.00 TOTAL $17.02

  15. How much does the retailer owe? Debit sales - Merchants are charged a nominal fee regardless of the amount purchased. For example: Ce’Mour’s Hair Studio processed 32 debit card transactions ranging from $30 to $125. The bank charges $.59 per transaction. Ce’Mour’s was charged $18.88 ($.59 x 32) Credit sales - Fees charged are based on a sliding scale dependent upon the processing agent and the amount being processed. For example: Paynet Systems charges retail clients 1.74% + $.24 per transaction, Internet/Mail-Phone order clients 2.30% + $.25 per transaction, and a $10 monthly service charge with no monthly minimum requirement

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