A small business checking customer credit scores could be done for a number of different reasons. If you are an owner, looking for a way to check the payment history on your patrons, you may need to contract with another company to make it happen. Single transactions will likely prove to be too expensive to perform repeatedly. For the patrons wondering why a store they shop at would do this, there are really a number of potential reasons. Lets look at some of the reasons for small businesses checking customer credit these days and see if you can find out why they wanted access to your score and history. Here are just a few of the things you may want to think about.
For Charge Accounts
This is not exactly the same thing as a credit card, but it is similar. Many stores will let their loyal patrons charge their purchases and bill them later. In many cases, there will be a limit set. Interest rates and things of this nature will vary a great deal, but most will charge it. This is only one of the reasons a small business would be checking customer scores and payment history. There are many other reasons they may want to check out your history as well.
Store Specific Credit Cards
A small business checking customer scores may be large enough to create their own charge card, generally backed by one of the major companies, like Visa or MasterCard. This is done to protect the seller, so they dont set high limits or approve those with very bad histories. While this is generally only common with larger retail type stores, some regional and smaller retailers are starting off this type of service. Its just one of the many reasons for a small business to be checking customer credit history.
Bill Me Later Promotions
This is different from an in-store charge account because they are generally just promotional in nature. This means they may be running a promo for a week or month, depending on the company. So, once the promotion ends, the opportunity for a bill me later purchase is over. Once store charge accounts, you can continue to charge until your account is closed or if you have a spending cap that you meet or exceed. A small business checking customer credit could be running some type of bill me later sale or no payment sale in their store.