Casino Credit

"Very much maligned and misunderstood ...."

To understand the relevant issues around Casino Credit, lets unpack what your are dealing with here.

What are the characteristics of those transactions?

• They are discretionary at the option of the operator, a client cannot demand a credit line, it is a privelege, not a right (but they can, and will try!).
• In most cases these transactions will carry a significantly higher average value than other non-cash transactions which carry less risk
• They (in general) are applied only to well-known clients (who trusts a stranger?)
• A reputational obligation is created at point of initiation that is equal to the value (i.e. should all be well with the client, you will have a tough job explaining why you would take it away).
• A debt on your books has been created which requires management intervention and internal explanation
• As opposed to a cash-only player, the potential for a future negative change in the relationship is now a possibility (e.g. how will non-payment affect the relationship, would the company ultimately pursue payment, will the client play with your competitor when they are outstanding?)
• They (or rather, you) now have the potential to over-extend the client if the privelege is handled incorrectly or is abused. You cant blame the credit card company any more.
• They have the potential to create significant revenue where otherwise there would be none.

So, you gonna make a decision or not?

All that has to be weighed up before you advance any value on "trust". It's not the same at this level as anything else in the transactional spectrum. So, in a nutshell once more, will it be worthwhile?

The answer is yes it is beneficial to revenue, but there are a few rules.

Give us a call, or check out our services at http:www.cashefficient.net