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Posted By: peter chao

Jim,

For the vendor, the problem with return privileges is that it creates a cash flow problem. Suppose I sold you a $50,000 card and I earned $10,000 on the deal. Then one year later you want to return the card. Suppose 10 customers want to do this in one month.

Basically the customers are asking for $500,000 to be returned to them.

For most vendors that would present a serious problem.

Peter C.