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Credit limit and credit check for CC

Is it necessary to allot a credit limit and do a credit check for customers using credit card in sales order? or can credit limit be bypassed for credit card using customers? I know in transaction code OVA8 you can enter for "No credit check =1" to bypass credit check when sales order is using credit card, is there any other settings needed?? Thanks in advance.

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    Posted on Mar 30, 2008 at 03:02 PM

    Hi uma kanth

    credit cards are nothing but a plastic money and they used to reduce the risk. of cash transactions. in the daily business transactions

    So even though the customer is doing CC payment it is necessary to maintain a credit limit to that customer.may be the company may maintain good amount of credit limit for the CC customers.and he may fall in low risk category. that could be the only difference .

    and configuration wise it is same as we do for the normal customers in FD 32., OVA8. OVAD etc

    But if the company policy says that for CC payment customers there should not be any credit check then we dont maintain FD32 , ie., credit limit for those customers

    Reward if useful

    Regards

    Srinath

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    • Hi umakanth

      It all depends on the company policy that for which sort of risk management they want to go,weather they want to go for payment cards, letter of credit or export credit insurance

      As you asked why do we maintain payment guarantee procedure is to because " The form of payment guarantee controls how the payment of a sales document item is guaranteed. "

      Use of payment guarantee procedure :

      The form of payment guarantee that you will choose to use, depends on the type of business transaction that is being processed. In foreign trade, letters of credit are the most common form of payment guarantee whereas payment cards are increasingly useful in the retail sector.to reduce the cash transactions.

      If neither of these two forms of payment guarantee works properly in the business scenario then you can then turn to credit management in order to minimize your risks. In a credit limit check, the guaranteed value is taken from the credit exposure.

      Well i a have not yet tried with the payment cards.umakanth .

      If you know more about this topic, please share umakanth

      please let me know the status

      give ur mail id.

      Make it answered if you got ur answer and reward points if useful

      Regards

      Srinath

      Edited by: sri nath on Mar 30, 2008 7:09 PM

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