Rick's Bike Shop Allows Customers to Use a Credit Card

Multiple Choice

Rick's Bike Shop allows customers to use a credit card for purchases. The shop pays 3 percent of the sale to the credit card company. To promote more business, Rick decides to offer a lower price to customers paying cash-that price being 3 percent less than the standard list price. Rick is giving his customers a(n) :

A) trade-in allowance.
B) functional discount.
C) promotional allowance.
D) discount-for-cash.