* Site-Outage Notice: Our engineering elves will be tweaking the Shmoop site from Monday, December 22 10:00 PM PST to Tuesday, December 23 5:00 AM PST. The site will be unavailable during this time.
Dismiss
© 2014 Shmoop University, Inc. All rights reserved.
Financial Literacy

Financial Literacy

How the Money Flows

Marshall is at Best Buy looking at new printers. He decides on the scanner/printer combo and gets in line to pay for it. Here’s what happens:

1. Marshall swipes his MasterCard.

2. Best Buy’s cash register computer hooks up with their bank to get the okay on Marshall’s card.

3. MasterCard uses a company to settle up all their transactions. This “3rd party” collects the money from Marshall’s bank and gives it to Best Buy’s bank.

4. The bank that issued Marshall’s credit card sends him his statement at the end if the month. Then Marshall pays his credit card bill.

People who Shmooped this also Shmooped...

Advertisement
Noodle's College Search
Advertisement
Advertisement
Advertisement