Why is collecting payment information important during purchases for a merchant?

Collecting payment information during purchases is crucial for merchants because it can significantly reduce the chances of disputes. When payment information is properly obtained and processed, it creates a clear record of the transaction. This record helps both the merchant and the customer to establish proof of the sale, which is essential when addressing any future disagreements that may arise regarding the transaction, such as unauthorized charges or product returns.

Having accurate payment data helps merchants ensure that customers receive exactly what they paid for, and in the case of chargebacks or refund requests, they can provide evidence to support their position. This not only protects the merchant financially but also aids in maintaining a good relationship with customers, as clear communication and resolution can help minimize conflict.

The other options, while they may address aspects of a transaction, do not directly relate to the core function of reducing disputes through proper payment data collection. Upselling is more about sales techniques rather than the fundamental necessity of gathering payment information. Guaranteeing a sale is not feasible, as risks remain regardless of the information collected, and requirements by law can vary significantly depending on jurisdictions and specific circumstances.