This article needs additional citations for verification. (January 2021) (Learn how and when to remove this template message)
|Part of a series on financial services|
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's promise to the card issuer to pay them for the amounts plus the other agreed charges. The card issuer (usually a bank) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance.
A credit card is different from a charge card, which requires the balance to be repaid in full each month or at the end of each statement cycle. In contrast, credit cards allow the consumers to build a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date. In 2018, there were 1.122 billion credit cards in circulation in the U.S.
- O'Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action (Textbook). Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 261. ISBN 0-13-063085-3.CS1 maint: location (link)
- Schneider, Gary (2010). Electronic Commerce. Cambridge: Course Technology. p. 497. ISBN 978-0-538-46924-1.