What is a credit card?

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A credit card is a small plastic card issued to users to use as a payment option replacing cash. It allows buying goods and services based on the promise of the card holder to pay for these goods and services. The issuer of the card grants a line of credit to the user (card holder) from which he/she can borrow money for payment.

A credit card is different from a charge card: a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged.

Most credit cards are issued by banks or credit unions, and are the shape and size specified by the ISO/IEC 7810 standard as ID-1. This is defined as 85.60 × 53.98 mm (3.370 × 2.125 in) (33/8 × 21/8 in) in size[1].

References

  1. wikipedia - credit card
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