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In contrast, credit cards allow the consumers 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.

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A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services.

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.

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