Definition[edit | edit source]

A credit card is

[a] card indicating the holder has been granted a line of credit. It enables the holder to make purchases or withdraw cash up to a prearranged ceiling. The credit granted can be settled in full by the end of a specified period or can be settled in part, with the balance taken as extended credit. Interest is based on the terms of the credit card agreement and the holder is sometimes charged an annual fee.[1]

References[edit | edit source]

  1. FFIEC IT Examination Handbook, Retail Payment Systems, Appendix B: Glossary (full-text).
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