Term:
Credit card
Definition:
A card indicating that the holder has been granted a line of credit. It enables the holder to make purchases and/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 charged on the amount of any extended credit and the holder is sometimes charged an annual fee.
Domain:
Finance
Source:
A glossary of terms used in payments and settlement systems, July 2001, Committee on Payment and Settlement Systems, Bank for International Settlements