What is Credit card: Definition and 37 Discussions

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 accrued debt (i.e., 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 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.
A credit card also differs from a cash card, which can be used like currency by the owner of the card.
In 2019, there were 1.5 billion credit cards in circulation in the U.S.

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  1. E

    Viber, Fax, other methods of using a credit card to pay

    Hi, A company doesn't have an online store. They accept credit card payment via email or fax. Email is not secure. And I don't have a fax machine. They don't use viber. What other medium that one can send credit card information except fax. And can't fax be intercepted? Apprecited and thank...
  2. barryj

    I Formula for credit card balance as a function of payments

    I have been trying to find the financial formula that will give the balance of a credit card debt as a function of time. Example, at 18% interest, if I pay $150 a month how long will it take me to pay off my debt. When I google, I get pointers to Excello functions. I want to know the exact formula.
  3. kyphysics

    Have You Shopped with Your Credit Card in Foreign Country?

    I bought a DVD off an Asian e-commerce site, which took my American credit card. In my cart/purchase page, it said it would be shipping from Hong Kong, which I thought was fine. I figured I'd just be paying an extra shipping fee/tax - which I did. It was about $20 to ship from there...
  4. C

    Covering credit card 3 digit code

    What would be the best way to cover the 3 digit code at the back of a credit card? Some suggest using correcting liquid (but it is easy to remove it and apply new one). Many restaurants still get our cards to swipe at their counter. Only very few go to table to swipe it. Also sometimes we gave...
  5. S

    MHB Please help me understand my Credit Card Module Project

    This is the worksheet my quantitative reasoning teacher assigned us. I was able to complete the chart using Microsoft Excel and printed a page that has all the values for to table in with the table. A tutor at my college gave me the logical formula to find the minimum payment, interest, and...
  6. J

    MHB Best Outcome for Personal Finances using Credit Card Math Help

    Ok forum. I'm looking for the best possible outcome given the following circumstances about paying for personal finances. What you know: I have a 0% interest Credit Card with 0% transfer fee with 3,000 Credit Limit I have a 3,000 Rent Payment that must be made in 7 days I have 3,000 in...
  7. S

    Who has access to credit card validation ?

    Do merchants who accept a particular brand of credit card pay the credit card company for access to the system that "validates" cards of that brand when a purchase is made? Are the merchants the only parties who can access the validation system?
  8. Evo

    News Massive Target credit/debit card security breach

    My bank has a notice of this on their website this morning, they have automatically canceled all cards for anyone that made a purchase at Target during this period. http://online.wsj.com/news/articles/SB10001424052702304367204579267992268980478
  9. R

    Credit card Magnetic strip and the plastic bag trick

    When my credit card magnetic strip is worn it won't scan at the grocery check out. The clerk then uses a plastic bag over the card and runs it through the scanner. I'm baffled why this should work, but it does every time. Any explanations ? Thanks
  10. jegues

    Probability of Credit Cards P(A|B')

    Homework Statement Homework Equations The Attempt at a Solution P(A | M^{'}) = \frac{P(A \cap M^{'})}{P(M^{'})} I know that, P(M^{'}) = 1-0.48 = 0.52 but I can't figure out how to obtain, P(A \cap M^{'}) Any ideas?
  11. L

    Flyer Miles with Credit Cards: Benefits & Drawbacks

    I was reading this website about using credit cards to get flyer miles just by using the card and not having to actually fly to get the "frequent flyer miles", and I think I remember reading about someone here doing something like that. I haven't left my city in probably about 15 years, so I...
  12. R

    Calculating credit card debt using a geometric series

    A man gets a credit card and buys something that charges exactly 800 dollars to the card. The APR on the card is 18 % compounded monthly, and the minimum payment is 15 dollars a month. What is the expression for A(n), the balance on the card after n months? (This should be a geometric series)...
  13. Pengwuino

    Frequent flyer or 1% Cash back on Credit Cards?

    So I've been looking to get another credit card and I have been wondering what everyone's opinions are on credit cards that offer the more common rewards such as frequent flyer points and cash back. The cards I'm interested in seem to come down to being either free (no annual fee), 1% cash back...
  14. rhody

    28 year old's startup wants to completely kill credit cards

    http://articles.businessinsider.com/2011-11-11/tech/30381380_1_credit-card-interchange-fees-paypal" This has to be too good to be true, and if not, I am sure the major credit card institutions are sharpening their swords against this startup. Rhody...
  15. Greg Bernhardt

    Credit card convenience checks

    Within the past couple of months I've signed up and received two new credit cards. After a few weeks the companies sent me 5-6 blank checks that I can apparently use? Anyone know what this is about? This is the first time a credit card company has sent me some checks to use. How are they...
  16. J

    How does a credit card limit affect credit score?

    My bank decided they wanted me to have a bigger credit card limit without me asking. I never carry a balance month to month, and I rarely use more than 20% of my current limit. They increased the credit limit by 36% Will this hurt my credit score? Should I call and have them change it back...
  17. Topher925

    Looking for a better credit card

    I currently have an AmEx blue cash credit card and wondering if there's anything out there that's better. While ~1% cash back at the end of the year is nice, I feel like I'm missing out. I was thinking about getting an Amazon Rewards Visa but not sure exactly how much their "points" are worth...
  18. T

    Accurately cutting shapes into a credit card sized pice of plastic

    As the title suggests, i have to make cuts in a piece of plastic about the same dimensions as a credit card. the shapes themselves are fairly simple, mostly triangles, with 4 quarter circles on the corners. the device i have in mind would be something which i guess looks like a mechanical...
  19. G

    Fun game: credit card roulette

    Just did this in NYC with my friends this past weekend. The game: You and your friends go out to dinner. At the end you collect everyone's credit card, put it into a napkin, and shake it up. You then ask the waitress/waiter to pull one credit card out. Who ever gets picked has to pay the...
  20. J

    Maths Behind Credit Card Transactions

    I am doing a qualification which requires me to chooses a subject for which I will research & produce a presentation & a 5000 word essay in December. As I plan to study maths at Degree Level I have decided to do a maths based project. My two basic ideas are... How does Maths keep our...
  21. jal

    News Credit Card Regulations: Govt Addressing Fees, Rates & Transparency

    The gov. is starting to address how to get regulations on credit cards. Unfortunately, few realize that the businesses are paying large fees to the "money changers" which results in higher cost for the consumer. http://www.bloomberg.com/apps/news?pid=20601087&sid=auMTEm_3PAgM&refer=home...
  22. C

    Can Technology Help Ease the Burden of Handwriting for People with Disabilities?

    Many of us find it irritating to sign credit card receipts when making purchases, but for some people with disabilities this seemingly minor inconvenience can be very painful. Similarly, many landlords and a few utility companies still require paper checks as payment. Making out a check to...
  23. edward

    Some gas stations are charging extra if you pay with a credit card

    I gassed up today at what used to be a Unocal. It is now an independent station. The gas was 9 cents per gallon more for those paying with a credit card. It is automatically added at the pump if people swipe a credit card. Cash and debit were 9 cents less.
  24. J

    Credit Cards - what exactly happens when you use your credit card in a shop

    Hey I have to make a small presentation on how credit cards are part of a system that enables to file you (like see what your tastes with what you buy, ect). So, anyone know any good websites or can give me any information on the technical parts ? Like how services or organization , can...
  25. edward

    News Bank Of America giving credit cards to illegals

    They are here illegally, and it is illegal to hire them, yet BOA is loaning them money. If they default on their payments will the rates charged legal customers go up to cover BOA's loss? http://blogs.usatoday.com/ondeadline/2007/02/bank_of_america.html Hey I can't even open a...
  26. ShawnD

    Are credit cards bad for the economy?

    Credit cards generally cause people to spend more money because it becomes easier to spend money. On the other side of this, the interest on credit card debt removes money from the overall economy so people have less money to spend. If you have your typical $10,000 credit card debt (I believe...
  27. I

    Xircom Credit Card Ethernet Adapter 11PS

    I have a Presario M2202. Wi-fi is not enabled. I found this Xircom Credit Card Ethernet Adapter 11PS and one of my friend told me that the card can be used to connect to wi - fi networks. I wanted to know 1. for what is this card used 2. can this be used to connect to wi- fi networks. if...
  28. A

    Will a Magnet Damage My Credit Card?

    will i damage my credit card if i put it on top of a strong magnet? i have a few smart cards together with my credit cards in my wallet. when i use my smart card (like a security access card to open doors, gates with electronic access) i tap my wallet on the reading pad which i believe is...
  29. B

    Why Does Wrapping a Credit Card in a Plastic Bag Help It Swipe Successfully?

    I have a credit card that I use quite more often then others, and obviously the magnetic strip on the back of the card has worn down quite a bit. Often, when someone slides the card it doesn't read properly and the cashier person has to manual type in my card number. Someone told me if you put...
  30. DaveC426913

    Potential Risks of Providing a Credit Card Imprint for Rentals

    If you have ever rented anything and had to leave a Credit Card imprint, what else did you need to do with that imprint? I'm not talking about a deposit, I'm talking about "That'll be $60 for the equipment, and, additionally, I'll need a CC imprint. We'll tear that up when you return the...
  31. Ivan Seeking

    40 Million Credit Card Numbers Stolen [maybe]

  32. A

    How is a credit card number coded for security?

    For security, a credit card number is coded in the following way, so that it can be sent as a message. "Subtract each digit from 9" code the credit card number 3201 2342 3458 0931 I don't understand the subtract each digit from 9 is that to code or uncode? Also for the above code the...
  33. F

    Can a cellular phone demagnetize a credit card?

    Hi there! Can a cellular phone demagnetize a credit card? Why do loudspeakers make a strange noise when the cellular phone rings? I don't know the physical explanation to all this. I'd be grateful if you could tell me what kind of electromagnetic wave phones radiate and how they works...
  34. R

    MHB Credit Card Payments: Probability

    Hello, Im having difficulty in solving following problem related to probability, Please anyone provide me with the solution. The proportion of American Express credit-card holders who pay their credit card bill in full each month is 23%; the other 77% make only a partial or no payment. (a) In...
  35. DaveC426913

    Troubleshooting Paypal Credit Card Add Funds Issues

    It's been a year or two since I gave up, so I guess I'll subject myself again. Why am I unable to add funds to a Paypal account from a Credit card? It's like it has never occurred to them that anyone might want to do this. I am not about to attach my bank account information to anything...
  36. D

    Decoding Secret Credit Card Numbers & Phone Recharge Codes

    how are the secret codes for recharging the credit of a phone or the secret credit card numbers gnerated? i hrd something with prime nos. any way to decode them?
  37. exequor

    Send Money Easily with Credit Card: Tips & Tricks

    Does anyone know the easiest way to have someone send money, using a credit card, to a bank account over the internet?