What is credit card for?

Credit card

1. Term:Payment card that is used to obtain cash at ATMs and for cashless payments. The main focus of use is on cashless payment transactions - especially for payments via POS or in e-commerce. The contracting company (dealer) accepting the credit card receives the amount from the credit card company minus a discount. The credit card company debits the cardholder with the sum of all transaction amounts (collective list) for a billing period (often a month). Thus there is a pre-financing on the part of the credit card organization.

Different:Debit card.

2. Delimitation: a) Credit cards in the broader sense: Common name of the payment cards of the international card organizations (including American Express, China Union Pay, Diners Club, JCB, Mastercard and Visa).

b) Credit cards i.e.S .: With a real or revolving credit card, the cardholder is given a credit option with a fixed credit line within which he can make cashless payments. The card transactions are usually billed once a month, with the option of closing out the entire invoice amount or making repayment in flexible monthly installments. The rates are based on a minimum percentage of the invoice amount or a monthly minimum amount. The revolving amount (drawn down) earns interest at a predetermined interest rate.