Credit Card

A payment card that represents a type of revolving credit. Unlike a debit card, the amount used on a credit card is not withdrawn from the cardholder’s bank account but from the credit limit provided by the bank or credit company. If the amount is repaid within a grace period set by the bank (usually between 45 and 60 days), the cardholder does not owe interest. After this period, interest is charged on the used amount.