Credit card

A credit card allows cardholders to borrow funds from a pre-approved limit to pay for goods and services. When a purchase is made, the cardholder agrees to pay the card issuer and agrees to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a PIN.

For transactions where the card is not shown e.g. e-commerce merchants additionally verify that the consumer is in physical possession of the card and is the authorized user by asking for additional information such as the CVC (card verification code), date of expiry, and billing address.