Credit card

A credit card is a payment card, usually issued by a bank, allowing its users to purchase goods or services or withdraw cash on credit. Using the card thus accrues debt that has to be repaid later.^[1] Credit cards are one of the most widely used forms of payment across the world.^[2]

A regular 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.^[3] 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 debit card, which can be used like currency by the owner of the card.

As of June 2018,^[update] there were 7.753 billion credit cards in the world.^[4] In 2020, there were 1.09 billion credit cards in circulation in the U.S and 72.5% of adults (187.3 million) in the country had at least one credit card.^[5]^[6]^[7]^[8]

^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in action (Textbook). Upper Saddle River, New Jersey: Pearson Prentice Hall. p. 261. ISBN 0-13-063085-3.
^ The World Bank. "Credit card ownership (% age 15+)". World Bank Gender Data Portal. Retrieved 21 October 2023.
^ Schneider, Gary (2010). Electronic Commerce. Cambridge: Course Technology. p. 497. ISBN 978-0-538-46924-1.
^ "Payment Cards in Circulation Worldwide" (PDF). Nilson Report. October 2018. Archived from the original (PDF) on 3 November 2022. Retrieved 24 October 2022.
^ "Charts & Graphs Archive". Nilson Report. Archived from the original on 12 May 2023. Retrieved 24 October 2022.
^ "Payment Cards in the U.S. Projected". Nilson Report. Archived from the original on 24 October 2022. Retrieved 24 October 2022.
^ Gabrielle, Natasha (19 April 2022). "Credit and Debit Card Market Share by Network and Issuer". fool.com. Retrieved 24 October 2022.
^ "The Nilson Report" (PDF). October 2019. Archived from the original (PDF) on 26 January 2021. Retrieved 13 October 2021.

[:0-1] O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in action (Textbook). Upper Saddle River, New Jersey: Pearson Prentice Hall. p. 261. ISBN 0-13-063085-3.

[2] The World Bank. "Credit card ownership (% age 15+)". World Bank Gender Data Portal. Retrieved 21 October 2023.

[3] Schneider, Gary (2010). Electronic Commerce. Cambridge: Course Technology. p. 497. ISBN 978-0-538-46924-1.

[4] "Payment Cards in Circulation Worldwide" (PDF). Nilson Report. October 2018. Archived from the original (PDF) on 3 November 2022. Retrieved 24 October 2022.

[5] "Charts & Graphs Archive". Nilson Report. Archived from the original on 12 May 2023. Retrieved 24 October 2022.

[6] "Payment Cards in the U.S. Projected". Nilson Report. Archived from the original on 24 October 2022. Retrieved 24 October 2022.

[7] Gabrielle, Natasha (19 April 2022). "Credit and Debit Card Market Share by Network and Issuer". fool.com. Retrieved 24 October 2022.

[KK-8] "The Nilson Report" (PDF). October 2019. Archived from the original (PDF) on 26 January 2021. Retrieved 13 October 2021.

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