A credit card is a payment card issued to users (cardholders) to allow the cardholder to pay a merchant for goods and services, based on the cardholder's promise to the card issuer to pay the amounts paid more other charges agreed. The issuer of the card (usually a bank) creates a revolving account and provides a line of credit to the cardholder, from which the cardholder can borrow money for payment from a merchant or as a cash advance. In other words, credit cards combine payment services with extensions of credit. Complex fee structures in the credit card industry can limit customers' ability to shop comparison, help ensure that the industry is not competitive on prices and help maximize the benefits of the industry. Due to this, the legislatures have regulated the quotas of credit cards.
A credit card is different from a credit card, where it requires that the balance be paid in full each month. In contrast, credit cards allow consumers a continuous balance of debt, subject to interest charged. A credit card also differs from a cash card, which can be used as currency by the card owner. A credit card differs from a credit card also in that a credit card usually involves a third party entity that pays the seller and is reimbursed by the buyer, whereas a credit card simply delays the payment by the buyer until a later date.