Understanding Plastic Cards Vocabulary

Credit card Credit card - a card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. Credit cards charge interest and are primarily used for short-term financing. Interest usually begins one month after a purchase is made, and borrowing limits are pre-set according to the individual's credit rating.

Store credit card Store credit card - a credit card issued by a large department store, which can only be used for purchases in that store.

Charge card Charge card – a specific kind of credit card. The balance on a charge card account is payable in full when the statement is received and cannot be rolled over from one billing cycle to the next.

Debit card Debit card – a payment card that deducts money directly from a consumer’s checking account to pay for a purchase.

Prepaid card / gift card Prepaid card - a prepaid card is a card that you use to access money you have loaded onto the card in advance. A gift card is a type of prepaid card.