Law Short Notes on credit card

A credit card is a small plastic card measuring about 85 mm by 54 mm bearing the name, date, computer number and specimen signature of the holder and the validity with raised letters to facilitate machine readability issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services. 

The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. Usage of the term "credit card" to imply a credit card account is a metonym.

As per instruction given in the application form or later on in writing, the credit card issuing authority will dispatch the periodic bill to the card holder and realize the bill amount from his account as instructed earlier. In other way, the card holder may pay the periodic bill in cash or by cheque within specific period. If not paid within the grace free specific period, profit or interest or service charge on the bill amount will be charged before full payment of the bill amount.