Routledge Dictionary of Economics, Second Edition
A means of purchasing consumer goods and services by presenting a card issued by a bank, financial institution or retailer permitting the buyer to settle in part or in full the amount payable. Major examples of these include Visa and Mastercard.
Such cards, in use in the USA since 1950 and in the UK since 1966, have contributed to the large increase in consumer debt. As the banks financing these cards advance the amount due to retailers and collect from the cardholders later, they bring about a short-term increase in the money supply. Like the development of other modern financial arrangements, credit cards have made it more difficult for central banks to control the money supply
See also: affinity card; charge card; debit card; smart card
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