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There are many ways of transacting business on credit. One of this is through the use of credit cards. The issuer of the card is a bank or any other financial institution with which the holder must have an account. The issuer facilitates transaction by paying on behalf of the holder and them making a claim from the holder at, for example, the end of every month.

There are many parties to a credit card and they all play a crucial role in making the business transaction a success. The first party is the card issuer, without whom the card holder would never have access to such an arrangement of deferred payment. The issuer is mainly a bank or any other financial institution. There are those issuers who give the cards to people in other countries and these are referred to as offshore cardholders.

The cardholder is definitely the person to whom the card is being issued and from whom the card issuer makes a claim for the amount paid to the merchant. The merchant in this case is the business person or firm accepting the card for payment of goods or services that have been purchased by the holder.

The bank with which the merchant holds an account is known as the acquiring bank. It is the bank to which payment is sent by the issuer on behalf of the card holder. The bank is therefore the link between the merchant, the issuer and the card holder. In other scenarios it is also referred to as the merchant account.

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