Multiple choice

Which of the following payment cards is a means of obtaining a very short term loan for a purchase?

  1. Fleet card

  2. Debit card

  3. ATM card

  4. Charge card

  5. Stored-value card
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A charge card is similar to a credit card, except that the cardholder is required to pay the full balance of the statement amount, which is usually monthly. It is a means of obtaining a very short term loan for a purchase. The period of the loan is the period between the purchase and the statement date plus the period that the cardholder has to pay the account,a potential period of usually up to 55 days.

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