Credit Cards

Increasingly, credit cards are used to settle trade debts, as well as expand sales to the end user or to consumers. Several types of credit cards are now available, including:

• Traditional revolving credit cards that circulate balances monthly, requiring only a minimum payment to keep the account current.
• Debit cards that deduct payments directly from a specified checking or savings account.
• Procurement cards, which are credit cards used by purchasing agents typically to purchase small dollar value products when the buyer considers it more costly to handle the purchase through the traditional process involving the purchasing department and accounts payable. Procurement cards function like traditional credit cards.
• Infinity cards function like traditional credit cards, but offer a rebate or benefit to the cardholder or the issuing organization, based on usage. Cards that offer frequent flyer miles, purchase rebates and discounts, and other perks, are examples of infinity cards.

Edited by Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore.