A payment card used to make purchases for goods and services and/or receive cash advances Issuing banks issue credit cards to qualified cardholders and the cardholder’s authorized users. Cardholders are billed monthly. Payments on credit cards must be made according to the contractual terms. Some credit cards must be paid in full each month. Other credit cards require installment payments or minimum monthly payments. Issuing banks charge monthly interest on unpaid credit card balances. Issuing banks receive fees from merchants for processing credit card transactions. Some issuing banks charge cardholders for membership or annual fees.