Which card allows users to shop online and charge the cost to an account that is settled later?

Which card allows users to shop online and charge the cost to an account that is settled later?

• A. Debit card
• B. Prepaid card
• C. Credit card
• D. ATM card

Answer: (C)

The correct response is a credit card, as it is specifically designed for allowing users to make purchases on credit and pay for them later. When someone uses a credit card for online shopping, they are essentially borrowing funds from the credit card issuer up to their credit limit. This deferred payment structure enables consumers to make immediate purchases without having the funds readily available in their checking accounts. Credit cards often come with additional benefits, such as rewards programs and purchase protection, making them a popular choice for online transactions. Users are required to settle their charges, usually on a monthly billing cycle, which means they can manage their cash flow while enjoying the immediate use of goods and services. In contrast, a debit card directly withdraws funds from the user's bank account, a prepaid card uses preloaded funds, and an ATM card is typically used solely for cash withdrawals and does not allow for purchases or online transactions.

The correct response is a credit card, as it is specifically designed for allowing users to make purchases on credit and pay for them later. When someone uses a credit card for online shopping, they are essentially borrowing funds from the credit card issuer up to their credit limit. This deferred payment structure enables consumers to make immediate purchases without having the funds readily available in their checking accounts.

Credit cards often come with additional benefits, such as rewards programs and purchase protection, making them a popular choice for online transactions. Users are required to settle their charges, usually on a monthly billing cycle, which means they can manage their cash flow while enjoying the immediate use of goods and services.

In contrast, a debit card directly withdraws funds from the user's bank account, a prepaid card uses preloaded funds, and an ATM card is typically used solely for cash withdrawals and does not allow for purchases or online transactions.