Canadian Credit Card

Credit cards are used as a system of payment.  It’s possible for the card holder to buy goods and services without having to pay up front with cash.  The credit card company issue a line of credit to the card holder and the credit card company charges based on an agreed contract interest rate based on the credit card holder’s credit history, salary and relationship with the company.  Most shop and stores accept credit card even though they are charged an average 3% as interchange fees on each transaction.  And in some case, the merchant cannot pass these charges back to the consumer and must absorb them due to contract with credit card companies.