Which of the following statements is true of credit cards?
The institution that issues the credit card guarantees payment of a credit charge to merchants.
Credit cards act like checks.
Credit cards offer no purchase “grace period,” and provide no hard “paper trail.”
The use of credit card results in a direct, immediate, electronic payment from the cardholder’s checking account to a merchant or other party.
Card issuers do not levy any transaction fees on merchants for performing the credit check of the card holders.
