FinTech Glossary

What is a Credit Card?

A credit card is a payment instrument that allows users to borrow funds from a bank or issuer to make purchases, repayable later within a billing cycle, often with interest if unpaid.

How Credit Cards Work

When a payment is made, the issuer pays the merchant on behalf of the user. The user then repays the amount:

- In full within the billing cycle (no interest)

- Or partially, with interest applied

Credit cards also come with limits, rewards, and usage controls.

Why Credit Cards Matter in Business

For businesses, credit cards provide flexibility and convenience. They help:

- Manage short-term cash flow

- Enable quick payments

- Reduce reliance on reimbursements

- Track expenses digitally

However, lack of control can lead to misuse and poor visibility.

Business Context and EnKash Relevance

EnKash corporate cards are designed for controlled business spending. They allow companies to set limits, restrict usage by category, and track every transaction in real time. This helps eliminate reimbursement cycles and ensures policy-driven spending.