1. An account against which purchases may be made and paid monthly (U.S. - charge account). 2. A form of revolving instalment credit offered by some retail stores in which the consumer makes fixed regular monthly payments into an account and receives in return credit to purchase goods up to the limit of a certain multiple of the monthly payments, normally eight or twelve. A service charge, which is in effect an interest charge, is normally made as· a·percentage of the value of each purchase. 3. Bank and agency credit cards in which the consumer pays his account monthly are also a form of credit account.
|Reference: The Penguin Dictionary of Economics, 3rd edt.|