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A credit card is a card that allows the cardholder to purchase goods on credit up to the limit on their card. The card issuer, normally a bank, pays for the purchase and then charges the cardholder the purchase price plus a monthly interest charge which is normally in excess of loan rates. The cardholder often has the choice to pay the credit amount off in a lump sum before the first interest charge is due without incurring an interest charge. Not only do credit cards provide a loan to purchase goods but they often insure the cardholder against merchant fraud. A debit card is similar to a credit card but when goods or services are purchased the bank pays the merchant but immediately deducts the cost of the purchase from the cardholder's account.