Credit Cards

The credit card permits the cardholder to buy on the credit or reputation of the issuer of the card.

Unsolicited Credit Cards

The unsolicited distribution of credit cards to persons who have not applied for them is prohibited.

Surcharge Prohibited

According to some consumer protection statutes, a seller cannot add any charge to the purchase price because the buyer uses a credit card instead of paying with cash or a check.

Unauthorized Fee

A card holder is normally not liable for more than $50 for the unauthorized use of a credit card.

Payments

Consumer legislation may provide that when a consumer makes a payment on an open charge account, the payment must be applied toward payment of the earliest charges. The result is that, should there be a default at a later date, any right of repossession of the creditor is limited to the later, unpaid items.