What does the term "cardholder" refer to?

The term "cardholder" specifically refers to the individual who possesses a payment card and is authorized to use it for transactions. This person is responsible for making payments associated with the card account, which includes managing any balances, ensuring timely payments, and adhering to the terms outlined by the issuing financial institution. Essentially, the cardholder has the authority to utilize the card for purchases and is accountable for the financial obligations that stem from its use.

This definition aligns with the broader context of payment systems, where the cardholder plays a crucial role in the transaction process, engaging with merchants and financial institutions alike. The other options do not describe the cardholder correctly; instead, they refer to various other roles in the payment ecosystem, such as merchants, issuing banks, and transaction authorization entities. Each of these roles is important in its own right, but they do not encapsulate the responsibilities and function of a cardholder.