What is a cardholder?

The correct choice identifies a cardholder as the end user or consumer of credit or debit cards. A cardholder is the individual who possesses and uses a card issued by a financial institution for transactions. This role is critical in the payment ecosystem, as cardholders engage in purchasing goods and services, enabling the flow of transactions that sustain the card network.

In contrast, the other choices each refer to different entities or tools within the payment landscape. The organization that issues credit and debit cards refers to banks and financial institutions, which provide the actual cards to consumers. A bank that processes transactions for merchants is involved in facilitating payments but does not directly engage in consumer transactions. Lastly, a type of payment processing device refers to the technology used to accept card payments, such as point-of-sale terminals or card readers, rather than someone who uses those cards. Thus, the definition of a cardholder distinctly focuses on the individual's role in using credit or debit cards for transactions.