Final answer:
A Credit Customer refers to anyone who buys on credit, not exclusively those who pay with a credit card. Credit Customers receive goods or services before payment and pay the seller in the future, sometimes using a credit card which is a type of short-term loan.
Step-by-step explanation:
The term 'Credit Customer' refers to customers who purchase goods or services on credit, meaning they receive the product or service before payment is made, with the understanding that they will pay the seller in the future. This is different from using a debit card, which transfers money directly and immediately from the customer's bank account to the seller. In the context of the question, which seems to incorrectly associate Credit Customers with payment by credit card, it is important to clarify that a credit card represents a short-term loan from the credit card company to the user. When a credit card is used, the money is initially transferred from the credit card company to the seller, and the cardholder then owes this amount to the credit card company, typically settled by the end of the month.
To summarize, the statement that a Credit Customer is someone who pays by credit card is partly true; however, it is better to understand a Credit Customer as anyone who purchases on credit, regardless of whether they use a credit card or another form of credit.