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Definition
A cardholder is the individual or business authorized to use a payment card issued by a financial institution. This can include credit cards, debit cards, prepaid cards, or virtual payment cards linked to an account.

Why it matters
Identifying the legitimate cardholder is critical for payment security, fraud prevention, and transaction authorization. Merchants and financial institutions use verification methods to confirm that the person using the card is the authorized holder.

Example use case
A customer enters their payment details during checkout, and the payment processor verifies the cardholder’s information before approving the transaction.