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In other words, credit is a method of making reciprocity formal, legally enforceable, and extensible to a large group of unrelated people. The resources provided may be financial (e.g. granting a loan ), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment. [ 3]
The purpose of the diameter credit control application is to provide a framework for real-time charging, primarily meant for the communication between gateways/control-points and the back-end account/balance systems (typically an Online Charging System ). The application specifies methods for: The diameter credit control application does not ...
That is to say, a letter of credit is a payment method used to discharge the legal obligations for payment from the buyer to the seller, by having a bank pay the seller directly. Thus, the seller relies on the credit risk of the bank, rather than the buyer, to receive payment.
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