Definition of open account

1. account that has a nonzero credit or debit balance.
2. credit or charge account-that is, an account initiated by a creditor on the basis of credit standing. It may also refer to a balance currently owing due to a credit sale, under mutually agreed-upon terms (such as method of payment, trade discounts, delivery date, and quantities).

an alternative to letter of credit in international financing, usually extended without formal written contract or promissory note, and represented on the records of the seller as unsecured accounts receivable for which payment is expected within a specified period after purchase. Also called open book account.

1. unpaid credit order; also called open credit.
2. credit relationship between a buyer and a seller.

1. unpaid credit order, also called open credit.
2. credit relationship between a buyer and a seller.