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A Unique number assigned by the credit card issuer for the credit card holder that is embossed on the plastic card.
An additional individual assigned to a credit card account who also is issued their own card.
A process of authenticating a credit card through mail or via phone by using the billing address of the cardholder in the authorization procedure.
The end result of the process of adding finance charges and purchases to a credit card statement and subtracting any payments or credits.
A credit card issued by the card issuer that is identified with institution not operated by the card issuer. The affinity is a relationship the card holders may have with non issuing institution such as a college or non profit organization.
Many credit card companies charge a yearly membership fee which helps pay for the costs of managing the accounts or any other services.
The interest rate charged expressed as an annual mount. The rate or annual percentage paid on the credit balances in the form of interest.
The process of verifying the data received and data sent is provided to appropriate parties.
The process of assuring that the cardholder has adequate funds available within the credit limit. With appropriate authorization the correct funds will be set aside for the transaction and the credit lint of the credit card will increased by a corresponding amount.
The dollar amount for an actual approval of a pending transaction.
The date and time that a transaction was authorized.
A transaction that sets aside a reserve of funds against the credit cards credit limit for a potential purchase. The purchase may not take place for some days.
A method of making regular predetermined payments on your credit accounts by transferring funds from your checking or savings account.
This is a measure of the average balance for each day in the billing cycle. The most common calculation is to simply all of the daily balances and divide that sum by the number of days in the billing cycle.
A fee usually charged by card issuers for transferring balances from one credit card to another. Some credit card companies do not have a fee and for those that do, the amount of the fee will vary.
Balance transfers move an unpaid balance from one open credit account to another account. A balance transfer allows you to transfer your balance from one credit card to another. If you have a credit card balance that you don't expect to pay off in a month and you have another credit card with a lower interest rate, transferring your balance to the lower rate can save you money.
A credit card or debit card issued by a bank.
The length of time between billing statements. Generally one month in length but the number of days within a specific billing cycle may vary.
The record prepared by the card issuer listing all the transactions during a billing cycle. The statement includes the previous cycle balance, new credits, new debits, and the ending balance. The billing statement is usually sent via mail but is more frequently being communicated electronically via email.
Any financial institution that issues credit cards to cardholders.
The individual to whom the credit card is issued or the authorized users of that credit card.
The contractual agreement between the credit card issuer and the card holder that specifies the terms and conditions of the credit card account.
A mechanism capable of reading the encoding on embedded in credit cards.
A user can get "on the spot" cash with his/her credit card at a bank or ATM. The amount of the cash advance is deducted from his/her available line of credit. A fee is normally incurred when obtaining cash advances. In addition, the interest rate is usually higher than on purchases and typically there is no grace period.
A reward feature of some credit cards that credits the card holder a certain percentage of purchases during a period of time. Cash back features vary significantly from different credit card issuers.
A previously authorized transaction that is returned to the merchants account and credited back to the card holders credit line.
The time frame in which a the parties involved in an authorized transaction may instigate the charge back.
The term charge card was generally reserved for credit cards that do not operate as a standard revolving line of credit but requires the payment be paid in full by the statement due date each billing cycle.
Charges to these cards must be paid in full each month that a statement is issued.
Concierge Services* provides eligible premium MasterCard® cardholders access to comprehensive personal assistance via telephone or Internet—including restaurant
A co-signer is an individual who signs the credit card agreement with another borrower and promises to pay another person's debt arising out of contract if that person fails to do so. For example, a friend or family member with an established credit history may be eligible to serve as a co-signer.
The lending of money. Generally we refer to credit as an arrangement between lender and borrower whereby the lender lends money to the borrower who agrees to pay the debt with a predetermined interest charge.
A company that archives and sells information about the credit profiles of individuals. Information obtained by the credit bureau includes public records and data as well as credit information from firms that provide them data. The three largest, national credit bureaus are Experian, Equifax, and Trans Union.
A card used by consumers to utilize credit in making financial transactions. Approved merchants accept the card as a form of payment and credit card issuers approve credit and issue the card to consumers.
A unique number assigned by the credit car issuer assigned to a particular card.
A company that performs the appropriate authorizations and subsequent settlements on credit card activities. Merchants who accept credit cards as a form of payment utilize the services of credit card processors who handle the transactions electronically.
These are a type of payment card involving a revolving line of credit granted to the cardholder. It provides flexibility, allowing you to pay your bill in full or in increments during a period of time. Should you choose not to pay your bill in full each month, you will be required to make at least a minimum payment and pay finance charges on the remaining balance. Credit cards are issued by banks, credit unions and some stores such as department stores and gasoline companies.
Institutions providing a line of credit to the consumer through a credit card are called credit companies. These may include banks, credit unions or savings and loan associations as well as stores such as department stores or gasoline companies. MasterCard Worldwide is not a credit company.
A process of suspending any new purchase transaction on the card holders credit card without special consent of the card holder. The alert can be used to avoid questionable activity or as a for of voluntary restraint from use.
A record of an individual's or a company's past borrowing and repaying, including information about late payments and bankruptcy. Rarely will a credit history cover all types of credit and activities and only covers specific periods of time.
A form of insurance offered the issuing financial institution to cover the balance of credit in the event of the death of the primary account holder.
The maximum amount of credit that a credit card issuer assigns to the cardholder. This is the maximum that a credit card company will allow a cardholder to borrow on a single card.
A type of credit in which a financial institution provides credit to a client during a predetermined period. The client may either withdraw the credit amount all at once, or make a certain number of withdrawals during the specified period.
A service provided by some credit card issuers that monitors the activity on the card holders account to search out suspicious or unauthorized use. There is generally a fee for this service.
This score is computed based on information in your credit report and helps lenders to make judgments about granting you a loan or a credit card. Negative information on your credit report can lower your credit score and harm your ability to get future loans, rent an apartment or even get a new job.
This is the amount that is currently outstanding on your credit card.
The actual direct charge to a customers account.
Debit and ATM cards do not use credit for financial transactions. A debit card is similar to an ATM card, but it also can be used for purchases with merchants. The purchase amount is deducted directly from your bank or savings account, so there are no interest charges. Fees for exceeding your balance can be charged.
Combining multiple credit accounts or loans into one new loan or account. Transferring multiple credit card accounts to one credit card would be a form of debt consolidation. Usually the process is done to lower the overall rate of the debt, extend the term, or manage the credit outstanding in some beneficial manner.
Authorization for credit card use obtained via electronic means.
The process of encoding transactions for secure electronic communication.
A credit card in which the printed or encoded expiration date has passed.
An insurance program that extends the original warranty of your purchase. With this program certain restrictions and exclusions apply as to what activity or work is covered by the warranty.
Fees can include any charges assessed by the card issuer. Extra charges or fees on your monthly credit card statement may be present if you use special services, such as cash advance or balance transfers. Fees may be incurred when you make late payments or when you charge amounts over your card's credit limit.
Receipt and/or possession of the Guide to Benefits does not guarantee coverage or coverage availability. These benefits are provided exclusively with MasterCard [Gold/Platinum] cards that have a credit line of $2000 or more, or otherwise with cards expressly offered with such benefits by the issuer.
A finance charge is the total cost of a loan in dollars and cents. It includes interest, service and transaction fees and other fees charged on the loan.
These interest rates charged for your credit card typically won't change from month to month, or even year to year. However, this depends on your agreement with the card issuer — be sure to read it carefully. For instance, if you go over your limit or pay late, your interest rate may change.
A transaction that was not authorized by the credit card holder. Transactions that are classified as fraudulent may include stolen, fraudulent processing, counterfeit, lost or not received.
An individual who uses a credit card without the consent of the authorized card holders.
Full payment means you have repaid your total balance. In doing so thers is usually no additional finance charges applied to the account
A card of that has a stored financial value that is redeemable at predetermined merchant locations. This card may be used solely for one branded merchant.
A period of time, usually 25 days long, during which no interest charges are assessed for purchases made. For example, if the cut-off date on your credit card is May 1, you have until May 25 to pay off the balance in full. If you do so, you will not be charged any interest. If your payment arrives after May 25, or if you don't pay the balance in full, you could be assessed interest charges from the date of purchase as it was recorded. Some accounts do not have a grace period, which means that interest is charged on purchases from the day they are made as they are entered.
A period of time, usually 25 days long, during which no interest charges are assessed for purchases made. For example, if the cut-off date on your credit card is May 1, you have until May 25 to pay off the balance in full. If you do so, you will not be charged any interest. If your payment arrives after May 25, or if you don't pay the balance in full, you could be assessed interest charges from the date of purchase as it was recorded. Some accounts do not have a grace period, which means that interest is charged on purchases from the day they are made as they are entered.
The price paid to a lender for the use of the money loaned. Interest is charged as a percentage of your remaining balance. This percentage, or interest rate, may vary from card to card.
The time period during which an introductory rate applies to balances outstanding on an account.
A lower introductory interest rate offered by some credit card companies. This introductory rate typically expires within the first six to 12 months after the account is opened, after which the interest rate usually increases to the card's standard rate. In some cases, the introductory rate may only apply to balance transfers from another credit card. Make sure you read your application and terms of agreement to understand whether the rate is an introductory interest rate and when you can expect to see increases.
Institutions that issue credit cards to card holders. Issuers can include banks, credit unions or savings and loan associations, and retailers such as department stores or gasoline companies.
The charge that imposed by the card issuer if the minimum payment is not received by the payment due date.
A credit card that utilizes the MasterCard brand name. Enables card holders and merchants to engage in financial transactions under the terms of the MasterCard agreement.
An institution that issues MasterCards and is a member of the MasterCard network.
Any location or store where purchases are made and originate credit transactions.
The written agreement between a merchant and the credit card processor or credit card issuer.
An identification number provided to a merchant from the credit card processor also referred to as the merchant number.
A minimum finance charge is the smallest charge the issuer will charge on outstanding balances even if the formula to determine the normal monthly finance charge would not be that high.
No Pre-set Spending Limit rewards consumers who have established a good credit history. The card's spending limit is not predetermined. Instead, it is set by the card's issuer, based on account history, spending patterns, payment history and other personal variables.
Online systems allow customers to plug into a host of banking services from a personal computer by connecting with the bank's computers over the Internet.
The total amount of money owed to a financial institution after a payment is made. For example, if you have a $500 balance on your card and pay $100 when you receive your account statement, your remaining balance is $400.
Over the limit is when the credit card user has accessed a greater amount of money than what is available on the credit limit or credit line. Depending on the credit company, the user will be charged an over the limit fee.
A fee imposed by the card issuer if the balance exceeds a larger amount of money thab what was available on the credit line.
When withdrawals from a bank account exceed the available balance, giving the account a negative balance.
Withdrawing more money from a checking or savings account than what is available. This results in a fee and/or your transaction may be declined.
The most familiar types of payment cards are credit, charge and debit cards. These financial tools allow consumers to make purchases online, over the phone or in person at merchants across the world.
The date the payment must reach the card issuer by to avoid a late payment or stay within the contractual obligations of the established by the credit card issuer.
With many credit cards, you have a choice between paying some or all of your monthly balance.
Partial payment - Partial payment allows you to make a "minimum payment" of your total balance due. The rest is "revolved," or added, to the next month's statement. Revolving a balance almost always means that you will be charged interest on the remaining amount. You should always pay at least the minimum amount due by the due date to avoid late payment charges. Paying more than the minimum due will also shorten the amount of time it takes to pay off your credit card balance.
Full payment - Full payment means you have repaid your total balance. In doing so thers is usually no additional finance charges applied to the account. Certain cards such as charge cards require full payment each month.
Secret codes, usually numbers individuals choose for access to their card that enables them to access money or perform banking transactions through the ATM as well as make purchases without signing a sales receipt at merchants that have PIN pads. Your PIN should not be shared with anyone.
Personal identification number. A series of numbers used to verify the identity of the authorized user or card holder.
Location at an established merchant where the sale and transaction for either goods or services is carried out.
The updating of an individual card holders account balance to reflect the changes do to purchases, returns, financial charges and other credits or charges.
The number encoded or embossed the credit card that identifies the issuer and the cardholder account.
The prime rate is well publicized and fundamental rate established to base interest rates on certain loan types. The prime rate is established by private banks is not necessarily the lowest or best rate available.
Authorization that is granted prior to the transaction actually taking place.
The date at which the transaction is processed by the issuing financial institution.
Credit card charges that a credit card user makes by purchasing serices and products by approved merchants.
A physical copy or document that provides a record of a transaction from the point of sale. Receipts will usually include the date, merchant name and location, amount and a reference number.
Transactions for which an authorized card user grants permission to a merchant to periodically charge their account for recurring goods or services.
A number assigned to each transaction in the billing system used by the merchant, the card holders billing statement and the card processor.
A credit to a cardholders account. May be the result of a reversal from returned merchandise or error or even fraudulent use.
A merchant that sells goods or services in the retail industry that is not transacted via mail or internet.
A financial transaction that cancel or negates an earlier transaction that has been processed.
A program that allows you to accumulate reward points based on purchases or transactions made on your card. These points can be redeemed for the particular program you enrolled in (e.g. airline, gasoline, etc.) Banks may charge annual fees to participate in rewards program.
Secured cards are a type of credit card that requires a security deposit in order to be able to establish a line of credit. Typically, your line of credit will be equal to the amount deposited with the bank or financial institution that issues the card.
The reports of financial transfers between merchants, card issuers, and processors.
A card that has embedded with a memory component. The card may be used to hold financial data or records or simply have embedded identification information. These cards are generally able to be reloaded with new data.
The sum of all monthly finance charges. This may include the monthly finance charge on existing balances, cash advance finance charges, as well as any other charges that may apply for credit activity on the account.
Action between a merchant and a card holder that results in activity on the card holders account.
A specific financial activity that is submitted to a card processor. Some card issuer use a transaction identifier to identify each approved transaction.
A program that allows you to accumulate reward points based on purchases or transactions made on your card. These points can be redeemed for the particular program you enrolled in (e.g. airline, gasoline, etc.) Banks may charge annual fees to participate in rewards program
Unsecured credit cards are cards that are not secured by collateral. Most credit cards are established based on the individuals credit history and financial position. The opposite type of card is a secured credit card.
The process of verifying that a user representing himself or herself in a transaction is a valid account user.