Dictionary - Credit Cards
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Average Balance

Average balance is either the simple or the weighted average balance of a financial account during some period of time. A simple average balance is calculated by adding up the beginning balance and the ending balance and dividing the sum by 2. Read more

Cancellation Bulletin

A cancellation bulletin is a list of credit cards that are reported stolen, canceled or compromised in some way.  A cancellation bulletin is also called a "warning bulletin," "hot list" or "restricted card list." For example, let's assume that John's wallet is stolen.He calls MasterCard to report the theft, and the company places his number on its cancellation bulletin. Read more

Carding Forum

Designed to facilitate the sharing of stolen credit card information, a carding forum is an illegal website where fraudsters also share info, tips and techniques about obtaining credit card information as well as how to use the illicit information effectively.A card holder's complete profile, called “fullz” in slang, provides the criminal with all the information they would need to impersonate the legitimate cardholder online or in person. Read more

Cashback

Cash back, or cashback, often refers to the cash benefit paid to a credit card user after a certain amount is charged on their credit card.The cash back reward is offered by card issuers as a loyalty program to encourage the cardholder to use their card more frequently. Read more

Chargeback

A chargeback protects cardholders from unsatisfactory sales and service by letting the cardholder demand a "refund" directly from the credit card issuer.If a customer successfully disputes a credit card charge, the account will be credited for the disputed amount via a chargeback. Read more

Contactless Payment

Contactless payment technology allows transactions through a chip embedded in payment cards, tags, key fobs, or mobile phones.A chip or QR code communicates with a reader device using radio frequency or Near Field Communication (NFC) standards. Read more

Credit Card

A credit card is issued by a financial institution that lets you borrow money to make a purchase.According to a recent Experian report, the average American holds 4 credit cards. Read more

Credit CARD Act

The Credit Card Accountability, Responsibility, and Disclosure Act is better known as the Credit CARD Act.The law's main purpose is to prevent certain business practices in the credit card industry that were considered unfair or even deceptive to consumers.  The act was signed into law in May 2009 and took effect in phases. Read more

Credit Card Balance

A credit card balance is the total amount of money owed on a credit card account.Whenever a purchase is made, the balance increases. Read more

Credit Limit

A credit limit is the maximum amount that a person may charge on a credit card or borrow from a financial institution. After a financial institution has approved an applicant's request for a credit card or another type of revolving credit, the lender will decide on the maximum amount of credit it's willing to extend to that person; this maximum amount is known as the credit limit. Read more

Credit Score

Credit score refers to the FICO score, which is created and calculated by the Fair Isaac Corporation and is a measure of an individual's creditworthiness.It is a mathematical summary of the information on a person's credit report. Read more

Fair Credit Billing Act (FCBA)

The Fair Credit Billing Act (FCBA) is an amendment to the Truth in Lending Act.The FCBA is meant to protect consumers from unfair or inaccurate billing practices by providing a system for consumers to contest inaccurate credit card bills. Read more

Finance Charge

A finance charge is the fee charged to a borrower for the use of credit extended by the lender.Broadly defined, finance charges can include interest, late fees, transaction fees, and maintenance fees and be assessed as a simple, flat fee or based on a percentage of the loan, or some combination of both. Read more

Hot List

A hot list is a list of credit cards that are reported stolen, canceled or compromised in some way.  A hot list is also called a "warning bulletin," "restricted card list" or "cancellation bulletin." For example, let's assume that John's wallet is stolen.He calls MasterCard to report the theft, and the company places his number on its hot list -- an electronic list maintained by MasterCard and linked to all the merchants who accept MasterCard. Read more

Interchange Fees

The term interchange fees, also known as swipe fees, refers to the hidden cost paid by merchants to card-issuing banks and credit card companies for processing credit card and debit card transactions. For example, when you use your debit card or credit card at a store or online, there is a hidden fee that is charged by the card-issuing banks to process this transaction. Read more

Negative Authorization

Negative authorization is the term for a credit card system that approves or disapproves a credit card transaction based on whether the card appears on lists of stolen, canceled, closed, or lost account numbers. For example, let's assume John purchases $200 worth of widgets at Sears. Read more

Restricted Card List

A restricted card list is a list of credit cards that are reported stolen, canceled or compromised in some way. A restricted card list is also called a "warning bulletin," "hot list" or "cancellation bulletin." For example, let's assume that John's wallet is stolen. Read more

Swipe Fees

The term swipe fees, also known as interchange fees, refers to the hidden cost paid by merchants to card-issuing banks and credit card companies for processing credit card and debit card transactions. For example, when you use your debit card or credit card at a store or online, there is a hidden fee that is charged by the card-issuing banks to process this transaction. Read more

Warning Bulletin

A warning bulletin is a list of credit cards that are reported stolen, canceled or compromised in some way. A warning bulletin is also called a "hot list," "restricted card list" or "cancellation bulletin." For example, let's assume that John's wallet is stolen. Read more