Business English. Credit cards.

The Vocabulary of Credit Cards.

Affinity Credit Card - credit card offered jointly by two organizations, a credit card issuer and a professional association, special interest group or other non-bank company. Annual Fee - yearly fee paid to use some credit cards. Annual Percentage Rate (APR) - cost of carrying a balance on a loan for a year, equal to the amount owed in interest each month multiplied by 12. Available Credit- credit limit minus the current balance. Balance- total amount of money owed, including any unpaid balance from the previous months, new purchases, cash advances, and any charges. Balance Transfer - moving balances from one credit card to another. Bankruptcy - legal declaration of the inability to repay debts, viewed as a last resort. Billing Cycle - number of days between the last and current statement dates. Billing Statement - monthly bill from a credit card issuer that shows activity on an account. Cardholder Agreement - issuers written statement of terms and conditions relating to a credit card account. Cash Advance - instant loan from a credit card account. Cash Advance Fee - fee for cash advances in addition to normal interest charges. Charge Card - card requiring full payment of the balance by the due date. Consumer Credit Counseling Service (CCCS) - non-profit organization that provides free or low cost counseling and guidance to people experiencing financial difficulty.

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Co-signer - person who signs a credit card agreement with the primary applicant and is also responsible for repaying the balance of the debt. Credit bureaus or credit reporting agency (CRA) - company that collects and sells information about how people manage their debts. Credit Card Debt - total unpaid balances on all credit cards. Credit History - record of the way people manage their debts. Credit Limit - maximum amount you may owe on a credit card including purchases, cash advances, finance charges and fees. Credit Management - way a person handles the money they borrow from banks or credit issuers. Credit Report - information about how you pay bills and loans, how much credit you have, what your debts are, and other personal information to help lenders decide whether you are a good or bad credit risk. Credit Score - three-digit number ranging from 300-900, determining your ranking for credit risk. Debit Card - card allowing purchases to be paid for with funds immediately deducted from your financial account. Debt - amount of money owed. Deferred Payment - payment put off to a future date or extended over a period of time. Delinquent Account - payments have not been made according to the terms and conditions of the cardholder agreement. Due Date - day a payment is due to a creditor. Finance Charges - total amount paid to use credit including interest, all fees, premiums, etc. Fixed Interest Rate - interest rate changing only if the issuer notifies cardholders through an amended cardholder agreement with at least 15 days advance notice. Grace Period - interest-free time between the date of purchase and when that purchase appears on their statement if theres no outstanding balance on a credit card. Interest Rate - fee charged for money loaned.

Joint Credit - credit based on the assets, income and credit history of both people applying. Late Payment - payment received after the due date. Late Payment Fee - fee charged when a payment is received after the due date. Minimum Monthly Payment - smallest amount that can be paid by the due date and still meet the terms of the cardholder agreement. National Foundation for Consumer Credit (NFCC) - non-profit organization dedicated to educating consumers in wise use of credit. Outstanding Balance - total amount owed on a credit card or loan. Over-the-Credit-Limit owing an amount greater than the limit on a credit line. Over-the-Limit Fee - fee charged for exceeding the assigned credit limit. Past Due - when the minimum payment has not been received by the due date. Periodic Rate - interest rate in relation to a specific amount of time. Posting Date - date that a purchase, cash advance, fee, service charge or payment is recorded. Previous Balance - total balance due at the end of last billing cycle. Rebate Card - credit card that supplies benefits based on the cards usage. Revolving Credit - credit agreement that allows consumers to pay all or part of the outstanding balance on a loan or credit card and have credit available again as the balance is paid off. Secured Card - credit card guaranteed by a cash deposit held in a special savings account or certificate of deposit. Transaction Date - date a purchase is made or cash is withdrawn. Transaction Fee - charge for credit activities such as using an ATM or cash advance. Unsecured Credit Card - card not guaranteed by collateral. Variable Interest Rate - interest rate that changes based on an economic index such as

the prime rate. Zero Balance - total outstanding balance paid with no new charges or cash advances during a billing cycle.
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Credit Card Glossary.

Access Control This term refers to the secure process that makes sure that credit card systems are only accessed by those authorized to do so, and only in a manner for which they have been authorized. Account Number Your account number is a unique credit card number assigned by a financial institution to a customer. On a credit card, this number is embossed and encoded on the plastic card. It is also found on the top of your bill. Acquirer An acquirer refers to a bank or company that acquires data relating to transactions from a merchant or card acceptor for processing. Acquiring Bank A bank that receives the credit card transactions and then settles the transaction with the issuing banks. It is the bank that has signed up with or otherwise enabled the merchant to process transactions. Address Verification Service Mostly known by its an acronym of AVS, this is a method of checking email addresses that assists in reducing fraud in mail order or telephone order transactions. In essence you are asked for your billing address as part of the authorization process before being allowed to conduct a transaction or get any information about your account Adjusted Balance This is a way of determining how your credit cards interest rate is applied to your account so that you can be charged. The Adjust Balance method of calculating your monthly finance charges is thought to be most favorable to the customer. An adjusted balance is configured by taking the finance charges from your previous months balance, adding any new charges you have made since the last statement, subtracting the amount of any payments you have made and the multiplying your number by your monthly interest rate. Advanta Credit Card Advanta is a type of credit card offered by Mastercard that has a fixed rate for life. It comes in a platinum version as well as two business versions. 3 Affinity Card An Affinity card-- typically a MasterCard or Visacarries the logo of an organization on it. It can be a for-profit or not-for-profit organization. It is a form of co-branding for the credit company and the cardholder.
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Usually an Affinity cardholder derives some benefit such as frequent-flyer miles or points toward merchandise to do with the The organization solicits its members to sign up for cards with their log on it, with the idea of keeping the groups name in front of the cardholder. In addition to establishing brand loyalty, the organization receives some financial incentive (a fraction of the annual fee or the finance charge, or some small amount per transaction, or a combination of these) from the credit-card company. American Express American Express is a credit card company that was founded in 1958. Its slogan is Dont Leave Home Without It. American Express also performs their own transaction processing within their own processing network. American Express offers a variety of secured and unsecured credit cards as well as platinum and gold versions of the card, business cards and cards for students. It also offers a number of preferred rewards type cards for airlines, hotels and car rentals Annual Fee An annual fee is a yearly charge that you have to pay for the privilege of doing business with the credit card company. The amounts vary considerably from card to card. Some cards have no fees at all but usually this type of card has less perks to it in general or a higher interest rate. The amount of fee that you have to pay for your card is often dependent on the color of your card with gold cards being more costly then regular cards and platinum cards being more costly than gold cards. However sometimes if you are good customer you dont have to pay an annual fee at all. Only about twenty percent of bank credit cards come with an annual fee. American National Standards Institute Often simply known as its acronym ANSI, this is the organization in the Unitized States that determines standards including the dimensions, rules and other standards that go into the creation and marketing of credit cards4 Annual Percentage Rate (APR) Often the annual percentage rate is referred to by its an acronym of APR. This term refers to the interest rate as applied to the charges on your credit card. Your interest rate can be either a fixed rate or a variable rate although in truth all credit card annual percentage rates are all variable.
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A variable rate ties your interest each month to a standard such as the U.S. Prime Rate that is published in the Wall Street Journal. Another thing to note that even though it may be described as so, your credit card interest is never offered at a prime rate. Rather the credit card company calculates your credit cards interest rate by adding a factor such as 5.99 percent to the Prime Rate. So your annual percentage rate of interest is based on a calculation that sets your credit card interest rate not just on one interest rate Annual Savings Rate Your annual savings rate is a just a way of expressing how much you would save by transferring your credit card balance to a credit card with a low balance. Lets take an example and compare two credit cards that each have a $2,500 balance on it. Terms Credit Card 1 Credit Card 2 Average monthly balance $2,500 $2,500 APR 0.18 0.14 Annual Finance Charges $ 450 $ 350 Annual Fee $ 20 $ 0 Total Cost $ 470 $ 350 What your annual savings rate will end up being will vary depending on the amount of your balance, the interest rate that you are offered by the credit card company and the way your finance charge is calculated. Here is another example of what you can expect to pay that illustrates the difference between a card with high rate and a card with a low-rate. Suppose you have applied for a credit card but are only offered a high rate credit card of 23.99%. If you charge $1,000 and make no further charges and pay only the minimum each month the payment that you make will start at $51 and slowly reduce its way down to i$10 a month over time. In total you will end up making 77 payments over six years and five months. By then, you will have paid $573.59 in interest just for the privilege of using a credit card. By contrast lets say that you have been accepted for a low rate card with only a 9.9 percent fixed rate. If you charge the same $1000 you minimum monthly payment will start at $50.41 and then reduce itself down to $10 a month just like the high interest card. However you will make 17 fewer payments paying it off in six years and pay only $176

in interest. This is a difference of $400 less in interest that you will pay if you opt for the card with low interest rates. Approval Response This is the term for the authorization response when a credit card transaction is electronically approved. Authentication This is the process of assuring that the credit card data has come from its source where it claims to come from. It corroborates the claimed identity of a communicating party. Authorization This is the act of insuring that the cardholder has adequate funds available against their line of credit. A positive authorization results in an authorization code being generated, and those funds being set aside for withdrawal. As a consequence, the cardholders available credit limit is reduced by the authorized amount. Authorization Amount This is the dollar amount approved during a credit card transaction. Authorization Code This is a code that an issuer or its authorizing processor provides to indicate approval or denial for an authorization request by a vendor. Authorization Date This signifies the date and time that a credit card transaction was authorized. Authorization Only A transaction created to reserve an amount against a credit cards available limit for intended purchases; the settlement may occur within three to five days, depending on the card type Authorized Amount This is the dollar amount approved during a credit card transaction. Authorized Transactions These are credit card transactions that have been approved.

Average Daily Balance This is one of the methods that credit card companies use for calculating your monthly finance charges. Adding your charges and subtracting your payments daily as they occur calculate the average daily balance. They are then reported back to the credit card company. At the end of your billing period, the average of these daily computations is calculated and your interest rate is applied to this figure Bank Americard Bank Americard was the original name for the VISA card in 1959. Blocking Blocking is the name for a procedure by which a hold is put on a certain amount of your credit cards limit to cover anticipated expenses. For instance when you rent a car and the clerk runs your card through the machine a block might be put on your card for an amount equal to not just the cost of the car for the amount of time you might try it. You might also have a block for the equal amount of other anticipated expenses such as the cost of mileage and gas. Another common situation where blocking occurs is when you book a hotel. You are not only billed for the cost of the room but also the anticipated expenses such as your food bill and mini bar bill. There is nothing illegal about blocking but there is a way it can affect you and cost you more money. For instance if you pay your bill with the same credit card that received the blocked amount the actual charges will replace the blocked amount in a day or two leaving room on your card again. However if you pay using a different credit card the block may stay on your card and reduce your available credit on that card for as long as fifteen days after you have settled with the hotel or car rental company. The reason for the delay is because the original credit card company is not aware that the final bill has been paid. Of course one of the disadvantages of having your card blocked to anticipate expenses is that if your card is close to the limit when this happens they you may find yourself denied the use of your credit card for other things you would like to charge on it. Calcard This is the name of the California Purchasing Card program. Currently, the card issue for Calcard is US Bank and the program features a Visa commercial card. Card Digits The digits on your credit card have coded meanings but are easily demystified. The first digit in your credit-card number signifies the vendor: 3 - travel/entertainment cards (such as American Express and Diners Club) 4 - Visa

5 - MasterCard 6 - Discover Card The structure of the card number varies by system but they all contain numbers that symbolize the bank account, the type and currency, the bank number and the check digit number. For example American Express - Digits three and four are type and currency, digits five through 11 are the account number, digits 12 through 14 are the card number within the account and digit 15 is a check digit. Visa - Digits two through six are the bank number, digits seven through 12 or seven through 15 are the account number and digit 13 or 16 is a check digit. MasterCard - Digits two and three, two through four, two through five or two through six are the bank number (depending on whether digit two is a 1, 2, 3 or other). The digits after the bank number up through digit 15 are the account number, and digit 16 is a check digit. Cardholder Information Security Program Usually known as CISP, this is an information security standard sponsored and promoted by Visa USA. This standard of security applies to any organization that stores or handles their credit card account numbers. Card Issuer A card issuer describes any association member financial institution, bank, credit union, or company that issues, or causes to be issued, plastic cards to cardholders. Card Reader This is a device capable of reading the encoding on plastic cards. Carrying Charges The term used to describe an account that is carrying an interest on a balance that is not being paid off from month to month. Cash Advance Some credit card companies let you withdraw a cash advance from your credit card. This can be done through a bank or an ATM. However usually withdrawing a cash advance is accompanied by a high fee or interest rate.

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Some credit card companies let you withdraw as much money as your credit card limit and others impose a maximum limit or a daily cash limit. Cash Advance Fees This fee represents the cost of cash advances from your credit card. The main drawback of getting a cash advance is that the interest rate is always considerably higher than what you pay as interest for purchases on your credit card. This means that if you take a cash advance to buy something it is more costly to you to pay for it with a cash advance rather than just pay the item directly through your card. Not only that but the credit card company can assess an additional fee of anywhere between two percent and four percent of the amount you are obtaining as a Transaction fee for cash advances. Another drawback of cash advances is that there is no grace period until interest starts to accrue it. Interest on your cash withdrawal starts earning from the minute it is withdrawn. Yet another issue is the way that most credit card companies will not apply your monthly payment towards a high interest cash advance until the entire amount of any outstanding balances that you have made using your credit card is paid off. Cash Back Program Cash Back is a program where the card issuer refunds a portion of the cost of your credit card purchases to you. Of course this type of offer is also fraught with conditions and limitations. Some cards will offer to pay you a dollar on every item you charge while others will rebate you at a higher rate if you charge more on the card. In addition your credit card company can also limit how much you can be refunded annually and within the fine print the card issuers reserve the right to change the rules and conditions of the cash-back program whenever they choose. Chargeback A chargeback transaction returned through interchange by an issuer to an acquirer. A transaction may be returned because of it was non-compliant with the association rules and regulations or because the amount or the purchase itself was disputed by a cardholder. Chargeback Period The number of days from the processing date or endorsement date transaction during which the issuer may inform a credit card company that a chargeback is needed on a credit card account. Chase Credit Cards The Chase Manhattan bank offers a unique series of both VISA and MasterCard credit cards including cards for students, business cards, flexible rewards cards, platinum cards and secured cards. One very unusual rewards credit card offers points towards opening tickets to weekend movies produced by Universal Entertainment. Yet another offers points towards purchases at Borders Book Stores.

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Commercial Cards Commercial cards are the broad definition of a special class of credit or bankcard. They differ from consumer cards in that they frequently offer Level-3 (level III) line item detail information and special uses for the corporate or government employer card user. Another frequently used term for the commercial card is the corporate card Examples of sub-types of commercial cards include Corporate Cards, Purchase Cards, Business Cards, Travel and Entertainment Cards. Corporate Cards Corporate cards are essentially the same as commercial cards (see above.) The broad definition encompasses specific types of card programs such as travel cards, fleet cards, and purchasing cards. Corporate Procurement Cards Corporate procurement cards are one type of corporate card. They are typically issued to individuals that have the authority to make purchases on behalf of their organization. The charges made on this type of credit card are billed to the organization that issues the card to its cardholders Corporate Purchasing Card Corporate Purchasing Card is another name for corporate procurement card (or procard). Credit Card Processing This is the general term that describes the processing transactions against bankcards according to terms defined by Visa and MasterCard Credit Card Processor A credit card processor is a company that performs authorization and settlement of credit card payments, usually handling several types of credit and payment cards (such as Visa, MasterCard, and American Express). If merchants wish to sell their products to cardholders, they retain the services of one or more processors who handle the credit cards that the merchant wishes to accept. When a merchant retains the services of a credit card processor, it is issued a merchant ID. Credit Card Refund Sometimes if you have been paying off your credit card balance in full each month you will have a positive credit balance on your card. This is especially true if you have been refunded by the credit card companys insurance program for purchasing damaged goods. If you do end up with a positive balance on your credit card Federal Law provides you with the right to choose to either have the credit stay as a credit on your credit card to be applied to future purchases or past balances or to have the money refunded to you by the credit card company.

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By law, all you have to do to obtain a refund from your credit card company is ask for it by phone or mail and they must provide you with a check for the amount requested within seven business days. Credit Card A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. A credit card issuer lends money to the consumer (or the user). A credit card us bit be confused with a charge card (though this name is sometimes used by the public to describe credit cards), that require the balance to be paid in full each month. By contrast, a credit card allows the consumer to revolve their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. Usually the process of obtaining a credit card works like this A user is issued a credit card after an account has been approved by the credit provider(often a general bank, but sometimes a captive bank created to issue a particular brand of credit card, such as American Express Centurion Bank), with which he or she will be able to make purchases from merchants accepting that credit card up to a preestablished credit limit. This means that when a purchase is made, the credit card user agrees to pay the card issuer the amount of the purchase. Originally the user would indicate consent to pay, by signing a receipt with a record of the card details and indicating the amount to be paid in a personal exchange that involved a paper receipt. However many merchants now accept verbal authorizations over the telephone and also electronic authorization using merchant credit card processing applications on the Internet. Electronic verification systems allow merchants (using a strip of magnetized material on the card holding information in a similar manner to magnetic tape or a floppy disk) to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase. All of this occurs almost instantaneously, usually in just a few seconds, allowing the verification to happen at time of purchase. Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, and the total amount owed. After receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect (see Fair Credit Billing Act). Otherwise, the cardholder must pay a defined minimum proportion of the bill by a due date, or may choose to pay a higher amount up to the entire amount owed. The credit provider charges interest on the amount owed (typically at a much higher rate than most other forms of debt). Some financial institutions can arrange for automatic payments to be deducted from the users bank accounts. This is called a preauthorized payment.

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Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid. It only takes one late payment for this to happen and also at a higher interest rate then you originally agreed to pay! Credit Card Types No matter what kind of card and plan you choose, you should have access to the following information under the federal Truth in Lending Act so that you can compare one type of credit card to another before you sign on the dotted line. Here is information about a credit card product that you have the right to know - The amount of finance charges in dollars and as an annual percentage rate (APR) The identity of the credit issuer or company providing the credit line The size of the credit line The length of the grace period (a period during which no interest is accrued on our charges), if any, before payment must be made Minimum payment required each month The amount of annual fees, if applicable The amounts of fees for credit insurance (if any), which pays off your loan if you die before the debt is fully repaid Credit Limit This is the dollar amount assigned to a cardholder to whom they are approved to borrow. Custom Payment Service The Custom Payment Service (casually known as CPS) is Visas regulations for the information that must be submitted with each transaction. Transactions must meet CPS criteria in order to qualify for lowest transaction processing fees available. This is similar to MasterCards Merit system.

Customer Code This is a 17 character alphanumeric field that is used with Purchase Card transactions. The code is typically defined by the customer (cardholder) and used for accounting or credit tracking purposes. Data Capture This is also sometimes called an electronic draft capture (EDC) or draft capture. This is a data processing term that describes the process collecting, formatting, and storing data in computer memory according to predefined fields, for example, customer name, account number, and dollar amount of purchase. When a terminal reads this information from a plastic card or from entries at a terminal, the information is stored in computer memory for later output as a hard copy printout or as soft copy on a CRT display.

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Debt Elimination Tips For Credit Card Users Sometimes you end up over your head in debt when you use a credit card. It is one of the hazards of owning one. Here are some credit-card debt elimination tips: Always be aware of all of the fees that may be associated with your credit card. (That means reading and understanding fine-print leaflets that come in your bill periodically!) Make sure you are familiar with the annual fees, current interest rates, finance charges, cash-advance fees and any other fees associated with your card. This knowledge can help you make better decisions on how to manage the use of your credit card. Cash advances taken from your credit card are expensive! You should obtain cash advances when it is absolutely necessary. Higher interest rates (than youre paying for card purchases) are usually charged when you take out a cash advance. Most banks also charge a service fee related to how much cash youre withdrawing. Furthermore when you get your bill you will notice that any payments that you make will be applied to your lower interest purchases and not your high cash advances first! Always be aware of cards that offer lower interest rates then the one you have now. Transferring balances from one card to another to take advantage of low introductory rates can assist you when you pay down debt as long as you have a very strong credit rating. The strong credit rating is required as these transfers and the inquiries that go with them can knock a few points off of your credit. You should look for credit cards that offer a low introductory rate (usually for six months), and transfer the balance from your previous credit card to that credit card. Before you take this step, however, make sure that, after the intro rate has expired, the new card offers the same (or lower) interest rate as your current card. Sometimes these zero or low interest credit cards skyrocket in terms of interest once the low percentage period is up. Pay more than your minimum payment each month. Experts say that making only minimum payments hurts your credit and in the long run you will also pay more. You will save lots of money on interest and get to debt-free goals sooner if you pay more than what is required each month. Digital Signature A digital signature is a data element allowing the recipient of a message or transaction to verify the content and sender. A digital signature is required for every electronic trDiscount Fee Discount Fee This is a fee paid by the merchant to the merchant bank or other contracted party for processing the merchants credit card sales (transactions).

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Discount Rate This is the percentage rate that a merchant institution charges the merchant for handling merchant sales drafts or electronic sales transmissions. The discount fee is the dollar amount charged. Discover Credit Card Discover offers a selection of business and personal secured and unsecured cards. Many of Discovers credit cards offer perks like cash back bonuses and air mile points Discover often markets its card on their appearance, which include a cool clear plastic look, and cards with pictures of the American Flag or Wildlife on them. Due Date The Due Date is a term in your terms and conditions of use of the credit card to describe the day on which you must pay your bills. Usually this date is on the first of the month or the fifteenth. Few people realize this but it is possible to call a credit card company and ask if your credit card due date can be shifted if you find yourself paying too many bills around the first of the month. All you have to do is just ask them to change the due date by phone call or letter. However if you do decide to have a credit card company change your due date keep in mind that it can take a couple of months before the due date change is fully implemented and that by not knowing this you could hurt your credit rating by paying bills on the wrong date. It is important to make sure that your bill is paid promptly when it is due as otherwise you could find yourself paying a late fee.

Diners Club Inc. Diners club is very first credit card company. The company was established in 1950 that allows restaurant meals to be put on a charge card and the debt to be paid off in full at the end of the month. Electronic Authorization Obtaining authorization for use of a credit card by electronic means, as via computer equipment and telephone line. Electronic Draft Capture Electronic Draft Capture or EDC is a point-of-sale terminal that reads the information encoded in the magnetic stripe of bankcards. These terminals electronically authorize and capture transaction data, eliminating the need for a paper deposit.

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Encryption Encryption is the process of disguising a message (using mathematical formulas called algorithms) in such a way as to hide its substance. In essence it is a cryptic mathematical based process of creating secret writing. Extended Warranty This is a credit card perk where card issuer extends the warranty of products purchased with the card. Of course this type of warranty protection also is subject to a lot of conditions and limitations. Often credit cards with extended warranty protection have a higher annual fee than most others. Expired Card A card on which the embossed, encoded, or printed expiration date has passed. Fair Credit Billing Fair Credit Billing is a set of laws created to address such problems as being billed for merchandise you never received, being charged for the same item twice or a credit card company failing to record a payment to your account. Sometimes to resolve these types of problems. It takes a little patience and knowledge of the dispute settlement procedures provided by the Fair Credit Billing Act (FCBA). The Fair Credit Billing act applies to open end credit accounts, such as credit cards, and revolving charge accounts - such as department store accounts. It does not cover installment contracts - loans or extensions of credit you repay on a fixed schedule. Consumers often buy cars, furniture and major appliances on an installment basis, and repay personal loans in installments as well. The FCBA settlement procedures apply only to disputes about billing errors. For example: unauthorized charges. Federal law limits your responsibility for unauthorized charges to $50 charges that list the wrong date or amount charges for goods and services you didnt accept or werent delivered as agreed math errors failure to post payments and other credits, such as returns; failure to send bills to your current address - provided the creditor receives your change of address, in writing, at least 20 days before the billing period ends charges for which you ask for an explanation or written proof of purchase along with a claimed error or request for clarification.

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To take advantage of the laws consumer protections, you must: Write to the creditor at the address given for billing inquiries, not the address for sending your payments, and include your name, address, account number and a description of the billing error. Send your letter so that it reaches the creditor within 60 days after the first bill containing the error was mailed to you. Send your letter by certified mail, return receipt requested, so you have proof of what the creditor received. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter. The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter. Here is an example of a letter that you would send to a credit card company regarding an error on your credit card bill. Date Your Name Your Address Your City, State, Zip Code Your Account Number Name of Creditor Billing Inquiries Address City, State, Zip Code Dear Sir or Madam: I am writing to dispute a billing error in the amount of $______on my account. The amount is incorrect because (describe the problem). I am requesting that the error be corrected, that any finance and other charges related to the disputed amount be credited back to my account. I also expect to receive an accurate credit card statement that reflects these changes. Please find enclosed copies of (use this sentence to describe any enclosed information, such as sales slips, payment records) supporting my complaint. Please investigate this matter and correct the billing error as soon as possible. Sincerely, Your name Enclosures: (List what you are enclosing.)

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Aside from giving you the right to dispute errors on your report the Fair Credit Billing Act also gives you other billing rights such as Businesses that offer open end credit also must: Confirm with a written notice when you open a new account provide a statement for each billing period in which you owe - or they owe you more than one dollar. send your bill at least 14 days before the payment is due - if you have a period within which to pay the bill without incurring additional charges; credit all payments to your account on the date theyre received, unless no extra charges would result if they failed to do so. promptly credit or refund overpayments and other amounts owed to your account. This applies to instances where your account is owed more than one dollar. Your account must be credited promptly with the amount owed. If you prefer a refund, it must be sent within seven business days after the creditor receives your written request. The creditor must also make the effort to refund a credit balance that has remained on your account for more than six months. It is possible to sue a creditor who violates the laws of the FCBA. If you win, you may be awarded damages, plus twice the amount of any finance charge - as long as its between $100 and $1,000. The court also may order the creditor to pay your attorneys fees and other court costs. Fee An amount charged by a credit card company for the privilege of using a credit card. Fees charged to credit card users account for 35% of the credit card companies income. Fine Print Warning How the credit card companies define the word late might be different then how the average consumer would be. The fine print allows the credit card company to decide how words like late are defined at their whim and at their own discretion. For instance the fine print of your credit card contract may specify the time of day by which your monthly payment must be received in order to avoid a late fee. So for instance, if you think your credit card payment is due on the 15th you could still be charged if you did not pay it on the 15th by the time specified. The Fair credit Billing Act requires credit card companies to credit your account on the day that the payment is received. However the fine print according to the law also allows the individual credit card to make its own specific payment guidelines. If those guidelines are not met the credit card company can delay your payment by as much as five days.

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This turns your on time payment into a late one. Of course, this type of little detail is exactly the kind of thing that is buried in the fine print of any contract. Fleet Cards Fleet Cards are a specific type of commercial card (or corporate card) used to purchase goods and services for automobile/vehicle, aviation, or marine fleets. First Digit Identification Each of the three big credit companies has its own identifying digit. It is the first digit on every credit card. The first number on a MasterCard is always a 5. It is always a 4 for a Visa, a 6 for Discover and a 3 for American Express. The remaining card numbers signify the bank number and your personal credit card account number. Fixed Rate The term fixed rate is a bit misleading because although it does not carry the risk of automatically changing each month it is only fixed for as long as a credit company wants to leave it at a particular rate. In actuality a credit card company can alter its fixed rate at any time. A fixed rate is usually a couple of percentage points higher than a variable rate, but you will have the advantage of knowing what your interest rate will be. Variable rates are just thatthey changeand can increase (usually the case) or decrease your finance charges. However, fixed rates are not as likely to change overnight. The Federal Truth of Lending Act requires that you only be provided with fifteen days notice before a company can change your fixed rate. Also there is no limit to the number of times they can change your rate in one month, one year or during a lifetime of using the credit card! So be aware that a fixed rate is not a guarantee that the interest rate on your credit card will always be low. Floor Limit An amount that Visa and MasterCard have established for single transactions at specific types of merchant outlets and branches that once it reaches a certain amount authorization is required. Fraudulent Transaction This is a transaction unauthorized by the cardholder of a bankcard. Such transactions are categorized as lost, stolen, not received, issued on a fraudulent application, counterfeit, fraudulent processing of transactions, account takeover, or other fraudulent conditions as defined by the card company or the member company.

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Fraudulent User An individual who is not the cardholder or designee and who uses a card (or, in a mail/phone order or recurring transaction, an account number) to obtain goods or services without the cardholders consent. Frequent Flier Program A frequent flyer program (FFP) is a service offered by many credit cards to reward customer loyalty. Typically, airline customers enrolled in the program accrue points corresponding to the distance flown on that airline. Accrued points (also known as frequent flyer miles) can be redeemed for free air travel; for other goods or services; or for increased benefits, such as airport lounge access or priority bookings. The first, and still largest, frequent flyer program is AAdvantage, sponsored by American Airlines, launched May 1, 1981. Gold Cards Gold cards are generally cards with high annual fees that are considered to be prestigious. They also often come with many different perks or features such as renters insurance, buyers protection and discounts. According to bankrate.com you do pay for these privileges as the average interest rates for fixed rate gold cards are higher than the average interest rate for standard fixed rate credit cards. It seems that there is nothing golden about these credit cards except for the color of the plastic your account number is printed on! Government Card A generic term for commercial purchasing cards (purchase cards) issued to federal, state, or local government agencies. It can refer to a Purchase, Travel, or Fleet card.

Grace Period The grace period represents the periods of time, most often between twenty and twentyfive days during which you can pay your credit card bill without incurring interest charges. However a grace period only applies if you pay your entire bill in full each and every month. By law the credit card issues must send you your monthly credit card statement of charges at least fourteen days before the due date. Also if you carry any balance from month to month, interest will accrue. Also keep in mind that the grace period does not apply to cash advances. The interest accrues on cash advances from the moment it is in your hand!

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The History of Credit Cards The use of credit cards goes all the way back to ancient Egypt more than 3000 years ago. The first modern cards were department store cards that appeared around 1914. These cards were only good for goods that could be bought in the store. It wasnt until 1950 that Diners Club issued the first credit cards to be used at restaurants. The invention is the brainchild of Frank X. McNamara (the owner of Diners Club), lawyer Ralph Sneider and Alfred Blooomingdale (of Bloomingdale Department stores). The credit card was invented in a restaurant where all three men were having dinner. When it came time to pay the bill, McNamara realized he had no cash thus inspiring the three men to come up with the idea of a credit card that could act as an I.O.U. In addition this card could be used at any place and not just one store. Interestingly, Diners Club then provided credit through businesses to individuals but it did not charge interest. Payment in full was required at the end of each month. The source of profit for the company was a combination of a small annual fee to card holders (that was $3 in 1951) and a 7 percent surcharge to the merchants subscribing to Diners Club on each purchase. At first Diners Club only served the clientele of fourteen company-approved restaurants in New York. This first card was printed on paper. From an initial distribution of only 200 cards the membership for Diners Club soared to over 20,000 with in the first year. Oddly the founder, Frank McNamara thought the whole thing was just a fad and sold his credit card interest to his partners Sneider and Bloomingdale for $200,000. Eight years after the invention of the Diners Club card, American Express joined the credit card business. Like Diners club the point of this card was to pay it off in full at the end of each month. Credit cards became even more popular with the advent of the bank credit card system that we now know as MasterCard and Visa. In 1959 Visa was called Bank Americard. It was the first national bank credit card company to set up a system by which the individual banks credited the accounts of merchants upon receiving sales receipts. The banks that participated in BankAmericard credit card program then paid the stores immediately. At the end of the billing period, the cardholder received a monthly statement from Bank Americacard showing all of his or her charges and the option to either pay the entire account in full or pay a required minimum charge along with interest on an unpaid balance. Mastercharge, which later changed its name to MasterCard, soon followed the example of Bank Americard and the credit card industry was born.

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I.M.P.A.C The I.M.P.A.C (or IMPAC) card was the name of the original U.S. Government Purchasing Card issued by US Bank. The acronym stands for International Merchant Purchasing and Acceptance Card. Independent Service Organization Also know as ISO, the Independent Service Organization is a third party organization that enables registered merchants to accept charge or credit cards. Interchange The interchange describes the exchange of information, transaction data and money among banks. Interchange systems are managed by Visa and MasterCard associations and are uniform and standardized so banks and merchants worldwide can use them. Interchange Fee A fee paid by the acquiring bank/merchant bank to the issuing bank. The fee compensates the issuer for the time after settlement with the acquiring bank/merchant bank and before it recoups the settlement value from the cardholder. Interchange Rate Interchange rates are baseline costs established by the two bankcard associations, Visa and MasterCard, on behalf of their member banks. The member banks set the foundation costs which makeup the merchants bank card processing fees. Additional fees may be added to the interchange rate by the merchants acquiring bank to reach a final rate called the discount rate. Interchange Reimbursement Fee An Interchange Reimbursement fee can mean one of the following - A fee that an acquirer pays to an issuer in the clearing and settlement of an interchange transaction, based on either the standard (paper-based) rate or electronic rate. A fee that an issuer pays to an acquirer for making a cash disbursement to a cardholder or check purchaser. Internet Payment Gateway An Internet payment gateway is a centrally managed service that offers merchants the ability to process credit card transactions and participate in the major credit card networks. Typically, the credit card data uses the Internet as a method of transporting the data from the merchants systems to the operator of the payment gateway. Interest Rate An interest rate is the price a borrower pays for the use of money he does not own, and the return a lender receives for deferring his consumption, by lending to the borrower. Interest rates are normally expressed as a percentage over the period of one year.

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Interest rates are also a vital tool of monetary policy and are used to control variables like investment, inflation, and unemployment. Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card. Introductory Rate The introductory rate is a teaser rate that is temporary and is offered as a lure to sign with a new credit card company. Usually the low introductory rate only lasts for about six months. At first glance a credit card offered at a low introductory rate always looks like a good deal as you can transfer your balance to a low interest card or no interest card and take that time to catch up on your payments. However if you default on any of the terms of your credit card agreement you can suddenly find your credit card interest rising from 0 percent to 28 percent. It doesnt take much to default on one of these credit cards and subsequently see your interest rate soar. All it takes is a late or missing payment. Another trick of the credit card companies is to also take away your introductory rate if you make a late payment to any other creditor you may have whether it be another credit card, the telephone company or any other kind of mortgage, loan or bill. I -Purchasing I-Purchasing (iPurchasing) is a MasterCard sponsored capability that allows intraorganizational use of the corporate purchase card (procurement cards) to process Level-3 (level III) transactions without having to pay the interchange fees. Large Ticket Rate Visa and MasterCard have created special interchange rates that act as incentives for the merchant to process higher dollar credit card transactions. Large ticket transactions are often defined as those greater than $100,000.00. A large ticket transaction may exceed several million dollars. Late Fees Late Fees are charged when you are overdue in making a monthly payment to your credit card. Late fees are a major source of income for credit card companies with some late fees being well over 60 dollars per transgression. However the average for late fees is around $15 for balances up to $100 and $35 on balances of $1000 or more.

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You can see how the credit card companies clean up with this when you realize that most households carry a debt of $9000 from month to month. In fact the total industry revenue from late fees went from 1.7 billion dollars in 1996 to 7.3 billion dollars in 2001. There are some other things you should know about late fees. If you decide to mail in your payment mail it in at least ten days before the due date as any delay can have it marked as a late payment. So send your payment with sufficient leeway to arrive at the credit card company long before your bills due date. Another thing to watch out for is that some credit card companies dont receive and process mail until after 1:00 p.m. thus the real date by which your monthly payment must be received is in actuality a day earlier than the date indicated on your contract. So in order to avoid a late fee you must make sure your payment gets there by snail mail at least three days ahead of the due date. Here is yet another hitch that can cause a late fee to your credit card account. If your envelope contains a paper clip or staple the fine print in most credit card contracts stipulates that it may take an extra five to ten days to process your payment! If this happens then you can also be charged a late fee even if they are the ones who are tardy about opening mail that cannot be automated because of a tiny piece of metal! Late payments are also dangerous to your credit and debt level because they can trigger penalty interest rates as high as 29%. Even if you are timely in your payments to the issuer of one credit card your rates can be raised this high if it is reported that you are late with a payment to another creditor. Level III or Level 3 Level-3 purchase card information refers to the ability to process detailed purchase information with the financial credit card transaction. The supplemental information typically considered to be Level 3 are data elements such as the Customer Code, Invoice and Order number, Part Number, Item Description, Quantity, Unit of Measure and Unit Price. Line Item Detail Line item detail is the specific information that is carried in a Level-3 (Level III) purchase card (or purchasing card) transaction. The supplemental information typically includes data elements like a Customer Code, Invoice and Order number, Part Number, Item Description, Quantity, Unit of Measure and Unit Price. Magnetic Stripe The stripe on the back of a credit card is a magnetic stripe. It is also called a magstripe. The magstripe is made up of tiny iron-based magnetic particles that are encased in a plastic-like film. Each particle is really a tiny bar magnet about 20-millionths of an inch long. A magstripe reader is used to read the information on a magnetic stripe. If the ATM cant read your credit card your problem might be due to a scratched or dirty

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magstripe, an erased magstripe (caused by exposure to magnets or a stores electronic article surveillance demagnetizer.) MasterCard MasterCard is one of the big three credit card companies. The MasterCard Logo refers to the entire company and all of its subsidiaries and credit card products. Mastercharge Mastercharge was the original name for MasterCard in 1959. Maximum Finance Charge With fewer and fewer credit card companies charging annual fees more and more credit card companies are now charging minimum monthly finance fees of between two and six dollars. You are charged this regardless of whether or not you pay your account in full each months. The maximum finance charge is often described as an annual fee in disguise except that you pay monthly instead of annually for the credit card. Merchant A merchant is any entity that contracts with merchant banks or ISOs to originate transactions Merchant Bank This is a bank that has a merchant agreement with a merchant to accept (acquire) deposits generated by bankcard transactions. Merit Merit is MasterCards program of requirements for obtaining favorable interchange rates Mistakes on Your Credit Card Bill Even credit card companies make mistakes. The Fair Credit Billing Act applies to credit card and charge accounts and to overdraft checking (but not to checks or debit cards). You can use this act to defend against billing errors, unauthorized use of your account, goods or services charged to your account but not received or not provided as promised, and charges for which you request an explanation or written proof of purchase If you should happen to find a mistake on your bill here are some steps that you can take to have the error corrected. Write to your card issuer or creditor within 60 days after the bill with the error on it is mailed to you. However the 60 days is not a hard and fast rule. You may still be able to dispute the charge after 60 days if you have an explanation for why you recently just learned about it.

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 In a letter of dispute, give your name, account number, the date and amount of the disputed charge and a complete explanation of why you are disputing the charge. Send your letter to the address provided on the credit card billdo not send the letter with your payment or it will take ages for it to reach the right department. The best thing to do is send the letter by certified mail with a return receipt requested If you follow the suggestions outlined above, the creditor or card issuer must acknowledge your letter in writing within 30 days after receipt and must conduct an investigation within 90 days. While the bill is being investigated, you dont have to pay the amount in dispute. (The creditor or card issuer is also not allowed to take action to collect the disputed amount, report the amount as delinquent or close or restrict your account while the matter is being investigated.) If it is determined that there was an error or that you dont owe the amount youre being held responsible for, the card issuer must credit your account and remove any finance charges or late fees relating to the amount not owed. For any amount still owed, you have the right to an explanation and to copies of documents that prove you owe the money. If the bill is correct, you must be told in writing what you owe and why. You will owe the amount disputed plus any finance charges. National Association of Credit Card Professionals NAPCP is an acronym for the National Association of Purchase Card Professionals. It is a non-profit organization dedicated to promoting the use and growth of Purchasing Cards. More information about this helpful organization may be found at www.napcp.org. National Consumer Law Center This is a good resource if you are having trouble with credit or with a credit card company. The National Consumer Law Center is Americas consumer law expert, helping consumers, their advocates, and public policy makers to use powerful consumer laws to build financial security and assure marketplace justice for vulnerable individuals and families. You can find information about the National Consumer Law Center at www.consumerlaw.org Online Financial Transaction A transaction that is authorized, cleared, and settled in a single online message. Online Fraud Protection This is a perk offered by some credit cards that promise to not hold you responsible for any unauthorized charges made on your card through online purchases. However most cards that offer this type of protection have a higher annual fee or a hidden fee.

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Open To Buy Amount A transaction that is authorized, cleared, and settled in a single online message. Opt Out Request Addresses If you dont want the credit card companies selling your private information so that you can receive telemarketing requests and offers through the mail then it helps to write each credit bureau separately and request that your information not be shared. By federal law the company must comply with your request immediately. You can write any of these major reporting bureaus and they will contact the other major bureaus with your request: Experian Consumer Opt Out, 701 Experian Parkway, Allen, Texas, 75013 Equifax Inc. Options, P.O. Box 740123, Atlanta, Georgia, 30374-0123 Trans Union Marketing List Opt Out, P.O. Box 97328, Jackson, MS 39288-7328 Opt-Out Request Line If you dont want to receive pre-approved credit card offers, all you need to do is make a single telephone call to the Opt Out Request Line at 1-888-567-8688 and request that your name be removed from the mailing lists of the three major credit reporting bureaus: Equifax, Experian and Transunion. This not only lessens your junk mail but it will also lessen your chances of becoming a victim of identity theft. Order Number The order number is the 17 character alphanumeric field that may be used between the Cardholder and the Merchant for accounting or tracking of purchases Over the Credit Line Fee If you exceed your credit line, you will find yourself subject to a fee of around $29 even if your credit card company authorized the charge that put you over the top. Overlimit This refers to a cardholders account that has surpassed its credit limit with a transaction. (Their outstanding balance is beyond their credit limit.) Paper Draft Sales slips, credit slips, cash disbursement slips, drafts, vouchers, and other obligations indicating use of a card or a card account all qualify as a paper draft. P-Card or Pcard Pcard is an abbreviation for Purchasing Card, Purchase Card, Procurement Card, or Purchasing Card.

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Personal Identification Number (PIN) Your PIN is the password that you choose to enable you to use your credit card at Automatic Teller Machines more commonly known as ATMS for short. Usually a PIN consists of four numbers. It is recommended that you memorize your PIN number and refrain from picking an obvious number such as your birthday. That way if you are the victim of identity theft it is harder for the thieves to figure out the PIN that will give them access to your account. Per Transaction Fees Per Transaction Fees are amounts paid by the merchant to the merchant bank or other contracted party on a per transaction basis. Point of Sale Terminal This is the electronic terminal where you swipe your card. The terminal dials a stored telephone number (using a modem) to call an acquirer. An acquirer is an organization that collects credit-authentication requests from merchants and provides the merchants with a payment guarantee. When the acquirer company gets the credit-card authentication request, it checks the transaction for validity and the record on the magstripe for: Merchant ID Valid card number Expiration date Credit-card limit Card usage Once all of the above is verified, the credit card transaction can take place. PreApproved Credit Card A pre-approved credit card is an offer that is sent to you from another credit card company that offers a lower interest rate on your credit card balance then the card you have now. Usually in the cover letter you are told that you are being offered this rate because you have a good credit rating or because you have been approved for a higher credit limit then the one you have on your current credit card. Pre-Approved Credit Cards are usually offered as the result of the credit card company obtaining lists from the major credit reporting agencies of people who meet certain criteria. The individuals on these lists are then solicited to acquire for more credit cards. If you say yes to a pre-approved credit card the first thing that the credit card company actually does is make an inquiry into your credit report. This causes a negative mark on your credit. The reason they have to do this is explained in the fine print of the preapproved credit card offer.

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Even though you have been approved for the new card you are not actually pre approved for the great new interest rate that was offered in your direct marketing pitch. Instead (if you read the fine print) your credit rating may be examined and then you may be offered a somewhat less favorable interest rate or significantly lower credit limit in a subsequent credit card mailing. Also you may not quality for the low interest rate unless you agree to transfer your entire present credit card balance to the new card. Otherwise you could end up paying even more interest then you were on your new card. Pre-Printed Envelope When you credit card bill arrives it also comes with a pre-printed envelope that you can enclose your payment in. It is always a good idea to use the pre-printed envelope that comes with your bill to pay your debt as it ensures a more efficient processing of your payment. When paying your credit card bill make sure that you have included the tear-off billing slip at the bottom of the bill and write clearly the amount you are paying in the spaces on the form provided. Remember also to write legibly and to put your credit card number on the check if you are using a check to pay. Previous Balance This is one of the three main ways that the credit card companies calculates your finance charges. This is where the credit card company takes your previous months statement and multiplies it by your interest rate to arrive at the figure that represents your monthly finance charge. Obviously this method of calculating monthly interest is more advantageous to the credit card company as using this method also allows the company to charge you interest on balances that you have already attempted to reduce with payments. Primary Account Number This refers to the number that is embossed, encoded, or both, on a plastic card that identifies the issuer and the particular cardholder account. Prior Authorization An authorization usually done before a transaction takes place. The approved authorization request may be held for an extended length of time before a card is present or not. Processing Date This is the date when the acquiring bank processes the credit card transaction. Pulaski Bank The Pulaski Bank is renowned for its offering of a prestigious Gold VISA card that is interest free for the first six months if you qualify. It also has a low rate and no annual fee.

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Purchase Protection This is a perk that is offered with some credit cards that entitles you to be reimbursed if stolen or damaged products are accidentally purchased with the card. Usually credit cards that offer purchase protection have a higher annual fee than most credit cards. Qualifying For A Credit Card To qualify for a credit card lenders look for the following criteria A history of paying in full and on time. If you pay your bills on time, youll look great to the lenders. If you have a lot of late payments, this can hurt your chances of getting a card, and, if the lender decides to issue you a card, its probably going to have a higher interest rate. A good debt load history- Lenders generally want to see that you are a good credit risk and that you arent living beyond your means. Experts say that non-mortgage credit payments each month should not exceed more than 10 percent to 15 percent of your takehome pay. Signs of financial stability and personal responsibility - Being at a job or an address more than two years is a sign of stability as is having a respected profession. A lack of credit inquiries on your credit report - Whenever you apply for a credit card, the lender pulls your credit report from one or more of the major bureaus as part of the approval process. Each time a report is pulled, its marked as an inquiry and stays on your credit bureau report for two years. Lenders perceive several inquiries on your report as indications that youre desperate for loans and may consider you a poor credit risk. So, in order to beat this system, dont allow every credit-card issuer you speak with to pull your report. A lack of available or unused credit. Having credit cards that you dont use and ones with a zero balance on them can hurt your credit. Use your credit every now and then. Questions You Should Ask Yourself About Credit Here are some questions you should ask yourself before you choose a credit card. Will you be paying off your balance off in full every month or do you intend to carry a balance every month and pay the entire debt off gradually. If you are paying off your entire balance every month the interest rate is not as relevant as you will be paying before the grace period (usually about 25 days) is up and you will not be accruing interest. On the other hand if you intend to carry a balance the lowest interest rate is in your best financial interest simply as it will lower the amount of your monthly payments as well as how much borrowing with this credit product will cost you over the long term. Is your interest rate fixed or variable and if it is variable to what index is it tied? Some indexes have higher or more fluctuating rates than others.

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If you are considering a pre-approved credit card with a teaser rate are you familiar with the conditions that could suddenly cause you to lose the low interest offer? Also do you know what your interest rate will be once the low introductory period has lapsed and is the renewed rate less then what you are paying on your current credit card balance or more? Does your credit card have an annual fee and if it does just exactly what are you paying for in return. Are you getting your moneys worth? Generally the lower the interest rate is on the credit card, the more likely it is also to have an annual fee. How is the minimum monthly payment calculated? Keep in mind that an adjusted balance is the friendliest calculation for a credit card user. If you are transferring balances from other credit cards to your new card what are your conditions and fees for doing so? In addition to the annual fee, what other penalties and fees are connected with using the card? Receipt A hard copy document recording a transaction that took place at the point of sale, with a description that usually includes: date, merchant name/location, primary account number, amount, and reference number. Recurring Billing Recurring billing describes transactions for which a cardholder grants permission to the Merchant to periodically charge his account number for recurring goods or services. Reference Number The reference number is assigned to each monetary transaction in a descriptive billing system. Each reference number is printed on the monthly statement to aid in retrieval of the document, should the cardholder question any of its contents. Refund This is an amount that is returned to you by the credit card company should you find an error on your credit card bill (statement.) Rental Car Insurance This is a perk offered by some credit cards that is particularly attractive to the frequent traveler. Rental Car Insurance covers the cost of auto rental loss and damage should you need it after renting a car. Check the fine print to see if your card offers rental car insurance. If it does, your card probably has a higher annual fee. However if you rent a lot of cars this may be worth it as it means that you dont have to buy the overpriced rental car insurance offered by the car rental companies.

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Retrieval Request A retrieval request constitutes an issuers request for a transaction receipt, which could include the original, a paper copy or facsimile, or an electronic version of a transaction. Returned Payment Fee If your check to the credit card company bounces, there is a fee o about $29 as a returned payment fee even if that same check is resubmitted a second time and honored. Revolving Credit Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to installment credit. Typical characteristics of revolving credit include The borrower may use or withdraw funds up to a pre-approved credit limit. The amount of available credit decreases and increases as funds are borrowed and then repaid. The credit may be used repeatedly. The borrower makes payments based only on the amount theyve actually used or withdrawn, plus interest. The borrower has the choice of repaying the balance over time (subject to any minimum payment requirement), or in full at any time. Reversal A reversal is an online financial transaction used to negate or cancel a transaction that has been sent through an interchange in error. Reward Plans Reward Plans are programs that allow your credit card purchases to provide you with points that can be redeemed for merchandise, services or that can be transferred to frequent traveler programs of hotels or the frequent flier programs of the various airlines. Reward plans can vary drastically from card to card. Out there on the market there is probably a rewards card for everything. You can get reward cards for making donations to charities, humane societies, emergency relief organizations, wild life funds, political causes, non partisan causes and tickets to the theater or sporting events. You can even a get a card through American Express (through Space Adventures Ltd.) that puts points toward sub-orbital space flight and zero gravity travel in the far future. The theory behind the rewards program is a simple one. The credit card issuer wants to encourage you to use the card as much as possible so that they will receive more fees from participating merchants. The benefits to the cardholder are obvious you get something for nothing.

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Some credit card companies are even permitting you to use your reward points towards reducing your mortgage. An example is the Citibank Home Rebate Platinum Select MasterCard, which allows you to put your rewards points towards the cost of your mortgage loan. Sales Draft A sales draft is simply any paper record evidencing the purchase of goods or services by a cardholder. Secured Credit Card People who may not otherwise be able to qualify for a standard credit card may find that they are eligible for a secured credit card. This type of credit card requires that the credit card holler have a bank deposit with the card-issuing bank. This deposit is used to guarantee or secure the payment of the credit card bills. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. Thus if the cardholder puts down $1000, he or she will be given credit in the range of $500$1000. In some cases, credit card issuers will offer incentives even on their secured card portfolios. In these cases, the deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings account. The line of credit extended on the secured credit card is closely related to that bank account which can be reached by the bank if the credit card holder fails to pay his or her monthly credit card bill. Secured credit cards are often used to repair damaged credit or establish a credit history where there is none. The responsible use of a secured MasterCard or Visa may enable someone to establish a good enough credit record to enable him or her to become eligible for a standard, unsecured credit card. The cardholder of a secured credit card is still expected to make regular payments, as he or she would with a regular credit card, but should he or she default on a payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit. Although the deposit is in the hands of the credit card issuer as security in the event of default by the consumer, the deposit will not be credited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account that is less than 150 days delinquent will continue to accrue interest and fees, and could result in a balance, which is much higher than the actual credit limit on the card. In these cases the total debt may far exceed the original deposit and the cardholder not only forfeits their deposit but also is left with an additional debt. Most of these conditions are usually described in a cardholder agreement, which the cardholder signs when their account is opened.

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Secured credit cards do not differ in appearance from unsecured credit cards in any way so there is no embarrassment if you have to use one. Security Tips For Your Credit Card Here are some ways to keep your credit card information secure and safe from identity theft experts Always sign your card as soon as you get it. Although many clerks fail to check your signature when you make a purchase it is a good way to keep your card secure. Do not give your credit card number over the telephone unless you have placed the call. Dont forget to get your card back after you make a purchase. Always keep your credit card on the counter until a clerk returns the card to you. Always keep a list of all of your credit card numbers and the toll-free numbers to call if your credit card numbers to call. Dont leave your ATM slip behind at the ATM. Never give your number out over a cordless phone, which can be picked up by a radio scanner. Always check your monthly statement to make sure that all of the charges on it belong to you and are your own. Set Number of Late Payments This is another one of those terms that is often hidden in the fine print of your credit card plan agreement. In essence the set number of late payments determines how many late payments you can make before your credit card company is allowed to raise your interest rate to as much as 30% - although the average set number of late payments interest rate is about 29.99%. Settlement The reporting of settlement amounts owed by one member to another, or to a card issuing concern, as a result of clearing. This is the actual buying and selling of transactions between the merchants, processors, and acquirers; along with the card issuing entities. Shredder An automated machine that is used to shred documents that have private financial information on them that could be stolen by identity thieves. For instance, make sure you destroy any pre-approved credit card offers that you receive in the mail as they can be used by identity thieves to establish credit in your name!

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Site Data Protection Program The Site Data Protection program is often referred to by its an acronym SDP. An information security standard sponsored and promoted by MasterCard that applies to any organization that stores or handles their credit card account numbers. Statement A written record prepared by a financial institution, usually once a month, listing all transactions for an account, including deposits, withdrawals, checks, electronic transfers, fees and other charges, and interest credited or earned. The statement is usually mailed to the customer. Terminal ID In the payment card industry, this is a number provided to a merchant by a credit card processor when that merchant retains the services of that credit card processor to uniquely identify a terminal. The terminal ID is also sometimes called the terminal number. A credit card processor may assign several terminal IDs to a given merchants terminals although that merchant has a single merchant ID with that processor. Toll-Free Number This is the number provided by your credit card company to customers so you can call them in case of an emergency (a card is lost or stolen) and to make inquiries about your account. A toll-free number always begins with the numbers 1-800. This spares you the expense of having to pay long distance. Transaction The definition of transaction in the credit card industry covers the following any agreement between two or more parties that establishes a legal obligation the act of carrying out such an obligation. all activities that affect a deposit account that are performed at the request of the account holder. All events that cause some change in the assets, liabilities or net worth of a business. Action between a cardholder and a merchant or a cardholder and a member that results in activity on the cardholder account. Transaction Identifier A unique 15-character value that VISA assigns to each transaction and returns to the Acquirer in the authorization response. VISA uses this value to maintain an audit trail throughout the life cycle of the transaction and all related transactions, such as reversals, adjustments, confirmations, and charge backs.

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Transaction Processor This is a business entity that validates and authorizes credit card purchases. The transaction processor may also service the actual accounts on behalf of the issuers, emboss cards, and mail cards to cardholders. Transaction Type A specific type of financial detail transaction activity that can be submitted to the clearing system Transfer Fees When you succumb to offers to transfer your balance on one card to another card with a lower interest rate, you may not notice that the terms of your agreement often provide for a fee of as much as 3 percent of the amount of the debt you transfer. Travel Card Travel Cards are one type of corporate/commercial card. They are typically issued to individuals who have to travel and incur travel-related expenses on behalf of their business or organization. A travel card program may be configured in many different ways by the card-holding organization and its issuer to meet a variety of different business needs. Truth in Lending Act No matter what kind of card and plan you choose, you should have access to the following information under the federal Truth in Lending Act so that you can compare one loan to another. This is the kind of information that you have the right to know when comparing credit cards Finance charges in dollars and as an annual percentage rate (APR) Credit issuer or company providing the credit line Size of the credit line Length of the grace period, if any, before payment must be made Minimum payment required Annual fees, if applicable Fees for credit insurance (if any), which pays off your loan if you die before thedebt is fully repaid

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Travel Discounts Travel discounts are offered as perk on some credit cards. This allows you to receive discounts on hotel prices and car rentals in some circumstances. This type of credit card usually has a higher annual fee then most credit cards. US Bank The Us Bank offers a specialty card for travelers called the World Perks Visa that is loaded with Bonus miles and other travel related features. However, it also has a high interest rate of 18%. User Authentication User Authentication is the process of validating that a user is who they represent themselves to be. Using Credit Cards Abroad Credit-card acceptance varies around the world. For example, in some countries (including France), Visa and MasterCard networks have been merged so that all merchants who take one type of card, take them both. On the other hand, the cashadvance networks have not been merged so it is difficult to take out a cash advance. To be safe it is a good idea to take both a MasterCard and a Visa abroad. American Express and other travel cards were originally aimed at an upscale market and offer such perks check cashing, mail-holding and cash-advance services to traveling cardholders. Visa and MasterCard now offer the same. American Express and Diners Club are widely accepted in the United States, although not as widely as Visa and MasterCard. In Europe, there are increasingly fewer places that accept only Diners Club or only American Express. In France, you can use American Express at more places than in the United States; in Italy, Germany, England and Greece, you can use it less, in general, except in shops with special appeal to tourists. Validation Code Your validation code is a unique 4 character value that VISA includes as part of each authorization response to ensure that key authorization fields are preserved in the clearing or settlement record Variable Rate The variable rate is the prime rate (which varies) plus an added percentage onto your rate by the credit card company so they can make a profit. (For example, your rate may be PR + 5.9 percent.) Whether the credit-card plan uses a variable or fixed rate in charging interest can have a significant effect on what you pay to use your card. Credit-card companies that issue variable-rate plans use indexes such as the prime rate, the one-, three- or six-month Treasury Bill rate, or the federal funds or Federal Reserve

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discount rate. These figures can be found in most major newspapers and the universal source of variable rate figures is the Wall Street Journal. Once the interest rate corresponding to the index has been identified, the credit-card issuer then adds a number of percentage pointscalled the marginto this index rate to come up with the interest rate that the consumer will be charged. I If you do choose a variable-rate card, check to see if there are caps on how high or how low your interest rate can go. If the lowest variable rate possible on your card, for example, is 15.9 percent, and rates are falling downward, you may want to switch your card to another lender. VISA This is the name for Visa International Service Association and all of its subsidiaries and affiliates. Visa Acquirer This term describes a customer that signs a Visa merchant or disburses currency to a Visa cardholder in a cash disbursement, and directly or indirectly enters the resulting transaction receipt into interchange. Visa Commerce Visa Commerce is a newly released offering by Visa to support corporate card programs by allowing the buyer and seller to establish the trading rules supporting their businesses. Voice Authorization A voice authorization approval response obtained through interactive communication between an issuer and an acquirer, their authorizing processors, or stand-in processing, through telephone, facsimile, or telex communications. Void Transaction A void transaction describes a credit card transaction that has been deleted. Visa Merchant A merchant that displays the Visa symbol in his store and accepts all Visa cards. VisaNet The systems and services, including the V.I.P. system and BASE II, through which Visa delivers online financial processing, authorization, clearing, and settlement services to members. Zero Interest Credit cards Zero Interest cards are temptations that promise no interest for a temporary length of time. They are marketing devices designed to lure you to a different credit card by offering to have your present outstanding balance transferred to their card to be paid off at zero percent interest.

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Usually the period of zero interest offered is about six months. However some of the credit cards out there will offer this zero interest for the life of the loan. Of course there is a big catch for this. Common terms and conditions for these zero interest cards include being required to use the card for purchases every month at certain dollar month. If you fail to meet any of the terms or conditions of the zero percent agreement you may find your interest rate on the transferred balance serving to heights beyond 30%. The zero interest card company can also do nasty things to you like smack on an outrageously high interest rate at their sole whim and discretion if you miss one payment or even if you miss one payment to another credit card company or are late with any of your bills or with your mortgage! Ideally your zero percent interest rate would stay with your for the entire time it took you to pay off your transferred balance from your previous credit card. However any payments that you make on the card are first applied to reduce the transferred balance. The amounts you charge presently on your new card are subject to whatever the interest rate is for new purchases. Of course this figure might be significantly higher than the zero percent you are carrying for your transferred balance, So as your balance on the card for new purchases increases (carrying with it that higher interest rate) you may find yourself with a great deal of high interest rate debt after having paid off the transferred balance. A zero interest rate credit card is only worth your while if you are able to meet the minimum present monthly card usage requirements without running up additional charges on the card and if you can pay off your transferee balance relatively quickly without ever once being late on a payment to the card issuer.

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 Bibliography: Information extracted from: http://creditme.com/ http://www.creditme.com/credit-articles/detail/the-vocabulary-of-credit-cards/ http://www.creditme.com/credit-card-glossary/

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http://www.creditme.com/credit-card-glossary/